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Going Direct: Case Study: When Private Companies Were Given A Big FAA Job


Think privatization is the way to go for more efficient operation? Consider this case from just 20 years ago.

One of the major arguments for President Trump’s proposed ATC Modernization plan is that private companies are inherently more efficient than governmental agencies. The example for this case is the FAA’s slow moving Nex-Gen airspace modernization program. Critics claim with some justification that the program is way behind schedule and over budget. But the argument then that making air traffic control operations a private venture doesn’t seem to jibe with the FAA’s recent history on this subject. Indeed, instead of private industry saving the day, in several noteworthy cases, the FAA was forced to cancel programs for non-performance and take charge of getting the program back on track.

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