NextGen & ATC Privatization

            Our current air traffic control (ATC) system is essentially a ground-based radar system with aided navigational coverage through the use of other technologies such as the VHF Omni Directional Radio Range (VOR). While the current ATC system has proven to be effective, the Federal Aviation Administration (FAA) is looking to improve our National Airspace System (NAS) by implementing a vast new satellite (GPS)-based system that will improve the overall safety of flight, improve aircraft routing procedures, reduce flight times, and potentially present savings for both airline companies and their passengers. The current issue that the FAA's Next Generation Air Traffic Management System (NextGen) faces is the cost of the program. Despite the projected savings to be expected through the NextGen program, Jontz (2016) reported that the FAA has spent "$1 billion a year on the endeavor to modernization air traffic in the United States" (para. 3). Additionally, costs are presented to both the airline and general aviation (GA) sectors of the industry, primarily in the form of mandatory equipment to be installed on aircraft. Elizabeth Tennyson (2014) of the Aircraft Owners and Pilots Association reported that the necessary equipment could cost owners and operators "approximately $5,000 per aircraft while installation typically adds another $3,000 to $4,000 to the cost" (para. 3). The costs associated with NextGen will be hard to swallow for most operators in the NAS, however, if the new GPS-based system is to work efficiently then compliance on all levels of the industry is imperative.   

            User fees, and additional costs associated with flight operations, has always been a popular topic among the GA sectors of the industry. One of the more increasingly popular subjects related to user fees and additional aviation costs was the move to replace the current, federally funded, ATC system. GA advocates, as well as Delta Airlines, have spoken out against the move from an FAA funded ATC system to a non-profit organization that will replace the FAA's role of managing the United State's air traffic environment. Those against the move suggest that the user fees associated with the change in the ATC system, along with the leadership of this new non-profit organization, provide some serious concerns for the private aircraft owners and small jet operators of the world. Conor Shine (2016) states that Delta Air Lines has disputed "that needed improvements can be made within the existing structure and that a full scale overhaul of the air traffic control system would disrupt progress that’s already being made" (para. 6).

            It's no surprise to those operating in the NAS that the newer technologies put forth by the FAA are historically few and far between, and no one recognizes this more than the US air carriers. Airline companies, with the except of Delta Air Lines, believe that a privatized ATC system is a step in the right direction. Especially when we're talking about the implementation of newer technologies. US airline companies explain that the goal is to "disentangle air traffic control from the bureaucratic red tape and political wrangling that have hamstrung the FAA, allowing for longer-term budget planning and a more predictable deployment of new technologies" (Shine, 2016, para. 18). Airline companies are especially interested in the technologies associated with NextGen, which would include more direct routes, better ATC coverage and increased overall efficiency of air travel that might lead to an increase in cost savings for the airlines. Southwest's Vice President, Jason Van Eaton, is on board with an ATC system reform as he stated that "At some point, you’re going to put a strain on the system to the point where you need to take advantage of new technologies that are out there" (Shine, 2016, para. 19).

            Other countries have already implemented the privatized ATC system into their own NAS. Canada for example, has a non-profit corporation called Nav Canada operating its ATC system with oversight from Transport Canada, the Canadian equivalent of the FAA.  Nav Canada is funded by users fees from operators using ATC services within Canada. It's services are very similar to those offered in the US, however, Canada has etched ahead of the US on implementing newer technology such as ADS-B into their NAS. Some operators may argue that the implementation of ADS-B into Canadian airspace is an indication of how a privatized ATC system would benefit the US airspace system and help introduce newer technology into our NAS.

            The answer to whether or not ATC privatization will work well in our current NAS varies depending on who you ask. Some operators in the industry feel that the US ATC system would do well under a non-profit organization.  However there are others, such as Capt. Steve Dickson of Delta Air Lines, who disagree about the privatization of ATC services in the US. After reporting on a trip to Nav Canada in which Capt. Dickson stated that " 'We learned that Nav Canada’s privatization model may work well for Canadian airspace, which is about one-tenth the scale and complexity of U.S. airspace' " (Owram, 2016, para. 19). He later reported that he witnessed  “ 'zero quantifiable data showing operational efficiency' or cost advantages as a result of privatization' " (Owram, 2016,  para. 21).

            If the US were to move from a government ran ATC system to a privatized non-profit organization, it would need to be formally approved by Congress and then signed by the President into law. While there was discussion about including ATC reform in the 2016 FAA Reauthorization Bill, the Wall Street Journal reports that the Act signed by President Obama in mid July of this year does not include any references to ATC reform (Carey, 2016, para. 2).          

            Because the current ATC system is maintained by the FAA, a government agency, and the role of the FAA is to regulate, oversee and maintain the safety and development of civil aviation in the US, it would take congressional approval to privatize the current ATC system. As of today, there is no formal congressional discussion on the current, federally budgeted, ATC system being moved to a privatized organization.

            As for my own opinion, I have to agree with Capt. Steve Dickson of Delta Air Lines. I feel that the implementation of a privatized ATC system in America's vast and complicated NAS would not show very much improvement from the current FAA ATC system. I think it is a good idea for the FAA to prioritize the available resources it has now, and work to improve our current ATC system and its technologies instead of completely overhauling the US ATC system.

References

Jontz, S., (2016) . FAA Moves Its 'Analog' Systen to High-Tech with NextGen Program. Signal. Retrieved from http://www.afcea.org/content/?q=Article-faa-moves-its-analog-system-       high-tech-nextgen-program

Tennyson, E. A. (2014) . NextGen Mandate Too Expensive, AOPA member Tells House Committee. AOPA. Retrieved from https://www.aopa.org/news-and-media/all-  news/2014/june/11/nextgen-mandate-too-expensive-aopa-member-tells-house-committee

Sine, C. (2016, June 20) . Air Traffic Control Reform Plan Tied To Looming Deadline On FAA   Funding Reauthorization. The Dallas Morning News. Retrieved from            http://aviationblog.dallasnews.com/2016/06/air-traffic-control-reform-plan-tied-to-    looming-deadline-on-faa-funding-reauthorization.html/

Owram, K. (2013, Feb. 1) . U.S. Looks To Canadian Model As It Debates Air-Traffic-Control     Privatization. Financial Post. Retrieved from          http://business.financialpost.com/news/transportation/u-s-looks-to-canadian-model-as-it-     debates-air-traffic-control-privatization

Carey, S. (2013, July 13) . Senate Passes FAA Reauthorization Bill. The Wall Street Journal.        Retrieved from http://www.wsj.com/articles/senate-passes-faa-reauthorization-bill-  1468437144