Subject: Peak Hour Pricing

Approved: September 25, 1992

Revised: June 12, 1993

Revised: May 6, 1999

I. Need for Policy

Peak hour landing fees impose an artificial means for relieving airport congestion.

II. Policy

IBAC strongly opposes peak hour landing fees in as much as these will de facto limit access for business aircraft.

IBAC will continue to support operationally sound procedures and technological improvements that increase capacity for all airport users.

III. Positions

A. IBAC believes peak hour fees, if any, should be imposed directly on the end user (ie. aircraft passengers) utilizing airport resources during peak hours. This allows for fair and equal distribution of airport assets if the end user is charged peak hour prices.

B. IBAC believes to justify peak hour pricing, there must be a significant constraint on airport capacity which cannot be reasonably remedied by improving facilities. In many cases, airports can meet increases in demand by building additional capacity. Imposing abnormal fees on aircraft operators should not be a substitute for meeting demand through capacity growth.

C. IBAC believes that peak hour fees should not discriminate against operators of small capacity aircraft. Peak hour fees should be fixed so as to have proportionately the same impact on access for the different classes of users, thereby preserving comparable access for all classes of users at all times.

D. IBAC believes that airports should not impose peak hour fees primarily to increase revenue generation. Such fees, if found to be necessary, must be applied to increase airport airside capacity for all aircraft. Related revenues should not exceed those needed for legitimate airport airside capacity expansion projects after taking into account other sources of airport revenue.

Source of Policy:

(1) Original, Governing Board, Dallas, September 25, 1992

(2) Revision, Governing Board, Edinburgh, June 11-12, 1993

(3) Revision, Governing Board, Montreal, May 6-7, 1999