Federal Aviation Administrations Passenger Facility Charge Program Hearing Be

Cover Federal Aviation Administrations Passenger Facility Charge Program Hearing Be
Federal Aviation Administrations Passenger Facility Charge Program Hearing Be
United States Congress House Committee On Publi
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Landry. Well, we certainly support both what has been added to the bill in terms of a modified needs test, if you will, and certainly the amendment that you proposed this morning.
Mr. Inhofe. Thank you, very much, sir.
Mr. Landry. Thank you, Mr. Inhofe.
Mr. BORSKI. Mr. Landry, in your testimony you said that in some instances the airlines eat the Passenger Facility Charge.
Mr. Landry. That is particularly the case when you have, let's say, a city-pair market which involves the possibility, the
...choice for the flying public of going via one intermediate hub or another in- termediate hub. There is intense inter-hub competition between the carriers involved and if one of those hubs doesn't have a PFC, then the carrier ends up swallowing through his own hub so that he can remain price competitive.
Mr. BORSKI. Is it similar to the cut-throat policies we see in re- ducing airline tickets, that airline A follows airline B even though they are going to lose some more money?
Mr. Landry. Well, retaining and maintaining market share has been certainly a very important factor in the era of deregulation.


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