Solutions

Optimizing Rates and Charges

airlines-optimizing-rates-and-charges

AT-A-GLANCE

Landing fees represent hundreds of millions of dollars in costs to airlines … a major component of closely tracked Cost Per Enplanement (CPE) metrics. If airports are inefficient or inaccurate in capturing all billable weight, airlines using that airport must make up the difference – either in mid-year “true-ups” or following-year rate increases. The PASSUR Landing Fee Management program provides assurance and validation that all fees owed are being captured and assigned to the right airlines through a completely independent, data-driven, detailed review of all operational activity that goes into the airport’s landing fee revenue.

  • PASSUR audits of 22 airports show an increase of 1%–4% of revenue by capturing more landings using our data and processes than by using traditional methods.
  • With complete capture of all billable weight, airlines can reduce their landing fee unit costs from 1%–4%. Even when an airline is extremely accurate in its self-reports, cargo, diversions, extra flights, itinerant traffic, and General Aviation can frequently go uncaptured.
  • The program ensures that airlines pay only their fair share and nothing more; that their individual fees will go down while the airport collects all that is owed; and that the time and effort required to manage their fees are reduced.
HOW PASSUR SOLUTIONS HELP TO ADDRESS THE PROBLEM

PASSUR’s solution provides unique data independence, accuracy, and reliability – combined with proven reporting, audit, and billing services – to give airports and airlines the assurance that all billable weight is being captured, that the cost of the airfield is being distributed fairly and equitably, and that the process is transparent, automated, and standardized.

WHAT MAKES IT UNIQUE
  • Independent data, with tail number captured per flight, from PASSUR’s proprietary fused flight, airport, and airspace surveillance network and databases
  • Years of historical information about flight and fleet activity
  • Proven, mature, and evolved data processing, reporting, and fee management tools
  • Industry adoption — more than 35 airports are on the platform – covering 33% of all daily scheduled landings in the US
KEY METRICS IMPROVED
  • Reduction in total landing fee costs
  • Fewer and smaller mid-year corrections, revisions, and “true-ups”
  • Less time and labor required to manage fees
WHAT THE AIRLINES WILL DO DIFFERENTLY
  • Use the same standardized, automated system at all airports
  • Reduce the frequency and magnitude of revised payments due to “true-ups”
  • Pay only their fair share, while ensuring all others are paying theirs
  • Stop submitting landing counts and landed weight self-reports
SNAPSHOT CASE STUDIES
  • PASSUR audits of 22 airports showed that they capture 1%–4% more landed weight using the PASSUR solution compared to their current processes, which translates directly into a 1%–4% reduction in landing fees paid by airlines.
  • One mid-sized Midwestern airport audit showed a weight capture loss in two months totaling $157,000 (1.7%) in landing fees – primarily from diversions and non-scheduled activity.
  • One mid-sized West Coast airport showed it had missed billing 780 flights over two months, primarily cargo and charter, resulting in a landing shortfall of 5%.