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City Continues to Reduce Costs for Airlines Operating at PHL; Decreased Landing Fees Have Saved Carriers $3.5 Million

Posted on: Tuesday, 20 September 2005, 09:00 CDT

In its ongoing effort to alleviate the economic hardships many airlines are experiencing, Philadelphia International Airport (PHL) has reduced landing fees by 3.0%. The Fiscal Year 2006 landing fee is $1.93 per 1,000 pound unit of aircraft weight, down from $1.99 in FY 2005.

Since FY 2004, landing fees at PHL have dropped from $2.12 per unit to $1.93. This overall 9% reduction has saved airlines with scheduled service at PHL approximately $3.5 million.

In addition, the FY 2006 Airline Revenue Requirement is budgeted at $98.8 million, an 8% reduction from the FY 2005 level of $107.4 million. The Airline Revenue Requirement is the sum total of all terminal rentals, landing fees and other charges that scheduled airlines pay the Airport.

"The Airport's increased revenues and prudent budgeting have allowed the City to pass significant savings along to the airlines that provide service to the region," said Mayor John F. Street.

In FY 2005, an unprecedented 31 million passengers passed through PHL. The record number of travelers using the Airport has translated into increased revenues from non-airline sources such car rentals, parking and concessions.

Moreover, the Airport continues its efforts to contain costs, further lessening the financial burden placed on the airlines. The FY 2006 total Airport System budget is $219.2 million, an increase of only 0.4% from the previous fiscal year budget of $218.4 million.

"The minimal growth in the Airport's budget is impressive in light of the fact passenger traffic has jumped 28% from FY 2003 to FY 2005," noted Charles J. Isdell, the City's Director of Aviation. "The Airport has managed to control costs while serving record numbers of travelers because we have dedicated employees and an outstanding management team."

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 $14 billion in spending to the regional economy and employing a workforce of nearly 34,000.

Visit the official Philadelphia International Airport website at http://www.phl.org

Source: Business Wire

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