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News Monday, Jun 5 2017

Trump Siding With Airline CEOs Over Working Families

Jun 05, 2017

American Bridge President Jessica Mackler released the following statement on Donald Trump’s plan to side with corporate CEOs and privatize the U.S. air traffic control system:

“Once again, Donald Trump is making a deal with corporate CEOs while selling out working families. Trump is doing the bidding of the same airlines who rip Americans from their seats and do everything possible to squeeze an extra dollar from their passengers. No rational person would believe that airline execs will suddenly do what’s best for the American people if given authority over the air traffic control system, but that’s exactly what Trump is doing.”

Background:

Trump Selling Out Working Families By Privatizing Air-Traffic Control

President Trump is expected to announce plans to privatize the nation’s air traffic control system by separating it from the Federal Aviation Administration (FAA). Trump has repeatedly dismissed the air traffic control system as obsolete and inefficient despite groundbreaking upgrades.

Privatization could stall modernization efforts expected to yield $160 billion in benefits to passengers through 2030. Furthermore, privatization would be a giveaway to the airline industry, which has been pushing for privatization for decades. A private air traffic control system would allow large airlines to crowd out smaller operations and threaten the availability of air transportation in rural areas. The White House said their plan would be based on legislation by Rep. Bill Shuster, which would give airline stakeholders seats at the table governing the privatized system.

President Trump Was Expected To Announce Plans To Privatize The Nation’s Air Traffic Control System

President Trump Was Expected To Announce Plans To Privatize The Nation’s Air Traffic Control System

Trump Was Expected To Announce Plans To Privatize The Nation’s Air Traffic Control System. According to The Wall Street Journal, “President Donald Trump will launch a new campaign this week aimed at fulfilling his pledge for $1 trillion of infrastructure investment, hoping to capitalize on lawmakers’ support for rebuilding the nation’s transportation systems at a time when his tax and health legislation are in flux. Mr. Trump will begin with a White House event Monday announcing a push to privatize air-traffic control across the U.S., in what backers say could be a catalyst for improving speed and fuel efficiency across the aviation industry.” [Wall Street Journal, 6/4/17]

Privatization Would Entail Separating Air Traffic Control From The Federal Aviation Administration

Trump’s Plan For Privatization Was Expected To Entail Separating Air Traffic Control From The FAA. According to Business Insider, “President Donald Trump plans to lay out his vision for overhauling the nation’s air traffic control system on Monday, outlining his goals to privatize the system in a White House speech. Trump will push for the separation of air traffic control operations from the Federal Aviation Administration, embracing an approach long championed by US airlines, according to White House officials. Joined by airline industry executives, Trump is expected to point to the changes as a way of accelerating a more modern air traffic control system.” [Business Insider, 6/5/17]

  • Air Traffic Control Would Be Transferred To An “Independent, Non-Governmental Organization.” According to Business Insider, “‘We’re really moving into the modern decade of technology in air traffic control. It’s a system where everyone benefits from this,’ White House economic adviser Gary Cohn said in a conference call with reporters. Trump’s budget plan released earlier this year called for the changes, placing air traffic operations under an ‘independent, non-governmental organization.’” [Business Insider, 6/5/17]

Trump Has Repeatedly Dismissed The Air Traffic Control System As Obsolete And Inefficient, Despite Groundbreaking Upgrades

Trump Called The U.S. Air Traffic Control System “Obsolete” In A Meeting With Airline Executives In February 2017. According to Reuters, “President Donald Trump is proposing to shift oversight of the U.S. air traffic control from the federal government to an independent group, according to budget documents released on Thursday. Trump, who called the U.S. air traffic control system ‘obsolete’ in a meeting with airline executives last month, is proposing $16.2 billion for the Department of Transportation’s discretionary budget for fiscal year 2018, a reduction of 13 percent.” [Reuters, 3/16/17]

The Trump Administration Claimed That Shifting Air Traffic Control To A Nongovernmental Organization Would Be “More Efficient And Innovative While Maintaining Safety.” According to The Philadelphia Inquirer, “President Trump’s budget proposal to Congress calls for shifting the air traffic control system from the Federal Aviation Administration, and giving it to an independent, nongovernmental organization. […] The spin-off would make managing the nation’s airspace ‘more efficient and innovative while maintaining safety,’ the budget proposal states.” [Philadelphia Inquirer, 3/16/17]

Trump Said That The Air-Traffic Control System Was “Way Over Budget” And It Wouldn’t Be A “Good System” Even After Upgrades, Which Were “Way Behind Schedule.” According to The Dallas Morning News, “President Donald Trump is giving full-throttle support to privatizing the nation’s air traffic control system, a top priority for American Airlines, Southwest Airlines and other major carriers. The Republican, a former airline owner, announced the stand in the budget blueprint released Thursday by the White House. […] But the Federal Aviation Administration has defended the billions of dollars spent on a NextGen program that’s meant to modernize the system with satellite-based technology. […] Trump didn’t reveal then whether he backed the idea. But he offered a sympathetic ear, telling the group that the current system is ‘totally out of whack.’ ‘It’s way over budget. It’s way behind schedule. And when it’s completed, it’s not going to be a good system,’ he said, also pushing the idea that the FAA should be run by a pilot. ‘Other than that, it’s fantastic.’” [Dallas Morning News, 3/16/17]

  • February 2017: President Trump Said That Spending On NextGen Technologies For Air-Traffic Control Was “Totally Out Of Whack.” According to Reuters, “The FAA is spending billions to implement ‘NextGen,’ a system that would utilize satellites to monitor aircraft instead of radar and make other changes and has faced implementation challenges. […] Last month, Trump criticized spending on NextGen, saying the system was ‘totally out of whack,’ over budget and behind schedule.” [Reuters, 3/16/17]

Privatization Could Stall Air Traffic Control Modernization Efforts And Deprive Passengers Of $160 Billion In Benefits Through 2030

Privatizing Air Traffic Control Could Stall Modernization Efforts, Which Were Expected To Yield More Than $160 Billion In Benefits To Passengers Through 2030

National Air Transportation Association President Martin Heller Said Privatizing Air Traffic Control Would Stall Momentum For Modernizing The System With “NextGen” Technologies. According to The Philadelphia Inquirer, “Noncommercial flight operators, including general aviation fliers, expressed disappointment Thursday in the Trump administration’s plan. ‘Separating air traffic control from the FAA simply poses too may leaps of faith,’ said National Air Transportation Association president Martin H. Hiller. ‘We will lose the momentum resulting from the current deployment of NextGen’ technologies to modernize the air traffic system.” [Philadelphia Inquirer, 3/16/17]

Investments In NextGen Technologies Were Expected To Yield More Than $160 Billion In Benefits To Passengers Through 2030. According to Reuters, “The FAA is spending billions to implement ‘NextGen,’ a system that would utilize satellites to monitor aircraft instead of radar and make other changes and has faced implementation challenges. […] The FAA said it has spent $7.5 billion on NextGen over the past seven years, which ‘has resulted in $2.7 billion in benefits to passengers and the airlines to date, and is expected to yield more than $160 billion in benefits through 2030.’” [Reuters, 3/16/17]

The Current Air Traffic Control System Is Considered The Safest Of Its Kind Worldwide

Federal And Corporate Sources Agree That The Air-Traffic Control System Is The Safest Of Its Kind Worldwide

2016: The Government Accountability Office Reported That The U.S. Was “Generally Considered To Have The Busiest, Most Complex And Safest ATC System In The World.” Accoridng to Reuters, “President Donald Trump is proposing to shift oversight of the U.S. air traffic control from the federal government to an independent group, according to budget documents released on Thursday. […] The Government Accountability Office said in a 2016 report that the United States ‘is generally considered to have the busiest, most complex and safest ATC system in the world.’” [Reuters, 3/16/17]

Delta Senior Vice President Steve Dickson Said That The U.S. Air Traffic Control System Was Safer, More Cost Effective, And Had Fewer Delays Than “Any Privatized Or Separated Air Traffic Control Alternative In The World.” According to The Philadelphia Inquirer, “Delta Air Lines was the only major U.S. carrier in 2016 to oppose the House Republican plan. ‘The current U.S. air traffic control system is safer, has fewer delays, and is more cost effective than any privatized or separated air traffic control alternative in the world,’ Delta’s senior vice president of flight operations, Steve Dickson, said in a statement.” [Philadelphia Inquirer, 3/16/17]

Privatization Would Be A Giveaway To Major Airlines Who Have Been Pushing For The Policy Change For Decades

Major Airlines Have Been Pushing For Air Traffic Control Privatization For Decades

Business Insider: “US Airlines Have Been Campaigning For More Than Two Decades To Separate Air Traffic Control Operations From The FAA.” According to Business Insider, “US airlines have been campaigning for more than two decades to separate air traffic control operations from the FAA. That effort picked up steam last year when the union that represents air traffic controllers agreed to support a proposal by Rep. Bill Shuster, a Pennsylvania Republican who is the chair of the House Transportation and Infrastructure Committee, to spin off air traffic operations into a private, nonprofit corporation in exchange for guarantees that controllers would retain their benefits, salaries, and union representation.” [Business Insider, 6/5/17]

Business Insider: “Airlines Have Been Lobbying Vigorously For The Change.” According to Business Insider, “Airlines have been lobbying vigorously for the change, saying the FAA’s NextGen program to modernize the air traffic system is taking too long and has produced too few benefits. The changes would involve moving from the current system based on radar and voice communications to one based on satellite navigation and digital communications.” [Business Insider, 6/5/17]

FlyersRights.org President Paul Hudson Said That A Private Entity Overseeing Air Traffic Control Would Be “Dominated By The Airlines.” According to The Philadelphia Inquirer, “Paul Hudson, president of FlyersRights.org, said his consumer group opposes handing over control of civilian air traffic control to an organization ‘that would be dominated by the airlines. It totally excludes passengers, who are paying for the whole thing. It gives away the entire infrastructure of air traffic control, which is worth tens of billions of dollars, to a private entity which looks, to me, a lot like Amtrak.’” [Philadelphia Inquirer, 3/16/17]

A Private Air Traffic Control System Would Allow Large Airlines To Crowd Out Smaller Operators And Cut Off Rural Americans From Air Transport

Privatizing Air Traffic Control Could Allow Airlines To Limit Access To Airports By Business Jets. According to Reuters, “President Donald Trump is proposing to shift oversight of the U.S. air traffic control from the federal government to an independent group, according to budget documents released on Thursday. […] Opponents, including some airlines, say the U.S. system is so large that privatization would not save money, and would drive up ticket costs and could create a national security risk. There also are concerns that airlines would dominate the private-company board and limit access to airports by business jets.” [Reuters, 3/16/17]

National Air Transportation Association President Martin Hiller Said That “Allowing Airlines To Establish The Costs To Operate In The Air Traffic Control System Risks Investment In Rural America.” Accoridng to The Philadelphia Inquirer, “‘Separating air traffic control from the FAA simply poses too may leaps of faith,’ said National Air Transportation Association president Martin H. Hiller. ‘We will lose the momentum resulting from the current deployment of NextGen’ technologies to modernize the air traffic system. ‘Allowing airlines to establish the costs to operate in the air traffic control system risks investment in rural America and potentially forces general aviation out of the important airports and airways needed to connect the country,’ Hiller said.” [Philadelphia Inquirer, 3/16/17]

The National Business Aviation Association (NBAA) And The General Aviation Manufacturers Association Said That Privatizing The Air-Traffic Control System Would Threaten Private Aviation In Smaller Communities By Giving Large Airlines Too Much Control. According to Bloomberg, “President Donald Trump is backing a controversial effort to place the U.S. air-traffic system under control of a nonprofit corporation as part of his budget plan. […] Two trade groups, the National Business Aviation Association and the General Aviation Manufacturers Association, said private air-traffic management would give large airlines too much control and threaten private aviation in smaller communities.” [Bloomberg, 3/16/17]

  • NBAA President Ed Bolen Said That Small And Mid-Size Towns “Could Have Their Access To Airports And Airspace Threatened.” According to Bloomberg, “President Donald Trump is backing a controversial effort to place the U.S. air-traffic system under control of a nonprofit corporation as part of his budget plan. […] ‘Under such a scenario, the small and mid-size towns that rely on access to general aviation for everything from civil services, to emergency support, to business access and more could have their access to airports and airspace threatened,’ Ed Bolen, president of the NBAA, said in a statement.” [Bloomberg, 3/16/17]
  • Bolen: “Simply Put, Privatization Of The ATC System Would Benefit Commercial Airlines At The Expense Of The Citizens, Companies And Communities That Rely General Aviation.” According to Bloomberg, “Two trade groups, the National Business Aviation Association and the General Aviation Manufacturers Association, said private air-traffic management would give large airlines too much control and threaten private aviation in smaller communities. ‘Under such a scenario, the small and mid-size towns that rely on access to general aviation for everything from civil services, to emergency support, to business access and more could have their access to airports and airspace threatened,’ Ed Bolen, president of the NBAA, said in a statement. ‘Simply put, privatization of the ATC system would benefit commercial airlines at the expense of the citizens, companies and communities that rely general aviation.’” [Bloomberg, 3/16/17]

The Alliance For Aviation Across America Called The Trump Administration Proposal To Privatize Air-Traffic Control “Unfortunate,” And Noted That The Plan Would Allow “Certain Private Interests To Make Critical System Decisions […] According To Their Own Best Interest.” According to The Dallas Morning News, “President Donald Trump is giving full-throttle support to privatizing the nation’s air traffic control system, a top priority for American Airlines, Southwest Airlines and other major carriers. […] And the Alliance for Aviation Across America said in a news release that the president’s proposal was ‘unfortunate.’ ‘This proposal would allow certain private interests to make critical system decisions ranging from infrastructure funding, to taxes and fees, according to their own best interest rather than that of the public,’ said the group, which represents private pilot groups and rural airports.” [Dallas Morning News, 3/16/17]

Airlines Could Be Incentivized To Raise Prices Under A Private Air Traffic Control System

Privatizing Air-Traffic Control Could Make Flying More Expensive By Enabling User Fees. According to The Philadelphia Inquirer, “Critics of privatizing air traffic control say it hands control of the airspace to the commercial airlines, while potentially making flying more expensive because user fees would likely be implemented. The current system is paid for, in part, by taxes on aviation fuel, fees paid by aircraft operators, and other sources.” [Philadelphia Inquirer, 3/16/17]
Trump’s Privatization Plan Was Expected To Require Airlines To Pay Fees To The Privatized System Rather Than Continue Paying The Taxes They Currently Do. According to USA Today, “While specifics on how to upgrade the nation’s roads and bridges are still being developed, Trump on Monday plans to say he will send Congress a plan put the nation’s air traffic control system in private hands. It calls for creating a private, nonprofit corporation, with airlines contributing fees rather than the taxes they now pay the government to cover the approximately $10 billion annual cost for air-traffic control.” [USA Today, 6/5/17]

  • As Of March 2017, The Air Traffic Control System Was Paid For In Part By Taxes On Fuel And Aircraft Operators. Accoridng to The Philadelphia Inquirer, “Critics of privatizing air traffic control say it hands control of the airspace to the commercial airlines, while potentially making flying more expensive because user fees would likely be implemented. The current system is paid for, in part, by taxes on aviation fuel, fees paid by aircraft operators, and other sources.” [Philadelphia Inquirer, 3/16/17]

Delta Air Lines Said That Privatizing Air Traffic Control Would “Result In Higher Airfares For U.S. Passengers.” According to The Philadelphia Inquirer, “‘The current U.S. air traffic control system is safer, has fewer delays, and is more cost effective than any privatized or separated air traffic control alternative in the world,’ Delta’s senior vice president of flight operations, Steve Dickson, said in a statement. Delta has said turning over air traffic control to an independent group ‘will result in higher airfares for U.S. passengers.’” [Philadelphia Inquirer, 3/16/17]

Trump’s Privatization Plan Would Be Based On Legislation By REp. Bill Shuster, Which Would Put Airline Stakeholders In Charge

The White House Said Trump’s Privatization Plan Would Be Based On Legislation By Rep. Bill Shuster. According to The Washington Post, “President Trump will seek to put a spotlight on his vows to privatize the nation’s air traffic control system and spur $1 trillion in new investment in roads, waterways and other infrastructure with a week-long series of events starting Monday at the White House. […] Aides say Trump’s proposal will be largely based on Shuster’s legislation. The White House previously called his bill ‘an excellent starting point’ for separating more than 30,000 FAA workers from the government — about 14,000 air traffic controllers and more than 16,000 who are working on the FAA’s current modernization program.” [Washington Post, 6/3/17]

  • A 2015 Proposal By Rep. Bill Shuster To Privatize Air-Traffic Control Would Have Established A Board Consisting Of Airline And Aviation Stakeholders To Oversee An Air-Traffic Corporation. According to Bloomberg, “The lead proponent in Congress for removing air-traffic operations from the FAA praised Trump in a statement Thursday. Representative Bill Shuster, the Pennsylvania Republican who is chairman of the House Transportation and Infrastructure Committee, introduced a proposal to do that in 2015 and plans to attempt it again this year. […] Under Shuster’s plan, a board made up of airline and other aviation stakeholders would oversee a new air-traffic corporation.” [Bloomberg, 3/16/17]
  • The 13-Member Board Would Include 2 Members Representing Airlines. According to USA Today, “Trump’s principles seek to improve legislation approved in 2016 in the House Transportation and Infrastructure Committee that never got a vote in the full House or Senate. The debate resumed as part of renewing FAA legislation that expires Sept. 30. Hearings are scheduled Wednesday in the Senate and Thursday in the House. The corporation’s 13-member board would begin with eight members appointed by the transportation secretary, with two representing airlines, two for unions, one for airports, one for general aviation and two for the government. Those eight would choose a chief executive officer, and then that board would choose another four independent board members. But no seats would be assigned to specific interests after the initial board is seated.” [USA Today, 6/5/17]

Privatizing Air-Traffic Control Had Bipartisan Opposition In The Senate

Republican And Democratic Leaders Of The Senate Appropriations Committee Wrote That Privatization Would not “Make Sense”

The Leaders Of The Senate Appropriations Committee Wrote A Bipartisan Letter To The Commerce, Science And Transportation Committee Arguing That It Didn’t “Make Sense To Break Apart The FAA.” According to The Hill, “Senators from both parties are voicing concerns over any legislation that separates air traffic control from the federal government and gives it to a nonprofit organization. In a letter to the Commerce, Science and Transportation Committee this week, the Republican and Democratic leaders of the Senate Appropriations Committee and its transportation subcommittee said ‘it does not appear to make sense to break apart the FAA [Federal Aviation Administration] (brackets in original).’” [The Hill, 3/2/17]

  • The Senators Wrote That There Would Be No Recourse For Consumer Complaints Under A Nongovernmental Air-Traffic Control Agency. According to The Hill, “In a letter to the Commerce, Science and Transportation Committee this week, the Republican and Democratic leaders of the Senate Appropriations Committee and its transportation subcommittee said ‘it does not appear to make sense to break apart the FAA [Federal Aviation Administration] (brackets in original).’ […] The lawmakers argued that there would be no recourse for consumer complaints or mistreatment if a nongovernmental agency was in charge of air traffic control.” [The Hill, 3/2/17]

Published: Jun 5, 2017

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