Should Americas Air Traffic Control System Be Privatized?

By: Erik Swenson

Privatizing Americas air traffic control would mean President Trump proposes a version
of Shusters bill as part of infrastructure
Germany partially privatizes UK partially privatizes
transferring the non-safety operations of the FAA their system their system
overhaul

to a private entity. 1970 1970s 1996 2016 2020

Idea first proposed 1993 2001 2017
by Nixon Admistration
In 2017, President Trump and Congressman Bill official
Canada fully privatizes
their system Rep. Shuster (R-PA) proposes bill that privatizes the
Shuster (R-PA) proposed handing over the American system, bill struck down by House
country's air traffic control system to a private,non-
profit company, called the ATC Corporation. 60 The number of countries with
full/partial privatized systems

2016 FAA Funding ATC Corp. Proposed Funding Makeup Of ATC

Proposed Corporation Board

FAA 3%
4%
Fu
el
12%
Federal Funds
CEO

Oth Tax Unions

- Would tranfer over resources to new company within three years er T es
axe
- Reformed as safety oversight organization s
Goverment
- Still in charge of regulation and certification of aircraft 100 %

FAA 21 %
Airport Taxes
60 %
Ticket Taxes
User Fees
General Aviation
Currently regulates

ATC
all aspects of civil Airlines
air travel

Corporation The current form oft he FAA is funded by The proposed ATC Corporation would be funded
The ATC Corporation would be run by board that
includes representatives from airlines, pilot and
-Would operate air traffic control a mixture of taxes on things such as passenger solely by user fees, fees on aircraft operators
air traffic controller unions along with members
-Would be funded by user fees. tickets, fuel and cargo, as well as Federal funds. for using the system.
representing the Department of Transportation

Will this Work? However, Were Different Potential

Just ask Canada. Number of Flights (in millions) The US Drawbacks and Benefits
In his proposal, President Trump cited Canadas system as an example of an
has Costs for passengers Airline operating costs
privatized system. Canada's system is run by Nav Canada, a not-for-profit US and general aviation
company, which funds itself through user fees, which change based on
number of flights. 120% operators
Can. more flights
Fees over time in Canada 2 4 6 8 10 and
Rural operator and
Passenger costs
This chart depicts the fee charged for flying a Boeing 777 from Toronto to 0 airport funds
Montreal. It has been adjusted for inflation

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Number of Air Traffic Controllers 978% - Allow adoption of new

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preventing shutdowns and
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http://www.bls.govhttps/oes/current/oes532021.htm || http://www.ainonline.com/aviation-news/aviation-international-news/2012-01-01/canadas-private-atc-system-offers-alternative-cost-cutting-nations || http://www.gao.gov/assets/680/675079.pdf || http://www.navcanada.ca/EN/products-and-services/Pages/Fact%20Sheet.pdf || https://www.congress.gov/bill/114th-congress/house-bill/4441

Sources https://takecharge.navcanada.ca/infographics/NAVCAN-company-infographic-EN.pdf || http://www.statcan.gc.ca/pub/51-209-x/2015001/t003-eng.pdf || https://www.rita.dot.gov/bts/press_releases/bts018_16 || https://www.oig.dot.gov/library-item/32671