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Wed, Dec 07, 2016

Chao May Have Substantial Influence Over ATC Privatization

But DOT Secretary-Designate Has Not Taken An Official Position On The Issue

One of the issues Elaine Chao is likely to face shortly after her expected confirmation by the U.S. Senate as Secretary of Transportation is whether or not ATC should be spun off from the FAA and placed under a non-profit organization established by Congress.

Bloomberg reports that while Chao (pictured) has not taken an official position on ATC privatization, she does have an extensive background in aviation issues, having helped move an ATC reauthorization through congress in 1990 as deputy transportation secretary. She was also a member of the Northwest Airlines board before the carrier was acquired by Delta.

Senate Commerce Committee chair John Thune (R-SD) recently sent a letter to the FAA asking the agency to address a dozen areas of concern about the progress of NextGen identified by an Inspector General's audit by December 15. House Transportation Committee Chair Bill Shuster (R-PA) may use some of those areas of concern to bolster his argument that ATC should be stripped from FAA and privatized. He plans to reintroduce the idea in the next Congress, and may look to Chao as an ally in his effort. The two have reportedly talked, but not to discuss policy issues.

The airline industry, which also largely supports ATC privatization, also sees the nomination of Chao as an opportunity to make it a reality.

(Image from file)

FMI: www.dot.gov

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