Nex Gen is the new initiative by the FAA to streamline our air traffic control system while increasing safety. It includes switching from a radar based system to a GPS based system. Increasing accuracy as well as coverage area. It also includes changing from analog based voice transmission to digital voice transmission as well adding a way to send digital instructions that can be integrated with the aircraft systems. Finally they are developing a new network structure to properly handle all of this digital information for more information you can go direct to the source and read more here http://www.faa.gov/nextgen/.
All of these are an excellent upgrade to our aging system. However this leads to the question who is going to pay for all of this. These upgrades were initially expected to cost $40 billion. However they are now quoted at costing upwards of $160 billion. Obviously this is no chump change. Many have said the airlines should pay while they retaliate that everyone should pay. So who in the end should pay?
The FAA is government funded with our tax dollars and one of its tasks is to maintain and upgrade the ATC infrastructure. So they are one part that will help pay. The problem is with our current economic situation they cannot afford to pay for the whole thing. That leaves commercial carriers and general aviation. That leaves the rest of the bill to be picked up by the three parties left. Commercial aviation, users of commercial aviation, and general aviation.
I persionally feel the cost should be distributed between the three parties. I would group users and Commercial aviation together as most likely any cost to commercial aviation will most likely be passed on to the users. So this ultimately leaves two groups left to pick up the tab. I think the split should be percentage based with commercial aviation paying most of the difference. Commercial aviation is the cause of most the of the congestion at major airports as well as on high altitude airways. They need the systems more then general aviation and also make a profit using aviation. Finally a portion should still be paid by general aviation as they will still be using the system. I would think somewhere between a 75 25 split would be sufficient although they could be tailored depending on the amount and also the method of payment either through user fee's or surcharges to passengers.
Yes!! Sharing costs is the perfect solution in my opinion too. I do agree with you about the amounts charged will depend on mass of usage and that the FAA should definitely be responsible for some huge payments. At the end, as the final system success will benefit all parties, all parties, in return, should contribute to this success in advance.
ReplyDeleteYour point that commercial airline operations are causing the brunt of the traffic issues is certain. This fact is the reason for the navigation makeover, and is one that should paint the picture about where a lot of the funding for NextGen should be imposed.
ReplyDeleteI think many share your sentiment about sharing the costs and agree that commercial operators should take the brunt of it. One issue I am interested in addressing tonight is where do companies like USA Jet or 135 operators fall in all this.
ReplyDeleteMy thought is that it would have to be based on amount of aircraft flying. It could be based on size of aircraft or number of passengers carried. beyond that it could be done of profit. the more money the company makes the more they will have to contribute. Really there are 100's of ways this could be configured and no matter what someone is going to be unhappy.
ReplyDeleteI agree with your thinking. I would say that it should be based more on how often they use the system. This way 135 operations don't end up paying as much as airlines, even though they do not fly as much.
ReplyDeleteInitial cost of $40 billion and now estimated at $160 billion.....400% increase. This shows whay funding is a huge issue with this system, who's to say that number is even accurate. Once implementation begins the potential of incurring higher costs then expected could add to the current funding issues.
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