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Fri, Feb 16, 2007

FAA's Blakey Pitches Reauthorization Plan To Senate Committee

Says Airline Passengers Pay "95 Percent" Of ATC Costs

Editor's Note: Below is the unedited transcript of FAA Administrator Marion Blakey's statements Thursday before the Senate Commerce Committee, Subcommittee on Aviation on Financing Reform Proposal, regarding the FAA reauthorization bill announced Wednesday.

Good morning, and thank you, Chairman Rockefeller. It is a pleasure to address you, Senator Lott and the members of this subcommittee.

What brings me here before you this morning is a matter of national significance; indeed, a scenario that affects every man, woman and child in this great nation, that affects every business -- from blue chips to the corner store.

The common thread among each of these is aviation. The United States of America has long depended on aviation, not just as a means of point-to-point travel, but as the hinge on which the door of commerce depends to stay open. Literally, aviation keeps America open for business.

As you are well aware, the national airspace system is rapidly approaching critical mass. For years, the word “gridlock” has been bandied about. For years, experts have pointed to a system that is stretched too thin, a system that simply won’t be able to accommodate all those looking to use it.

That day is here. As passengers, we know, and not just from headlines, that 2006 was the worst in history for delays. Conversely, that high point for delays occurred simultaneously with what can only be described as the golden age of safety.

Our pilots are first rate. Our controllers are the envy of the world. The people who service our equipment are acknowledged experts capable of handling everything from the devastation of a hurricane to a sophisticated software upgrade. Our safety inspectors are so good that they’ve helped whittle away the list of accident causes to the point where they almost never happen.

And yet, amazingly, the system is in trouble. It is grossly inefficient, and everyone who flies it knows it. The system’s in trouble because we have squeezed every ounce of capacity that’s out there. In some cases, we have imposed artificial constraints, for example in places like Chicago and New York, trying to stem the stream of passenger jets that always want to take off at 7 in the morning and come home at 5 in the evening and usually on the same day. Schedules packed to the gills with delays, missed connections and cancelled flights are an all-too-common scene these days.

And in front of us? The undeniable fact is that we face a billion passengers by 2015. We face an ever-increasing number of very light business jets, with new models like the Eclipse and the Diamond D on the way. Traffic levels we face now will double -- perhaps even triple -- in the not-too-distant future.

The logical question that follows goes like this: If we have the best people and the safest planes, why don’t we have the best system? The question from the passenger who flies in the middle seat is a bit more pointed: Why is commercial travel becoming such a nightmare?

I’m here today to tell members of this committee that the band aid solutions of the past will not be enough to deal with this challenge. We can’t keep trying to scale up an air traffic control system based largely on technology from the 1960s. We need to take bold action, and with the taxes and user fees expiring in September, we have a once in a decade opportunity. The next 6 months are the pivot point. If other countries around the world are moving toward the system of the future, why can’t we? Aviation is just too critical for Americans to be satisfied with taking a back seat.

Fortunately, there is good news on the horizon. We know the answer to the challenge that brings us here today. America needs the Next Generation Air Transportation System. Without it, we will cease to set the pace for global aviation. We will be the country others use as a lessons-learned exercise, the country that could identify its problem but couldn’t fix it.

In layman’s terms, NextGen is an integrated plan utilizing modern technology, updated procedures and new equipment to take us beyond ground-based radar technology and into the second century of aviation with satellite-based operations. Let’s face it. Satellite technology has revolutionized the trucking industry. Trains use it. Fishermen use it. Hikers in our national parks even use satellites. Isn’t it about time we put this technology into the hands of our pilots and controllers?

Make no mistake; this is not pie-in-sky. We have a clear vision for NextGen and a plan to execute it. Both were developed in partnership with stakeholders from across the spectrum of aviation, from pilots and airlines to mechanics to Wall Street and beyond. They agree. We agree. NextGen will get us where aviation needs to go, but we need to act quickly if we hope to avoid that doomsday scenario.

Why is this so important, you might ask? Countries like China, India, and Australia are aggressively adopting satellite technologies. Europe is moving ahead with SESAR, its rival version of NextGen that is based on satellites. Fact is the rest of the world isn’t waiting for the United States.

And while the rest of the world has their action plan in high gear, we risk getting bogged down in a debate over who’s going to pick up the tab. Truth be told, right now, the passenger in the middle seat is footing the lion’s share of the bill for operation of the system. The commercial traveler is paying 95 percent of the cost but imposing only 73 percent of the requirements. Imagine a restaurant that required you to pick up the tab for the people sitting at the next table. It’s not as farfetched as it sounds. It happens in our skies every day. A seat on a commercial jetliner is the most heavily taxed spot in all of aviation.

This year is a once-in-a-lifetime opportunity, presenting a rare chance to leave an extraordinary legacy for our children. But to successfully develop that NextGen system, we need a revenue stream that’s tied to the actual cost of our operations. We need a revenue stream that’s equitable; in other words, all users pay their fair share. I can’t say it any more clearly. The hybrid financing system we put on the table yesterday is balanced, is fair and it delivers on all these counts.

A cost based system is much more transparent and accountable -- for the FAA, the passengers, users -- and it gives Congress more insight into our costs for oversight.

Despite all the hype you’ve undoubtedly been hearing, moving to a user fee system is hardly unprecedented. In fact, I mentioned several countries before, but here’s another list to think about: Barbados, Brunei, Guinea-Bisau, Kiribati, Kuwait, Namibia, Sao Tome & Principe, Swaziland, Togo, Tuvalu. That list represents the only countries that do not charge for the actual cost of ATC services. Do we really want to most powerful nation on earth to remain on that list?

Speaking on behalf of everyone who flies this is first and foremost about benefits to the passenger. The bill that’s moving forward reduces congestion. It alleviates delays. It provides tax relief. It’s green. And make no mistake -- it delivers the technology to make all of this happen. This is the only way to go. America has the opportunity. America has the solution. We just need to put it in motion.

In closing, let me say that we have been presented with an historic opportunity to alter the future of aviation by creating a Next Generation system that truly delivers. We owe it to the traveling public. We owe it to America. Our economy hinges on aviation, and we can ill-afford to blow this chance to give our citizens a system that can handle what the future may bring and avoid all that gridlock. The members of this subcommittee will be key players in this endeavor, and I look forward to working with you to make it happen.

FMI: www.faa.gov

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