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An airport improvement fee or embarkation fee or airport tax or service charge or service fee is an additional fee charged to departing and connecting passengers at an airport. It is levied by government or an airport management corporation and the proceeds are usually intended for funding of major airport improvements or expansion or airport service.[ citation needed ] Some airports do not levy these fees on connecting passengers who do not leave the airport or whose connecting flight is within a specific timeframe after they arrive.
In the United States, the federal passenger facility charge (PFCs) program allows the collection of PFC fees up to $4.50 for every enplaned passenger at commercial airports controlled by public agencies. Airports use these fees to fund FAA-approved projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition. Federal law limits use of PFC funds strictly to the above categories. [1]
Depending on the location, the airport improvement fee is included in the cost of traveller's airline ticket, in which case the airline will forward the fee to proper agency. However, in some locations the fee must be paid at the point of embarkation. This often creates difficulties for departing passengers who are unfamiliar with this type of procedure, or for departing international passengers who have already exchanged all their local currency. The amount varies usually between US$10 and $30.[ citation needed ] In some instances, the fee continues to be charged long after construction has been completed (e.g. Ottawa Macdonald–Cartier International Airport). A legitimate reason for this is that the airport must finance the cost of the improvement and then pays off these costs over an extended period of time.
Airports currently collecting an explicit airport improvement fee include:
An airport is an aerodrome with extended facilities, mostly for commercial air transport. Airports usually consist of a landing area, which comprises an aerially accessible open space including at least one operationally active surface such as a runway for a plane to take off and to land or a helipad, and often includes adjacent utility buildings such as control towers, hangars and terminals, to maintain and monitor aircraft. Larger airports may have airport aprons, taxiway bridges, air traffic control centres, passenger facilities such as restaurants and lounges, and emergency services. In some countries, the US in particular, airports also typically have one or more fixed-base operators, serving general aviation.
Ryanair is an Irish ultra low-cost carrier group headquartered in Swords, Dublin, Ireland. The parent company Ryanair Holdings plc includes subsidiaries Ryanair DACTooltip Designated activity company, Malta Air, Buzz, Lauda Europe and Ryanair UK. Ryanair DAC, the oldest airline of the group, was founded in 1984. Ryanair Holdings was established in 1996 as a holding company for Ryanair with the two companies having the same board of directors and executive officers. In 2019 the transition began from the airline Ryanair and its subsidiaries into separate sister airlines under the holding company. Later in 2019 Malta Air joined Ryanair Holdings.
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Air Passenger Duty (APD) is an excise duty which is charged on the carriage of passengers flying from a United Kingdom or Isle of Man airport on an aircraft that has an authorised take-off weight of more than 5.7 tonnes or more than twenty seats for passengers. The duty is not payable by inbound international passengers who are booked to continue their journey within 24 hours of their scheduled time of arrival in the UK. If a passenger "stops-over" for more than 24 hours, duty is payable in full.
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A departure tax is a fee charged by a country when a person is leaving the country.
The passenger movement charge (PMC) is an Australian tax payable by passengers departing Australia on international flights or sea transport, whether or not the passenger intends to return to Australia. The PMC was introduced in July 1995 and was initially described as a charge to partially offset the cost to government of the provision of passenger facilitation at airports, principally customs, immigration and quarantine functions.
A passenger facility charge (PFC) is a fee that almost all airline travelers in the United States pay in their ticket price. The fee goes toward the upkeep and maintenance of airports, and is set up and capped according to US federal law.
Types of aviation taxation and subsidies, and implementations, are listed below. Taxation is one of several methods to mitigate the environmental impact of aviation.