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BILL

Aviation Innovation, Reform, and Reauthorization Act
2016

Bill NumberHR-4441

Failed to pass House
2017-Jan-02

Read the Bill (Reading difficulty: Hard)


Sponsor & Key Contributors
Bill Shuster

Related Issues...
Air Traffic Control Privatization



Other names for this bill

This bill also is referred to as the AIRR (acronym for Aviation Innovation, Reform, and Reauthorization) Act.

This bill would privatize Air Traffic Control

This bill contains several items related to the Federal Aviation Administration (FAA). These include financing the FAA for the next six years and rules regarding drones.

For now, we will focus on the most controversial feature of this bill. It would remove Air Traffic Control operations from the federal government.

In place of the current system, the bill would create a not-for-profit corporation that would operate independently of the FAA.

Air traffic control would begin operating under the corporation on Oct 1, 2019.

A not-for-profit corporation would control air traffic

The new corporation would be called ATC Corporation. It would be a not-for-profit corporation - not a part of the U.S. government.

It would be managed by a Chief Executive Officer (CEO) and board of directors that includes...

2 appointed by the Secretary of Transportation (DOT)

4 chosen by the organization representing the main airlines in the United States

2 chosen by an agency that represents noncommercial and recreational aircraft operators

1 chosen by the union representing air traffic controllers

1 chosen by the union representing pilots

Airline ticket prices likely would rise

The corporation would be funded by fees paid by airlines. The money would be used for all air traffic control operations - including salaries and the purchase of new equipment. As of now, these operations account for approximately half of the FAA's budget.

Related areas such as airport construction and research would remain under the control of the FAA.

Currently, Air Traffic Control operations are paid for through the Airport and Airway Trust Fund (AATF) and the General Fund.

Airlines most likely would recover their costs as a fee on airfare they charge passengers. Since air travelers already help pay for air traffic control operations through fees on airfares, It is not clear at this time how the change would affect the price of an airline ticket. It also is not clear how the change would affect taxpayers in general - since the General Fund would need to cover the remainder of FAA operations (and possibly any shortcomings by the new corporation).

What would happen to current Air Traffic Control employees?

Approximately 30,000 of the FAA's 45,000 full-time employees would transfer to the new corporation.

More information

You can find more details about this bill at GovTrack.us.

Most of the data we cite here comes from a 2015 report by the Center for American Progress (CAP). To read the full report, click here.

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