Thursday, September 22, 2016

Privatization of ATC




The fundamentals of our ATC system is based on point-to-point ground based radar. ATC controllers uses the radio to pinpoint the location of each aircraft. As aircraft fly through the controller’s assigned airspace they will hand handle to another controller once they reach the boundaries of the airspace (Breselor, 2014). The proposed system uses digital technology to track aircraft. The new system, known as NextGen is a modernization program that will use GPS technology, which allows controllers and pilots where each flight is located. NextGen will require new infrastructure. New technologies will be implemented which will allow pilots to see flight, traffic, and weather information. Other technologies will give ATC better information about the flights they handle to ensure a safe landing (FAA, 2016).

General aviation is opposed to the privatization of the ATC system because the proposed system would give tremendous power to the airlines. The concerns of general aviation would be drowned out by a board of directors consisting of airlines (General Aviation News, 2016). The proposal would implement user fees for commercial airspace which can place a financial burden on general aviation. Small airports may not have access to safety improvements if the non-profit corporation does not receive enough revenue from user fees (Aviation General News, 2016). Majority of airlines want a private ATC system. The rationale is that a private ATC system is more efficient than the current system and that if ATC responsibilities were to be handed to a non-profit corporation, the board of directors would mostly consist of airlines, which give them tremendous power over how to ATC system will work (Laing, 2016). The Cato Institute believes that it is time for the United States to privatize ATC. Proponents of privatization want a system that is more efficient and not hindered by bureaucracy, which the FAA is known for (Edwards, 2016). The Cato Institute has looked to Canada as a model of efficiency. On the other side of the spectrum, the Experimental Aircraft Association does not want ATC to be privatized on the current proposal, which gives airlines more power. The EAA sees the attempt of privatization a way for airlines to increase their profit (EAA, 2016).

ATC has been privatized in other countries. Canada has made the transition to a private system. The way NavCanada works is that, both pilots and controllers use text messages to communicate thus reducing the amount of radio transmissions. By using text messages, it reduces the chances of misunderstandings (McCartney, 2016). When it comes to funding, the NavCanada charges aircraft flying in Canadian airspace and the uses of terminal services. NavCanada operates more efficiently than what is being used in United States, mainly because of technology (Edwards, 2016). NavCanada has been able to implement technology much faster than the FAA (Edwards, 2016). As flights are monitored through GPS based technology, it allows controllers to add capacity and reduce delays. 

Only Congress has the authority to create a non-profit corporation. The current discussion is that the airlines want a private system, while general aviation, based on the proposal in the FAA Reauthorization Bill is opposed to it because it gives too much power to the airlines. Currently, the attempt for privatization has failed and the FAA retains the responsibilities of handling the nation’s airspace (EAA, 2016).

I do not believe that a private ATC system would work in the way it was proposed in the FAA Reauthorization Bill. Having a board of directors that mostly consist of airlines is a conflict of interest because the airlines would use their authority to further their own interest and not the interest of U.S aviation as a whole. As with any corporation, its objective will be to make money. In the event that it does not generate enough revenue to cover their operating cost, it will be the taxpayers that will have to bail them out since ATC is a vital function to our economy.


References

Breselor, S. (2014, September 26). Why 40-Year-Old Tech Is Still Running America’s Air Traffic Control. In Wired . Retrieved September 22, 2016, from https://www.wired.com/2015/02/air-traffic-control/


EAA. (2016, February 12). EAA opposition to ATC privatization bill moves to full house. In EAA. Retrieved September 22, 2016, from https://www.eaa.org/en/eaa/eaa-news-and-aviation-news/news/02-12-2016-eaa-opposition-to-atc-privatization-bill-moves-to-full-house


EAA. (2016, February 26). What’s next? aftermath of ATC privatization battle. In EAA. Retrieved September 22, 2016, from http://www.eaa.org/en/eaa/eaa-news-and-aviation-news/news/02-26-2016-whats-next-aftermath-of-atc-privatization-battle


Edwards, C. (2016, April 8). Privatizing air traffic control. In Downsizing the government. Retrieved September 22, 2016, from http://www.downsizinggovernment.org/transportation/atc


FAA. (2016, June). The future of the NAS. In FAA. Retrieved September 22, 2016, from https://www.faa.gov/nextgen/media/futureOfTheNAS.pdf


General Aviation News. (2016, February 4). GA reacts to proposal to privatize ATC. In General Aviation News. Retrieved September 22, 2016, from http://generalaviationnews.com/2016/02/04/ga-reacts-to-proposal-to-privatize-atc/


Laing, K. (2016, February 25). House GOP grounds plan to spin air traffic control from FAA. In The Hill. Retrieved September 22, 2016, from http://thehill.com/policy/transportation/270831-gop-grounds-air-traffic-control-spin-off


McCartney, S. (2016, April 27). The air-traffic system U.S. airlines wish they had. In Wall Street Journal. Retrieved September 22, 2016, from http://www.wsj.com/articles/the-air-traffic-system-u-s-airlines-wish-they-had-1461776053

5 comments:

  1. I do agree with how you explain that ATC wouldn't work in the United States. No matter what, its going to be a program needing a gigantic budget, especially if they plan on holding up the part of the proposed legislation that the controllers' union contracts and salaries won't be affected. It is easy to see that this would reflect on the public who buy airline tickets, and take advantage of the airspace system.

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  2. I agree with how you said the privatization of ATC will not work. The fact that the board of directors would most likely consist of airlines could potentially cause problems with other operations in the industry as there would be an overwhelming concern for airlines over others such as the general aviation community. There are checks and balances when a board of directors isn't from one side of the industry. I don't think the revenue will cover operating costs in the initial years and the government will be forced to help out.

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  3. I agree with how you said the privatization of ATC will not work. The fact that the board of directors would most likely consist of airlines could potentially cause problems with other operations in the industry as there would be an overwhelming concern for airlines over others such as the general aviation community. There are checks and balances when a board of directors isn't from one side of the industry. I don't think the revenue will cover operating costs in the initial years and the government will be forced to help out.

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  4. I agree with you privatization definitely would not work. The government wants to control anything with a big budget. A board of directors that mostly consist of airlines will almost always be biased in the manner that they will only act in what ever fashion that will best benefit their company. This will always create a problem.

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  5. The Nav Canada part was interesting. I didn't know about the text messaging feature for certain communications with ATC. I learned something new about Nav Canada.

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