Premium #231 – Is it Time to Privatize Air Traffic Control?

The United States was once the global leader in aviation, enabled by a forward thinking FAA. Today, that agency is bogged in politics and red tape, resulting in decision-making processes that would result in a description of incompetence and the phrase “you’re fired” in the commercial world. Perhaps the best example for this is US air traffic control. Today’s air traffic control systems in the US are hopelessly outdated, relying on paper strips, ancient computers, radar, and landline communications technologies from the 1970s. The number of air traffic controllers has risen to keep up with traffic growth, but the processes and technologies used result in more near misses than necessary and don’t take advantage of today’s new technologies. But don’t just take our word for it. “There was a time when the United States was the gold standard in every aspect of air traffic control. Those days of global leadership, regrettably, are gone.” This are the conclusions of a bi-partisan group that includes three former Secretaries of Transportation earlier this year. Meanwhile, German and Swiss controllers utilize new technologies for all phases of flight, including pre-departure clearance, climb-out, en-route, approach, and landing. NavCanada, a private corporation, utilizes the 66 satellite Iridium system to provide GPS system to fly more efficient routes and provide coverage in the polar regions. That system is expected to save airlines flying through Canadian airspace many millions of dollars per year in time and fuel savings alone. NextGen is a Debacle The planned upgrade to NextGen technologies, utilizing satellite technology has been underway in various stages since 2003, when the FAA decided to “study” the process. Re-started in 2012, the program will now not be fully implemented until 2025. A satellite global positioning broadcasting system called Automatic Dependence Surveillance Broadcast (ADS-B) is a key technology for implementation, but provides few benefits to operators of small general aviation aircraft, which will be required to install this expensive equipment in their aircraft. As a result, ADS-B implementation simply isn’t happening fast enough. Aircraft owners are playing a wait and see game with the FAA, as are airlines. Even the US Air Force can’t meet the deadline and won’t be able to fully retrofit its aircraft until 2028, eight years after the mandate. It seems that general aviation, commercial aviation, and military aviation are calling the FAA’s bluff, rather than upgrading technology - knowing that a politically sensitive organization will cave, rather than press forward. What’s wrong with the FAA The FAA has become a bureaucracy that has its budget controlled by Congress. That makes it difficult to change much of anything. If the Administrator tries to close outdated facilities, they will be in some congressman’s district, who will likely tack a rider onto some bill mandating that a no longer needed facility stay open. Investments in new technology may require several years to implement, but funding needs to be on an annual budget basis with Congress. God forbid that we fund a multi-year program or make capital investments that make sense. Splitting Off Air Traffic Control is the Best Solution NavCanada is a model of efficiency that the rest of the world has emulated. ICAO has recommended that all nations separate air traffic control from their aviation safety agencies. Nearly all of their 191 member countries have done so, but not the United States. It is time to take action - but both the FAA and Congress share a cultural problem - neither embrace innovation or change, and tend to cling to short-term issues and the status quo. The Issue of User Fees General aviation aircraft don’t want to pay for Air Traffic Control, which up to now has been “free.” But the Aviation Trust Fund, collected through gasoline taxes, is much like any other fund to Congress, fungible money that may or may not be used for its intended purpose. A modern and efficient FAA could split off ATC and fund it through a portion of the fuel taxes paid by users. And since the larger aircraft use more fuel, they airlines would pay their fair share as would general aviation folks, who utilize less fuel. As far as equipment, let’s let the avionics folks have a go at this. Garmin came into the market and revolutionized capabilities for general aviation moving from their GPS technology to fully integrated cockpit instrumentation suites. Given the high volumes required for moving every small aircraft to NextGen, one would expect that someone could offer a low-cost solution that isn’t thousands of dollars per aircraft. An independent company could set up a competition to do just that - but a government agency can’t. The Solution is Privatization The FAA doesn’t innovate or create, it merely regulates. The private sector innovates, creates solutions, and implements them, with a cash flow motivation to speed up the process. That’s what is needed to move air traffic control forward in the US. It is time to privatize ATC and move it our of the jurisdiction of the FAA. NavCanada is a great example of what can be achieved when constraints are removed and innovation allowed to flourish. The FAA is an example of how things fail, year after year after year, in a bureaucratic environment.

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