\nIn the press release, Barclay argued that “the carriers’ continued opposition to an increase in the local passenger facility fee is both shortsighted and inconsistent given the airlines’ increasing reliance on ancillary fees to support their own operations. With ancillary fee collections growing rapidly and producing billions in airline revenue, it’s difficult to understand why the industry opposes the collection of a mere fraction of that amount by local authorities to fund critical airport safety, security, and capacity improvements.”<\/em><\/p><\/blockquote>\nThe airline responded by claiming that their fees are optional while the airport fees are mandatory:<\/p>\n
“What\u2019s more, it is not a direct comparison to ancillary fees; the fees collected as reported by the BTS reflect airline charges for optional services\u2014changing a ticket or checking a bag,” it continued. “Last we checked flying into an airport was not an optional purchase.”<\/em><\/p><\/blockquote>\nYeah right. There are tons of mandatory airline fees out there. Ultra low cost carriers like Spirit and Allegiant are full of such fees that are unavoidable. Many airlines charge fuel surchage fees that are about as mandatory as an airport. US Airways charges award booking fees and so forth.<\/p>\n
At Least Passenger Fees Go Somewhere<\/strong><\/p>\nIn fact, I would argue that passengers see more value in airport fees than they do in airline fees. An airline might charge a passenger $150 to change a ticket, something that the passenger may do online at virtually no cost to the airline. At the same time, airport fees go to real brick and mortar projects that cost the airport actual money. Have you been to an airport lately? Virtually every airport is constantly be upgraded, expanded, and refurbished at all times. Atlanta is getting a new international terminal, Denver is getting a train station, Chicago is re-aligning all of their runways and so on. Passengers get a big bang for their buck from these fees as opposed to the $125 to carry your pet on board.<\/p>\n
Airports Aren’t Blameless<\/strong><\/p>\nMy argument against the airlines does not absolve the airports for their request to raise their own passenger fees 56%. One could argue that all of the airport improvements are occurring with the current fees, so why raise them? The most important new projects, new runways, are more at the mercy of environmental regulations and local opposition, not a lack of funds. I would be happy with the fees staying where they are and airports continuing to charge the airlines a per passenger fee. This allows the airlines to compete with each other for the lowest fees to attract the most service. Finally, airports charge plenty of fees themselves. Parking rates are rising much faster than inflation, and the United States is one of the few countries where airports charge for the use of luggage carts. High airport rents also result in inflated prices at airport stores and restaurants.<\/p>\n
Frankly, I have yet to see a persuasive argument against the status quo. Meanwhile, airlines will continue to quietly increase their fees on passengers while loudly complaining when an airport tries to do the same. I expect no less from this industry.<\/p>\n