The Effects of Air Traffic Control Privatization on Operating Cost.pdf - Journal of Aviation\/Aerospace Education Research Volume 14 Number 3 JAAER

The Effects of Air Traffic Control Privatization on Operating Cost.pdf

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Journal of Aviation/Aerospace Education & Research Volume 14 Number 3 JAAER Spring 2005 Article 8 Spring 2005 The Effects of Air Traffic Control Privatization on Operating Cost and Flight Safety Anthony W. Adams Follow this and additional works at: This Article is brought to you for free and open access by the Journals at Scholarly Commons. It has been accepted for inclusion in Journal of Aviation/ Aerospace Education & Research by an authorized administrator of Scholarly Commons. For more information, please contact [email protected] . Scholarly Commons Citation Adams, A. W. (2005). The Effects of Air Traffic Control Privatization on Operating Cost and Flight Safety. Journal of Aviation/ Aerospace Education & Research, 14 (3).
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Air TrMc Control Privatization THE EFFECTS OF AIR TRA FFZC CONTROL PRNA TZm TZON ON OPERA TZNG COST AND FLIGHT SAFETY Anthony W. Adarns r ABSTRACT The purpose of this study was to determine if privatization of the Air Traffic Control (ATC) System would cause a reduction in ATC operating cost and improve air traffic safety. An analysis was made to determine the effect privatization had on operating cost and air MIC safety involving the privatized ATC systems of Australia, Germany, New Zealand, and Switzerland. The study showed reduced operating cost and increased safety would result from corporate structuring of the ATC system. It was concluded that corporate style policy regarding personnel management and equipment procurement procedures would increase efficiency, which would reduce operating cost and increase ATC flight safety. STATEMENT OF THE PROBLEM Will the privatization of the Air Traffic Control System reduce operating cost and increase flight safety? Today, air transportation is the preeminent means for commerce ... among people (cited in Change, 1993). It has a tremendous impact on the. U. S. economy through employment, revenue generation and as a purchaser of goods and services from supplier industries. A serious problem exists with the Air Traffic Control (ATC) system in the United States. It is the inability to acquire new modernized equipment to meet the demands of the air transportation industry. The ATC system handles seven million commercial flights carrying more than 475 million passengers a year utilizing technology that in some cases dates back to the 1940s. President Clinton's Administration's privatization proposal in 1994 contained provisions to restructure the nation's air traffic control system as a quasi-govenunent corporation to be run like a private business. The proposal called for an air traffic control corporation that would be efficient, financially self-sufficient, financially able to respond to rapid change, and technologically superior. The ultimate goal was to operate the ATC system, currently run by the Federal Aviation Administration (FAA), more like a business, according to Transportation Secretary Federico Pena (Lenorovitz & Phillips, 1994). The responsibility for air traffic control would be removed fiom the Federal Aviation Administration. The new United States Air Traffic
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