On February 22, 2013, Secretary of Transportation Ray LaHood and Federal Aviation Administration Administrator Michael Huerta issued a two-page letter stating that in preparation for the budget sequestration the FAA “is making plans to reduce its expenditures by approximately $600 million for the remainder of FY 2013.” Although the letter did not commit the FAA or USDOT to make any changes, the letter did state that it was considering the following changes “that will have an impact on FY 2013 operations:
1. Furlough the vast majority of the FAA’s 47,000 employees (including all management and non-management employees working within the Air Traffic Organization) for approximately one day per pay period until the end of the fiscal year in September, with a maximum of two days per pay period.
4. Reduce preventative maintenance and equipment provisioning and support for all NAS equipment.
(UPDATE March, 22, 2013: See FAA Issues List of Towers to Close Due To Sequester for the list of Air Traffic Control Towers that the FAA has slated to close).
Whether this was meant to be a “political gambit” or is a bona fide plan for dealing with the impact of the sequester, it got the attention of the media and the aviation pundits. The aviation forums in LinkedIn buzzed over the weekend over an article published in The Guardian, while a whole host of articles appeared in local papers about the various closures and the possible impact it would have on the local economy. Secretary LaHood went on the Sunday talk shows urging Congress to compromise on the sequester and the “across the board budget cuts” so that this plan can be avoided.
Reaction to the Transportation budget cuts has been swift and negative. Politco has reported:
Senate Commerce Chairman Jay Rockefeller called the sequester cuts “reckless” and said that “everyone who travels for business or pleasure will be adversely affected.” NATCA President Paul Rinaldi cautioned that the cuts “may not be reversed,” adding that “closing air traffic control towers means the system will be even more compromised than anticipated.” Regional Airline Association President Roger Cohen said the “government is playing an irresponsible game of chicken – with no winners – and the traveling and shipping public will be the losers.” ACI-NA President Greg Principato thinks “decisions on cutting air traffic control services should be made based on most efficiently serving the needs and safety of the traveling public and in consultation with airports, airlines as well as affected communities.” A4A’s Jean Medina said that “no one wants to see the sequester happen,” and AOPA President and CEO Craig Fuller said he’s “deeply concerned” that the cuts “will compromise aviation safety and severely damage the efficiency of general aviation flight operations nationally.”
But how much of a “compromise of safety” will it actually be? Bloomberg news reported last year that 54 of the 72 towers slated for overnight closures already met FAA guidelines for closing during those periods because of low traffic, according to agency data compiled by Bloomberg. The FAA has been thwarted in previous attempts to close towers and radar rooms at little-used airports by pressure from members of Congress. A good example if Ann Arbor Municipal Airport. Ann Arbor Municipal Airport had, according to AirNav.com approximately 58,765 operations for the period ending December 31, 2011. In FY 2011, the FAA paid $1,783,838 and in Fiscal Year 2012 (Oct. 2011 – Sept. 2012) the FAA paid $1,860,791 to operate the Air Traffic Control Tower. Thus, it cost approximately, $31/operation to operate the control tower, which includes the operations that occurred after the control tower closed for the night. Aside from the control tower, the entire budget for operation of Ann Arbor Municipal Airport was $817,900 – approximately $1,000,000 less than the cost just to operate the tower.
The fear in the aviation community is that if these cuts are instituted, then they will not be reversed and many smaller airports will face financial difficulties or closure in the years to come. This comes at a time when there appears to be an ongoing debate about the FAA’s Air Traffic Control mission. Should it be privatized? Should it be split off from FAA’s regulatory duties into a separate agency? As reported in Has The Time Come to Privatize Air Traffic Control? The USDOT Inspector General found that the FAA’s Contract Tower program offered little difference in the safety or quality of services provided by similar FAA and contract towers.” The Inspector General also found that the “contract towers provided air traffic services to low-activity airports at lower costs than the Agency could otherwise provide.” Thus, whether the tower is privatized or contract, the true cost of the tower would be passed onto the consumer, rather than shouldered by the federal government. This is certainly what the Republican majority on the House Transportation and Infrastructure Committee wanted last summer. It may be that they will get what they want sooner than they thought.
UPDATE February 26, 2013:
Politico is reporting that Rep. Bill Shuster, Chairman of the U.S. House Committee on Transportation and Infrastructure and Sen. John John Thune, Ranking Member of the Senate Committee on Commerce, Science and Transportation, sent a letter yesterday to Secretary of Transportation Ray LaHood indicating their desire to get their hands on the FAA’s spend plan, both with and without the sequestration. Rep. Shuster and Sen. Thune claim that this information should have been produced by the agency back in October, 2012.
UPDATE February 27, 2013:
For more information about the U.S. House Aviation Subcommittee Hearing that, although it was ostensibly held to update the House on progress with the FAA Reauthorization and Reform Act, devolved into a hearing about the FAA’s sequester cuts, see U.S. House’s Hearing On FAA Reform Act Turns Into Hearing On Sequester and Closing ATC Towers
UPDATE March 15, 2013:
From sources, it now appears that the FAA has sent letters to the airports that have towers slated for closure stating that the FAA would announce its final selection of airport slated for “elimination of funding for the tower operations” on Friday, March, 22, 2013, instead of Monday, March 18, 2013.
J. David Grizzle, Chief Operating Officer of the Federal Aviation Administration’s Air Traffic Organization, appears to have issued this release on Friday, March 15, 2013 to the affected airports:
As you are aware, the FAA has offered to airport sponsors for 189 airports within the FAA’s contract tower program the opportunity to explain why the elimination of funding for the tower operations at their airports would adversely affect the national interest.
The FAA has received a very large number of responses. In order to review comprehensively the submission on behalf of each airport, the FAA will delay the date of its final decision and announcement of which airport tower operations it intends to cease to fund.
The FAA will make that announcement on March 22, 2013.
Examples of local articles:
- Air traffic control tower at Barnes Municipal Airport could close;
- Federal budget cuts could lead to flight delays and more at Hancock;
- How sequester cuts might hit Washington’s smaller airports;
- Airport control towers Across Mississippi facing shutdown from budget cuts;
- Midnight tower shift at Dayton airport facing elimination;
- FAA May Close Oxford, Danbury Air Traffic Control Tower;
- Automatic cuts could hurt area air operations [Oklahoma]