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March 3, 2008

Gridlock in the Air and on the Hill

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Jim Haynes, FounderJim Haynes
Founder, The Aviation Group
Implications: Air transportation and the economy will suffer if we can not break this gridlock.

Analysis:

The U.S. government has failed to operate an efficient business, which is what our ATC system should be, and that the chances of NextGen happening are slim to none unless we make a radical change in the governance of the ATC system.  This will be difficult but a similar change took place with another aviation entity in the not so distant past.

For many years the only two commercial airports in the United States that were operated by the FAA and funded by Congress were Washington National Airport (now Reagan Washington National Airport) and Washington Dulles Airport.  Until the late 1980s both airports were starved for funds.  Desperately needed capital improvements could not be made for lack of money.  Like our current ATC system all revenues collected flowed into the U.S. Treasury and then were appropriated to the two airports as Congress saw fit.  Dollars appropriated to these airports affected the Federal budget and increased the deficit.  The airports and the FAA were competing with the social programs, the military, and every Federal agency.  I have lived all my life in the Washington area and experienced first hand, both as a pilot and as an airline passenger, the awful conditions that existed at both airports under government ownership and FAA operation.

Many members of Congress use these airports to fly to their home states and elsewhere on a regular basis.  They became acutely aware of the contrast between the Washington airports and most of the airports they were flying into.  I attended several of the Congressional hearings on the airport situation.  Change was opposed by many of the same constituencies that today oppose changing the governance and structure of our air traffic control system.  Many members of Congress while acknowledging the problem could not bring themselves to give up control of the airports.  I remember a very senior Congressman asking what would happen to the parking spaces reserved for members of congress at National Airport.  He was told that the reserved spaces would remain.  Shortly thereafter the Congress passed a bill to lease both airports to the newly formed Metropolitan Washington Airports Authority (MWAA).

Almost immediately a metamorphosis occurred.  Secured by a future revenue stream from the airlines Wall Street poured billions of dollars into the MWAA’s bank accounts.  With new terminals, gates, parking, and generally more pleasant environment airline and passenger traffic increased generating more funds for even greater improvements.  The management of the airports did not change.  The managers, who where once employees of the FAA, became employees of MWAA.  Not one ever regretted the change.  Freed of the shackles of government, they were empowered and financially incentivized to build an efficient business, which is what these airports are today.

MWAA’s board of directors are appointed by the governors of Virginia, Maryland, the Mayor of the District of Columbia, and one member by the President of the United States.

There is a lot of talk about “Change” by all the candidates running for President this year.  Hopefully the one who succeeds and becomes our next President understands the need to change the governance of our air traffic control system.


Other Analyses of the Same Source Article:
Funding of the air traffic control system should be doen on an equitable basis
March 5, 2008, Author: Christopher Dane, President-HRG Afilliates, LLC, HRG of North America Inc.
US Regional Airlines
March 4, 2008, Author: GLG Expert Contributor

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