Allegheny County Airport Authority uses Windfall Natural Gas Drilling Fees to reduce Airline Charges

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ARTICLE: Airport authority sees 2nd ratings upgrade since May

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Ancillary on airport revenues usually involve hotel franchise fees, car rental licenses or even payments for growing crops. Airlines love these contributions to the airports’ operations.

Brad Penrod, President and Chief Strategy Officer of the Allegheny County Airport Authority, has found the best ancillary revenue – natural gas drilling fees. The deal with Consol Energy Inc. provides for the $46.3 million upfront payment as well as royalty payments when drilling begins.

The airport management announced that it will use this found revenue to lower landing fees and that will attract more service. That’s textbook airport management strategy and hopefully the lower cost per enplaned passenger will add flights at PIT.

Kudos to Allegheny County for keeping the revenues on airport. As an independent municipal authority, ACAA does not have to deal with pressures from a mayor or county “owners” which might be attracted by the windfall profit.

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