Airport Improvement Program:

Update of Allocation of Funds and Passenger Facility Charges, 1992-94

RCED-95-225FS: Published: Jul 17, 1995. Publicly Released: Aug 1, 1995.

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Pursuant to a congressional request, GAO provided information on the Federal Aviation Administration's (FAA) allocation of Airport Improvement Program (AIP) funds and airports' collection of passenger facility charges (PFC).

GAO found that: (1) between 1982 and 1994, FAA allocated about $16 billion in AIP funds for improvements at 2,780 airports; (2) 216 of the 545 eligible airports have collected $1.4 billion in PFC for capital development projects; (3) Congress reduced the AIP appropriation to $1.45 billion in 1995; (4) FAA estimates that PFC collections could increase from $850 million to $1 billion annually if eligible airports begin to collect the fees; (5) commercial service airports received about 75 percent of AIP allocations from 1992 to 1994 and are the only airports eligible to collect PFC; (6) FAA directed 65 percent of all AIP funds to on land acquisition projects and projects focusing on pavements on runways, taxiways, and aprons from 1992 to 1994; and (7) airports plan to use about 47 percent of PFC revenues for projects to develop terminals and improve airport access and about 21 percent of these revenues for debt servicing costs.

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