Trump lays out plan to privatize air
traffic control system
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[June 06, 2017]
By David Shepardson
WASHINGTON (Reuters) - President Donald
Trump outlined a plan on Monday to privatize the U.S. air traffic
control system to modernize it and lower flying costs, but his proposal
drew immediate criticism from Democrats who said it would hand control
of a key asset to special interests and big airlines.
Trump's proposal to spin off air traffic control from the Federal
Aviation Administration (FAA) was part of a weeklong White House focus
on infrastructure. The administration is looking to shift the spotlight
back onto Trump's agenda and away from a growing probe into alleged ties
between his campaign and Russia.
"We're proposing reduced wait times, increased route efficiency and far
fewer delays," Trump said. "Our plan will get you where you need to go
quickly, more reliably, more affordably, and yes, for the first time in
a long time, on time."
Executives from United Airlines, Hawaiian Airlines [HAII.UL], American
Airlines and Southwest Airlines, all represented by the Airlines for
America lobbying group, attended the Trump speech. The group praised the
Trump plan, which most airlines back.
The proposal, which would require congressional approval, is opposed by
many Democrats and some Republicans.
![](http://archives.lincolndailynews.com/2017/Jun/06/images/ads/current/pestcontrol_bch_termites.png)
The FAA spends nearly $10 billion a year on air traffic control funded
largely through passenger user fees, and has spent more than $7.5
billion on next-generation air traffic control reforms in recent years.
Trump said current air traffic reform efforts have failed and were a
"total waste of money."
It is unclear if privatization would speed the rollout of new systems
such as satellite-based aircraft tracking that replaces ground radar
dating back to World War Two.
Proponents say a private entity could sign contracts with vendors more
quickly than if deals are put through the FAA's procurement process,
which also is subject to budget instability.
Opponents, including Delta Air Lines, 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. Opponents also say technology
upgrades would be sidetracked while the private entity was set up,
potentially adding years to awarding contracts.
There also are concerns that airlines would dominate the private-company
board and limit access to airports by business jets.
The new systems would represent major wins for U.S. companies that have
been positioning for the shift. Technology company Harris Corp is a
leading candidate to supply the FAA with real-time aircraft tracking
data in partnership with satellite operator Iridium Communications Inc.
Harris already provides a similar data feed using 640 ground-based
antenna towers, and the FAA is its largest customer, Chief Executive
Bill Brown said in an interview.
Iridium has a joint venture that has partnered with air traffic control
authorities in Canada, Italy, Ireland and Denmark to provide air traffic
surveillance, in cooperation with Harris.
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![](../images/060617pics/news_z49.jpg)
President Donald Trump announces his air traffic control initiative
at the White House in Washington, U.S. June 5, 2017. REUTERS/Joshua
Roberts
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Under Trump's proposal, a board made up of airline, union and
airport officials would oversee the nonprofit entity that would
assume oversight after a three-year transition.
House of Representatives Democratic Leader Nancy Pelosi said in a
statement that Trump was recycling "a tired Republican plan that
both sides of the aisle have rejected" and would "hand control of
one of our nation’s most important public assets to special
interests and the big airlines."
The Aircraft Owners and Pilots Association said it will not support
a plan that imposes fees on small plane owners.
"The U.S. has a very safe air traffic system today and we don’t hear
complaints from our nearly 350,000 members about it," said Mark
Baker, the group's president.
The infrastructure push comes as the White House seeks to refocus
attention on core promises to boost jobs and the economy Trump made
last year during his presidential campaign.
Those pledges have been eclipsed by the furor over Russia's alleged
meddling in the election. That drama will come to a head on Thursday
when former Federal Bureau of Investigation Director James Comey,
who was leading the Russia probe until Trump fired him last month,
testifies before a Senate panel.
Trump has denied any collusion between Russia and his campaign. He
has struggled to keep the spotlight on plans that could give him a
political boost.
![](http://archives.lincolndailynews.com/2017/Jun/06/images/ads/current/Symphony_lda_2017.png)
On Wednesday, Trump will travel to Cincinnati to talk about
improvements to the 12,000 miles (19,300 km) of inland waterways,
dams, locks and ports critical for shipping farm products.
(Reporting by Steve Holland, David Shepardson, Roberta Rampton,
Alwyn Scott and Ayesha Rascoe; Editing by Chris Sanders, Bernard Orr
and Jonathan Oatis)
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