FOR IMMEDIATE RELEASE
October 19, 2000
Media Contact: Mike Blanton, Public Affairs Manager
Phone: (919) 840-2100, ext. 207 Pager: (919) 981-2135

RDU Addresses Passenger Facility Charges And Parking Rates

RDU Airport, NC --- The Raleigh-Durham Airport Authority decided today to seek approval from Federal Aviation Administration (FAA) to implement passenger facility charges (PFCs) of between $3 and $4.50 to help pay for more than $1 billion in capital improvements planned during the next decade.

The Authority also authorized a modest parking rate increase to become effective sometime during first quarter, 2001. Daily parking rates will rise $2 and long-term rates will increase by $1 or $2 depending on the lot.

"We are working to identify and evaluate all available funding sources and revenue streams in order to pay for more than $1 billion in planned airport expansion and improvement projects during the next decade," Bob Winston, Airport Authority Chairman said.

Implementing a PFC program at RDU would raise $10-15 million annually by adding a nominal user fee to each airline ticket. Revenue generated from the charge would be applied toward the cost of a massive redevelopment project of RDU's Terminal A, which is expected to exceed $600 million in cost. More than 80 percent of the large and mid-sized airports in the U.S. currently have FAA approved PFC programs in place.

PFCs would not begin appearing on airline tickets at RDU until Federal approval is obtained in approximately one year.

The Authority has spent more than $53 million in parking improvements during the last two years and needs an increase in parking rates to generate additional revenue in order to continue parking improvements. Construction on RDU's next parking deck is slated to begin in March of next year. This deck will contain 6,150 spaces and is expected to cost more than $120 million.

• The Passenger Facility Charge program was initiated by the Federal Aviation Administration (FAA) in 1992 to help airports pay for major capital improvements.
• The FAA administers the program by reviewing and approving airport applications and by monitoring the collection and disbursement of PFC revenues.
• A PFC is a passenger boarding fee charged for every flight segment. Most PFCs currently in place are $3.00 per flight segment. There is a $12 maximum per ticket based on a $3.00 PFC. A $3.00 PFC at RDU would raise RDU's average one-way fare from $149.00 to $152.00.
• 82% of the 68 large and medium hub U.S. airports have a PFC program (RDU is a medium-hub airport)
• Projects qualifying for PFC support must meet at least one of the following objectives: 1) Preserve or enhance airport safety, security or capacity; 2) Reduce the impact of noise; 3) Enhance airline competition
• PFC revenues can only be used to pay for on-airport improvements
• Typical projects eligible for PFC funding include runways, taxiways, roadways and terminals. Projects not meeting PFC funding restrictions typically include parking facilities, concessions, rental car improvements and many other types of projects.
• Other North Carolina airports that now collect PFCs include Asheville, Fayetteville, Greenville, New Bern and Wilmington. Charlotte Douglas Intl and Piedmont Triad Intl do not currently have a PFC program in place.
• PFCs help airports either fund projects on a pay-as-you-go basis or allow airports to leverage future annual PFC collections with a bond issue to fund project costs.
• All PFC applications are subject to FAA approval and the airlines must be consulted before using PFC revenue to pay for eligible airport projects, but airline approval is not required.
• A PFC program will provide RDU an additional $10-15 million in annual revenues.
• Airlines are responsible for collecting PFCs from passengers and sending the appropriate payments to RDU on a monthly basis.
• RDU must submit detailed quarterly status reports to the FAA reporting PFC cash flows on a project basis.
• RDU staff has asked the RDU Airport Authority to conceptually approve a PFC program so staff can begin the detailed process of completing the FAA applications.
• Assuming FAA approval of our application, all initial PFC revenues at RDU will be applied toward the massive redevelopment and expansion of Terminal A.
• The FAA application process is expected to take between 7 and 12 months to complete.

RDU Proposed Parking Rate Increase

• In order to pay for more than $53 million in parking improvements made during the last 18-24 months and to help pay for the next parking deck (6,150 spaces at a cost of more than $120 million), it has become necessary to increase parking rates.

• This is the first increase in parking rates since January of 1997.
• Proposed increase will not take effect until first quarter, 2001, after this year's holidays.
• Daily Parking Rates would increase as follows:

  2000 Rate	2001 Rate:
  Hourly $18	$24
  Park and Ride 1 $4	$6
  Park and Ride 2 $4	$5
  Park and Ride 3 $3	$5
  Park and Ride 4 $3	$4
  Daily Parking $6	$8

• Even with this rate increase, RDU's parking rates will remain one of the best parking values compared to rates charged by similar sized airports.