ATC Privatization and NextGen

According to Nolan (2010), the ATC system is tasked with ensuring safe operations of private and commercial aircraft. The system coordinates the movements of numerous aircraft, keeping them at safe distances as well as directing them during landing and takeoff from the other aircrafts. It also ensures that traffic flows efficiently with minimal delays. NextGen, on the other hand, is a new National Airspace System which is due to be implemented across the U.S. from 2012 to 2025 and is a comprehensive modernization of ATC via a Global Positioning System (GPS) that is built on a satellite-based navigation. NextGen uses GPS in addition to other sophisticated flight procedures or technologies to reduce flight time, flight delays as well as aircraft fuel emissions. 

General Aviation (GA) has spoken against the privatization of ATC since this move will create a federally-chartered air traffic control corporation which will be governed by aviation industry that will mainly focus on airline interests which will eventually result in limited access to the skies for private pilots. The U.S. airlines want ATC to be privatized given that the system is currently using a technical foundation of the 1950s with equipment that are outdated. This creates the need to put into a quasi-official structure that will free the system from all financial constraints which have kept it from being upgraded. The response of Airline for America (A4A) lobby group has opposed privatization but argue that ATC needs to be reformed since the old model creates the wrong incentive which is profit. A4A supports a model which holds the benefit on being governed and run like a commercial business that drives efficiency and accountability while equitably obtaining finances from users simply as required to support and sustain an effective operation. Americans Against Air Traffic Privatization (AAATP) is another lobby group that opposes the ATC privatization, arguing that this should be the function of the government. The AAATP has also expressed fear that the airline industry will have too much voice in managing the privatized entity (Reed, 2016). 

            There are other countries that have privatized ATC such as New Zealand, Germany, and Canada, which were the first independent entities to have served the interests of airspace users and their customers. These privatized ATCs are financially self-sufficient hence they do not need any subsidies from the taxpayer and are able to swiftly adapt to dynamically changing technological and operational environments, unlike the current ATC. 

            The process of converting the current system into a privatized system is through the Congress. Besides that, the Aviation Innovation, Reform, and Reauthorization (AIRR) Act of 2016 was introduced in the Congress and focuses on creating a new non-governmental, non-profit and self-funding entity which will take over the development and operation of the ATC system (Congress.Gov, 2016). Additionally, this bill will as well take the management of the system from the FAA. The current administration will have an impact on the ATC privatization especially with the change of the two Houses of the government from Democrats to Republicans. It is anticipated that the new administration will make some amendments to the introduced bill to open for reforms on the ATC system.

            It is agreeable that ATC system performance and processes continuous improvement should be first and foremost. However, privatizing ATC will turn over the system to the airline industry, which will have a bigger voice hence making their business practices and pricing service to be exempt from government oversight, or avoid competition. This means that in privatizing air travel, prices might rise and flying might become too risky given that the participation of safety officials in the proposed entity will be halted. 

References

Congress.Gov. (2016). H.R.4441 - Aviation Innovation, Reform, and Reauthorization Act of          2016. Accessed on January 25, 2017, from https://www.congress.gov/bill/114th-            congress/house-bill/4441/text.

Nolan, M., (2010). Fundamentals of Air Traffic Control. Cengage Learning.

Reed, D. (2016). Air Traffic Control Privatization Finally Has A Realistic Shot At Being Passed     By Congress. Accessed on January 25, 2017, from             http://www.forbes.com/sites/danielreed/2016/02/05/air-traffic-control-privatization-          finally-has-a-realistic-shot-at-being-passed-by-congress/#1da0187a14aa.