ASCI 254 Module 6.2 Case Analysis Passenger Facility Charges A Conundrum.docx - Running head PFCs Pros or Cons Should They Be Raised to Pay for 21st

ASCI 254 Module 6.2 Case Analysis Passenger Facility Charges A Conundrum.docx

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Running head: PFCs: Pros or Cons - Should They Be Raised to Pay for 21st Century Airport Infrastructure?" 1PFCs: Pros or Cons - Should They Be Raised to Pay for 21st Century Airport Infrastructure?"Module 6.2 Case Analysis: Passenger Facility Charges - A ConundrumChas PhillipsEmbry-Riddle Aeronautical UniversityMarch 28, 2019
PFCs: Pros or Cons - Should They Be Raised to Pay for 21st Century Airport Infrastructure?" 2PFCs: Pros or Cons - Should They Be Raised to Pay for 21st Century Airport Infrastructure?"I.SummaryThe airline industry has been historically known to experience debilitating events that bring forth doubts about its future survival. “Reports indicate that, as of August 20, 1993, the airline industry was $35 billion in debt.” (Imes, 1995, pg.1040). The dismantled state of air transportation was first recognized by President George H.W. Bush and later by President Bill Clinton, who, intent on fixing the issue, instated the National Commission to Ensure a Strong Airline Industry. Recognition of these issues compelled Congress to authorize airports to collect a nominal head tax on all passengers departing. This head tax came to be known as the PassengerFacility Charge and is primarily used for capital improvements of airport infrastructure and accompanying subsidiaries.

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