PHX SkyTrain® - Funding

How is the PHX SkyTrain® funded?

The total estimated project cost of $1.58 billion is paid for with airport revenues and passenger fees. $644 million for Stage 1, $240 Million for Stage 1a, and remaining funds for Stage 2. But, what many don’t realize is that no local tax dollars are being used to pay for the PHX SkyTrain®. 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. Detailed project cost estimate, schedule, and a plan of finance for the final stage, which will transport passengers to Sky Harbor's Rental Car Center, is subject to change based on passenger traffic and final design.

So, how is the PHX SkyTrain® 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 SkyTrain®, that improve or expand the aeronautical infrastructure.

The PHX SkyTrain® 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 every day when Stage Two is complete all the way to the Rental Car Center.

The PHX SkyTrain® will also provide several 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 Sky Harbor, providing a seamless connection to and from METRO light rail. It will also serve as a convenient passenger drop-off and pick-up location for drivers who would like to avoid Airport roadway traffic. The PHX SkyTrain® will also serve East Economy parking.

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