Monday, October 5, 2015

Privatize air traffic control?

Canadians Take Charge
It's time to corporatize air traffic control (the right way)
Corporatization of the air traffic control system, done right, is a policy idea whose time has come. The air traffic controllers are calling for structural change, the airline industry is largely on board, and Rep. Shuster is the biggest champion of reform since Vice President Al Gore. Stakeholders can and should debate the form that reform takes (recognizing that corporatization of an inherently governmental function is a non-starter). But they should not fail to act while the proverbial policy window is open.

Air Traffic Control Privatization Chatter Flies Again: Associations Now
The recent history of air traffic control in the United States is littered with stories of furloughs and funding battles, leading to repeated calls by some stakeholders for at least partial privatization of this critical activity. A recent Office of Inspector General report [PDF] from the Department of Transportation raised the issue anew this month.
The report, which examined the differences between the U.S. air traffic control (ATC) system and private systems in four other countries [Canada, the United Kingdom, Germany, and France — have separated their air traffic control functions from their safety oversight and regulatory functions, and commercialized their ANSPs using a range of organizational structures], was conducted at the behest of House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA). In a statement after the report’s release, Shuster said the results support his goal of privatization—particularly in light of the struggles that the Federal Aviation Administration’s NextGen infrastructure improvement program has had in getting off the ground.
 
Meet the Chairman | U.S. House of Representatives
Shuster Statement on DOT Inspector General Report on Air Traffic Control Reform Models of Other Nations | U.S. House of Representatives
“If we want to finally modernize our aviation system, reduce delays, and generate more efficiencies in our skies, we can’t continue to just tinker around the edges.  We have to take action that transforms the way we do things,” Shuster said in a statement..  “Today’s DOT IG report shows that other major industrial countries have successfully separated their ATC functions without negative impacts to safety, and these systems are able to make enough money to be self-sustaining.  As Congress continues to work on FAA reauthorization and reform legislation, these examples demonstrate that ATC reform is a viable option that can benefit consumers and the aviation community.”
The U.S. aviation system is the busiest in the world and passenger levels are expected to reach one billion passengers annually by the end of the next decade.  However, this growing demand will further burden an air traffic control system that is based on decades-old technology.  Repeated federal efforts to modernize the system have failed, despite spending billions of taxpayer dollars.  Furthermore, American innovation in the industry continues to be stifled by bureaucracy, and federal aviation funding remains subject to political uncertainty and budget battles.  The Committee continues to develop legislation that ensures a safe, efficient, modern aviation system that benefits passengers with fewer delays and greater reliability, fosters innovation, and secures America’s future competitiveness in aviation.
Click here to read the DOT OIG’s report.

Feds throw cold water on GOP air traffic control privatization plan | TheHill
Transportation Secretary Anthony Foxx threw cold water Wednesday on a Republican plan to privatize large portions of the nation's air traffic control system.

House Transportation Committee Chairman Bill Shuster (R-Pa.) is expected to call for the creation of a new nongovernmental agency that would take over air traffic control from the Federal Aviation Administration in a forthcoming funding bill for the agency.

Foxx said Wednesday during a meeting with reporters at the Transportation Department's headquarters that he did not see the need to remove the federal government from the airplane navigation process. "I think when you look at the way the government is managing air traffic control, most stakeholders would say this is an area the government has done exceptionally well, and I believe that to be true as well," he said. "I don't think this is an issue where you entertain a change because things are terrible. They're not terrible. The FAA has done a good job managing the airspace."

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