Fixing a Failing ATC System

Let me begin by saying I believe in the free market system. I also believe the Federal Government should be responsible for the security and safety of our citizens, our monetary system, and for helping those that can not help themselves. When our government tries to run a business it is usually a mess – expensive and inefficient. Air Traffic Control (ATC) is a perfect example. (I will save similar comments on general aviation airports for a later post.)

Despite the ads run by the controllers’ union, ATC in the United States is antiquated, expensive, and inefficient. The United States is the only non-third world country where air traffic control is both regulated and operated by the government. One only has to look north to find one of the most modern and efficient ATC systems in the world. NavCanada is a stakeholder owned non-profit corporation. Revenues come from user fees not taxes. Rates have declined since this private company was formed in the late 1990s to take over air traffic control operational responsibilities from the Canadian government, and efficiency has increased. NavCanada has developed equipment and technologies that they sell to other nations. They survived the shock of 9/11 and the bankruptcies in the airline industry. NavCanada controls not just traffic in Canada but traffic over the North Pole and the North Atlantic. They safely landed in Canada all inbound traffic from Europe and elsewhere to the United States on 9/11.

Our FAA-managed and regulated ATC was using vacuum tube equipment until a few years ago. Productivity is terrible today and has been for years. The FAA is short of money just to operate the system. Literally billion of dollars of taxpayer funds have been wasted on developmental programs that have later been cancelled. As opposed to private industry, government does not have to justify a return on investment or pay back funds that have been advanced by bond holders. Inefficient is not a strong enough word to describe this situation.

So why is our government still running this ATC service organization than can easily stand on its own?

First congress is unwilling to give up control of an organization with a large labor force that can bring jobs to a powerful Congressman’s district. For example, recently the House passed an amendment to the Transportation Appropriations Bill, H.R. 5576, by a vote of 261 to 166.

“None of the funds made available in this Act may be used to eliminate, consolidate, co-locate, or plan for the consolidation or co-location of a Terminal Radar Approach Control (TRACON).”

As a result several clear thinking members of Congress are proposing a commission or process similar to the military Base Realignment and Closure (BRAC) process to overcome the “not in my district” syndrome.

Secondly, the controllers union, NATCA, is strongly opposed to reform mainly because they feel it will be a threat to their jobs and pay scales. Controllers are among the highest paid government employees, even higher that most members of Congress. NATCA recently lost a battle with the FAA and Congress for even higher pay scales.

The third major road block is the major general aviation trade associations, particularly AOPA, NBAA, and NATA. Pilots are afraid of user fees, despite the fact that they are already paying a user fee in the form of a fuel tax. The problem with any tax is it first goes to the U. S. Treasury to which Congress holds the key – back to problem number one.

For much more on this subject click on this link to the Reason Foundation. I have provided links in the side bar to articles on ATC that I think are worth reading.

Subjects We Will Be Discussing:

• What are the new trends in General Aviation?

• What is the case for changing the way ATC is organized and managed?

• What impact will the new VLJs have?

• What is the next trend in industry consolidation?

• What are the issues that you feel are important to our industry?