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Massport to Use $391 Million in Passenger Facility Charges for Airport Improvements

BOSTON – The Massport board today was informed about the latest record of decision from the Federal Aviation Administration on Passenger Facility Charge uses at Boston Logan International Airport.

The FAA approved 10 separate projects totaling $391.6 million that will receive the use of PFC funds. As part of the package, the Massport Board approved a lease amendment for Delta Air Lines at Terminal A that will allow PFCs to be used to pay a portion of the debt service on Terminal A bonds. The vote implements the Federal Aviation Administration’s approval of Massport’s 2010 PFC application for the collection and use of up to $288 million for Terminal A debt service.

Other projects receiving PFC funding include several airfield projects such as the runway safety area expansion at the end of runway 33L, which will use $18.3 million, the reconstruction of Runway 22L at $8.7 million, the rehabilitation of Taxiway November at $4.7 million and airfield electrical system upgrades at $13.6 million

In addition to Terminal A, landside projects include the Terminal C consolidated checkpoint project which will receive $22.4 million in PFCs and Terminal E gate area modifications which improved and expanded passenger hold areas at five gates within the terminal and will receive $24.6 million.

PFCs are generated by a $4.50 charge on every departing ticket at Boston Logan and are collected by airlines. Collection and use of the PFCS requires federal approval.

Boston Logan, 15 minutes from the intersection of Route 128 and I-90 and five minutes from downtown Boston, serves as the gateway to the New England region and offers nonstop service to 70 domestic and 32 international destinations and in 2010 handled 27.4 million passengers. Boston Logan is the Air Line Pilot Association’s Airport of the Year for 2008 because of its commitment to safety. Over the past decade, the airport spent $4.5 billion on a modernization program that includes new terminals, parking facilities, roadways and airport concessions, and has been transformed into a world-class 21st Century facility. The airport generates $7 billion in total economic impact each year.

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The Massachusetts Port Authority (Massport) owns and operates Boston Logan International Airport, public terminals in the Port of Boston, Hanscom Field and Worcester Regional Airport. Massport is a financially self-sustaining public authority whose premier transportation facilities generate more than $8 billion annually, and enhance and enable economic growth and vitality in New England. No state tax dollars are used to fund operations or capital improvements at Massport facilities.

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