Saturday, January 16, 2016

ATC Privatization

           Our current ATC system is ran by the FAA. It is largely based on VORs and radar. The VORs create pathways in the sky, while radar allows for the station to send and receive signals giving them information on the aircraft. This system is becoming obsolete with the invention of GPS and the desire to fly direct routes. In the current model, this has caused delays at the increasingly populated airports. This causes potential losses to business travelers, as well as, the airlines. The NextGen system is a “comprehensive ATC modernization using a Global Positioning System (GPS) built on reliable satellite-based navigation. GPS and other sophisticated technologies/flight procedures reduce flight delays, flight times and aircraft fuel burn/emissions” (Global Business Travel Association, 2016).
            
            Currently there is a debate that the ATC services should be taken away from the FAA and given to the private sector. This concept is known as ATC privatization. The General Aviation, GA, community is very outspoken on their views against ATC privatization. This is largely due to the costs that are accompanied by the use of a privatized system. This can cause a hostile environment in which GA pilots do things that are not safe to avoid being in controlled airspace and receiving fees. The United States airlines are spilt in their opinion of ATC privatization. United and American Airlines have testified in front of Congress that they are for the privatization of ATC. However, Delta is firmly against ATC privatization. Steve Dickson, Delta’s senior vice president for flight operations, states, ” We don’t think the system’s broken” (Bachman, 2015).
           
            Many organizations have taken stands on this issue due to the large impact it has on the members of their groups. The National Business Aviation Association, NBAA, is an organization for corporate aviation. The NBAA have taken a firm stance against ATC privatization. “The big U.S. airlines have long argued that they pay an unfair portion of ATC expenses compared with the private jet community. Dan Hubbard, a spokesman for the NBAA, said his group has examined privatized systems elsewhere and found that generally ‘the airlines are given preference’ over private aviation.” (Bachman, 2015). Surprisingly, with the potential loss of positions, pay, and government benefits for ATC personnel, the National Air Traffic Controllers Association have officially stated they are currently neither for nor against ATC privatization. With the coming of the ATC privatization bill, we will be hearing the positions each organization has as they begin to try and influence their congressmen.
            
            ATC is privatized in many European countries, as well as, Canada. Canada’s Nav Canada is thought to be the best privatized system. Nav Canada is governed by a board of directors. This board has members who are appointed by the Canadian airlines association, business aviation association, the government, employee unions, and independent directors elected by the board. This method of appointment allows for the board to be as fair to all parties as possible. While this may sound like a better alternative to a fully government run organization, there are additional costs that come with privatization. Additionally, with the vastly larger number of aircraft flying in the United States it is difficult to compare any current system with the kind of system that would have to be implemented for the United States.
            
            To convert to a privatized system Congress would have to pass a bill implementing the privatization. Currently there has been talk of putting the privatization of ATC to vote in Congress. However, there has not been an attempt to pass a bill of this kind yet. There seems to be a good chance that there will be an attempt to attach this to a bill in the near future. With the likelihood of a bill privatizing ATC increasing, the discussion will begin to ramp up with each organization making sure to weigh in on the conversation.
           
            I believe that there are many issues left to be discussed that would paint a better picture of the potential advantages and disadvantages of ATC privatization. I believe that private organizations would be able to create NextGen systems more efficiently than the government. However, there are numerous other factors to consider, such as personnel issues and how the fees will be distributed to each category of aviation. This would have to be done properly for this to be a viable solution. Furthermore, they would have to incorporate the time of year when setting up the payment system to match the fluctuating air traffic throughout the year. Lastly, we would have to institute a board of directors similar to Canada’s to allow for a mixed governing body to insure there is no preferential treatment.



Bachman, J. (2015, September 11). Should the U.S. Privatize Air Traffic Control? Retrieved January 16, 2016, from http://www.bloomberg.com/news/articles/2015-09-11/should-the-u-s-privatize-air-traffic-control-


Global Business Travel Association. (2016). NextGen – Air Traffic Control Modernization. Retrieved January 16, 2016, from https://www.gbta.org/usa/governmentrelations/Pages/NextGen–AirTrafficControlModernization.aspx

4 comments:

  1. I have a more pessimistic view of ATC privatization. I believe it has the potential to jeopardize safety, as pilots and the private organization will do anything to reduce costs. Even if privatization was done without "user fees," I still think it will reduce controller pay. However, increasing the cost of flying for students will continue to discourage pilots from pursuing aviation as a career, and likely make the pilot shortage worse.

    ReplyDelete
  2. You bring up a great point when it comes to trying to privatize the ATC system is that the United States keeps getting compared to Canada. Yes the do have a private system, but the amount of flights that the US has compared to Canada is greatly larger. The private system may work in Canada but that doesn't mean it work great here. Also when it comes to privatization I think that it is safe to say that almost every US carrier supports the matter except Delta!

    ReplyDelete
  3. This comment has been removed by the author.

    ReplyDelete
  4. I think there is both good and bad in comparing our ATC to Canada's. I find it to be good because they have been successful with their years in being a privatized system however like many of us agree our skies have a larger amount traffic. which makes it more difficult to calculate how successful we can truly be with a privatized system. which is probably why they have found ways to fund it better than we might be able to considering how expensive it already is for us here in the US. Good blog, very helpful.

    ReplyDelete