FAA grants O’Hare use of PFC funds for expansion
FAA grants O’Hare use of PFC funds for expansion
by Carol Henrichs
A green light now shines on the City of Chicago’s funding for its O’Hare Modernization Plan.
Earlier this month, the Federal Aviation Administration authorized the use of the much beleaguered passenger facility charges (PFC), for the expansion plan with the belief that it will help reduce delays and increase capacity at O’Hare, the nation’s second-busiest airport. A PFC is a $4.50 head tax added to the price of an airline ticket.
The city will collect almost $1.3 billion in revenue to contribute to its estimated $6.6 billion in improvements.
The FAA decision is a milestone for the city which made its request for funds in January. In the landmark decision, the FAA said the revenue may be directed not only toward building new runways, but also for land acquisition. Some of the land being sought to improve the airport, lies within the village boundaries of Bensenville, whose mayor is one of the most vocal critics of the city’s plans. Approximately $270 million will go toward land acquisition costs.
O’Hare Modernization is the largest airport expansion project in the nation’s history. It is expected to increase the number of takeoffs and landings from 950,000 this year to more than 1.2 million by 2018.
PFC’s were approved in 1992. They were capped at $3. But, in 2001, that cap was lifted to $4.50.
The recent FAA decision also extended the $4.50 cap from June 1, 2016 through May 1, 2024.
Gary/Chicago to benefit
In addition to the O’Hare Modernization Plan, some of the funds collected are to be earmarked for use at the Gary/Chicago Regional Airport.
Gary/Chicago has a $90 million expansion plan of its own in the works. The City of Chicago has been providing some PFC funds to the Gary airport since 1995, despite criticism from the Illinois Dept. of Transportation, who tried to sue the FAA, City of Chicago, and former U.S. Secretary of Transportation Federico Pena in 1997.
IDOT tried to obtain PFC funds for its Peotone project.
But, the U.S. Court of Appeals for the Seventh Circuit dismissed a suit brought by IDOT. Chief Judge Richard Posner stated that a provision of the Federal Aviation Act empowers agencies to levy a "passenger facility charge" on all enplaning passengers to finance improvements either at the airport where the passenger originated, or at any airport the agency controls.
In 1995 the City of Chicago entered into a bistate agreement for airport authority. Since that time, the Gary airport has received approximately 1.5 percent of charges collected at Chicago airports.
In his opinion, Posner wrote, "The improvements are designed to enable the Gary airport to handle some of the freight and passenger traffic that O’Hare and the other Chicago airports are too busy to handle."
Further, he said, "Gary’s airport is almost as close to downtown Chicago as O’Hare is and is closer to the south side of Chicago and to Chicago’s southern suburbs."
Finally, he said IDOT had no right to impose its own passenger facility charges because it has no financial stake in O’Hare.
Gary’s ambitious expansion project is already underway. It involves lengthening a runway, some land acquisition, and moving rail and electric lines.
In addition to PFCs, the project is slated to receive $57.8 million from the FAA and $20 million from the Northwest Indiana Regional Development Authority.
Categories: Gary/Chicago International Airport, IDOT, South Suburban Airport, Transportation, O'Hare, FAA, Bensenville, Peotone airport
To CHblog, 9/12/07
Thanx, Carol for further clarifying, through your vast experience on the so-called "third" Chicago, regional, south suburban airport" how the FAA recognizes PFCs "will help reduce delays and increase capacity at O'Hare."
It is interesting to note that the FAA, like Chief Judge Posner, in dismissing IDOT's attempt to obtain PFC funds for its Peotone suit, authorized O'Hare's use of PFC "revenue... toward building new runways, but also for land acquisition," said little more than necessary about the SSA, in Eastern Will County, while emphasizing the existence & operation of the Gary/
Chicago Regional Airport.
Having these rulings as precedent from the courts & FAA that control the future of a SSA, it is beyond reason for me to comprehend why IDOT believes its pet consultant-feeding "project" has any life, beyond preparation for a celebratory, New Orleans-like wake & funeral.
For (bad acting) IDOT Secretary, Milton Sees & Division of Aeronautics, director, Suzy Shea, I refer them to Judge Posner's opinion that ruled, only the Gary airport "improvements are designed... to handle some of the... traffic that O’Hare and the other Chicago airports are too busy to handle... [and] Gary’s airport is almost as close to downtown Chicago as O’Hare... and is closer to the south side of Chicago and... southern suburbs..."
I would also suppose Posner could have added, "IDOT had no right to impose its own passenger facility charges because it has no financial stake in O’Hare..." [and] did not even have control over an airport in Will County to which a "head tax" might be "added to the price of an airline ticket."
And, thanx for further informing a certain member of congress, who thinks he represents Peotone, Beecher & Monee, that "Gary’s ambitious expansion project is already underway" thanx to "1.5 percent of [PFC] charges collected at Chicago airports, "$57.8 million from the FAA and $20 million from the Northwest Indiana Regional Development Authority." As opposed to Mr. Jackson's, $0.
Taking all this into consideration, we do need to pray that Gary will be able to attract AND KEEP a quality air passenger carrier for an extended length of time.
God Bless All, Walt McElligott, Beecher, IL
Reply to this
Greetings from Moldova!
Reply to this
Greetings from Moldova!
Reply to this
What a great web log. I spend hours on the net reading blogs, about tons of various subjects. I have to first of all give praise to whoever created your theme and second of all to you for writing what i can only describe as an fabulous article. I honestly believe there is a skill to writing articles that only very few posses and honestly you got it. Thecombining of demonstrative and upper-class content is by all odds super rare with the astronomic amount of blogs on the cyberspace.
Reply to this
I want to thank you for your very kind words. It is comments like these that make me want to continue working as a writer.
Reply to this
I can not find a feedback form. How can I contact the owner of the site?
Reply to this
Feel free to contact me at carol@ozarkattitude.com
Reply to this