President Trump Throws His Support Behind FAA Privatization Effort

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President Trump's entry into efforts to privatize the nation's air traffic control (ATC) system has breathed new life into an idea championed by House Transportation & Infrastructure Committee Chairman Bill Shuster (R-PA). Spinning off the Federal Aviation Administration ATC functions to a private, non-profit corporation stalled last year due to bipartisan opposition in Congress and failure to achieve consensus in the aviation community.  Although exact details of the Administration's plan have yet to crystalize, major stumbling blocks to this proposal remain, such as the makeup of the nonprofit entity's board of directors which many feel would be dominated by the air carriers. Also at issue is a new user fee structure, which worries general aviation (GA) pilots. Other issues are safety concerns and spinning off federal assets without compensation to the federal treasury.

On the Senate side, Commerce, Science & Transportation Chairman John Thune (R-SD), reiterated his cautionary approach to ATC privatization, reminding folks that "as we move forward in discussing potential reforms, getting a bill to President Trump's desk will require bipartisan support as well as a consensus among the aviation community."

Takeway: Given his interest in bringing the private sector to the table as a major player in restoring the nation's infrastructure, President Trump's entry into the ATC reform debate was not unexpected and it brings new energy to the dialogue. This is particularly true given the lagging efforts to implement NextGen, a program to modernize the nation's current ground based air space system, with a satellite network which would improve safety and reduce delays for the traveling public. Many continue to be staunchly opposed to privatization and others are reserving judgment to examine potential "devils in the details." However, this issue is back to center stage for this Congress, as the President adds his support to privatization and Chairman Shuster tries to garner the support necessary to implement one of his legislative "crown jewels" prior to the expiration of his term at the helm of the Transportation and Infrastructure Committee due to Republican term limits.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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