The Center for Individual Freedom ("CFIF") today led a coalition of national free-market organizations and public policy experts on a letter expressing concerns with certain proposals to restructure the air traffic control (ATC) system as part of a long-term Congressional reauthorization of the Federal Aviation Administration (FAA).  Specifically, the coalition emphasizes how current proposals do not constitute genuine privatization, but rather create a federally chartered non-profit corporation that repeats the mistakes of previous public/private entities such as Amtrak and the U.S. Postal Service. 

Read the letter below or download it here (PDF). 

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August 5, 2016

The Honorable Bill Shuster                                    
Chairman                                                                       
House Transportation and Infrastructure Committee     
United States House of Representatives
2251 Rayburn House Office Building                            
Washington, D.C.  20515

The Honorable Peter DeFazio   
Ranking Member 
House Transportation and Infrastructure Committee
United States House of Representatives   
2134 Rayburn House Office Building 
Washington, D.C. 20515 

The Honorable Rick Larsen                                     
House Transportation and Infrastructure Committee
United States House of Representatives
2113 Rayburn House Office Building  Washington, D.C. 20515

The Honorable Frank LoBiondo 
House Transportation and Infrastructure Committee
United States House of Representatives 
2427 Rayburn House Office Building 
Washington, D.C. 20515 

Dear Chairman Shuster, Ranking Member DeFazio, Representative Larsen, and Representative LoBiondo: 

As Congress continues to consider a long term reauthorization of the Federal Aviation Administration (FAA), the undersigned wish to reiterate our concerns with proposals to restructure the air traffic control (ATC) system. While proponents of the restructuring trumpet the virtues of privatization, we feel it is important to point out that the current proposal is not a real privatization, but a federally chartered non-profit corporation that repeats the mistakes of previous public-private entities such as Amtrak and the U.S. Postal Service.

The primary benefit of privatization is that it eliminates the inefficiencies of a government bureaucracy in favor of the competition and choice of the free market. Unfortunately, the ATC proposal fails this test by creating an entity that retains a monopoly over air traffic control while continuing or expanding benefits for the current union for federal air traffic controllers.

As stated in our previous letter, we are concerned that the new entity would have the power to levy new taxes and user fees with no oversight by Congress. Without oversight by elected officials in Congress or the competition that comes with true privatization, this could result in skyrocketing travel costs for consumers.

With regard to organized labor, the proposed ATC entity not only fails to bring about advantages over the unionized federal work force, but may actually loosen restrictions on unionized ATC workers, such as prohibitions on strikes and caps on salaries. Small wonder that the National Air Traffic Controllers Association (NATCA) strongly supports the proposal. NATCA opposes even raising the mandatory retirement age of fifty-six for air traffic controllers, even though airline pilots are not required to retire until sixty-five.

With these concerns in mind, we urge you to support a clean reauthorization of the FAA, which will benefit travelers and taxpayers. 

Sincerely,

Jeffrey Mazzella
President 
Center for Individual Freedom 

George Landrith 
President 
Frontiers of Freedom 

Andrew Langer 
President 
Institute for Liberty 

Seton Motley 
President 
Less Government 

Jim Martin 
President 
60 Plus Association 

Diana Furchtgott-Roth 
Former Chief Economist 
U.S. Department of Labor