FAA Management Advisory Council

Steve Alterman Craig Fuller John (Jack) Potter

William (Bill) Ayer Jane Garvey Paul Rinaldi
Montie Brewer Hon. Michael B. Hancock Gwynne Shotwell
Ray Conner Lee Moak

March 15, 2017

The Honorable Michael Huerta

Administrator
Federal Aviation Administration
800 Independence Avenue, SW
Washington, D.C. 20591

Dear Administrator Huerta:

Aviation in the United States is an important national asset and a powerful economic engine
benefiting the American people. Economic strength and a state-of-the-art air transportation system
go hand-in-hand; and today, the United States air transportation system represents the Gold
Standard in aviation. An air transportation system that is second to none can drive progress on
critical national goals such as accelerating the economy and growing jobs, improving
infrastructure, stimulating industrys health, and increasing national security and safety.

Over the past several years, the debate over how best to modernize the Federal Aviation
Administration (FAA) has focused on whether or not to form a non-profit corporation, run by
system users, to operate the nations air traffic control system. Historically, efforts to achieve
consensus on the governance and funding of such a new corporation have stalled and hindered
progress in other areas. Today, it appears we are no closer to consensus than we were in prior
years.

Once again, a reform debate risks overshadowing steps that can be taken now to improve the
nations air traffic control system without breaking up the current FAA structure. From the
beginning, a major criticism of the current system has been that the FAA does not have a stable
long-term funding stream. Without question, sequestration and budget uncertainty have delayed
modernization. The formation of the NextGen Advisory Committee (NAC) has allowed the
aviation community working with the FAA to set priorities and have a significant voice in
modernization efforts. Today, the pace of NextGen activity has accelerated; however, unstable
funding remains a significant threat to successful implementation. This and other issues can and
should be addressed now without regard to whether a consensus may emerge later around
structural reform issues.

We believe that we can achieve our economic growth and infrastructure modernization priorities
by addressing the funding challenges facing the FAA the need for stable funding, financial tools
to invest in infrastructure, and management flexibility to rationally prioritize the needs of aviation
users through these reforms:

1
 Provide a steady, reliable, and predictable funding source, especially to move long-term
capital projects such as air traffic modernization, airport infrastructure, or aging facility
recapitalization.
o Under the current structure, this could be achieved by exempting funds derived
from the Airport and Airway Trust Fund from sequestration, and making amounts
appropriated from the Airport and Airway Trust Fund available until expended.
o Considering alternative revenue models, given rapidly growing new responsibilities
around UAS and commercial space operations, could also help ensure long-term
Trust Fund viability.

Flexibility to utilize resources where most needed.

o Flexibility to transfer funds between accounts enables a strategic, corporate
approach where resources are directed to the highest priorities in aviation. Under the
current structure, this could be achieved by providing authority to increase funding
in a specific account through transfers (e.g., by 20 percent), but limiting how much
a single account can be reduced (e.g., by 10 percent), to ensure all accounts
continue to serve Congressional intent.

Ability to borrow and explore third party financing or innovative development partnerships
to undertake major infrastructure projects.
o Removing the scoring penalties from FAA borrowing authority, allowing access to
the Trust Funds uncommitted balance, and providing flexibility to enter into
public-private partnerships could leverage private sector capital and existing
resources without disrupting Congressional oversight and budget control.

Consensus agreement with industry stakeholders on major investments, and based on this
agreement, authority to expedite acquisition decisions.

Ability to modernize facilities by identifying outdated ones appropriate for closure and/or
realignment, and ensuring an optimum network of modern facilities along with estimates of
the capital needs of such projects.

Flexibility in applying regulations and policies to implement a systems approach to

certification, validation and oversight.

Full authority to employ risk-based decision making principles, and authorization of the
necessary resources to assure global leadership.

These reforms would provide meaningful benefits to our air transportation system.

The FAA could more efficiently use available resources to modernize the National Airspace
System. By accelerating modernization, system users would operate more efficiently, provide
better service to passengers and shippers throughout the country, and contribute to the economic
growth creating jobs in every sector of the economy.

The FAA continues working to deliver new tools to air traffic controllers and the aviation
community through NextGen programs, and we should not miss this opportunity to advance
reforms that can strengthen and accelerate this progress.

2
We embrace the NextGen priorities developed through the work of the NAC. With the technology
foundation in place, focusing on the priorities as determined by the aviation community and FAA
through the NAC is imperative. The priorities Multiple Runway Operations, Data
Communications (DataComm), Performance Based Navigation (PBN), Surface Operations and
Data Sharing represent the key elements of the roadmap moving forward. Further, the tracking of
progress through the NACs Joint Analysis Team serves to accurately inform the aviation
community about progress on agreed upon metrics.

We are encouraged by recent developments and where they are headed. By building on current
DataComm tools, new capabilities will allow controllers to electronically re-route aircraft around
bad weather and congestion while a flight is en route to its destination. The advanced weather and
routing tools will identify the best route option for each flight and the electronic communications
technology will enable the seamless revision of the flight plan. This will benefit the passengers,
airlines, cargo carriers, and business aviation.

While the FAA is on track to roll out these new tools, budget instability presents risk to the timely
implementation of these and other initiatives slowing the return achieved from prior investments.
With stable, sufficient budgets, the FAA could execute planned investments on schedule, and
provide more near-term benefits to passengers, the general aviation community, and industry
partners.

As Members of the FAA Management Advisory Council, we strongly recommend that these
reforms be advanced by the Administration within a Reauthorization measure. As these measures
advance, stakeholders can continue the dialogue around structural reform with Congress and
Administration policy makers.

Most importantly, this approach sustains the momentum now present as the FAA accelerates
NextGen and delivers real benefits to operators within the system and the American public.

Sincerely,

Jane Garvey Craig Fuller

Chair Vice Chair

Steve Alterman William (Bill) Ayer

Montie Brewer Ray Conner

Hon. Michael B. Hancock Lee Moak

John (Jack) E. Potter Paul Rinaldi

Gwynne Shotwell