Friday, September 23, 2016

What’s Next for ATC Privatization?

In today’s topic, we’ll briefly discuss a couple of the features to expect when the NextGen system (eventually) arrives, and examine some of the subjects surrounding ATC Privatization.

What is NextGen?
NextGen (Next Generation Air Transportation System) is the FAA’s answer to the outdated, ground based radar system being used by ATC today. NextGen replaces this dated system with a modernized satellite-based system. Among its many “features”, NextGen implements improvements such as ADS-B (Automatic Dependent Surveillance-Broadcast), NVS (NAS Voice System), and Data Comm.

ADS-B is probably the most discussed topic regarding NextGen, and is the new system responsible for providing aircraft information to ATC. Sarina Houston explains:

ADS-B is a more accurate and reliable system than the RADAR system in place currently. ADS-B will broadcast aircraft information such as speed, location and route to air traffic controllers and other participating aircraft through the use of satellite radio signals and ground stations (2016)

NVS, as the name suggests, is an improvement to the communications infrastructure to “better handle the modern communications of the air traffic system” (Houston, 2016). Sounds great, but what does it do? The FAA explain:

Current point-to-point voice-switching technology enables controllers to speak to aircraft within range of their nearby radio site. By contrast, NVS works over a secure FAA digital network and is not limited by geography. With the flip of a switch, NVS will enable voice traffic to move from one location to another anywhere in the country. The FAA will have the flexibility to shift workload among multiple air traffic control facilities, if needed. (“NextGen - NAS Voice System”, 2016)

Data Comm is another exciting feature, as it allows pilots to receive “textual clearances, approach procedures and instructions from controllers” in a digital format (Houston, 2016). This feature is particularly interesting to me as it would save me the pain of having to figure out how to spell some odd waypoint on my IFR clearance.

General Aviation’s Stance on Privatization:
GA aviators have generally been opposed to ATC privatization. Part of this opposition probably stems from the fact that many GA pilots (like myself), only use ATC occasionally, and are satisfied with how things are now (why pay for something you’ve already been getting for “free”). Aviation organizations such as EAA and AOPA also have concerns regarding ATC privatization.

The EAA urged its members to oppose the act, with the CEO/Chairman stating “This [privatization] will hurt the safest and most complex aviation system in the world” (ATC Privatization, 2016). The 
EAA further claimed that such an act would “likely increase in costs”, offer “few promised savings or efficiency improvements”, and have “airline dominance of ATC governance” (ATC Privatization, 2016).

AOPA also opposed the user fees associated with the act. The AOPA President Mark Baker stated, “AOPA simply won’t accept user fees in any form on any segment of general aviation. And while there are some very positive provisions for GA in this proposal, user fees are a nonstarter for us” (Tennyson, 2016).

ATC Privatization in Other Countries:
ATC is already privately run in Canada, and has been since 1996 by the company Nav Canada. Nav Canada originally “purchased the country’s civil air navigation system from the federal government for CA$1.5 billion”, and has since invested an additional CA$2 billion in infrastructure (Owram, 2016). The company is operated as a non-profit organization, and is “the world’s second-largest ANSP by traffic volume” (“Meet Nav Canada”, n.d.). The company is funded by customer fees, with charges being “based on aircraft weight and distance flown” (Owram, 2016). The Canada system has received attention as being a possible model for the United States to follow; however, not everyone has praised it. For example, Delta Air Lines, Inc. Senior Vice-President of flight operations, Captain Steve Dickson stated,

We learned that Nav Canada’s privatization model may work well for Canadian airspace, which is about one-tenth the scale and complexity of U.S. airspace… But the lack of any solid data from Nav Canada that would have supported a move to privatization in the U.S. was startling (Owram, 2016)

Where it Stands Now:
Converting our ATC system into a privatized one first requires the bill to be passed by Congress. In the event that the bill is passed, control of the system would then be transferred to a private company (similar to Nav Canada). Though, that won’t be happening any time this year, as the latest FAA Reauthorization bill (passed in July with a Senate vote of 89-4) “authorized FAA programs at current funding levels through September 2017” (Carey and Pasztor, 2016). However, former secretary of the U.S. Department of Transportation James Burnley stated that “he sees the issue moving forward when Congress debates authorization again next year as the current bill runs the course of its 14 month extension” (Petrie, 2016). So it’s clear to see that although delayed, this topic of privatization is far from over.

So, Should ATC be Privatized?
In regards to efficiency, it would seem that privatizing ATC would be a beneficial move, and would remove some of the limitations which come with being a government operated system – hopefully allowing it to more quickly implement improvements such as NextGen. That being said, I do not fancy the idea of paying a service charge every time I use ATC. My interaction with ATC is fairly limited (flight following, and the occasional IFR flight); however, if a fee was associated with this use, I feel I would avoid interaction with ATC whenever possible – thereby defeating the point of its existence.



References:
ATC Privatization Brings Few Savings, Threatens General Aviation Services. (2016, February
            18). Retrieved from https://www.eaa.org/en/eaa/eaa-news-and-aviation-news/news/02-
            18-2016-atc-privatization-brings-few-savings-threatens-general-aviation-services

Carey, S., & Pasztor, A. (2016, July 13). Senate Passes FAA Reauthorization Bill. Retrieved
            from http://www.wsj.com/articles/senate-passes-faa-reauthorization-bill-1468437144

Houston, S. (2016, August 14). NextGen in a Nutshell: The Next Generation Air Traffic System.
            Retrieved from https://www.thebalance.com/nextgen-in-a-nutshell-282561

Meet NAV CANADA. (n.d.). Retrieved from http://www.navcanada.ca/EN/about-us/Pages/who-
            we-are.aspx

NextGen - NAS Voice System. (2016, March 29). Retrieved from
            https://www.faa.gov/nextgen/update/progress_and_plans/nas_voice_system/

Owram, K. (2016, February 1). U.S. looks to Canadian model as it debates air-traffic-control
            privatization. Retrieved from http://business.financialpost.com/news/transportation/u-s-
            looks-to-canadian-model-as-it-debates-air-traffic-control-privatization

Petrie, J. (2016, July 14). ATC Privatization Fight Far From Over | AviationPros.com. Retrieved
            from http://www.aviationpros.com/blog/12231969/atc-privatization-fight-far-from-over

Tennyson, E. A. (2016, February 11). AOPA opposes user fees as reauthorization moves to full
            House. Retrieved from https://www.aopa.org/news-and-media/all-
            news/2016/february/11/aopa-opposes-user-fees-as-reauthorization-moves-forward

5 comments:

  1. I agree with your stance on ATC privatization. It does in fact seem like the system could possible gain some kind of efficiency if it was privatized due to more steady funding. The funding has been cut off several times in the past 10 years and it has hindered the growth of improvements in the current system. At the same time the user fees would create havoc among GA and it creates a level of uncertainty of how the system will stand initially if it were to be privatized.

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  2. If the privatization of ATC was not for profit, it could work with GA. Another concern that EAA expressed, was a scenario of losing service at smaller airports.

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  3. This ATC privatization is interesting since it has been a topic for quite a few years now. I would like to find out if any companies have made it public that they are interested in taking the duties of ATC from the FAA.

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  4. Considering that GA pilots might not be willing to use ATC services as a direct fee system big problems might occur. If the new private entity provides data that GA is not using services we could get into a use it or lose it situation. The FAA and private ATC might feel pressure from the airlines to push GA out of "their" airspace and GA pilots could be stuck in class E and G airspace and non towered airports.

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  5. DO you think that it might cripple the GA community? it will benefit the Airlines no doubt but what about the thousands of GA pilots? because a lot of private pilots believe that it will have restricted access to the skis. Jack J. Pelton, CEO and chairman of the Experimental Aircraft Association(EAA) says, "ATC privatization is simply a bad idea on many levels — it will not solve the FAA’s funding dilemma and will create a substantial number of new problems and challenges that would cripple general aviation; Although the bill contains some items that would be beneficial to grassroots aviators, those benefits are overwhelmed by the ominous consequences of a corporatized ATC system without direct federal authority and oversight. Such an ATC privatization plan is simply not acceptable as a part of any FAA reauthorization, especially when there are simple, common-sense ways to solve FAA’s funding issue.”

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