FAA looks set for reform – one way or another…

By Doug Newhouse |

top Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) and Aviation Subcommittee Chairman Frank LoBiondo (R-NJ)Battle lines are being drawn fast in the US between the Republican and Democrat parties over the very future structure of the Federal Aviation Administration (FAA).

 

Significantly, this could have huge implications for US domestic and international airport/airline passenger traffic flows, ticket prices, flight delays and the well being of the FAA’s 38,000 government employees.

 

According to supporters of the Republican initiative, the country’s current ATC system is estimated to cost customers, airlines and the economy $30bn in unnecessary delays.

 

It also argues that effectively privatising the FAA would remove any repetition of the ‘groundhog day’ style congressional gridlock over funding seen in recent years, besides reducing the FAA’s annual expenditure from $14bn to a claimed $3bn by introducing a new system of user fees – as yet to be unveiled.

 

Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) and Aviation Subcommittee Chairman Frank LoBiondo (R-NJ)

The Transportation and Infrastructure Committee Chairman Bill Shuster (at the  lectern) and Aviation Sub-committee Chairman Frank LoBiondo (near right) jointly announce the new proposed legislation from the Republican Party.

 

However, critics within the Democratic Party have warned that privatising the FAA will only move the organisation closer to control by the country’s major airlines and other vested interests, so creating a monopoly organisation of sorts with individual agendas.

 

Democrats are also reported to be arguing that it could even potentially increase airline ticket prices, while also potentially jeopardising safety.

 

‘NOT-FOR-PROFIT’ CORPORATION…

None of which has deterred US Representative Bill Shuster, the Pennsylvania Republican who currently chairs the House Transportation and Infrastructure Committee. He has jointly introduced the Aviation Innovation, Reform, and Reauthorization (AIRR) Act legislation.

 

He maintains this will effectively establish an independent, ‘not-for-profit’ corporation, outside of the Federal Government, to modernize and provide US air traffic control (ATC) services.

 

In support of this initiative, he said: “The United States has led the world in aviation since pioneering this modern mode of transportation. We have the safest system in the world, and we will continue to do so under this bill,” said Shuster.

 

United Airlines

Republican supporters of the bill argue that it will modernise the US commercial aviation and airports businesses, but opponents counter that it will transfer present funding elsewhere and raise airline ticket prices, while potentially jeopardising safety.

 

“But our system is incredibly inefficient and it will only get worse as passenger levels grow and as the FAA falls further behind in modernizing the system. Furthermore, the FAA’s overly bureaucratic certification processes are handicapping American companies and causing us to fall behind our competition.

 

FAA MANDATE IS DUE FOR RENEWAL THIS MARCH

“The AIRR Act is transformational legislation that prepares the US aviation system for the future, helps ensure a modern, safe system that benefits passengers and the economy and keeps America competitive in a vital industry.”

 

The current authorization of the FAA and aviation programmes expire at the end of March, although Republican supporters of the bill acknowledge that it will need a three-year programme to fully transfer all government controls to the private sector.

 

Supporting the initiative, President and CEO Nicholas Calio from the Airlines for America (A4A) trade body representing leading US airlines said: “This is a historic day. We applaud the hard and diligent work the Committee has done to produce a bill that could accomplish for the National Air Space what others have only talked about for years, putting it at the forefront of aviation technology and innovation.

 

American Airlines

The future of this new bill will need the support of the US airline industry – which it mostly appears to have – although the devil is in the detail. Should the bill be finally approved, then it could also pose questions over the future viability of the long running FAA-funded minority disadvantaged business enterprise (DBE) programme. This currently provides retail opportunities for disadvantaged individuals at US airports across the country and is one of the conditions retailers must meet to bid for contracts and airports must meet to apply for Federal funding.

 

“A more efficient system with proper governance, funding and accountability will bolster our nation’s first-rate safety record and result in more choice, more direct trips, lower fuel consumption, reduced emissions and fewer flight delays.

 

“We share Chairman Shuster’s goal of seeing more air traffic controllers hired, making our system even safer, and most importantly, making flying better – and at no additional cost – for the traveling public.

 

“This legislation moves the two million passengers and 50,000 tons of cargo flying on US airlines every day one step closer to the world-class ATC system that airline customers deserve,” he said.

 

 

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