Gateway Travel Management

January 3, 2002 - New Government Security Fee

Airline passengers will start paying the government's new $2.50 per enplanement security fee with tickets sold on or after February 1, 2002. Last year's Aviation and Transportation Security Act imposes the fee on flights originating in the U.S. to help cover the cost of aviation security, with a maximum of $5 per one-way trip. Adopting rules to implement that provision, the DOT stipulated that U.S. and foreign airlines must collect the fee from all charter and scheduled passengers enplaned at U.S. airports. The DOT also said the fee applies to passengers using frequent flyer awards for air travel but will not apply to non-revenue passengers or passengers boarding outside the U.S. Like the $3.00 airport Passenger Facility Charges (PFC), the fee will not be part of the published air fare. The DOT ruled that it must be identified as the "Sept. 11th security fee". Revenue derived from the fee will go to the Transportation Security Administration [TSA], a new department within the DOT.

The DOT estimates that TSA would require at least $1 billion to fund its security programs, including airport passenger and baggage screening. The DOT's budget office estimates that the $2.50 fee would raise approximately $900 million in 2002.