2018 Budget Calls For ATC Privatization

Privatization of the air traffic control system is back on the table for 2018. The President's budget proposal, released on May 23^rd, has ATC switching to oversight by a nonprofit corporation by 2021. The proposal has the new system funded by user fees, but is vague on how it will be structured and taxed.

The administration has issued a fact sheet relating to the need for ATC reform. The sheet cites the Canadian system as a successful example of a privatized ATC system. It also points to the Aviation Innovation, Reform, and Reauthorization (AIRR) Act of 2016 as a starting point for the transition. AIRR included provisions for a non-profit, independent corporation to take control of ATC run by a board of directors representing users of the National Airspace System, and adopting a user-fee pay structure. AIRR was authored by Congressman Bill Shuster (R-PA). The bill passed in the House House Transportation and Infrastructure Committee, but failed to reach a full House vote.

Many pilots and organizations have already raised objections to the budget proposal, including the National Air Transportation Association (NATA) and the National Business Aviation Association. "The president's budget takes the public's elected representatives out of the equation and leaves it to a private board to ensure the public's interest is being well served," said NBAA President and CEO Ed Bolen. In addition to the issues surrounding privatization, according to NATA, the proposal reduces FAA funding by almost $300 million for the fiscal year beginning October 1^st.

Plane & Pilot has long gone on record as being strongly opposed to privatization. Check out our views from a recent Going Direct column by Editor-in-Chief Isabel Goyer.