Sunday, December 6, 2015

ATC Privatization


The general aviation community has traditionally spoken against ATC privatization because a new air traffic oversight entity, if funded by user fees, would cost them more (Loyd, 2015).  Today, ATC is funded under the gas tax but if privatized it would be a user fee.  General aviation and big corporate corporations are opposed to it because their costs will go way up due to the privatization ATC which would charge you user fees each time an aircraft received air-traffic-control services. 


Delta Air Lines has recently spoken out about privatizing ATC because they oppose the idea of separating air traffic control operations from safety oversight. Steve Dickson, a Delta pilot and senior vice president for flight operations stated that “the current system is safer, more cost-effective, and has fewer delays than any "alternative in the world," said Uprooting the system would result in "organizational disruption, silos between organizations, unforeseen transition costs, and a loss of experts and institutional knowledge," he said. "Air traffic control should remain part of the FAA, with greater focus on continuing NextGen implementation (Loyd, 2015)."  Other Commercial airlines like the idea. They think a new-model FAA would be more nimble and able to carry out much-needed technology upgrades more quickly (Loyd, 2015).


ATC is privatized in Australia, Canada, France, Germany, New Zealand and United Kingdom.  The National Air Transportation Association states that Canada, France, Germany, and the United Kingdom ATC systems are not comparable to the U.S. system.  Due to the fact that the international air traffic control systems are much smaller and less complex than the United States (Smith, 2015).  After the foreign governments implemented ATC privatization airlines were found to be equally safe after the air traffic control transition. The main difference that occurred as a result of ATC privatization was that it could sustain itself financially.  

If the U.S. were to privatize ATC control if would first have to be approved by Congress.  Congress would have to create a law that removes ATC oversight from the FAA in order to privatize.  



I don’t think that the current ATC system would be more efficient if it was privatized.  The main purpose of ATC is to ensure safety among air travel carriers and users not profit.   Rep. Bill Shuster, R-Pa., states that “One reason for privatizing is to separate air-traffic control from the FAA's regulatory duties making sure planes and pilots are safe to fly (Jansen, 2015).”  Now is this the real reason?  I think it all about the money, if ATC is privatized they will generate their own money stream and will not have to rely on the government to reauthorize funding.  This is a bad idea because corporations focus main on profits then safety every time. 
 

Reference:

Jansen, B. (2015, June 15). House transportation chairman: Privatize air-traffic control. Retrieved from http://www.usatoday.com/story/news/2015/06/15/faa-air-traffic-control-rep-shuster-privatization-aero-club/71244404/

Loyd, L. (2015, September 28). Should air traffic controllers be privatized? Retrieved from http://articles.philly.com/2015-09-28/business/66932623_1_air-traffic-organization-national-airspace-system-the-faa

Smith, E. (2015, September 21). Air Traffic Control Privatization Chatter Flies Again. Retrieved from http://associationsnow.com/2015/09/air-traffic-control-privatization-chatter-flies/

 

1 comment:

  1. Everyone seems to be focused on the money, so I’ll play devils advocate here. Taking a step back and looking at all the other current government contracts run by private corporations, I can’t see how ATC could become the next big cash cow. As a service oriented entity, with no real tangible product, I don’t see how it could be obtusely profitable. Now if you’re say Lockheed Martin, Boeing, Raytheon, General Dynamics, or Northrop Grumman, building multi-million (some billion) dollar products for the US government, there’s room for cost-plus budget overages while maintaining a fat profit margin. If a nongovernmental agency were to take over ATC operations, it would have to be implemented as a performance based contract with FAA oversight in order to make the transition worth the “anticipated” rewards.

    ReplyDelete