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ALASKA WILL DELAY PAYMENT OF PASSENGER FACILITY CHARGES

 SEATTLE, May 26 /PRNewswire/ -- Alaska Airlines and Horizon Air announced today that they plan to withhold payment of all passenger facility charges (PFCs) at Seattle-Tacoma International Airport and Portland International Airport pending assurance that adequate systems are in place to prevent carriers from retaining funds collected.
 Passenger facility charges are payments collected by an airline from its passengers that are required to be remitted to the airport where the charge is assessed. The funds collected are specifically earmarked for improvements to safety, security and capacity at those airports. In most cases a $3 charge is assessed per flight segment and limited to four segments on any round trip.
 "We've learned that at least two carriers are either late in their payments or, worse, deliberately withholding the funds from airports where they are due," said Ray Vecci, chairman and chief executive officer of Alaska Air Group.
 "We believe it is inequitable and intolerable for any carrier not to remit its required share of PFCs," Vecci said. "No carrier should be allowed to use PFCs collected from passengers to fund its operations and achieve a pricing advantage over its competitors that follow the rules and remit this tax."
 Vecci said that Alaska Airlines and Horizon Air have collected and remitted nearly $2.5 million to the Port of Seattle and about $1.7 million to the Port of Portland since those airports directed the PFC collections.
 Authorized by federal law in 1990, collection of PFCs has been in effect at Seattle-Tacoma International Airport since November 1992 and at Portland International since July 1992.
 -0- 5/26/93 R
 /CONTACT: Lou Cancelmi of Alaska Airlines, 206-433-3170/
 (ALK)


CO: Alaska Airlines; Horizon Air ST: Washington IN: AIR SU:

SW -- SE005 -- 2990 05/27/93 13:22 EDT
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Publication:PR Newswire
Date:May 27, 1993
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