ASCE Predicts Airports Will Have A $42 Billion Funding Gap By 2025
The American Society of Civil Engineering (ASCE) released its 2017 report on the heath of the nation’s airport infrastructure, and the results aren’t pretty. Despite the fact that more than two million passengers rely on domestic airline travel each day, the ASCE gave the nation’s airports a grade of D in terms of their condition.
“With a federally mandated cap on how much airports can charge passengers for facility expansion and renovation, airports struggle to keep up with investment needs, creating a $42 billion funding gap between 2016 and 2025,” the ASCE concludes.
The ASCE assures travelers that the D grade refers only to the airports themselves and not to the planes, which it describes as “technologically advanced and economically efficient aircraft.”
According to the report, airport congestion is getting worse by the day. The ASCE expects 24 of the 30 largest airports could soon experience “Thanksgiving-peak traffic volume” at least one day per week.
While the condition of runways remains very good, airports’ ability to handle passengers, cargo security and other functions related to crowding continues to deteriorate.
President Trump has called for a $1 trillion investment in U.S. infrastructure in the next 10 years. According to the ASCE, even a $1 trillion investment will fall well short of closing the $2.0 trillion national infrastructure investment gap.
Since Election Day, the iShares S&P Global Infrastructure Index (NASDAQ: IGF) is up just 0.8 percent.
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