A Way Forward on Air Traffic Control

8/19/2019 A Way Forward on Air Traffic Control

1/19

A Way Forward on

Air Traffic Controlby

Robert W. Poole, Jr.

Director of Transportation Policy

Reason Foundation

http://reason.org


2/19

OverviewWhat is air trac control !T"#$

%o& is '( !T" pro)ided and paid for$

%o& is this done in other countries, and ho&has it &or*ed$

'( proposals for !T" corporations

+rigins of the %ouse !T" "orp. proposal

What the bill &ould do

!d)antages disad)antages both sides#

(ta*eholder positions


3/19

What is air traffic control?Purpose: *eep aircraft safely separatedin -controlled airspace.

The eans:

(ystes radar, na)igation beacons, etc.#

Procedures controller0directed paths and

perissions#Facilities to&ers, TR!"+1s, centers#

(afety regulators


4/19

How is US ATC provided?

Federal !)iation !dinistration

(afety regulation!irport grants

!ir trac control

2iscellany coercial space,drones, etc.#


5/19

How is US ATC paid for?!)iation e3cise ta3es 450657 of F!!budget#

8eneral fund 95057 of F!!budget#

;udget brea*do&n F< 59=#:

!T" >7

!irport grants 7

(afety isc. 9>7


6/19

Which parties pay for what?!irlines tic*et/segent ta3es,international ta3es# 4=.?7

;usiness turbine planes 5.?7

Pri)ate piston planes 5.9?7

8eneral ta3payers 9?.47

(ource: 8R! analysis of F


7/19

How is ATC paid for elsewhere?@n all other de)eloped nations, aircraftoperators pay !T" charges.

@"!+ principles:

An0route Bying: &eight and distance

Terinal0area: &eight

ReBects an ability0to0pay principle

@n ost countries, !T" is self0supporting


8/19

ATC corporatization trend, past 2 years(eparation of !T" fro transport agency

!rCs0length safety regulation(elf0funded fro !T" charges henceindependent of go)ernent budget

Re)enue bonds for oderniEation

Directly accountable to a)iation custoers

+)er >5 countries, ostly go)t.corporations


9/19

St!dies of corporatized A"S#s2;( +tta&a study 82', (yracuse, 2c8ill#,55>

@;2 "enter for the ;usiness of 8o)ernent,55>

Managing the Skies, by +ster (trong, 55

-+rganiEation @nno)ation in !T", Poole, 59=

2@TRA study of separation of !T" operationsfro safety regulation 59G#

Institutional Reform of Air Navigation ServiceProviders, 1ei)a 59?#


10/19

$odernization in corporatized

A"S#s

!D(0; and "PDH"

Reote to&ers

Tie0based Bo& anageent

Facility consolidation

@n each case, faster and ore cost0eIecti)e than coparable F!!eIorts

(ource: Poole study for %udson @nstitute, 59G


11/19

US ATC corporation proposals

!ir Transport !ssn, 964?

!)iation (afety "o., 9644

1at. !irline "o. ;aliles#, 966=

1ational Perforance Re)ie&, 966=06G

'(!T( reports and legislation, 966G06?

2ineta "o., 966

;roo*ings %ailton Proect, 554


12/19

Ori%in of Ho!se ATC Corp& proposal ;usiness Roundtable tas* force 5909G#

Forer D+T and F!! ocials

"onsultants policy analysts

"oncluded "anada has best odel

Ano Transportation "enter &or*ing group59G09?#

Participation fro all *ey sta*eholders

A3pert presentations

"oncluded either go)t. corp. DF(# or nonproKtcorp. 1a) "anada#


13/19

What the Ho!se 'ill calls for(Fed. chartered nonproKt !T" "orp.

!rCs length fro F!! safetyregulation

Direct user payents for ser)ice butnot for pri)ate planes or biEets#

+utside the federal budget process

8o)ernance )ia board balancing all*ey sta*eholder interests


14/19

Advanta%es )say proponents*@pro)ed safety )ia separation ofregulation fro !T" operations

@nsulated fro federal budget problesRe)enue bonds for oderniEation

Aliinate icroanageent fro"ongress, +2;, D+T @8, etc.

(trealine procureent better engineersand anagers

@nno)ation, a la 1a) "anada, others


15/19

+isadvanta%es )say opponents*!irline doination

Delegates -ta3ing po&er to pri)ate

corp. Threat to sall counity air ser)ice

Fear of future user fees for pri)ate

planes and biEets2ight disrupt 1e3t8en progress

2ight increase e)eryoneCs cost of Bying


16/19

Aviation staeholder positions


17/19

C!rrent stat!s of the 'ill "orp. is Title @@ of %ouse F!! bill

Passed %ouse T@ "oittee, Feb.1eeds Ways 2eans a)iation ta3changes, to get to the Boor

(enate draft bill does not include!T" "orporation


18/19

-ditorial co..entaryNew York Times +ppose

Washington Post Fa)or Aviation Week Fa)or

USA Toda Fa)or

Wall Street !ournal TM


19/19

/!estions?

;ob.pooleNreason.org

A Way Forward on Air Traffic Control

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