Solutions

Integrated Fee Management

airports-integrated-fee-management

At-a-Glance

Landing fees can represent over 20% of an airport’s annual revenue, yet PASSUR audits of more than 20 airports show that between 1% and 4% of their landed weight annually remains uncollected. 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 makes up the airport’s landing fee revenue.

  • When airports do not collect landed, billable weight, the reporting airlines collectively pay more to make up the difference.
  • For airports, the program provides faster revenue capture, fiduciary accountability, revenue predictability, and more efficient and fair service to airline stakeholders.
  • For airlines, the program ensures that they pay only their fair share and nothing more; that their individual fees could 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
KEY METRICS IMPROVED
  • Complete capture of billable weight
  • Reduction in total landing fee costs to individual airlines
  • Fewer and smaller mid-year corrections, revisions, and “true-ups”
  • Quicker and more timely fee collection
WHAT THE AIRPORT WILL DO DIFFERENTLY
  • Eliminate reliance on airline “self-reported” landed weights each month
  • Post a standardized, automated monthly landing fee statement for each carrier online
  • Complete and mail invoices for landing fees within the first few days of the month
  • Eliminate the need for airport auditing of airline payments
  • Reduce the frequency and magnitude of mid-year adjustments and true-ups
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
INDUSTRY USE
  • More than 35 airports currently use the PASSUR Integrated Fee Management program, representing over $1 billion in landing fees managed on the platform.
  • System-wide, an average of 33% of all daily scheduled landings are managed on the PASSUR platform.
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%.