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Privatizing ATC to Bring Greater Efficiency
May 9, 2001
The limits of our overstretched air traffic control (ATC) system have become painfully apparent over the last few years: delays and cancellations have skyrocketed; airports and airspace have become more congested; and capacity is dangerously close to its peak. One of the most critical pieces of this problem is the ATC system, which has become a constraint on the growth of aviation.In order to address concerns about the management and modernization of the ATC system, a growing number of individuals, including three former Administrators of the Federal Aviation Administration (FAA), are advocating the creation of a not-for-profit ATC corporation. It is forcefully argued that the current system is unlikely to be fixed as long as it remains within the FAA's governance. Although it has made progress in recent years, the agency has had a history of poor performance in ATC improvements. The current system is safe, but I believe most everyone agrees that the aviation community needs a modernized ATC service that is more efficient and responsive. It may be that ATC can best be provided by a corporate entity that is outside the normal government structure and funded directly by a bondable stream of fees and charges for ATC services. I support an exemption for recreational general aviation from these fees and charges.
Approximately two dozen other countries have created not-for-profit corporate structures for ATC systems. In these nations, modernization has been accelerated, productivity increased, and user fees reduced. Safety levels have stayed the same or improved.
Some experts believe it is a conflict of interest for the FAA to run the ATC system and simultaneously regulate the safety of ATC operations. An arms-length relationship between safety regulation and operations may be more appropriate, just as it is in the areas of airline operations and aircraft manufacturing.
Despite recent spending increases for aviation needs, the funding of the ATC system remains dependent on the federal government, which can take away in one year what it gave in a prior one. An efficient ATC system needs to be able to rely on a long-term, stable funding stream, not on one that can vary with the whims of Congress. Furthermore, a funding stream that could be borrowed against would allow an independent ATC entity to make substantial investments immediately.
A new structure for the management of ATC is not the answer to all of the problems associated with our current aviation system. Nonetheless, we owe it to the American public to consider any alternative that may improve the way ATC services are provided. I intend to schedule a hearing in the Commerce Committee to explore this issue soon.
In addition to finding the best management structure for the ATC system, a new aviation problem has arisen, creating further disturbances in our system. The trend toward larger airlines appears to have given unions greater leverage in their contract negotiations. Although bitter negotiations are a typical part of many labor disputes, acrimony in the airline industry is now having an adverse effect on the American people.
I have no problem with the right to strike, which is a legal remedy available under applicable labor statutes. However, several courts have recently found that airline labor unions have engaged in illegal job actions. These courts have even issued temporary restraining orders and injunctions prohibiting such actions. In one case, the court fined an airline's pilots more than $45 million for not adhering to an injunction.
Last year, thousands of flights were cancelled due to alleged labor actions, destroying many long-standing vacation plans. The American pilots' sickout in 1999 left countless people stranded, some of whom have banded together to sue the pilots for damages.
The consumer is the one most affected by the increase in work slowdowns and stoppages. It is the family flying across the country for their vacation, the daughter coming home from college, and the son going to visit a sick parent who cannot reach their destinations because some unions have taken matters into their own hands.
At a recent Commerce Committee hearing, representatives from labor and management agreed that part of the problem is the current structure of the Railway Labor Act (RLA), the law governing labor negotiations in the airline industry. There was consensus that the RLA needed a definitive cut-off mechanism to prohibit protracted negotiations that provide leverage for both sides. Although the parties differed on the best way to provide this mechanism, it is clear that a potential solution to the problem is within reach.
The responsibility falls on Congress to address these pressing issues. We must take action to increase the efficiency of our ATC system and move it into the 21st Century. We must address looming labor issues. We must address the widespread delays and congestion. Finally, we must remain diligent to ensure that aviation travel remains safe as more and more Americans use the skies to move about our great country.
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