Economy Advantage-General Internals

Economy Advantage-General Internals

Regardless of which airline you choose, you're likely to be confronted by a flight delay or cancellation that saps your time, money and patience. According to the U.S. Department of Transportation, more than 20% of domestic flights were delayed in 2010, and each month thousands of regularly scheduled flights are either canceled or chronically delayed 70% of the time or more. Now consider that the United States, for all its power and wealth, is dependent upon an outdated air traffic control network that relies on radar rather than satellite-based technology. And further consider that the solution has been a political football, and the punting has continued for years now, ever since a new methodology was proposed in 2003. It's called the Next Generation Air Transportation System - better known as NextGen -- and by employing satellite and data technologies it's designed to reduce flight delays 35% by 2018. The Federal Aviation Administration site provides more background information—in both text and video formats—than most air travelers would ever need. For consumers, the simple fact is the FAA promises that modernizing the nation's antiquated air traffic control system would bring immediate and lasting advantages. Here are the top five benefits for air travelers: 1. A more efficient airline network with fewer flight delays, both in the air and on the ground 2. Fewer flight cancellations, providing passengers with savings in both money and time 3. Less time en route from Point A to Point B, aided by more direct flight paths, thus reversing the "padded flight times" trend I wrote about here in 2009 4. An enhanced level of safety "to better predict risks and then identify and resolve hazards" 5. Fuel savings and a reduction in aviation's carbon footprint, not just by lowering fuel emissions but also by curbing noise. What's more, these efficiencies and economic benefits would also flow to airlines, corporate customers and communities as well, thereby strengthening the nation's economy.

Aviation is tightly connected to the broader U.S. economy. As a result, the FAA’s aviation policy and investment decisions have economy-wide impact. If the aviation sector becomes more efficient, industries relying on aviation implicitly also improve efficiency. When greater efficiency means resource savings, these resources can be put to productive uses. The FAA needs to understand connections and impacts beyond the aviation industry. Of equal importance is the need to understand the economy-wide consequences of no action or delayed action in making the case for critical investments, such as NextGen.

Aviation has a strong connection to the overall U.S. economy. Demand for air transportation services depends on the overall level of economic activity, and aviation enables manufacturing and service industries to flourish. This relationship implies the potential for broad economy- level impacts associated with NextGen air traffic modernization. CAASD has collaborated with Monash University’s Center of Policy Studies to extend their U.S. Applied General Equilibrium Model (USAGE) to the aviation domain. The result, the USAGE-Air Computable General Equilibrium (CGE) model, models the U.S. economy’s interrelationships with the air transport industry. The work this year focuses on parameterizing the congestion effects in the model (the economic consequences of congestion), leveraging other MITRE capabilities such as system wide Modeler and our NextGen business case work. We are extending our validation efforts, exercising the upgraded model, and documenting congestion effects in a paper co-authored with the Monash researchers. We again plan to transition these activities to the FAA work program. This work should create greater chances of success in building consensus among stakeholders such as Congress, the Office of Management and Budget, and the Department of Transportation.

Economy Advantage-General Internals

Next gen would create 12 million jobs and provide $1 billlion in economic activity

Bowen 2011 (Masters of Business with Distinction from Cornell U., “FAA'S NEXTGEN AIR TRAFFIC CONTROL SYSTEM A CIO's Perspective on Technology and Security” )

NextGen” is an umbrella term for the ongoing, wide-ranging transformation of the National Airspace System (NAS). At its most basic level, NextGen represents an evolution from a ground-based system of air traffic control to a satellite-based system of air traffic management. This evolution is vital to meeting future demand, and to avoiding gridlock in the sky and at airports. The new system will open the nation’s skies to continued growth and increased safety while reducing aviation’s environmental impact. These goals are being achieved through the development of aviation-specific applications for existing, widely used technologies, such as the Global Positioning System (GPS) and technological innovation in areas such as weather forecasting, data networking and digital communications. Coupled with state-of-the-art technology will be new airport infrastructure and new procedures, including the shift of certain decision-making responsibility from the ground to the cockpit. When fully implemented, NextGen will allow more aircraft to safely fly closer together on more direct routes, which reduces delays and provides benefits for the environment through reductions in carbon emissions, fuel consumption and noise. The program will also create more than twelve million jobs and over $1 billion in new economic activity.

Modernizing aviation is key to the economy

JPDO 2011 ( Joint Planning and Development Office, “Concept of Operations for the Next Generation Air Transportation System. Version 3.2”)

The U.S. aviation system must transform itself and be more responsive to the tremendous social, economic, political, and technological changes that are evolving worldwide. We are entering a critical era in air transportation, in which we must either find better, proactive ways to work together or suffer the consequences of ... [losing] $30B annually due to people and products not reaching their destinations within the time periods we expect today.

Air travel is key to the global economy

McCallie 2011 (Donald L. McCallie, Major in the United States Air Force, “EXPLORING POTENTIAL ADS-B VULNERABILITES IN THE FAA’S NEXTGEN AIR TRANSPORTATION SYSTEM” )

The United States–indeed the global economy–is dependent on safe and reliable air transportation. With an exponential increase in aviation expected over the next decade and the reliance on aviation for transportation of people and goods, even a temporary loss could have devastating impacts. Consider the recent Iceland volcano eruption in April 2010. Due to volcanic ash, flights throughout Europe were canceled because of safety concerns. During a week-long period over 95,000 flights were canceled and 1.2 million passengers a day were impacted–affecting approximately 29 percent of global aviation [2]. International Air Transport Association chief executive Giovanni Bisignani estimated that airlines lost revenues of $80 million each day during the first three days of groundings. Impacts to air transportation are not limited to acts of nature. Indeed, “Operation Hemorrhage” is one of the latest plots by terrorist extremists designed to cripple the U.S. economy [3]. Intended to bring down UPS and FedEx cargo planes via printer bombs, Operation Hemorrhage cost only $4,200 to fund and three months to plan and execute [3]. A similar plot was carried out in December 2009, when an al Qaeda member attempted to bring down a commercial airliner over Detroit by smuggling explosives onboard that were stowed in his underwear [4]. The results of the two failed attempts were felt by passengers in longer check point lines and increased security regulations. The current national airspace system (NAS) relies on a systematic framework that dates primarily back to the 1970s [5]. In an attempt to increase safety and capacity of air transportation operations, the Federal Aviation Administration (FAA) is moving forward with a fundamental overhaul. The new framework, called Next Generation (NextGen), will drastically change the current infrastructure and operations [6]. A key component of the NextGen upgrade is the Automatic Dependent Surveillance-Broadcast (ADS-B) system. When fully operational, NextGen will rely on ADS-B for air traffic management.

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