Thursday, December 17, 2015

Final Post from Knuckle Dragger Pilot...ATC Privatization

As I wrote previously, the great debate on whether or not ATC should be privatized has fairly equal voices on both sides.  The General aviation side of the house fears that it will become a “pay to play” industry, sacked with fees and sent to the bottom of the totem pole in terms of priority to the big boys.  The financial impact to the GA community’s ability to fly the friendly sky’s could be an industry killer.

The previous Bill from Congressmen Shuster (CNN, 2015), I believe it’s written to fund the new nongovernment agency that would take over ATC functions by fees in an attempt to completely isolate it from future government budget crisis and/or shutdowns.  I can see the rationale, but that’s a no-go in my book- bad proposal.  I’m certain there are better and less expensive funding options that those smarter than I could up with, especially since private ATC operations would require less to operate than at the bloated government cost. 

Taking a step back and looking at all the other current government contracts run by private corporations, I can’t see how ATC could become the next big cash cow. As a service oriented entity, with no real tangible product, I don’t see how it could be obtusely profitable. Now if you’re say Lockheed Martin, Boeing, Raytheon, General Dynamics, or Northrop Grumman, building multi-million (some billion) dollar products for the US government, there’s room for cost-plus budget overages while maintaining a fat profit margin. (Allgov, 2011) If a nongovernmental agency were to take over ATC operations, it would have to be implemented as a performance based contract with FAA oversight in order to make the transition worth the “anticipated” rewards. 

A few, but not all, of the major airlines have spoke in favor of privatization mainly because they realize that the implementation of the NextGen system has have numerous cost overruns, and delays measured in multiple years behind schedule.  They quicker the NextGen system is implemented, the quicker the airlines can begin saving billions of dollars in saved fuel and time.

Other countries do have privatized ATC, though the sum of which barely equate to the vast mass of traffic and area the USA contends with.  New Zealand was the to part ways with the government ATC role back in the late 1980’s.  Germany, Austrailia, and the UK followed suit, with France migrating ATC to a government agency funded by user fees around a decade ago, while retaining safety oversight. (Bloomberg, 2015) Germany established a government-run corporation while The U.K. uses a unique public-private partnership for NATS, which oversees air traffic control. As I stated previously, any one of these countries are essentially the size of one of our States, but they have proven that they can run their respective airspaces safely, efficiently, and with positive balance sheets.

After Congress passed the Bipartisan Budget Act of 2015 just this October, which establishes funding limits for both Fiscal Year 2016 and 2017, and avoids more sequestration cuts, I haven’t been able to determine the status of House Transportation committee chairman Bill Shuster’s proposal to create a new nongovernmental agency to take over ATC. Without further evidence I’d have to assume it is dead in the water. (ainonline, 2015)


Having worked both in the military, and for private military contractors for several years; I do have a unique perspective when it comes to spending, efficiency, and mission accomplishment.  It is my experience that private industry can accomplish the same task as the government, but with less.  But unless that particular private entity has access to the same resources as the government one(s), there are definitely (and appropriately so) certain tasks that should be exclusively handled by the feds.  So- which way am I leaning towards with ATC? The jury is still out.  I definitely believe that had the NextGen innovation and roll out been run by a private corporation- it would be fully implemented by now.  The feds are not good with IT projects, Obama Care website anyone??  The most common argument against privatization is that greedy corporations answer only to their shareholders and chairmen; I'm not sure how that argument is still a player but that’s the critics.  When it comes to spending 'our' tax dollars, I'd have to say that government answers essentially to no one.  That is unfortunately why the most fraud, waste, and abuse is in government spending.  

Some believe that safety will somehow automatically be compromised if ATC is transferred to a private entity. Unless said new entity hires plumbers instead of Air Traffic Controllers, I’m fairly certain operations would continue just as safe. Are we safe now??? Well…Two years ago the FAA changed its Air Traffic Controllers hiring practices from giving preference to Collegiate Training Initiative (CTI) programs and Military Controllers, to rely solely on a biographical questionnaire to qualify. That’s right, Joe Schmo off the streets direct to ATC. (Washington Examiner, 2015) All because of an agency diversity study…I read an article that listed a few of the questionnaire questions, here’s a few: “What sports did you play in high school?” And “What kind of grades did you get?” Yup, I want that person in the tower when being vectored for an approach. Um, no. Adding insult to injury, when the FAA made this “diversity change” in hiring practices, some 3000 qualified ATC applicants on the waitlist were purged from the system, and you guessed it, they now have an ATC shortage. There is a Bill in Congress to restore the hiring practices to the previous and practical state.

Ideally, I'd like to like to see zero based budgeting be fully implemented in the FAA, ATC, and all other government agencies involved in aviation, so the dollars that are allocated to aviation, are efficiently and effectively spent- in aviation.  Too many times there are compromised bills passed due to Congressional leaders attaching their pet projects to large bills in order to get them funded, and all too often the outcome is unnecessary dollars spent towards unnecessary garbage.

 

Reference:

Should the U.S. Privatize Air Traffic Control? (2015, September 11). Retrieved from http://www.bloomberg.com/news/articles/2015-09-11/should-the-u-s-privatize-air-traffic-control-


NATA Pushes Capitol Hill for Action on FAA Funding Bill. (2015, November 2). Retrieved from http://www.ainonline.com/aviation-news/business-aviation/2015-11-02/nata-pushes-capitol-hill-action-faa-funding-bill

Should the government hire 'off-the-street' air traffic controllers? (2015, December 16). Retrieved from http://www.washingtonexaminer.com/should-the-government-hire-off-the-street-air-traffic-controllers/article/2558975

Big 5 Defense Contractors Not Hurt by Their Multiple Cases of Misconduct. (2011, June 18). Retrieved from http://www.allgov.com/news/where-is-the-money-going/big-5-defense-contractors-not-hurt-by-their-multiple-cases-of-misconduct?news=842783

Rep. Bill Shuster mulls privatizing air traffic control - CNNPolitics.com. (2015, June 15). Retrieved from http://www.cnn.com/2015/06/15/politics/congressman-proposes-privatizing-air-traffic-control/


Tuesday, December 8, 2015

ATC Privatization

The great debate on whether or not ATC should be privatized has fairly equal voices on both sides.  The General aviation side of the house fears that it will become a “pay to play” industry, sacked with fees and sent to the bottom of the totem pole in terms of priority to the big boys.  The financial impact to the GA community’s ability to fly the friendly sky’s could be an industry killer.

A few, but not all, of the major airlines have spoke in favor of privatization mainly because they realize that the implementation of the NextGen system has have numerous cost overruns, and delays measured in multiple years behind schedule.  They quicker the NextGen system is implemented, the quicker the airlines can begin saving billions of dollars in saved fuel and time.


Other countries do have privatized ATC, though the sum of which barely equate to the vast mass of traffic and area the USA contends with.  New Zealand was the to part ways with the government ATC role back in the late 1980’s.  Germany, Austrailia, and the UK followed suit, with France migrating ATC to a government agency funded by user fees around a decade ago, while retaining safety oversight. (Bloomberg, 2015) Germany established a government-run corporation while The U.K. uses a unique public-private partnership for NATS, which oversees air traffic control. As I stated previously, any one of these countries are essentially the size of one of our States, but they have proven that they can run their respective airspaces safely, efficiently, and with positive balance sheets.


After Congress passed the Bipartisan Budget Act of 2015 just this October, which establishes funding limits for both Fiscal Year 2016 and 2017, and avoids more sequestration cuts, I haven’t been able to determine the status of House Transportation committee chairman Bill Shuster’s proposal to create a new nongovernmental agency to take over ATC. Without further evidence I’d have to assume it is dead in the water. (ainonline, 2015)

Having worked both in the military, and for private military contractors for several years, I do have a unique perspective when it comes to spending, efficiency, and mission accomplishment.  It is my experience that private industry can accomplish the same task as the government, but with with less.  But unless that particular private entity has access to the same resources as the government one(s), there are definitely (and appropriately so) certain tasks that should be exclusively handled by the feds.  So- which way am I leaning towards with ATC? The jury is still out.  I definitely believe that had the NextGen innovation and roll out been run by a private corporation- it would be fully implemented by now.  The feds are not good with IT projects, Obama Care website anyone??  The most common argument against privatization is that greedy corporations answer only to their shareholders and chairmen, I'm not sure how that argument is still a player but thats the critics.  When it comes to spending 'our' tax dollars, I'd have to say that government answers essentially to no one.  That is unfortunately why the most fraud, waste, and abuse is in government spending.  
Ideally, I'd like to like to see zero based budgeting be fully implemented in the FAA, ATC, and all other government agencies involved in aviation, so the dollars that are allocated to aviation, are efficiently and effectively spent- in aviation.

 

Reference:

Should the U.S. Privatize Air Traffic Control? (2015, September 11). Retrieved from http://www.bloomberg.com/news/articles/2015-09-11/should-the-u-s-privatize-air-traffic-control-


NATA Pushes Capitol Hill for Action on FAA Funding Bill. (2015, November 2). Retrieved from http://www.ainonline.com/aviation-news/business-aviation/2015-11-02/nata-pushes-capitol-hill-action-faa-funding-bill