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Cost Of Not Modernizing US ATM System Will Be Huge: FAA Administrator
FAA Administrator Bryan Bedford with RAA president and CEO Faye Malarkey Black.
WASHINGTON—The cost of not modernizing the US national airspace system (NAS) would be well over $1 trillion, but the new air traffic management (ATM) modernization program will fail if Congress does not fund it, FAA Administrator Bryan Bedford has warned.
Bedford addressed an audience at the Regional Airline Association’s Leaders Conference in Washington DC on Sept. 23. He and US Transportation Secretary Sean Duffy have been leading an ATM modernization campaign since each came onboard under the second presidency of Donald Trump. FAA and the Department of Transportation have been touting progress, which includes replacing antiquated ATM equipment across the country.
However, they have always made clear that they would need some $30 billion more congressional funding beyond the $12.5 billion already authorized to complete the program.
On Wednesday, Bedford said the new funding need estimate was about $27 billion, which is slightly lower than the original estimate but still a significant sum to raise and one that will require bipartisan support.
Bedford said there was no magic solution to further reducing the cost. Then he added that the way to look at the funding need was to ask what would be the return on investment and what would be the cost if NAS modernization were not completed? He said that without ATM modernization, the cost of continuing flight delays and cancellations would be $300 billion over 20 years.
Further, Bedford said that the cost to the US economy and GDP if NAS capacity does not grow would be over $1 trillion over 20 years.
“It’s an investment we can’t afford to not make. This is a moment in time we cannot squander. I hope we get bipartisan support,” Bedford said.
Bedford, who was CEO at US airline Republic Airways before taking the FAA leadership role, added that people often ask why a previous ATM modernization program, NextGen, failed. In part, Bedford said, it was because the question of what was being fixed was not fully understood. Another factor was an ever-changing FAA leadership. “There were a lot of revolving doors. Three administrators and six acting administrators in 10 years. I have committed to being here for five years, so we have leadership consistency. But the final issue is funding,” he said.
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