U.S. ATC Privatization

1) Describe the fundamentals of our current ATC system vs. the proposed NextGen system.

            NextGen, or Next Generation Air Transportation System is led by the Federal Aviation Administration (FAA), to modernize the air transportation system. The goal is to make flying safer, efficient, and more predictable. NextGen is not just one system or product, or one type of technology, it is an entire system of new technologies, only implemented after serious testing to ensure the highest level of safety. Some may be surprised that NextGen technology is already being implemented throughout the aviation industry. In December 2003, NextGen officially began, and in 2004 the Department of Transportation announced their plan for NextGen (Houston, 2017). NextGen would consist of three stages; short term 2004 to 2012, mid-term 2012 to 2020, and long-term from 2020 to 2030 & beyond (Houston, 2017). The FAA has stated that NextGen is halfway through a multi-year implementation plan, planning to cost $37 billion dollars by at the end of 2030 (FAA, 2018). On a high note, the FAA also stated cost savings from the same programs are expected to be around $106 billion dollars.

            The new systems are improving how the National Airspace System (NAS) users see, navigate and communicate. The FAA has already switched to satellite navigation system that is more precise than ground-based navigation aids (FAA, 2018). These precise procedures reduce flying time, fuel use, and aircraft exhaust emissions, while getting passengers to final destinations more predictably. In 2016, over 3000 commercial aircraft were using updated data communications, which saved an average of six minutes on taxi time during bad weather. Over 22.3 million people benefited from these new data communications (FAA, 2018). The FAA is improving the Traffic Flow Management System, Time Based Flow Management, En Route Automation (ERAM), and Standard Terminal Automation Replacement System (STARS) and should be complete by 2019 (FAA, 2018).  The ERAM and the STARS systems are not NextGen, but are systems being updated to help support NextGen’s critical capabilities. Some of the near future programs that NextGen will be bringing on, is the Terminal Flight Data Managers, and should be operational at many sites in 2020, NAS Voice System should roll out also in 2020, and NextGen Weather Processor and Common Support Services are scheduled to be nationwide in 2022. The FAA is also looking forward to the future of NextGen with the Trajectory-based operations coming soon (FAA, 2018). This is just a few of the new upgrades that are on the way.

2) Why has GA traditional spoken against the privatization of ATC? What is the stance of US airlines on ATC privatization and why? Find two aviation organizations/lobby groups/think tanks and report their response to privatization.

            Almost all airlines are for the privatization of the ATC. My researched showed that Delta was against the ATC being transferred to a private organization (Bachman, 2017).

            The General Aviation (GA) community feel that their needs and interest will be ignored. Currently, the aviation industry’s best interest is overseen by elected representatives in Congress, which serves the public’s interest. But the idea of privatizing ATC, and turning over control to be governed by private interest will lack congressional oversight, leaving a gray area of unaccountability (Hubbard, 2017). Ed Bolen, President and CEO of the National Business Aviation Association (NBAA) clearly stated during a united front from more than 100 GA organizations, stated that ATC privatization, “is the single greatest threat to the future of general aviation we have faced” (Hubbard, 2017).

            Another organization that has been lobbying against to the ATC privatization, is the Aircraft Owners & Pilots Association (AOPA). Mark Baker, AOPA’s President, explained their concern about the government transferring power to a private organization, really well. Baker stated, “this is like giving the interstate highway system to six trucking companies and assuming they will look out for the interest of the automobile drivers” (AOPA, 2017). Others spoke out like Todd Rokita (R-Ind) who is a pilot, saying that General Aviation is not a special interest group and it accounts for some $219 billion in economic impact. Ralph Abraham (R-LA) and Steve Russell (R-OK) both pilots, stressed the importance and benefits of airports in rural areas, and those who volunteer (AOPA, 2017). EAA’s president Jack Pellton, stated while at Air Venture in Oshkosh, Wisconsin, “this event would shut down if HR2997 passes” (AOPA, 2017). There were 4000 pilots at Air Venture, that signed a petition against the ATC Privatization.

3) Is ATC privatized in any other countries? If so, where? Write about the details of how this system works. How is it funded? Who are the private operators? Etc. Does the privatized ATC system run more or less efficiently than our current system?

            There are countries that have ATC privatization. New Zealand was the first to end a government role in ATC in the 1980s. Germany established a government-run corporation. The U.K. uses a unique public-private partnership for NATS, which oversees their air traffic control. Canada, is ran by Nav Canada, but has oversight from Transport Canada, their government agency. Nav Canada is a nonprofit company that owns and runs Canada’s civil air navigation system since 1996 (Werner, 2017). France migrated their ATC to a government agency funded by user fees, a decade age (Bachman, 2017).

4) What would be the process for converting our current system into a privatized system? Where is the discussion at? Does it have to be an act of Congress or can the FAA make this decision on its own. How do you expect the current administration to impact ATC privatization, if at all?

            President Trump is for ATC privatization, but it was just announced in February, that Bill Shuster, U.S. Representative,  withdrew the amendment to FAA Reauthorization to push FAA’s ATC functions to a private corporation (Goyer, 2018). The FAA would oversee the new nonprofit entity, which would be funded through user fees. Takeoff and landing charges are user fees. Taxes on passenger tickets and fuel that is currently funding the country’s aviation system would end. The process to move the ATC from the FAA to the new nonprofit organization would take about three years, the Trump administration had estimated (Marshall, 2017). The private organization would be made up of a board of airlines, unions, airports, and federal officials.

5) Finally, do you feel that the current ATC system would be more efficient if it were privatized. Why or why not?

            I have mixed feelings about moving our current ATC system to be privatized. Financially, I think there might be some benefits of privatization. This move might affect too many people and regulations and oversight might become less efficient because the US’s ATC system is the largest and most complex in the world (Pope, 2017).  One positive factor to go private would be that the customers would support the ATC system, not the taxpayer’s money. That means that people from all over the world that was using our system would be helping to pay for its’ success. But then I think about what our government would be using that money on instead? It might backfire on the taxpayers. I respect Delta and Delta argues that the transition would be too disruptive (Bachman, 2017). As you can see, I have mixed feelings. I am glad that this decision is put on hold for the moment. I feel that the FAA is doing great things with NextGen and excited to see what is to come.

AOPA. (2017, August 1). ATC privatization threat takes no holiday. Aircraft Owners & Pilots Association. Retrieved from https://www.aopa.org/news-and-media/all-news/2017/august/01/threat-of-atc-privatization-takes-no-holiday

Bachman, J. (2017, June). Will privatized air traffic control put you in danger? Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2017-06-06/will-privatized-air-traffic-control-put-you-in-danger

FAA. (2018, March 20). Modernization of U.S. airspace: This is NextGen. Federal Aviation Administration. Retrieved from https://www.faa.gov/nextgen/

Goyer, R. (2018, February 28). Going direct: We win atc privatization is dead. Plane & Pilot. Retrieved from https://www.planeandpilotmag.com/going-direct-win-atc-privatization-dead/#.WshThNPwbVo

Houston, S. (2017, June 25). NextGen in a nutshell- The history and highlights of the next generation air traffic system. The Balance. Retrieved from https://www.thebalance.com/nextgen-in-a-nutshell-282561   

Hubbard, D. (2017). Largest-ever coalition of GA groups tell congress “no” to ATC privatization. National Business Aviation Association. Retrieved from https://www.nbaa.org/news/pr/2017/20170712-045.php

Marshall, A. (2017, July 06). So what’s the deal with air traffic control reform? Wired. Retrieved from https://www.wired.com/2017/06/trump-air-traffic-control-explained/

Pope Field ATC. (2017, February 28). Will the world’s largest ATC system ever be most advanced? Aerotime. Retrieved from https://www.aerotime.aero/en/civeil/17361-will-the-largest-atc-system-ever-be-most-advanced

Werner, D. (2017, June). Privatizing air traffic control. Aerospace America. Retrieved from             https://aerospaceamerica.aiaa.org/features/privatizing-air-traffic-control/