ATC Privatization & NextGen Discussion

1) Describe the fundamentals of our current ATC system vs. the proposed NextGen system. Include details. i.e. "Next Gen is satellite-based." is not enough detail.

At its essence, our current ATC system is divided into 21 areas, which is further divided into sectors, all of which are governed by the FAA. To efficiently monitor these areas/sectors, the ATC system is comprised of five divisions, namely the Air Traffic Control System Command Center (ATCSCC), Air Route Traffic Control Center (ARTCC), Terminal Radar Approach Control (TRACON), Air Traffic Control Tower, and Flight Service Station (FSS) (Freudenrich 2001). Air Traffic Controllers and other employees work in these various divisions to ensure aircraft and civilian safety. To do this, aircraft are equipped with a transponder (which mode-type varies) that is activated while the aircraft is in flight. The purpose of the transponder is to detect incoming radar signals from one of the five previously mentioned centers and broadcast an amplified signal (i.e. respond) to those ground stations. This amplified response signal is then received by a controller working in of the five centers/towers (the specific tower/center is dependent upon the phase of flight the aircraft is in), appearing as a dot (or blip) on their radar detection screens (Freudenrich 2001). The signal emitted from the aircraft provides the controller with pertinent information of the aircraft/flight, including the flight number, altitude, airspeed, destination, etc. The transponder stays active for as long as the aircraft remains active; typically, the transponder is turned off when the aircraft reaches its destination. Since the transponder stays on from push-back (at the departure point) until the aircraft reaches its destination, the emitted signal allows controllers to continuously monitor and track the aircraft (via the five radar stations/centers) from start to finish.

These five centers/towers compose the ground radar system that serves as the foundation for our current ATC system. Due to the fact these centers are located on the ground, this means the signal emitted from the transponder must travel through the air (sometimes over long distances as altitude increases) to reach the stations and convey information. This time-delay is one the flaws/weaknesses of the current ATC system as it delays the response time of the controller or ground station in the event of an emergency or accident/incident aversion. It is this same weakness that results from the signal being sent to the ground stations that the new NextGen system hopes to overcome with its implementation.

With the proposed implementation of NextGen, the fundamentals of our current ATC system will be reformed in a sense. The goal of the NextGen system is to revamp the National Airspace System to make it more efficient, safe, and accommodating to the increasing number of aircraft. This goal is largely based on the implementation of a satellite-based system, termed Automatic Dependent Surveillance Broadcast (ADS-B). The new ADS-B system will replace the more inefficient means of radar detection, monitoring, and tracking of aircraft currently utilized by ATC (Federal Aviation Administration [FAA], 2016). As mentioned previously, the ADS-B system will transition ATC from a ground radar system to one that is primarily satellite-based via GPS technology. Consequently, the transition will allow ATC to provide more efficient aircraft separation, direct routes/flights for passengers, and coverage where radar has not traditionally existed (e.g. mountainous terrain or over large bodies of water with continual coverage) (FAA 2016). To further increase flight efficiency for passengers and the airlines themselves, the ADS-B technology will be coupled with a new Performance Based Navigation (PBN) procedural system. These procedures will also utilize the satellite-based (GPS) technology to create a more precise route for aircraft to fly, which in turn saves money, time, fuel, and the environment because of decreased fuel consumption while increasing the volume of air traffic (FAA 2016). Thus, the NextGen system and its efficient use of GPS technology will ‘upgrade’ the fundamentals of our current ATC system using satellite technology (as opposed to radar) to increase air traffic controller efficiency and lessen their workload. The traveling public will also benefit from such an upgrade as their time and money spent on air travel (and aircraft) will lessen as well.

2) Why has GA traditional spoken against the privatization of ATC? What is the stance of US airlines on ATC privatization and why? Find two aviation organizations/lobby groups/think tanks (not individual companies) etc. and report their response to privatization.

General Aviation (GA) has traditionally spoken against the privatization of ATC due to the adverse consequences doing so will have on the GA industry. One of the most prominent and severe consequences the privatization would cause is the loss of GA services. The loss of their services entails the loss of airspace used by and allocated to GA aircraft, ATC services allotted for GA aircraft, and a significant loss of funding for rural airports (Experimental Aviation Association [EAA], 2016). Additionally, GA would lose their government oversight as the FAA and other governing bodies would heed and accommodate the interest, agendas, and plans of the airlines first, resulting in GA being placed and forgotten on the back burner. Essentially, GA operators will not have the monetary means or government backing to continue operations if privatization is implemented as the costs of flight services, insurance premiums, and other facets of the industry will likely increase over time, causing GA aviators/companies to subside and concede to the airlines.
The airlines stance on ATC privatization is the complete opposite of that conveyed by GA; meaning the airlines want ATC to become privatized. One of the primary reasons the airlines such as, American Airlines and Southwest Airlines, are pro (for) privatization is because they strongly believe the FAA’s structure and means of funding are not sufficient to complete the new satellite-based or any lengthy modernization project. Therefore, said airlines feel as if the privatization option would provide a much more efficient and financially stable operating system (Bachman & Sasso 2016). The airlines pro stance on privatization stems from the fact that it will potentially allow them to increase their profit (due to increased air traffic volume), provide them with more airspace for operations (since GA aircraft will lessen), and save money on unnecessary costs (e.g. fuel, routes, services, etc.)
The Experimental Aviation Association (EAA) is an aviation organization that has blatantly expressed its distaste, disdain, and disagreement with the privatization of ATC. In response to the bill Jack J. Pelton, EAA CEO/chairmen stated, “Let’s lay out the facts on this: moving to a privatized ATC system would not increase efficiency or safety, nor would it save any significant money” (EAA 2016).

Jack J. Pelton further expressed his sentiments with the following:

What it would do is create an additional aviation bureaucracy, since FAA would still remain, and also create a government-approved monopoly on air traffic services that is dominated by airlines and commercial aviation interests. This will hurt the safest and most complex aviation system in the world, which is why EAA is unequivocally opposed (EAA 2016).

The National Air Traffic Controllers Association (NATCA) is an organization that believes the privatization bill will truly benefit the National Airspace System, airlines, and other aviation operators. The current President of NATCA, Paul Rinaldi, stated, “The current aviation system has served us well until recent years.” He then followed up with the statement, “Unfortunately, we no longer have a stable or predictable funding stream and this uncertainty has caused many serious problems for the system” (Wood 2016).
Thus, it seems as if all GA orientated companies, organizations, and operators are against ATC privatization, while the ATC organizations themselves, majority of airlines, and their supports are for the privatization of ATC.

3) Is ATC privatized in any other countries? If so, where? Write about the details of how this system works. How is it funded? Who are the private operators? Etc..Does the privatized ATC system run more or less efficiently than our current system?

Yes, ATC is privatized in other countries such as Germany, France, Australia, and New Zealand; however, the most notable countries that have privatized ATC are Canada and Britain. (Edwards 2016). Although the airspace and number of aircraft operating in that airspace is significantly less than that of the United States, the privatization of ATC in Canada and Britain has shown tremendous strides in efficiency and safety.

The privatization of ATC works in a similar fashion to that as traditional (government controlled) ATC, except the ATC is its own entity in a sense; meaning it is separated from government control, which includes parameters such as funding and staffing, and instead is operated by a private (typically nonprofit in nature) corporation. The privatization is funded by direct charges on aircraft operators for services provided to them as opposed to obtaining funds via taxation of government tickets (Edwards 2016). This direct charging method is utilized by Nav Canada (the nonprofit corporation operating Canada’s private ATC). The nonprofit corporation (e.g. Nav Canada) earns its revenues by charging operators and aircraft for utilizing the Canadian airspace in addition to any terminal services (e.g. fueling, deicing, tie-downs, etc.) rendered while at a Canadian airport. The private operators utilizing the airspace are primarily General Aviation aircraft using the airspace for leisure, training, or other non-revenue based flights. That said, the private operators can also range from corporate/business jets making trips for their clientele within the country and other airlines/companies located outside of the country that must cross through Canada for their flight.

According to Edwards (2016), the privatized ATC is running extremely more efficiently (in Canada) than the traditional ATC system being used in the United States. This increased efficiency can primarily be seen in Canada’s customer charges, traffic volume, staffing, and level of safety. By utilizing privatized ATC, Canada’s customer charges have shown a 33% decrease within the past 10 years, while air traffic efficiency has increased. Furthermore, the privatized ATC has enabled Canada to handle more 50% more air traffic with 30% fewer employees since the inception of privatization (Edwards 2016). Consequently, the privatization of ATC has allowed Canada to generate more money, increase their air traffic volume, and reform how they charge operators, while also saving money by utilizing 30% fewer employees; not to mention increasing their safety and air transportation efficiency. Therefore, based on these parameters of evaluation, I think the privatized ATC system is much more efficient than our current system.

4) What would be the process for converting our current system into a privatized system? i.e. would it have to go through Congress, the FAA, etc..Where is the discussion at? i.e. is there a passed bill or law allowing ATC privatization? Does it have to be an act of Congress or can the FAA make this decision on its own. How do expect the current administration to impact ATC privatization if at all?

The process for converting our current system into a privatized one would take numerous steps varying in length and intensity, and subsequently, a large amount of time.

Per Scholastic Inc. (n.d.), a bill must first be drafted by a member of Congress and then introduced in the House. Once introduced, the bill is sent to a committee, which is where committee action takes place (this is where most bills fail), but if it passes, the bill is sent to the Rules Committee. Once the rules have been deliberated, the bill is sent to the floor, which is where the House debates the bill, adds amendments, and votes. If a majority is reached in favor of the bill, it is sent to the Senate to be introduced. A Senator introduces the bill and sends it to a committee for them to act upon. A vote is cast and if majority rules in favor, the bill is called up to be discussed by the entire Senate. At this point, the Senate takes floor action; in other words, the Senate debates, amends, and votes on the bill. If a majority is reached by the Senate, the bill is sent back to the House for review of the proposed amendments by the Senate. It is at this point where bills can take the longest to pass because if the House disagrees with any proposed amendments by the Senate, then the bill must go before a conference committee (composed of members from both the House and Senate) to reach a compromise. Once a compromise has been reached, the House and the Senate must then agree on the revisions reached at the conference so a vote can be cast to get the bill to the President. Once the President has the bill, he/she can either approve or veto it; if approved, the bill becomes a law, if vetoed, the bill still has a chance to become law if two-thirds of both houses vote in favor to override the presidential veto (Scholastic Inc., n.d.).

For ATC privatization to occur within the United States, a bill proposing such an act must first be passed through both houses of Congress and approved by the President (as discussed previously); the FAA has no decision-making authority to implement the privatization of ATC as they are not part of the law-making body outlined by the government. Thus, for ATC privatization to occur, it must be an act of Congress.

There is a current bill in the works to private ATC in the United States, however, it has not been passed yet. The status of the bill is that it is still in the early stages of approval. House Representative Bill Shuster, who is the head of the House transportation committee, has been the one leading the charge of the privatization bill. The bill was approved by the transportation committee, but was unable to reach the House floor (Lowy 2016). Since the bill failed to reach the House floor, it is currently back in the rules committee phase where House representatives are amending the bill, deliberating the rules, and deciding when the bill will be discussed (if/when it reaches the House floor).

I expect the current administration to have a negative impact on ATC privatization at first since the elections recently concluded and the new president is adjusting to the new role. Furthermore, he must finalize the appointment of white house personnel, therefore I feel as if the privatization of ATC will remain on the back-burner in both Congress and his presidential agenda until he finishes his primary duties within the first 100 days. However, the new president has been in close contact and communication in years past and recently with Representative Bill Shuster. Representative Bill Shuster has been the front-runner leading the charge to push/pass the ATC privatization bill.

That said, I believe the new presidential administration will have a positive impact on passing the bill once the transition period subsides (i.e. in approximately six to twelve months) since the president has actively voiced his support for ATC privatization. Representative Bill Shuster has had very little success in getting his bill passed onto the House floor, however I believe this will be a thing of the past once the new president and his administration settle into their new roles. Since the new president and Representative Bill Shuster share similar sentiments regarding ATC privatization and would like to see it happen sooner rather than later, I strongly believe the presidential administration will have a significant, positive influence on the privatization bill (and at the very least I think the administration will perpetuate the bill past the House floor and onto deliberation).

5) Finally, do you feel that the current ATC system would be more efficient if it were privatized. Why or why not?

I personally feel the current ATC system would be more efficient, but only with respects to long-term usage if it were to become privatized; meaning five to ten years after its inception and actual operation in the United States. I say long-term because any massive transition of a national system will prove to be inefficient at least up until its third year of operation due to the transition and/or acquisition of software/hardware, regulation changes (if applicable or necessary), infrastructure acquisition, appropriate staffing, and the employee learning curve associated with said privatization. With that said, it is because of the previously mentioned parameters why I strongly believe our current system would prove to be inefficient, with respects to short-term usage (i.e. one to three years).

However, I am a firm believer that our current ATC system would be extremely more efficient if it were privatized, but only in regards to long-term utilization (i.e. five to ten years after its inception). I say this with confidence because after five to ten years of inception, all the ‘kinks’ and ‘quirks’ of the conversion process to privatization in the United States will have been acknowledged and/or resolved, allowing for continual, smooth, and efficient operation of the ATC system. I also feel as if privatizing our current ATC would prove to be efficient in the long-run because other counties akin to the United States such as, Canada, are having exemplary success with privatization. Albeit Canada airspace/ATC only handles approximately one-third of the traffic volume as the United States, they have managed to increase their traffic volume by 50%, reduce their employee utilization by 30%, and ultimately increased their ATC efficiency and safety. Ergo, I believe if Canada, a smaller airspace system, is able to enhance their traffic volume while enhancing their safety, then the United States should be able to do so. The only aspect of this long-term efficiency that may hinder ATC safety once privatization has been implemented is the immense and continuously growing volume of air traffic within the United States. With such an enormous amount (approx. three times that of Canada) of air traffic (that is growing yearly), I feel it may take United States Air Traffic Controllers, aviation administrators, and other personnel involved with the system, longer to become adjusted to, adapted, and knowledgeable of the new system to attain the experience needed to surpass the level of efficiency and safety exhibited by other privatized counties.

References

Bachman, J., & Sasso, M. (2016). Airlines to trump: block rivals and privatize air traffic control. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2016-11-09/airlines-to-trump-block-rivals-and-privatize-air-traffic-control

Edwards, C. (2016). Privatizing air traffic control. Downsizing the Federal Government. Retrieved from https://www.downsizinggovernment.org/transportation/atc

Experimental Aviation Association (EAA). (2016). ATC privatization brings few savings, threatens general aviation services. EAA. 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

Federal Aviation Administration (FAA). (2016). NextGen works. NextGen. Retrieved from https://www.faa.gov/nextgen/works/

Freudenrich, C. (2001). How air traffic control works. How Stuff Works. Retrieved from http://science.howstuffworks.com/transport/flight/modern/air-traffic-control.htm

Lowy, J. (2016). House chairman Trump favors privatizing air traffic control. PBS NEWSHOUR. Retrieved from http://www.pbs.org/newshour/rundown/house-chairman-trump-favors-privatizing-air-traffic-control/

Scholastic Inc. (n.d.). How a bill becomes a law. Junior Scholastic. Retrieved from http://www.scholastic.com/browse/article.jsp?id=4702

Wood, J. (2016). GA raises concerns over proposal to privatize atc. General Aviation News. Retrieved from http://generalaviationnews.com/2016/02/17/ga-raises-concerns-over-proposal-to-privatize-atc/