Privatization

FAA Privatization

In 2019 the administration in Washington DC was proposing to privatize the FAA. This is a decades long battle that was coming to a head.

I recently reviewed a report from the Eno Center for Transportation and provided a response from a systems engineering perspective. Eventually a decision was made to open this webpage on the topic and take a personal position. However I am still working the issue from a systems engineering perspective and I do not take a position in that work.

Regardless of what happens to the FAA, some serious systems engineering related to the decision should happen and then the resulting organization needs the same level of systems engineering to get it going in a proper way.

This analysis stopped the privatization efforts. There were 2 items in the analysis that killed the plan to privatize the FAA:

  1. Repay the taxpayer for the FAA assets and those assets were calculated by this analysis to exceed $1 trillion dollars not the $35 billion that was being proposed
  2. There is a massive close link between the government personnel ensuring safe and secure airspace operations and air defense

Analysis

FAA Privatization Systems Perspective PDF
FAA Privatization Systems Perspective This is the ebook version and it is offered as part of the historical record

Privatization Links

Privatization Source
Privatization Toward More Effective Government (President Reagan PDF)


The following are comments on proposed legislation to fund the FAA

and a summary of systems oriented arguments to NOT privatize the FAA



Legislation Comments

These are my comments on the following proposed legislation. I did not provide comments on H.R.441 because it calls for privatization.

Proposed Changes to H.R. 2800  Proposed legislation to fix the FAA and prepare it for this new century. This is always the most current version.
Proposed Changes to S.1405 Proposed legislation to the FAA as it currently exists. This is always the most current version.

The comments are primarily associated with:

  1. Fixing the FAA R&D program so that the FAA can do what it needs to do for NextGen and long after NextGen - all the future programs in the next 100 years

  2. Providing proper FAA R&D funds normally associated with such organizations

  3. Fixing the human resources organization by removing elements that attempted to allow for FAA privatization that instead severely damaged the workforce and industrial base

  4. Fixing the systems engineering elements within the FAA with a proper education and training program

  5. Refocusing the FAA away from just operations and safety to also ensuring a proper high quality Air Traffic Control system, Industrial Base, and Air Transportation system, its about commerce

There are also comments associated with privatization. If the FAA should ever be privatized the:

  1. Trust fund tax ceases immediately and its balance transfers to the taxpayer

  2. Taxpayer is reimbursed for all tangible and intangible assets

  3. Taxpayer is reimbersed for all costs since 1926

FAA History Mining

The FAA has a very long history:

  • May 20, 1926: President Calvin Coolidge signed the Air Commerce Act of 1926 into law. The act instructed the Secretary of Commerce to foster air commerce; designate and establish airways; establish, operate, and maintain aids to air navigation (but not airports); arrange for research and development to improve such aids; license pilots; issue airworthiness certificates for aircraft and major aircraft components; and investigate accidents.

  • Dec 2, 1929: Fifteen air carriers pooled $100,000.00 to set up the not-for-profit organization, Aeronautical Radio, Inc. (ARINC), to serve as the single coordinator of aeronautical communications for the air transport industry, using a common network of ground stations.

  • August 11, 2013: Rockwell Collins announced it had agreed to purchase ARINC, Inc., for $1.39 billion. The purchase, when completed, would expand Rockwell Collins' aerospace business by combining its avionics and cabin technologies with ARINC's ground-based navigational networks. (See December 2, 1929.)

Startup Shutdown . SAGE History . Air Defense ADIZ . Replacing the manual system from the 1950's . SST . Hijack and Terrorists . FAA Budget History

Reality Check

The FAA and its government predecessors has a long historical record beginning on May 20, 1926 when President Calvin Coolidge signed the Air Commerce Act of 1926 into law. The act instructed the Secretary of Commerce to foster air commerce; designate and establish airways; establish, operate, and maintain aids to air navigation (but not airports); arrange for research and development to improve such aids; license pilots; issue airworthiness certificates for aircraft and major aircraft components; and investigate accidents. Nothing has changed since that time. The need for enhanced and protected Commerce via Infrastructure, Research and Development, and Regulation still exists. The technologies are just different and the scale is beyond anyone's imagination in 1926.

In this new century once again the technologies and scale will be beyond anyone's current imagination. Thinking the system is old and can be handled by a single private enterprise with a business mindset is not only naive but very dangerous. It will very likely lead to the collapse of air travel as simple and useless business practices are incapable of addressing the true challenges that will surface.

What is needed is proper legislation in this new century so that the FAA can be freed from its current problems and do what it needs to do for the people of the United States. The days of political infighting must come to an end and the realization that business cannot and should not solve all problems must be acknowledged.

  1. It's not about jobs it's about ensuring the stability and effectiveness of the Air Traffic Control and Commercial Aviation industrial base in the United States

  2. It's not about tax payer costs it's about ensuring the existing aviation transportation system does not collapse and continues to grow in this new century

  3. It's not about inefficient government versus efficient business it's about business incapable of doing what government can do

  4. It's not about the unfunded FAA it's about stopping political infighting so that a critical part of United States infrastructure is not sabotaged

  5. It's not about the inefficient FAA it's about ensuring all organizations public and private are as efficient as our technologies, processes, and practices allow

  6. Imagine the ability to fly almost anywhere at anytime at reasonable costs going away and becoming cost prohibitive, some of us know what existed just 60 years ago before the FAA

  7. Imagine the current ugly travel experience that surfaced coincident with deregulation continuing to become even more ugly, some of us know the beauty in travel that existed before

  8. Imagine the disconnect from the DOD infrastructure leading to security and safety issues that are just to horrific to imagine, yes the FAA and DOD interact very closely every day and always did

  9. Imagine a tightly held cartel doing whatever they want whenever they want in a collapsed Air Traffic Control and Commercial Aviation industrial base as a total unchecked monopoly

  10. Imagine missing the application of all the new technologies that will surface in the next 100 years because the FAA is gone, yes they consumed technology

  11. Imagine missing the development of all the new technologies in the next 100 years because the FAA is gone, yes they created technology

  12. Can you imagine walking where you need to go 20 years from now because it's all gone, yes it can wink out, it's all only less than 60 years old, it's all very fragile, think sustainability

What Can You Do

Act fast and don't assume someone will save the day, this is it... Unless you act it will happen regardless of what happens in Washington DC and the big current events.

  1. Contact your elected representatives

  2. Spread the word on social media

  3. Contact news organizations and demand they do serious investigative reports on this topic

  4. Do your own research and write your own papers

  5. Talk to everyone about this

  6. Understand this is probably the single most important thing that will happen in this century and help others to understand this simple fact, it's that big

FAA Privatization Information

H.R.2800 Aviation Funding Stability Act
H.R.4441 Aviation Innovation, Reform, and Reauthorization Act of 2016 Calls for privatizing the FAA
S.1405 A bill to amend title 49, United States Code, to authorize appropriations for the Federal Aviation Administration, and for other purposes
H.R. 2997 21st Century Aviation Innovation, Reform, and Reauthorization Act” or the “21st Century AIRR Act 2017 Calls for privatizing the FAA

H.R.2997 DISSENTING VIEWS

Eno Center For Transportation
Eno Center For Transportation Report

American Federation of Government Employees click on links to access key PDF files
National Federation of Federal Employees click on links to access key PDF files
Creating an ATC Corporation Raises Concerns, Pentagon Say

FAA History Analysis Tool A document mining tool is available to help understand FAA history. It is available from the download page. Just select other versions. This will take you to a directory housing gda-faa.zip and other gda-faa install file methods. Follow the Compressed Instructions on the download page to install. Once installed select the browse button, load the all-history.txt document select a rule such as NAFEC and press submit. The journey through the FAA history while mining this document is fascinating and critical for all who engage in policy affecting the FAA.

This webpage regardless of link origin only represents the thoughts and opinions of the author

This content was expanded and moved into this book.


Copyright 2018. This content may be freely distributed and referenced as long as the author is clearly identified. When using this paper for critical review or significant meetings the author requests that he be contacted and made aware of the events.