NGATS May Cost Aircraft Owners $20 billion

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Key Takeaways:

  • The Government Accountability Office (GAO) estimates the cost for aircraft to equip for the Next Generation Air Transportation System (NGATS) will range from $14 billion to $20 billion, with the government spending an additional $15 billion to $22 billion by 2025, reflecting significant cost uncertainty.
  • While the FAA is generally progressing well with NGATS, the GAO highlights a looming leadership vacuum with the recent departure of its chief operating officer and the upcoming expiration of the Administrator's term.
  • This potential loss of key senior leaders could jeopardize the modernization initiatives and the structural and technological changes essential for the foundation of NGATS, which require focused, full-time attention.
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The Government Accountability Office says the cost of equipping aircraft for the Next Generation Air Transportation System (NGATS) will range from $14 billion to $20 billion, depending on the gear that will be needed, the number of very light jets that will be using the system and how much downtime will be required to install the equipment. The GAO was quoting figures it says were recently released by the FAAs Joint Projects Development Office, which says the government will spend between $15 billion and $22 billion on the project by 2025. The wide range reflects uncertainty in just what the system will entail. Meanwhile the GAO says the FAA is generally moving in the right direction with NGATS, but theres a looming leadership vacuum that could hinder that progress. The GAO says the FAA should move quickly to replace its chief operating officer to ensure at least some continuity when Administrator Marion Blakeys term expires in September. COO Russ Chew left the post in February and is now in a similar post with JetBlue. That, coupled with Blakeys departure, could jeopardize the modernization initiatives the agency created, particularly the structural and technological changes that will be the foundation of the Next Generation Air Transportation System. While FAA has implemented many positive changes to its management processes, it currently faces the loss of key leaders, says the GAO report. Such changes require focused, full-time attention from senior leadership and a dedicated team.

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