Burbank Airport Seeks OK for Passenger Tax : Finances: The levy of $3 per person would go toward paying for land and improvements associated with a new terminal.
BURBANK — In a move to jump-start funding and construction of a new terminal, Burbank Airport officials Monday asked the federal government for permission to impose a $3 fee on all outbound passengers.
Airport Authority commissioners hope the levy--which could begin by summer’s end--will raise about $6 million a year at current passenger levels to subsidize improvements that would accompany a larger terminal.
The “passenger facility charge†would automatically be added to ticket prices for those flying out of Burbank.
If the authority’s request is approved by the Federal Aviation Administration, as is expected within six to nine months, Burbank would join other area airports, including Los Angeles International and Ontario, in assessing the $3 surcharge, the maximum allowable.
However, other Southern California airports, including Long Beach, San Diego and John Wayne International in Orange County, do not charge facility fees, according to their representatives.
By imposing the levy, Burbank Airport would forfeit half of an annual $2.5-million federal grant it receives for infrastructure projects, controller Dios Marrero told commissioners, who voted unanimously to submit the request. But the airport would still net close to $5 million, which could be applied toward runway refurbishment and acquisition of land for the new terminal.
Blueprints call for the terminal to cover 670,000 square feet, four times the size of the current building. Officials say a larger terminal is necessary to handle the projected 10 million passengers using Burbank Airport annually by 2010.
The Airport Authority initiated the surcharge process in December by notifying its carriers that it intended to apply for permission to impose the new fee.
Traditionally, airlines have opposed passenger facility charges--which are tacked onto ticket prices at point of purchase--because customers tend to consider them part of the air fare.
But spokeswoman Heather Elley of Southwest Airlines, Burbank’s largest carrier, said her company supports the authority’s move because of the advantages that would spring from a larger, improved terminal and expanded gate space.
“Although it would be unfortunate that our customers would have to incur the cost, and it does impact us as well, we feel it would be beneficial for Burbank Airport,†Elley said. “We can see those funds going to a good cause, and we hope to educate our customers to that fact too.â€
On Southwest, an unrestricted round-trip fare between Burbank and Oakland now costs $138, including a 10% federal ticket tax. But with Oakland Airport’s surcharge, passengers pay $141, which would increase to $144 if Burbank’s request is approved.
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