Here in Washington, a steady drip of commentary about the air traffic control system and airline avionics is making it obvious that the government is making plans to pay for the upgrade needed by the airlines to access the next generation of air traffic control.
While much of the ground-based system can handle advanced controlling and allow smaller aircraft separation, most of the airlines have been dragging their collective feet waiting for final specifications before investing in new avionics.
Some airlines, noteably Southwest have committed to retrofitting their aircraft with advanced avionics by the middle of next year, but most don’t have the financial fortitude to make these kinds of multi-million dollar investments in modern systems.
Noting that the bank bailout, of TARP, for which the government set aside $700 billion during the transition between President Bush and President Obama has only used around $500 billion of the appropriated funds, the administration is looking at about what could be a $200 billion slush fund.
They claim that much of the TARP money will be coming back to the government and can be put to use in other ways to stimulate the economy.
So, it looks like generous sugar daddy government is going to fork over a few billion to bring the airlines up to speed. Of course, the FAA director noted, “subject to repayment.”
This negotiation between the airlines and the government for a bigger share of the stimulus pie has been going on for some time, but popped into the open at a NextGen hearing before the House Transportation and Infrastructure Committee when ATA President and CEO, Jim May, noted that the air traffic problem could be quickly sorted out if the administration spent as much on air traffic control as they have committed to high-speed rail.
From that moment the change in the FAA bureaucracy and Capitol Hill world was palpable. Now barely a month later, the FAA is looking at shoveling more money in the airlines’ direction.
While, I am normally against wild deficit spending, in this case, if the money was distributed as a loan (perhaps with an equity stake), similar to how TARP money flowed, with a required repayment, this might be a good idea. The new air traffic controls system will save everyone involved far more than this investment.
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
