PHX Sky Train™ Funding

How is the PHX Sky Train™ funded?

Stage 1 of the PHX Sky Train™ will cost approximately $644 million while the cost for Stage 1a will be $240 million. But, what many don’t realize is that no local tax dollars are being used to pay for the PHX Sky Train. In fact, no local tax dollars pay for anything at the Airport. The Airport is self-funded through its own revenues. The Airport also receives federal grant money for some major construction projects.

So, how is the PHX Sky Train™ being financed?

The train is being funded by Airport bonds that are backed by Passenger Facility Charges (PFC’s) and other Airport revenues.

The Airport generates its own revenues from shops, restaurants, parking, aircraft landing fees and other services. Basically, any time you spend money at the Airport, part of the revenue made from that purchase is reinvested into the Airport. In fact, federal law states that no funding from the Airport can be sent to the City’s general fund or other organizations. In other words, monies earned at the Airport must stay at the Airport.

Passenger Facility Charges (PFCs) are fees that are added to airline tickets. The PFC is a maximum of $4.50 per flight with a maximum of $9 per trip (for passengers connecting through multiple airports). The federal government has requirements for how PFCs can be spent at airports. They must be used for capital expenses, such as the PHX Sky Train™, that improve or expand the aeronautical infrastructure.

The PHX Sky Train is paid for by Airport users. It will help alleviate congestion and traffic on Sky Harbor Boulevard, making it more convenient to get to the terminals. It is a very environmentally friendly mode of transportation as it will remove approximately 20,000 cars and buses from Airport roadways everyday when Stage Two is complete in 2020.

The Sky Train will also provide two very easy options for getting to the Airport. Stage One will take travelers from a station at 44th Street and Washington into the Airport. That station will be a new doorway to the Airport by connecting to METRO Light Rail. Or passengers can be dropped off at the station instead of driving into the Airport. The PHX Sky Train will then stop at the East Economy Parking before heading to Terminal 4 where passengers can easily park and use the train.

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