Gateway Travel Management

January 7, 2002 - California Law Boosts Car Fees

The cost of a rental car just went up at Los Angeles International Airport and nearby Ontario International. As of Jan. 1, both airports began charging a $10 "customer facility charge" on a per-transaction basis for cars rented on-airport, heralding another round of "nickeling and diming" travelers who rent cars.

The new fees are allowed under Assembly Bill 491, which was passed by the California legislature late last year and authorizes any airport authority in the state to levy CFCs for a proposed or existing consolidated car rental facility and the common-bus shuttle used to transport passengers to the terminal. Ontario already has such a facility, while LAX plans to build one.

Prior to passage of the bill, only three airports in the state had been authorized to charge a fee. San Jose currently levies a $5 car rental surcharge (it plans to increase that amount to $10.50 once a proposed consolidated facility is built), and San Francisco charges $8.95, an amount that will increase once the airport's light-rail service is up and running in November, according to a spokesperson. The third airport, San Diego, is not charging a car rental add-on fee. Assembly Bill 491 also contains a provision allowing car rental companies to charge higher collision-damage waiver fees.

California had limited the charge to $9, regardless of the value of the car, but now a tiered pricing system will take effect. The CDW for cars costing less than $19,000 will remain $9, but cars valued above that amount up to $35,000 will carry a $15 fee, while there is no limit on the CDW amount charged for vehicles costing more than $35,000.