Philadelphia - Philadelphia International Airport (PHL) has initiated a 6% reduction in landing fees for airlines that serve the Airport, a move that will save the carriers $2.2 Million in Fiscal Year 2005. Landing fees, which are assessed per 1,000-pound unit of aircraft weight, have dropped from $2.12 per unit to $1.99. The fees apply for each aircraft landing.
"At this time, when many airlines are enduring financial hardships, the Airport is seeking ways to alleviate those burdens," said Charles J. Isdell, the City's Director of Aviation. "By reducing landing fees and other costs, we are doing what we can to assist the carriers and ensure that the level of air service in Philadelphia will be maintained."
With the reduction in landing fees, the airlines' overall revenue requirement will decrease by $4.5 million. The revenue requirement encompasses landing fees, rates and other charges for which the airlines are responsible.
"Cost-conscious budgeting and increases in various revenue sources enable us to extend some financial relief to the airlines," said Edward Anastasi, Deputy Director of Aviation, Finance and Administration. "In Fiscal Year 2004, the Airport established a record for passenger traffic and air service has expanded significantly. These factors have had a positive financial impact on the Airport."
The total FY 2005 Aviation Fund budget is $218.4 Million. This includes costs for personnel, operations and maintenance, utilities, equipment, Police and Fire staffing, debt service and other operating expenses, which will be fully funded by revenues from Airport operations. These non-tax revenue sources include terminal building space rentals, landing fees, net parking revenue, concession fees and other revenue generators.
The Airport System is self-sustaining and does not use resources from the City of Philadelphia's General Fund to support operations at Philadelphia International or Northeast Philadelphia airports.
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The Philadelphia Airport System is owned and operated by the City of Philadelphia and is composed of Philadelphia International Airport and Northeast Philadelphia Airport. The Airport System is a self-sustaining entity that operates without the use of local tax dollars. It is one of the largest economic engines in Pennsylvania, generating an estimated $8 billion in spending to the regional economy and employing a workforce of nearly 22,000.