Airlines Push For ATC Privatization

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Key Takeaways:

  • General aviation advocates and some airlines, such as Delta, oppose the privatization of air traffic control (ATC), citing concerns over potential user fees, distraction, and a lack of data proving privatized systems are more efficient.
  • Executives from several major airlines (e.g., American, Southwest, FedEx) support privatizing ATC into a not-for-profit corporation governed by industry leaders.
  • Proponents argue that a privatized system with stable funding would allow for faster modernization of equipment and create a more efficient ATC system compared to the current FAA-run model.
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General aviation advocates have spoken out against privatizing air traffic control, citing concerns over user fees, but this week airline officials said they think ATC would work better as a not-for-profit corporation with stable funding sources. Executives from a half-dozen major airlines, including American, Southwest and FedEx, told reporters on a conference call Tuesday that a corporation, governed by a board of industry leaders, would move faster than the FAA to modernize its equipment and create a more efficient ATC system. “We are seeking a transformational change to the way that the air traffic control system is financed and governed,” said American Airlines CEO Doug Parker. “We can do much better.”

Nick Calio, CEO of Airlines for America, said he was confident that legislation to create the new corporation could be approved by spring, according to USA Today. Calio acknowledged that the change will face skepticism and inertia, but added, “It’s not like it’s appearing out of the clear blue.” Not all airlines agree with those on the conference call. Delta’s senior vice president for flight operations, Capt. Steve Dickson, told USA Today that privatizing ATC won’t reduce traffic and could be a distraction. Dickson said there’s no data showing that Canada’s system, which operates in a way similar to the changes proposed for the U.S., is more efficient or less costly. And, he added, the current system is working OK. During the Thanksgiving travel week, 92 percent of Delta’s planes arrived within 15 minutes of their ETA. “You can’t just perform like that during the busiest time of year if the system is broken,” Dickson said.

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