Jazmin Li
Airports charge airlines for a variety of services, including landing, parking, hangar use, and terminal use. These charges vary depending on factors such as the weight of the aircraft, the length of stay, and the number of passengers. Signatory airlines, which have signed a lease agreement or committed to a specific number of weekly flights, typically receive discounts on airport fees. The rates are set based on the airport's operational costs, and they can be determined by the organisation managing the airport or the local administration. Ultimately, these charges are passed on to the passengers, who see a breakdown of their ticket price, including base fare, taxes, and carrier-imposed fees.
| Characteristics | Values |
|---|---|
| Landing charges | Based on the aircraft weight formula, including the maximum gross landing weight (MGLW) and maximum certificated take-off weight. |
| Parking and storage charges | Based on the maximum permissible take-off weight, aircraft dimensions, and length of stay. |
| Gate fees | Usually included in the landing fee package. Signatory airlines pay around $350/turn for an extra gate, while non-signatory airlines pay closer to $600/turn. |
| Terminal fees | Non-signatory airlines pay terminal use fees calculated per enplaned passenger (around $7 per passenger). |
| Passenger fees | Charge for each departing passenger. |
| De-icing fees | Based on the amount of de-icing fluid needed, depending on weather conditions and airplane size. |
| Hangar rental | Available for rent at some airports. |
| FBO fees | Cargo airlines can expect to pay around $3200 for ground handling, while passenger flights pay around $1700. |
| Taxes and carrier-imposed fees | Included in the price of an airline ticket. |
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What You'll Learn
Landing fees
The fees charged by airports to airlines for landing are based on various factors, including aircraft weight, type, and time of landing. Some airports may also consider emissions and noise when setting fees. The weight of the aircraft is a significant factor, with charges typically calculated per 1000 lbs of maximum gross landing weight (MGLW). Additionally, some airports may charge a lower fee for landing but will levy charges for the use of gates and check-in facilities. Certain airports may also differentiate between permitted and non-permitted air carriers in their landing fee structure.
The landing fees vary across airports, and signatory airlines (those with lease agreements or cargo airlines with committed weekly flight volumes) often receive discounted rates. The cost of operating the airport, including expenses such as maintenance, influences the rates set for landing fees. For example, the Cost Per Enplaned Passenger (CPE) at JFK Airport in 2016 was $25.45, while at another airport, it was approximately $7.20 for the same year.
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Gate fees
Airlines usually rent gate space, but they don't always rent enough to accommodate additional flights, new destinations, or diversions. In such cases, they may use unleased gates, for which they are charged a fee. Signatory airlines are charged around $350 per turn for an extra gate, while non-signatory airlines, which always have to pay gate fees, are charged closer to $600 per turn. The cost of maintaining the terminal is included in the lease fees for signatory airlines, while non-signatory airlines pay terminal use fees calculated per enplaned passenger.
Parking charges may also be applied after a certain period, typically two or three hours, and are calculated per 1000 lbs of MGLW per day. Charges for the use of the ramp, apron, and remote areas may also be applied in cases of congestion.
These charges are typically outlined in agreements between the airlines and airports, and the specific rates may vary depending on the airport and the nature of the flight domestic or international.
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Parking and hangar charges
Parking fees are typically charged per hour or per day, with rates increasing for overnight stays. The cost of parking can also depend on the type of parking space required, such as a designated spot in a hangar or a space on the ramp or apron area outside. Some airports may offer free parking for a certain period after landing, while others may charge a significant fee, especially for larger aircraft requiring overnight parking.
Hangar fees, also known as tie-down fees, provide a sheltered and protected parking spot for aircraft. These fees can vary based on the level of protection offered and the specific airport. Aircraft owners may choose to utilise the services of a Fixed Base Operator (FBO), a private company that operates within the airport and provides various services such as fueling, hangaring, and aircraft maintenance. FBO fees are set by the individual operator and can vary significantly between different providers.
The weight of the aircraft is a crucial factor in determining parking and hangar charges. Airports typically use the maximum permissible take-off weight or the maximum gross take-off weight as a basis for calculating fees. This weight consideration also applies to landing fees, with larger and heavier aircraft incurring higher charges.
It is important to note that parking and hangar charges are subject to variation across different airports, and it is advisable to check the specific fees applicable to each airport. These charges are often part of the contract negotiated between airlines and airports, which may include other services in addition to parking and hangar access.
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Taxes and carrier-imposed fees
Airline taxes and carrier-imposed fees are an essential aspect of the aviation industry, encompassing various charges that airlines must pay to airports and government authorities. These fees contribute to the operational costs of airports and facilitate the maintenance and enhancement of aviation infrastructure. While the specific fees may vary across different airports and countries, here is an overview of some common taxes and carrier-imposed fees:
Landing Fees:
Landing fees are a significant source of revenue for airports, and they are typically calculated based on the weight of the aircraft. The International Civil Aviation Organization (ICAO) guidelines recommend that landing charges be based on the aircraft weight formula, taking into account the maximum certificated take-off weight. Airports may charge a fixed fee per aircraft or combine a fixed charge with a weight-related element during peak periods or at congested airports. Landing fees can also vary depending on whether the airline is a signatory or non-signatory carrier, with non-signatory airlines often paying higher rates.
Parking and Storage Charges:
Airports also generate revenue through parking and storage charges for aircraft. These charges are typically calculated based on the maximum permissible take-off weight, aircraft dimensions, and length of stay. Airlines may be charged per 8-hour or 24-hour slot, and the rates can vary depending on the specific airport and the availability of space.
Passenger Fees:
Airports often levy charges for each departing passenger, which are included in the airline ticket prices. These passenger fees contribute to the overall cost of operating the airport and providing necessary infrastructure and services. Passenger fees can vary across different airports and countries, and they may be influenced by factors such as airport congestion and the number of passengers handled.
Government-Imposed Taxes:
Airlines and their customers are subject to various government-imposed taxes and fees, which can include income taxes, payroll taxes, and special fees for homeland security, environmental protection, agriculture inspection, and infrastructure enhancement. These taxes are typically included in the ticket price and can vary based on the passenger's itinerary and destination. For example, the U.S. government imposes an excise tax on airline tickets, which is used to fund airport construction and airway safety operations.
Carrier-Imposed Surcharges:
In addition to airport and government fees, airlines may also impose their own surcharges, which are included in the total fare. These carrier-imposed surcharges can vary from one airline to another and may be influenced by factors such as fuel costs, operational expenses, and competitive pricing.
It is important to note that the specific taxes and fees can vary across different airlines, airports, and jurisdictions. Additionally, some airports may offer discounts to signatory airlines or provide incentives to attract more carriers, which can further impact the overall cost structure for airlines.
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Maintenance
The cost of maintenance can be broken down into direct and indirect costs. Direct costs are those that are attributed to a specific aircraft or fleet, such as labour and materials. Indirect costs are overheads required for maintenance to take place, such as planning, engineering, records, facilities maintenance, tooling equipment, and warehousing. These indirect costs are significant and can match the direct costs.
Airlines must also consider the cost of maintenance when negotiating fees with airports. Airports charge a range of fees for services such as landing, parking, hangar usage, and fuel. Landing fees are the most common type of airport fee and are often based on the weight of the aircraft. Some airports may include other services in their landing fee, while others charge extra per service. For example, some airports charge a fee for using the public passenger ramp and apron area during congestion.
In the United States, a Passenger Facility Charge (PFC) is added to the ticket price, which goes towards the upkeep and maintenance of airports. This fee is capped at $4.50 per enplaned passenger and is used to fund projects that enhance safety, security, capacity, and efficiency, among other things.
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Frequently asked questions
Airport charges are the fees airports levy on airlines for using their facilities. These charges are differentiated into aeronautical and non-aeronautical (commercial) charges. Examples of aeronautical charges include landing fees, gate fees, and parking and storage fees. Commercial charges include terminal fees.
Airport charges are based on the costs of operating the airport. Airports track their expenses and use a formula to translate these amounts into rates. The rates may also be subject to recommendations from ICAO, IATA, and other organizations.
Airline fees are the charges levied by airlines on their passengers. When you purchase a ticket from an airline, they typically provide a breakdown of the base fare, taxes, and carrier-imposed fees.
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