Advantages Of Privatization Of Air Traffic Control In Usa

The United States carries over one third of the globe’s total traffic, where Over 1.5 billion passengers fly annually. Over the past 20 years, air travel has grown at an average of about 5% per year, the reason for annual change is usually differences in economic growth, and of course other environmental factors, such as the current war. As a rule, the annual growth in air travel has been about twice the annual growth in GDP. Deregulation, liberalization, and competition have essentially altered the management strategies and practices of airlines. Productivity improvements and cost management have been two of the greatest concerns for US airlines for the past twenty years. As a whole, the airline industry must continue to improve their specialization in terms of fleet utilization, pricing and revenue management, and schedule optimization.

This case study will discuss the pros and cons of operating an airport with a government-operated system of security versus returning to a privately owned and operated security organization. The Transportation Security Administration (TSA) was introduced to the airline industry after the attacks on September 11th, 2001. Complaints of slow wait times during periods of heavy traffic and the ability to manage the labor force have recently sparked an interest of Airports switching their security to a privatized company.

The odds are that at some point in time, most people in America will travel by air. What most of these people do not realize is that a simple flight is in reality a well-oiled, complex machine unlike any other air navigation service provider in the world. After the Wright brothers took their first successful flight, America embraced air travel.  The Federal Aviation Agency (now Administration) officially began operations in May of 1958, and later developed a sophisticated air traffic control system that is responsible for the largest volume of air traffic in the world (“A Brief History of the FAA”). Today, however, many politicians believe that government involvement in air traffic control is inhibiting the overall performance of air traffic control. Several bills have been proposed to Congress since the 1970s in attempt to separate air traffic control (referenced as ATC) from the FAA by privatization, corporatization, or other means (Elias 2). The most recent of these bills has caused serious debate in the aviation world over economic policies, safety regulations, and overall effectiveness of the current ATC system. The Aviation Innovation, Reform, and Reauthorization Act (21st Century AIRR Act) as proposed by Representative Bill Shuster should not be passed by Congress because it would privatize air traffic control by removing it from the Federal Aviation Administration. This would entail the creation of a board of stakeholders who would have the power to make regulatory

Although there was a deregulation of the airline industry, the one significant component that did not change was the infrastructure of the airline industry. Constrained by the limitations of the airports and the air traffic control system, airlines did not see significant increases in profits despite the large growth and operations. As the airlines increased the number of flights and structure, the air traffic control system did not experience the same increase. Because the ATC system was still controlled and owned by the government, growth was, and continues to be slow.

The terrorist attacks on September 11, 2001 shook the United States in a profound way, deeply upsetting the national perception of safety within U.S. borders. No industry or sector of the economy felt the impacts of these events more than the airline industry. Both the immediate reaction to the attacks and the long-term repercussions have negatively affected the industry. Today’s airline industry is much different than it was prior to September 11. There is a much smaller work force, more low-cost carriers, more security and more fees associated with flying.

Signed into law in 2002 by President George W. Bush, the Homeland Security Act established the Department of Homeland Security to prevent terrorist attacks, minimize any damage to the nation’s citizens, and reduce the country’s vulnerability to terrorism. In response to 9/11, the government, as well as the airline industry, has gone through many changes. As of result of 9/11, the airline industry lost a total of $7.7 billion. This paper reviews the reasons behind the making of the Homeland Security Act, the effects of 9/11 on the airline industry and the government, the purpose of the Homeland Security Act, and the aftermath of the Homeland Security Act.

The situation of the U.S airlines has been affected by a number of factors through time and is not a secret that has been passed by moments difficult, especially in the economic part. One of these factors were the terrorist’s attacks of 911. No other event in history has changed the way of doing business that the fateful events of September 11, 2001. Apart from the significant human loss, the millionaire impact to the economy of New York and in the United States and multi-million dollar expenditure associated with the global war against terrorism, attacks on the World Trade Center (World Trade Center or WTC) in New York and the Pentagon trembled the authority of the United States, at a time when it was going through a recession. All this made

Supporters for privatizing air traffic control claim that it is time to address long delays and inefficiencies in an aging airspace network that doesn't fully utilize modern aviation technology. UK-based NATS projects delays will exponentially increase from the current 90,000 minutes a year to approximately 4 million in the next 15 years unless the United Kingdom government invests in modernization by replacing outdated airspace technology by switching to satellite-based control. In the United States the federal government has a history of moving at a snail's pace when it comes to updating national infrastructure. For example, New York City just completed a subway upgrade that was originally approved in 1929. A revamping of the system similar to the innovative changes that transformed call center voice recording equipment from simple recording devices to systems that capture conversations and enable digital archiving and instant sharing via cloud-based technology, will help modernize our airspace management strategies. The time to act is now if we want to avoid problems in the

The reorganization of how the government will create regulations for aviation has now come to its final home, the future of United States day to day aeronautical operations is now the responsibility of the FAA. The Federal Aviation Act of 1958 was a big step that the government took to getting to how we know Aviation today. When you think of United States Aviation the FAA usually comes to mind, and for good reason, the FAA has been a huge component in shaping new technologies and ways of running the National Airspace System (NAS). All of these contributions to the advancement aeronautics, through the FAA, could not have been possible if it weren’t for the reconstruction of government involvement in aviation. From the Air Commerce Act of 1926, to the Federal Aviation Act of 1958, the government has had a significant influence on how we conduct day to day aeronautical operations, ranging from reducing emissions, to improving navigational systems, and ATC

On Monday, June 5th, president of the United States, Donald Trump, kicked off “infrastructure week”, an unplanned event, at the White House. According to the White House, Trump had dedicated the week to addressing America’s “crumbling infrastructure”. On Monday, Trump announced his support for an initiative to privatize the nation’s air traffic control system, hoping that more expensive, advanced technologies would be available if the sector operated more like a business. He endorsed the concept of moving air traffic operations out of the Federal Aviation Administration and into a self-financing non-profit organization, stating, “Our plan will get you where you need to go more quickly, more reliably, more affordably, and yes, for the first

American airlines want American government to help them in order to compete well with Gulf airlines. Gulf airlines are producing better than US airlines because Middle Eastern government is providing much funds to airlines due to which their planes are latest and they offer reasonable fair to passengers for which US airlines are losing customers and thus US airlines are firing employees. UAE airlines along with Emirates and Qatar airlines are given tough time to American airlines such as Delta and United airlines. American government wants to take its decision back that there must be no governmental involvement in United States airlines as this industry must flourish when there is more privatization. But the decision

The civil aviation industry of world has expanded its wings by letting in private organisations. Privatisation in the domestic and the international circuit can help in foreseeing the future of the aviation industry at a mark up rise, and gaining

A drop in fares has been the best result of the Airline Deregulation Act of 1978. It has been the impetus for the increase in the number of flights, which in turn has spurred a drive for greater safety in airlines. But with the current airline market, this development has given us one negative. Since ticket prices have dropped to new lows, the realities of an industry which operates on such economies of scale dictates that only a few competitors have the capacity to operate within the market. This is not the desired effect of either political side on this issue, but it is an economic necessity with the environment that has been created, very similar to that of public utilities and phone companies.

From its conception in 1981, the Advanced Automation System (AAS) was designed to provide an overhaul of America’s major air traffic control computer systems. $1.5 billion worth of hardware and software out of the $2.6 billion spent was futile. The General Accounting Office stated that “ The FAA did not recognize the technical complexity of the effort, realistically estimate the resources required, adequately oversee its contractors’ activities, or effectively control system requirements.” This project was doomed from the beginning; the FAA thought that it would revolutionize how they did their work overnight. The FAA did not consistently follow the proper management approach for obtaining new systems. In the 1980s and early 1990s, FAA did not follow the phased approach of federal acquisition guidance designed to help mitigate the cost, schedule, and performance risk associated with the development of major systems. The agency believed that it could develop and install new systems more quickly by combining several of the five phases outlined in this guidance. But, the result of not following this structured, timed approach, FAA often encountered difficult tasks such as those associated with developing the Advanced Automation System. In 1995, the Congress exempted FAA from numerous federal procurement rules and regulations. In April 1996, FAA implemented an acquisition management system, which emphasized the need for a disciplined approach to acquisition management.

Nowadays, the commercial competition has surpassed the limits of the previous era in which dominant markets are protecting their set market shares. Mega commercial activity back then was completely regulated by the government. The United States has privatized a lot of sectors related to energy, telecommunication, and transportation sectors. In response, the USA introduced the deregulations in the aviation industry to increase the competition in the aviation market.