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HOW TO SPIN OFF AIR TRAFFIC CONTROL

Aviation experts are nearing consensus that the air traffic control (ATC) system needs to be removed from operation by the Federal Aviation Administration (FAA) and spun off as a user-funded corporation. This change would free the ATC system of federal budget constraints, micromanagement by administration and Congress, civil service constraints, procurement system problems, and conflict of interest between safety regulation and operations. Key success factors in other nations' similar spin offs appear to include: 1. shifting to 100% user fees rather than tax support and 2. separating safety regulations from ATC operations, by leaving regulation within government, at arms-length from the ATC corporation. A major problem in devising a user-fee system is the degree to which "general aviation" (GA) is subsidized in the current excise-tax regime. Resolving this problem involves distinguishing between business and commercial GA users, and noncommercial GA users. The latter seldom use ATC services; they should only be charged when they file a flight plan or land at an airport with a control tower, and they should be charged only the marginal costs of serving them. Commercial GA users should pay commercial rates, based on their fair share of overall system costs. A U.S. Airways Corporation based on these principles would permit rapid modernization of the ATC system, with significant increases in safety levels. Another benefit would be a significant reduction in airline delays.