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The Creation Of Federal Privatization Of Aviation

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With the creation of Federal Aviation Administration in 1958 and also the forming of the Transportation Security Administration in 2001 through the newly created U.S Department of Homeland Security the US government has been getting more and more involved in aviation. They are in control of security, ownership of airports and air traffic control towers. How much control should the government have and how will this work out for the aviation industry? There are over 130 ATCT and over 25 TRACON in the United States. With Air Traffic Control system inability to update the outdated equipment privatization might be a solution. The FAA's Fiscal Year (FY) 2015 budget request of $15.4 billion trims base NextGen funding and purpose to raise the Passenger …show more content…

Virtually all commercial airports in the United States are owned by state and local governments. But around the world, airports are becoming viewed more as business enterprises, and less as monopoly public services. Governments in both developed and developing countries are turning to the private sector for airport management and development. There are two different types of privatizations; partial and full. Partial privatization refers to strategies where partial control and at least a portion of ownership remains with the public owner. Full privatization refers to strategies where the complete control and/or operation of an entire airport are vested with a private entity through a long-term lease or sale. The United States has not privatizes because the airports still has repayment of grants, airport revenues can only be used for airport purpose and airlines have too much say because of long term lease contracts. There is a Airport Privatization Program that started in 1997 to privatize airports. They started with 5 airports and expanded to 10 airports in 2010. The experiment is ongoing so it is hard to tell if it work yet. So, everything runs smoothly on the inside of the airport? Security is well oiled …show more content…

They have a annual budget of 8 billion dollars with over 60,000 employees. Of the 60,000 employees, 85% of them are airport screeners. In 2012 TSA ranked 232 out of 240 federal agencies in terms of employee satisfaction. The TSA spent $30 million on over 200 “puffer” machines to detect explosives. But the machines did not work and had to be shelved. They have a vast budget in which results are not always meet. The TSA spends more than $200 million a year on the Screening of Passengers by Observation Techniques program to catch terrorists from suspicious behaviors in airports. They spends more than $240 million a year to operate Advanced Imaging Technology or full- body scanning machines at major airports and spends about $1 billion a year on the Federal Air Marshal Service. If the US privatize security then there will be; better management techniques, better and more productive equipment, greater incentives to innovate, incentive pay structures, more efficient deployment of workers, greater use of part-time and temporary employees, utilization of comparative-cost information and more work scheduled for off-peak

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