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The PFC was created by Congress in the 1990 Aviation Safety and Capacity Act (ANCA). It is intended to assist airports in funding major infrastructure development. The fee is charged to enplaning passengers only.

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Based on substantial financial analysis of various financing alternatives, a comprehensive financial program makes the most sense, and includes: (1) JWA cash reserves; (2) Airport revenues and subordinate bonds and short-term debt; (3) federal grants; and (4) PFC.

This financing program, when compared with the “non-PFC” alternative, will allow JWA to save more than $100 million in borrowing costs that would otherwise be passed on to users of the Airport. A financing program that includes the PFC allows for the construction of much-needed facilities at the lowest cost to Airport users.

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The airlines include a PFC in the overall price of a ticket. The airlines charge a small processing fee (11 cents per enplaned passenger) for collecting, handling and remitting PFCs to the Airport on a monthly basis.

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$4.50 per enplaned passenger.

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July 1, 2006.

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The Airport has implemented a $4.50 PFC, which is the maximum currently allowed under the law.

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Yes. The PFC will expire once the total approved dollar amount has been collected. This is expected to be complete by December 31, 2021.

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No. A PFC is a classic user fee. Only those who fly out of John Wayne Airport will pay the fee, regardless of whether they live in Orange County or somewhere else.

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Revenues generated by the PFC – along with other sources like internally generated funds, Federal Aviation Administration (FAA) grants, etc. – will be used to pay for specific projects that are defined in the Improvement Program. Some of the funds will be used on a “pay-as-you-go” basis, which means that airport funds are used to pay for the project and are then reimbursed by the PFC collections. The Airport will also leverage future PFC revenues by issuing PFC-backed bonds.

Projects partially funded with the PFC revenues include baggage screening, a project that enables the Airport to comply with the federal security regulations; a new remain-over-night aircraft parking apron; and a new terminal with six (6) new gates.

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To fund a project of this magnitude ($652 million), multiple funding sources are necessary.

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No. Revenues generated by the PFC will not be sufficient to fund all of the proposed improvements. In addition, not all projects included in the Improvement Program are eligible for PFC funding.

PFC’s can only fund projects that (1) preserve or enhance airport capacity, safety, or security; (2) mitigate the effects of aircraft noise; or (3) enhance airline competition. Only those portions of the Improvement Program that are directly related to the movement of passengers and baggage are eligible for PFC funding. Examples of projects that are part of the Improvement Program, but that would not be funded with the PFC include the C Parking Structure (Southeast) and Thomas F. Riley Terminal modernization.

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JWA hasn’t undertaken capital improvements of this magnitude since PFCs were authorized in 1990.

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Yes. It is common for U.S. airports to use a PFC to fund major capital improvements. In fact, only four other medium or large-hub airports (out of 68) in the U.S. do not utilize a PFC. NOTE: Those four airports are Houston Intercontinental, Memphis, Omaha and Love Field in Dallas.

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The PFC can be $1.00, $2.00, $3.00 or $4.50. When Congress first authorized its use, the maximum allowable PFC was $3.00. The current maximum is $4.50 per enplaned passenger.

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Probably. PFCs are charged at most commercial service airports in the U.S. In fact, of the 24 destinations served from JWA, only one (Houston Intercontinental) does not currently charge a PFC.