| News for the commercial aviation industry | December 13, 2007 |
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ATA prepared to meet challenges of 2008
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Angela Giroux, Lead Editor ATA SmartBrief
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Part I of this ATA SmartBrief special year-end report looked back at some of the most important trends and stories of 2007. Part II, below, highlights our predictions and yours for what's in store for the aviation industry in 2008. From where I sit, the upcoming year will present many challenges and opportunities for the airlines. In 2008, U.S. passenger and cargo airlines will continue to engage industry stakeholders, Congress, passengers and the flying and shipping public to respond to the urgent need to modernize the air traffic control system and provide a reliable, fair and appropriate funding stream in order to pay for the ATC services provided by the FAA. Delays plagued the system in 2007, especially during the peak summer travel period. Without ATC modernization, FAA is forecasting for delays to increase by more than 60% by 2014 over 2004 levels. According to the FAA, the cost to the U.S. economy without modernization is expected to top $22 billion per year by 2020. Operations in the New York-New Jersey region have been under public scrutiny, receiving a great deal of negative attention by the media because of rising delays at airports in that region. But the issue of airspace congestion is not new; in fact, airlines raised this very issue and called for New York airspace redesign almost a decade ago. The unfortunate reality is that New York area congestion is only a leading indicator of problems looming in other parts of the country if our nation does not rapidly transform the antiquated ground-based ATC system to a satellite-based system. The technologies to make this transformation are available today it is simply a matter of organization, direction and appropriation prioritization to get them in place to meet consumer demand for air transportation. At the same time, of course, the industry will continue to emphasize the need for a fair, reliable and dynamic funding system in which all major system users pay their appropriate allocated share of system costs. To accomplish this, the airlines will continue to push Congress to reauthorize the Airport and Airways Trust Fund to provide the funding mechanism necessary to move forward with the plan for a NextGen system; a system which, when in place, will allow for more efficient air navigation. The industry is especially focused on this benefit for 2008 and beyond so that the airline industry can continue its environmental initiatives. Since 1978, U.S. airlines have improved their fuel efficiency by 103 percent and currently contribute less than 3 percent of man-made greenhouse gas emissions worldwide. ATA airline members have committed to an additional 30 percent fuel efficiency improvement by 2025. Congress needs to do its part in allowing for more efficient routing so that airlines can continue to reduce greenhouse gas emissions by reducing fuel burn through needless delays.
With the focus currently on the New York area delay situation, and the world's increasing focus on environmental issues, it is obviously important that both the industry and government move quickly to address those concerns. While there is no "silver bullet," it is clear that a suite of short- and mid-term actions, which could be put in place before next summer's capacity crunch, will go a long way toward alleviating delays. Airlines have proposed a variety of action items and are now working with the FAA to establish their priorities and seek assurance that government resources will be applied to accomplish those priorities.
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| Your Predictions |  |  |
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What is the single best way to reduce delays?
- Congestion pricing designed to raise fares and thereby limit demand -- 9%.
- Where appropriate, add runway capacity -- 11%.
- Limit business jet operators to non-peak times -- 12%.
- Begin transformation to a satellite-based air traffic control system -- 64%.
- Hire more air traffic controllers -- 4%.
       
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Although aviation accounts for only 2% of the world's man-made carbon dioxide emissions, what is the best way for the airlines to further reduce such fuel-burn emissions?
- Additional emphasis on fuel conservation and fuel efficiency -- 36%.
- Incentives for purchase of newer aircraft on a shorter time cycle -- 21%.
- Alternative fuels -- 38%.
- Carbon offset programs -- 3%.
       
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What is the single most important safety issue to be addressed?
- Frequency of runway incursions -- 12%.
- FAA oversight of foreign repair stations -- 13%.
- Lack of a modern air-traffic control system -- 70%.
       
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How should the next-generation ATC system be funded?
- Airlines/customers pay more -- 8%.
- Corporate jet users pay more -- 15%.
- All major user groups pay their proportional share of costs -- 53%.
- Congress appropriates more funds -- 13%.
- Privatize the air traffic control system -- 11%.
       
| ATA 2008 Events |  |  |
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| | Recent ATA SmartBrief Issues:
- Wednesday, December 12, 2007
- Tuesday, December 11, 2007
- Monday, December 10, 2007
- Friday, December 07, 2007
- Thursday, December 06, 2007
| | | Lead Editor: Angela Giroux-Scheide
Contributing Editor: Nancy Fonti
Mailing Address:
SmartBrief, Inc.®, 1100 H ST NW, Suite 1000, Washington, DC 20005 | |
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