The FAA Budget, Air Taxis, and NextGen Efficiencies

The FAA's Fiscal Year 2009 Budget of $14.6 billion was presented yesterday. Today, it received significant criticism because of the proposed cuts to the infrastructure-focused Airport Improvement Plan ("AIP") funding, but it more than triples the proposed budget for satellite-based Next Generation ("NextGen") air traffic control systems from $212 million to $688 million. While the budget proposal was strongly criticized by many trade organizations and will be vetted through Capitol Hill, ultimately the prioritization and focus on NextGen is appropriate. NextGen brings our antiquated 20th century air traffic control system into the 21st century. Acting FAA Administrator Bobby Sturgell states in the FAA's Budget In Brief, Fiscal Year 2009: "With the air traffic control system at capacity . . . , NextGen is the only way we can continue to meet demand. NextGen is intended to address today's constraints and comprehensively modernize and transform the air transportation system."

Former NASA scientist Dr. Bruce Holmes, who is now working for DayJet as its "Chief Strategist for Next Generation" discussed NextGen at the International Air Taxi Convention ("IATC") that wrapped up on Friday, January 25th. If you have researched the SATS program, you know that Dr. Holmes was planning and dreaming about "on demand" air services many years ago. In an 60 Minutes interview in April of 2005, Dr. Holmes stated: "The first wave in the transformation of air travel is coming fairly soon to an airport near you . . . in the next year or two . . . . It's the ability to hail a 'jet cab' and take it to your destination." He was right in 2005 as "on demand" air taxis are up and operating. As such, I like to listen to his predictions about the next few years. His IATC presentation focused on how the aircraft operating by air taxis are positioned to be the NextGen "earliest of early adopters" with respect to leveraging new technology.

In light of the technologically advanced state of the avionics systems incorporated in NextGen aircraft, Dr. Holmes stated that three components will allow for more efficient air travel and therefore the conservation of natural resources and less pollution. In other words, the industry can save a ton of fuel and reduce carbon emissions by utilizing this technology to enable more direct point-to-point routing and providing for the possibility of fewer missed approaches and diverts. The high tech equipment in the aircraft allows for implementation of such efficiencies. The three components that NextGen will employ are discussed below.

Required Navigation Performance

First, modern avionics equipment will allow for the implementation of Required Navigation Performance (RNP). These are "super precision" approaches that are guided by GPS inputs. RNP was explained years ago by the FAA's video "Highways in the Sky." A great innovative company in Washington state, Naverus, was started by a couple of bright Alaska Airlines pilots in early 2003. They had developed and realized the benefits of RNP on their flying in Southeast Alaska back in 1992.

Today, Naverus has developed many RNP procedures worldwide including for airlines in Canada, New Zealand, Australia, China. In fact, the Chinese government recognized the value of RNP years ago and hired Naverus. You can see a copy of the 2006 China certification flight on the Naverus website. On that video, the aircraft uses precision RNP to maneuver through the beautiful mountainous terrain of the 95 mile approach to the Lin Zhi airport in Tibet. Most of Naverus' customers are international although US carriers are finally coming on board. There are significant terrain avoidance safety and environmental benefits of RNP including fuel savings, lower emissions and less noise impact. With sophisticated avionics suites, NextGen aircraft like Eclipse are outfitted to utilize RNP. In fact, DayJet is currently working with the state of Florida and the FAA for approval of RNP routes.

Automatic Dependent Surveillance Broadcast

Second, the development and implementation of Automatic Dependent Surveillance Broadcast (ADS-B) will add further efficiencies. Replacing radar as the primary method of aircraft separation and control, ADS-B will provide both the cockpit and the control towers with real time, detailed displays of air traffic. Strongly supported by Captain Karen Lee and industry leader UPS for many years, ADS-B likewise means much more efficient separation, control, and direction of aircraft. It means decreased manpower costs. Last summer, the FAA awarded a $1.8 billion contract to ITT to build, own and operate the ADS-B ground stations. Dr. Holmes stated that ADS-B provides for 1000 times more accuracy than the current radar-based system at 1/1000 of the cost. That's a fairly significant differential.

As reported by Aviation Week, UPS will be utilizing ADS-B at its Louisville, Kentucky hub. By eliminating low altitude ATC vectoring, UPS expects to cut noise and emissions by approximately 30% and save 40-70 gallons of fuel for each arrival. Even more relevant, in light of the recent multiple reports of runway incursions, ADS-B also will allow the development of a companion ground-based surface aircraft location system. The new air taxi platforms will have ADS-B capability. The environmental and safety benefits recognized by UPS will be a "turn key" benefit of the air taxi market. The FAA has published a formal Notice of Proposed Rulemaking on the implementation of the ADS-B system on the federal docket. Comments are due in a month by March 8. 2008.

Digital Radio Communications

Third, providing for digital radio communication in the aircraft in Internet protocols will significantly enhance air taxi operations. Dr. Holmes described this as enabling a pilot to accomplish and communicate everything in the aircraft that one can accomplish today sitting at a desk with Internet connectivity. All essential communications -- clearances, weather, flight plans, NOTAMS, ATIS -- will be handled digitally thereby minimizing voice communications. That makes a lot of sense. Much of what used to be arranged by phone conversations, we now use and prefer to use the Internet. In fact, many get upset if an Internet reservations system is not available resulting in having to use the phone.

Conclusion

The NextGen system is enabled by implementation and utilization of existing technology in the aviation sector. The above technological enhancements will result in direct versus airways travel. They will decrease missed approaches due to errors in aircraft sequencing and separation or adverse weather. They will allow more efficient air travel and fuel savings while simultaneously enhancing safety. For example, a Cirrus can get 18mpg and an Eclipse with its Pratt & Whitney Canada PW600 advanced engines is currently carbon neutral compared to driving your SUV. With the implementation of RNP, ADS-B, and digital comms, Dayjet predicts its aircraft will be greener than driving. While there will continue to be significant debate on the proposed budget and some balance between funding AIP and NextGen is needed, the DOT's and FAA's strong desire for implementation of NextGen is entirely appropriate to push the system into the 21st century.

By the way, Acting Administrator Bobby Sturgell has a solid background. In fact, before going to the FAA, he was a Naval Officer and then an aviation lawyer, like me. His confirmation hearing is set for tomorrow morning.