President Bush Issues Executive Order Pushing NextGen Forward

In a speech given yesterday to the Department of Transportation, President Bush stated that in:

an age when teenage drivers use GPS systems in their cars, air traffic controllers still use World War II-era radar to guide modern jumbo jets.  That doesn't seem to make any sense to me, and I know it doesn't make sense to the Secretary [of Transportation] and a lot of folks in this audience. Modernizing our aviation system is an urgent challenge.  So today, I'm signing an executive order that makes this task a leading priority for agencies across the federal government.

Since implementation and funding for the "Next Generation Air Transportation System" (NextGen) is contained in the FAA Reauthorization bill, which is stalled in Congress over issues like Acting FAA Administrator Bobby Sturgell's appointment to a full term, the East Coast Airspace Redesign, and Climate Change, Pres. Bush sought to take matters into his own hands by issuing an Executive Order.

The Fact Sheet that accompanied Pres. Bush's speech, claims that the Executive Order

. . . strengthens DOT's coordination with other Federal agencies. The EO will help transform the national air transportation system and effectively implement the NextGen Initiative (Next Generation Air Transportation System) that utilizes satellite-based guidance technology, which is safer, more secure, affordable, and environmentally friendly.

Although the Executive Order does set up a "Senior Policy Committee," and involves the Secretaries of Defense, Commerce and Homeland Security as well as the Secretary of Transportation, the Executive Order seems to be toothless without funding, which can only be supplied (to the extent that NextGen requires it) by Congress.  In essence, the Executive Order simply states that the Secretary of Transportation will take appropriate action to implement NextGen (as stated in Section 709 of Vision 100-Century of Aviation Reauthorization Act) and recommend action for the President to take.

As reported by AvWebBiz, according to Doug Church, spokesman for the National Air Traffic Controllers Association, "[The executive order] certainly appears like yet another new red bow on the same old box, which remains empty. Is the administration now saying modernizing our aviation system was NOT a leading priority up until today?"

President Bush also addressed several other aviation topics in speech:

  • Mentioned that the FAA will "start auctioning takeoff and landing slots at New York airports"in January, thus siding with the FAA over the GAO in the intra-governmental spat;
  • Suggested giving airlines incentives to "boost efficiency" and encourage them to use larger planes out of the New York area.
  • Mentioned that three new runways would be opening up this week at Seattle-Tacoma, Washington-Dulles, and Chicago O'Hare.
  • Completion of regulations that provide increased protection for consumers, specifically a measure that will require airlines to provide greater compensation for lost bags as well as tougher penalties when airlines fail to notify travelers of hidden fees.

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FAA Suspends Auction of Flight Slot at Newark Airport

It is being reported by several news outlets that the FAA has suspended its auction of flight slots at Newark Airport.  The auction was slated for September 3, 2008.  According to Bloomberg News the Order, issued by FAA Chief Counsel, Kerry Long, stated that "[t]he protesters have demonstrated compelling reasons to maintain the status quo'' pending a study of their objections. 

This is just the latest in a series of events that all relate to the FAA's redesign of the airspace in the New Yor, New Jersey and Philadelphia area.  It began with the Airspace Redesign decision last September, continued through the "congestion management" rules for JFK and Newark as well as  for LaGuardia, and on the "written re-evaluation" of those rules that the FAA tied back to the Airspace Redesign.

The Order was in response to a Protest filed five major airlines, Northwest, Delta, Continental, US Air, and United, along with the Air Transport Association (ATA) with the FAA's Office of Dispute Resolution for Acquisition. Click here for the New York Times articleClick here for the Forbes article.

The Air Transport Association issued the following statement in response to Chief Counsel Long's Order:

We are pleased that the FAA Office of Dispute Resolution Acquisition has granted our request for suspension of the September 3 auction of two slots at Newark airport and fully expect that the process will result in a determination that FAA lacks the legal authority to conduct the auction.

The Air Transport Association had previously, on August 11, 2008, filed a Petition for Review in the D.C. Circuit asking the court to overturn the FAA's decision to hold slot auctions for Newark.

Secretary of Transportation Mary Peters issued a statement through her spokeman, Brian Turmail, indicating that "[t]oday's disappointing delay means travelers will have to wait a little longer for relief from the high fares, stagnant service and limited competition."  However, the FAA "remain[s] highly confident of a speedy and favorable ruling in this matter.''

 

 

FAA Issues Order Limiting Scheduled Operations at Newark Liberty

The FAA first proposed limiting scheduled operations at Newark Liberty in a proposed order that was published in March 18, 2008, Federal Register.  The FAA has now, on May 21, 2008, issued its Order limiting scheduled operations at Newark Liberty Airport.  In the Order states:

  • Takes effect at 6:00a.m. on June 20, 2008;
  • Total air carrier operations will not exceed 81 per hour between the hours of 6:00 a.m. and 11:00 p.m.;
  • The order sunsets on October 24, 2009;
  • Air carriers have been assigned "Operating Authorizations," for specific time slots and operations (i.e., departure or arrival);
  • In order to maintain the Operating Authorizations, the air carrier must use them at least 80% of the time;
  • The Operating Authorizations can be sold and traded, so long as the air carrier has maintained the 80% usage prior to selling or trading. 
The FAA hopes that this will alleviate congestion and delays at Newark Liberty.

Secretary of Transportation Mary Peters told FAA’s Aviation Forecast Conference in March, 2008, that she believed that the caps at Newark will actually result in an increase in operations at Newark Liberty. She stated that “overall, the caps at Newark allow 30 more operations per day than were offered last summer – just more reasonably spaced."  The question remains, however, whether caps will achieve the goals of reducing delays and congestion without an economic impact on the airlines and quality of life impact on the surrounding communties. 

Alfred Kahn, the Chairman of the Civil Aeronautics Board under President Carter, in a recent working paper, stated his belief that congestion pricing would be a better approach.  He argues that the allocation of scarce airport resources is an economic problem and should be treated as such, therefore, air carriers should pay for the privilege of taking-off or landing at particular times.

With the summer travel season almost here, we will see what effect the caps at Newark and JFK will have on delays at the airport and noise in the community.