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PRIVATIZE Air Traffic Control ??? We certainly don't
believe it to be in the best interest of the nation... and neither do many other
members of the aviation community. If you want to help the cause and voice
your opinion on ATC privatization
DOW JONES NEWSWIRES: Standard & Poor's Ratings Services today said it affirmed its 'AA-' long-term issuer credit and senior secured and unsecured debt ratings on air navigation services provider Nav Canada. The outlook is stable. The ratings on Ottawa, Ont.-based Nav Canada continue to be supported by its strong legislative framework that establishes a solid business profile for the company. Key credit features contributing to the company's strong business position include its national monopoly in the provision of an essential transportation service, as well as its ability to adjust user rates without seeking any senior government or regulatory approval. In addition, Nav Canada's very high collection rates (in excess of 99%) and low bad debt expense are a product of stringent account receivable policies and the ability to withhold service for nonpayment of fees "Nav Canada has substantial liquidity in the form of reserve funds and credit facilities--these help it to manage timing differentials between cash outflows and receipt of revenue, as well as providing backup support for bullet debt maturities," said Standard & Poor's credit analyst Paul Calder. For example, Nav Canada has two C$250 million bullet debt obligations maturing in June and November 2004. The company may prefund these obligations before their maturity; however, Nav Canada's available liquidity (about C$680 million on its credit facilities after a restriction to meet contingent capital lease obligation commitments) significantly exceeds its C$500 million maturing debt obligations in 2004. The ratings continue to be constrained at the 'AA-' level by the company's high fixed cost structure, evidenced by the company's requirement to provide an essential service regardless of traffic levels. Also, approximately 70% of Nav Canada's operating expenses before interest and depreciation costs pertain to salaries and benefits and about 90% of its total workforce is unionized. Higher pension costs to remedy Nav Canada's substantially unfunded defined benefit pension plan at Aug. 31, 2003 (C$348 million), together with potential cost increases due to ongoing labor issues with three collective bargaining units, are expenditure challenges that affect the company's fiscal turnaround. Finally, the ratings are constrained by continuing uncertainty in the aviation industry, including ongoing rationalization of fleet and route networks by struggling mainline carriers, such as Air Canada.
February 12, 2004 THE AUSTRALIAN: Air traffic chief quits after reform bungle AIRSERVICES Australia chairman John Forsyth has fallen on his sword in the wake of the air traffic control organisation's bungling of airspace reforms. Transport Minister John Anderson announced the long-serving Airservices chairman's resignation yesterday after a week of controversy sparked by a proposal to wind back the reforms. Mr Forsyth will be replaced by his deputy, Air Marshal Les Fisher, as the board meets today to decide whether to significantly reverse the airspace changes or make less dramatic modifications. The resignation comes after a fiery meeting on Monday between Mr Anderson and the Airspace Reform Group charged with guiding the airspace changes. Mr Anderson has personally backed the reforms and is angry public confidence has been undermined by controversy about the proposal to reverse the changes. Airservices admitted this week that it had botched the introduction of the airspace reforms by failing to meet "certain governance obligations". It is understood Mr Anderson did not ask for Mr Forsyth's resignation. Given Mr Forysth's decision to resign, Mr Anderson felt it was appropriate that he accept that," a spokesman for the minister said. "The board and the (NAS) process needed immediate certainty and strong leadership which we believe Air marshal Fisher will most certainly provide." Mr Forsyth had been chairman since 1996 and presided over significant advances at Airservices. "Airservices is vastly improved and more efficient organisation than when Mr Forsyth was first appointed," Mr Anderson said yesterday. "The organisation is held in high regard both in Australia and internationally." Airservices has refused to elaborate on the nature of its bungle but The Australian understands it relates to requirements that a decrease in safety standards be offset by a corresponding benefit. Industry sources believe the oversight left Airservices exposed legally. The November 27 airspace reforms replaced some class-C airspace, where air traffic controllers separate commercial aircraft from light aircraft, with class-E airspace, in which the onus is on pilots to look out for other planes. Unions say the changes increase the risk of a mid-air collision but Airservices maintains the reforms are safe and says the recent problems have not changed that assessment. At a hazard identification meeting last week, however, Airservices stunned industry representatives with a proposal to change significant sections of the new E-class airspace back to C-class. That proposal remains the only one taken to industry, although Airservices earlier this week said it was still reviewing other options. Canberra sources believe today's decision will involve some winding back of the November changes but not necessarily the dramatic reversal suggested to industry.
November 21_2003 November 3, 2003 September 30,
2003 NATCA President John Carr testified last week and his testimony contained more factual data and figures that all of the pro-privatization advocates combined. The data presented by John makes the truth ring out loudly compared to the innuendo and half truths being wielded by the other folks. (Read John Carr's prepared statement to Congress.) September 11,
2003 In parallel action, DOT
Inspector General Kenneth M. Mead recently released the report on the safety of
privatized towers. After reading DOT-OIG report AV-2003-057, I was
appalled at the number of understatements, half-truths and outright untruths
contained in this report. If this report is any indication of the IG's
knowledge and understanding of the air traffic system, he is not qualified for
the position he holds. As an example the IG reported that BRITE radar is
not used in the separation of air traffic. If this is a fact, ERI has been
illegal in the separation of air traffic since it was installed in 1972
!!! Nearly all major towers in the United States use BRITE radar to
separate aircraft and the authorization is in the air traffic bible (FAA Order
7110.65), except for a handful who have modernized their tower equipment with
STARS tower displays. At least 58 of the 69 towers on the "chopping
block" have BRITE radar equipment in their tower. NATCA
President John Carr has requested the IG to immediately retract Report No.
AV-2003-057, and publish a corrected version. Many people do not understand that the FAA continues to finance the building, maintenance and equipment of contract towers and I'm not sure this is figured into the savings realized at contract towers. So the main savings is from reductions in salaries and benefits paid to the contract controllers. As many readers of this
home page are aware, several ERI controllers (and numerous FAA controllers
nationwide) participate in the evaluation and oversight of production of the
modernized air traffic control equipment. The end result is a huge
taxpayers savings when new equipment is fielded and does not require years of
adaptation and modifications to function properly in towers and TRACONs
throughout the country. Contractors have not given an iota of input into
the future of air traffic control modernization.
August 28, 2003
Sixty-Nine FAA towers, of which 11 rate in the nations 50 busiest airports, are now poised to be absorbed into the private sector. Many controllers who have entered the FAA have told horror stories of the companies they previously worked for in the private sector. These companies have reputation for corner cutting and bare-bones staffing in order to turn a profit for the company. As an air traffic controller who has personally given over 30 years, serving the flying public in the guise of air safety, I take this as a slap in the face. The same air traffic controllers who so gallantly saved the flying public from possible further disaster on 9/11, created the safest and most dynamic air traffic control system in the world all in the service to the flying public which includes these same Congresspeople and White House residents, are now being treated as a disposable item in the government arsenal. THANK YOU PRESIDENT BUSH
July 30, 2003 July 29, 2003 Sixty-Nine FAA towers, of which 15 rate in the nations busiest airports, are now poised to be absorbed into the private sector. Many controllers who have entered the FAA have told horror stories of the companies they previously worked for in the private sector. These companies have reputation for corner cutting and bare-bones staffing in order to turn a profit for the company. As an air traffic controller who has personally given over 30 years serving the flying public in the guise of air safety, I take this as a slap in the face. The same air traffic controllers who so gallantly saved the flying public from possible further disaster on 9/11, created the safest and most dynamic air traffic control system in the world all in the service to the flying public which includes these same Congresspeople and White House residents are now being treated as a disposable item in the government arsenal. THANK YOU PRESIDENT BUSH
June 2003 Last month, despite a veto threat from
the White House, the Senate
approved an amendment by Frank Lautenberg, D-N.J., to the FAA reauthorization
bill, S. 824, which would protect nearly all air traffic control jobs at the
agency from possible outsourcing. The US Senate passed S. 824 by a margin
of 56-41 as an amendment to a spending plan for the FAA. Air
traffic controllers supported the amendment, sponsored by Sen. Frank Lautenberg,
D-N.J. The move by the White House to privatize the United States air traffic control system may be stalled by this action. Our system is the busiest, safest, most technologically advanced system in the world. The reaction time of our closely knit organization was displayed by the never before executed grounding of all aircraft flying over the United States on 9/11. Had the system been dispersed among various companies, who knows what the outcome could have been. See Letter to the Editor of the Erie Times from NATCA Safety Erie Tower, which never reached the printed media Congressman Phil English is standing with us, opposing any form of privatization.
Recent action by the White House has the OMB directing the FAA to reclassify air traffic control from "inherently governmental" to "commercial-category A". Category A is critical-core mission and should probably stay within the government. HOWEVER, last year Flight Service Station and some Airways Facility Sector employees positions were moved to category A... and this year they were moved down to commercial category C and D... ripe for privatization. So if the president has no plans to privatize ATC, then why reclassify ATC?? This action has many of us wondering if aviation safety will soon be controlled by "the lowest bidder" ??!! (Nov, 2002) NATCA Erie Tower has responded with a Letter to the Editor of the Erie Times from the NATCA Safety Representative. This letter was sent 12-19-02, but yet to reach print. Congressman Phil English is standing with us, opposing any form of privatization. (Jan, 2003) NATCA will be visiting our Congressional workforce in Washington next month during our yearly NATCA in Washington (NiW). Congressman English gave a great speech last year and we are looking forward to another enjoyable and productive NiW. Matt Bonidie will represent Erie this year along with assistance from Edinboro's Don Mead (Cleveland Center controller).
FAA
INTENDS TO DECLARE AIR TRAFFIC CONTROL A
"COMMERCIAL ACTIVITY" AIR
TRAFFIC CONTROLLERS ARE DEEPLY CONCERNED, BUT NOT SURPRISED Under the FAIR Act of
1998, government agencies must declare their job functions to be either
commercial or inherently governmental. Commercial activities are those
subject to contracting out and privatization, while inherently governmental
functions are those which are defined as, "so intimately related to the
public interest as to mandate performance by federal employees." The law
goes on to cite control of space and navigation as criteria for declaring a
function to be inherently governmental. "This move doesn't
surprise me," NATCA President John Carr said. "This administration has
already indicated on several occasions that it would consider privatization of
our nation's air traffic control system. It should come as no surprise to anyone
that the safety, security and efficiency of the greatest aviation system in the
world is now threatened not by terrorists but by
government policy towards privatization, which, in air traffic, has a proven
record of failure worldwide." Carr added, "This
action makes no sense. The public demanded federalization of our nation's
airport screeners by rightly recognizing their importance to public safety and
yet air traffic control is on the list of activities we are willing to sell to
commercial interests, possibly even foreign ones." Interestingly, the FAA's
action in complying with Office of Management and Budget directives places air
traffic control in a designation which contradicts the OMB's own recent
guidelines for what should remain in the hands of government. In a Nov. 14
document, under Section E, paragraph 1-C, OMB states that activities which
"significantly affect the life, liberty or property of private
persons" are inherently governmental. "I can't think of too many
activities which more directly or significantly affect the lives of people more
than air traffic control," Carr stated. "As for control of space and
navigation, if you don't think we control it, try getting into O'Hare at According to Carr, there
was a silver lining in the administration's decision. "With 10,000 air
traffic controllers poised to retire in the next decade, I'm grateful that my
generation of public servants won't have to be around to witness the dismantling
of their pride and joy, the safest and greatest air traffic control system in
the world." (Dec, 2002)
NATCA President John Carr has been very adamant about the obvious reasons that NATCA and the aviation community should not support the privatization movement.
The National Press Club,
Transportation Table Its not about money or profit with the
people I represent. Its about aviation safety. According to AVFlash, an
internet aviation news service, controllers who work for Airservices Australia may soon
have to severely limit ATC help given to airplanes in trouble because of
liability concerns. A confidential draft memo states that due to pending litigation,
Airservices may be forced to severely limit our capacity to assist aircraft in
distress. As a professional who has worked airplanes for over twenty years,
everywhere from the Gulf of Oman to Chicago OHare, news like that makes my blood run
cold. I venture to guess Bob Poole forgot to mention little details like that when
he was rolling out his report yesterday. We believe our aviation infrastructure is a national treasure which belongs to the citizenry, and it is reckless, foolish and more than a little naïve to believe that a change in ownership will improve safety, or increase capacity or reduce cost. We believe that our aviation infrastructure has very serious national defense implications. As Im sure you know, those aircraft in Desert Storm and Desert Shield didnt get to Kuwait by boat---the men and women I represent worked them there, while you were all at home sleeping. And it is shortsighted and irresponsible to open Pandoras box of military secrets to the lowest bidder. We do not support transforming an inherently
governmental safety function into a commercial enterprise, and we arent fooled by
the fuzzy math used to fund it, either. User fees are just another way
of saying brand-new taxes. The users of the system already pay many fees in the form
of gas taxes, ticket taxes and other service charges. AIR-21 finally unlocks the
aviation trust fund for use in improving our national aviation infrastructure.
Adding a new tax in the form of user fees isnt going to fool anybody. For anyone under the mistaken impression that you can add limitless demand to a finite system, Ive got a news flash for you: you cant. And privatization isnt going to change that, either. Its time for this industry to stop
pointing fingers at each other and start working on concrete solutions to the capacity
problem. And by concrete solutions, I mean someones got to shut up long enough
to start pouring some runways. As Phil Boyer, President of the Aircraft Owners and
Pilots Association said in his most recent monthly column, and with apologies to the
Democrats in 1992, Its more runways, stupid! The third leg of the delay problem involves prudent demand management, and the users are understandably reticent to talk about it. The DOT Inspector General has mandated that the FAA establish capacity benchmarks for the busiest airports, and you can mark my words: When those benchmarks come out, this industry is going to be like a dog watching television: Were all going to know something important is going on, but were not going to know what it is. And nothing, I repeat nothing, will change at those airports. But you know, clearly we have the capacity in the system. I mean, we havent left one up there yet. UPS has made a fortune flying late at night, and Southwest has made a fortune flying where the others arent. We have capacity. What our nation lacks is peak hour capacity, and I hope the industry will put aside petty differences and pie-in-the-sky proposals long enough to work on concrete solutions to this problem. Customers arent unhappy with airline service. Theyre unhappy with waiting for airline service, and I hope we can all work together this summer to safely increase capacity to meet demand. I can speak long, loud and passionately on
this subject because I believe very strongly in my organizations position. I
have been reminded on numerous occasions that labor may stand to gain from a privatized or
corporatized system, and Mr. Poole has tried to sweeten the pot by offering seats on his
imaginary board of directors. The Reason Foundation has grossly mischaracterized my
organizations position, so let me state it for you all loud and clear: We
oppose corporatization, privatization, commercialization, for-profit, not-for-profit, and
every other cockamamie scheme cooked up by so-called think tank experts whove never
spent so much a one hour plugged in to a busy air traffic control position. Im
sorry, ladies and gentlemen, but the safety of the flying public is not for sale.
The men and women I represent are the guardians of that safety, and we will use every
resource at our disposal to defeat these reckless, ill-concieved fantasies. A few of the challenges we face are working together with the Federal Aviation Administration in the spirit of cooperation now that President Bush has terminated Executive Order 12871 on Labor-Management partnerships in the Federal sector. We face the coming wave of controller
retirements. As you know, this August will mark the twentieth anniversary of the
PATCO strike of 1981. As the workforce gets older we face more retirements, more
health issues, and more benefits concerns. I worked at Chicago OHare for over
ten years, and in all the time I was there I did not see a single controller retirement.
People either moved up, moved out or died. It is, indeed, a young
persons game. The men and women I represent have given the very best years of
their lives in the service of the people of this country, and Im going to work We are working with the Agency on a comprehensive national airspace redesign. The current airspace structure no longer serves the needs of the system, and we are the most equipped and qualified to assist in modeling the nations airspace for maximum efficiency. Along the same lines we advocate an examination of separation standards to allow for aircraft to be safely spaced more closely together, freeing up capacity overnight in the system and taking advantage of controller skill and technological advances. NATCA continues to work with the Congress, user groups and other interested individuals to improve the worlds largest, most complex and safest air traffic control system. I have the honor and privilege of representing the finest aviation professionals in the world, and our air traffic control system, warts and all, is still the envy of every nation on the earth. I greatly appreciate the opportunity to join you this afternoon, and Ill be happy to take any questions you may have at this time. ATCA Journal Article by John Carr in the April-June, 2001 issue.
From the ATA Homepage (March 2, 2001) Major Airlines Deny Support of FAA Privatization Washington, Mar. 1, 2001 -- Denying recent press reports of support by major airlines for the privatization of the Federal Aviation Administration (FAA) Air Traffic Control (ATC) system, Air Transport Association (ATA) President and CEO Carol Hallett stated today, "Whoever is claiming that the major airlines support ATC privatization clearly has not spoken with the airlines' chief executive officers." Speaking on behalf of the member airlines of the Air Transport Association , whose board of directors met today in Washington, Hallett continued, "There are many tasks that need to be implemented to modernize the government's ATC system, to make it more business-like and efficient, and to equip it to meet the demands of our economy -- privatization is not on the list." "Although a number of carriers contributed to the work of the Reason Public Policy Institute's publication How To Commercialize Air Traffic Control, statements and assertions that the major airlines are "proponents" of ATC privatization are inaccurate," said Hallett. "Furthermore, the policy conclusions contained in this publication should not be interpreted as endorsements of its findings by those airlines." "Our nation's ATC system, in addition to aviation infrastructure in general, is falling further and further behind in its ability to meet public demand for air transportation. Although last year's enactment of the AIR-21 law provides the necessary funding stream and revenues for capacity enhancements, we must now set real, achievable priority targets to rapidly address system inadequacies. What we do not need is another protracted debate among academics and theoreticians about the merits of a privately run air traffic control system," Hallett said. The Air Transport Association is the nation's oldest and largest airline trade organization, with 22 U.S. and five international members. ATA member airlines transport over 95 percent of all passenger and cargo traffic in the United States.
AOPA calls air traffic control think-tank proposal "a solution in search of a problem"Feb. 23, 2001 AOPA says a proposal to commercialize the air traffic control (ATC) system is "a solution in search of a problem." A Reason Public Policy Institute study, funded in part by several large airlines, advocates creating a government-owned corporation, much like the postal service, to run ATC. The corporation would charge user fees for air traffic control safety services. "But the real problem is the lack of runways," said AOPA President Phil Boyer. "It doesn't matter what changes you make to air traffic control if there aren't enough runways to handle the aircraft at the end of the flight. "This proposal does absolutely nothing to address the major cause of airline delay. Commercializing ATC doesn't build more runways." Boyer noted that Mitre Corporation and FAA studies predict that the most sweeping changes to ATC technology would only yield a ten to 15 percent increase in capacity. But a new runway at a delay-plagued airport would increase capacity there 40 to 80 percent. "The time for user fees schemes had passed," said Boyer. "The new AIR-21 legislation provides sufficient funds to modernize ATC." Congress has also exempted FAA from burdensome federal procurement and personnel rules, allowing the agency to move quickly to acquire modern equipment and make necessary changes in staffing. And air traffic control is now starting to operate under "corporate" structure, with a board of directors providing management advice and a chief operating officer (COO) with the authority to manage all aspects of air traffic control. "All of the elements of a corporate structure that
are supposed to lead to greater efficiency are now in the place," said Boyer.
"Let's give these significant t reforms a chance to work."
On the Local Front...... Erie Times-News March 10, 2001 Editorial Air traffic control: Start overAir traffic control: Start overIn the fine print deep within President Bush's mini-budget proposal --- pages 138 and 139 -- comes some interesting reading. The administration criticizes "delays in the national airspace system" and says it will draw up "a plan of action for improving the nation's aviation record, and in particular, to examine the success that various nations, such as Canada, have experienced with individual air traffic control systems owned and operated by private companies." Plain English: The administration is looking into privatizing the air traffic control system. We don't have a problem with looking into the concept. Privatizing is worth studying. But what we are interested in -- what the nation's air travelers are desperate for -- is the action the administration hints at. The air traffic control system is a creaking mess. It needs to be blown up and reconstructed. The statistics grow worse by the month. As reported by the Pittsburgh Post-Gazette, about one in five commercial flights arrives late. The average delay is near 50 minutes. Delays are up more than 58 percent in the last five years. Cancellations increased 68 percent in the same time. It's clear that the Federal Aviation Administration is incapable of fixing the air control system. Let's hope the Bush administration is truly willing to force the issue. And sooner rather than later. Response from NATCA Erie Tower To: Times Publishing Co.
March 16, 2001 Since Jane Garvey has taken the helm as the FAA Administrator,
the system has experienced vast improvements. Ms. Garvey commenced a
partnership approach, with the National Air Traffic Controllers Association
(NATCA), in the design, testing and implementation of new technology. Controllers
and Electronic Technicians, now involved in the process, have eliminated the large
majority of bugs in new technology when installed in the field. Weather is the largest reason for delays in the World. One
must realize that flights are affected by weather occurring anywhere from departure point
to destination. Sometimes, weather near the routes of flight affect the Please, do not be swayed by unsubstantiated claims and let the
true numbers speak for themselves. The US air traffic control system has and will
continue to remain the safest, most orderly and most expeditious system in the world
bar none.
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