By Bill Deere, Executive Vice President of Government and External Affairs
This time last year, I warned that 2017 could be a wild one for the aviation business community. That turned out be a vast understatement. From proposals to corporatize air traffic control to price regulation of FBOs, this past year has been a constant challenge to the association and its members. As we head into the new year, challenges will remain but we are also hopeful that the work begun this year may result in significant progress in 2018.
No doubt the biggest debate in aviation in 2017 was the airline industry proposal to privatize the nation’s air traffic control system, an idea that was embraced by both the Trump Administration and the Chairman of the House Transportation Committee, Representative Bill Shuster (R-PA). Ultimately, the proposal was incorporated into the House version of the FAA reauthorization, H.R. 2997, the 21st Century AIRR Act. Following committee approval, it looked like the legislation was headed to the floor of the House of Representatives for a vote.
That is where the proposal met with the collective resistance of NATA and the rest of the general aviation community. NATA’s hundreds of Hill meetings, combined with the grassroots support of our members and countless others, were enough to introduce uncertainty in the House Republican leadership as to whether the corporatization proposal would survive a House floor vote. For that reason, the current FAA authorization was extended until March 30, 2018.
Significantly, the Senate FAA legislation contains no corporatization proposal. NATA members who participated in our annual Congressional Fly-In were the last general aviation group to visit the Senate before the bill was drafted and your direct advocacy efforts in opposition to corporatization benefited the entire general aviation community.
For 2018, you can expect the ATC corporatization battle to be fought one more time. At this writing, Congress is focused elsewhere, tax legislation, year-end spending bills, and immigration to name just a few issues. But as the calendar turns, and the next FAA authorization deadline approaches, you can expect our deep-pocketed opponents to make one more attempt to wrest control of the air traffic control system and turn it over to the airlines. We ask you to stand ready and be prepared to weigh in with your elected representatives. You are the aviation business community’s best voice.
While we expected the ATC corporatization battle, in 2017 we unexpectedly found ourselves in a debate with a national pilot organization that suggested to the FAA that FBOs are akin to public utilities and should be regulated along similar lines. This was a moment where our members were critical to our efforts to shape the debate. Thanks to the help of member companies, FBOs and Part 135 companies alike, we developed a report on the state of the FBO industry. The report, which is available on the front page of our website, is a comprehensive look at the industry and the many factors that impact the pricing of FBO services.
I am pleased that as 2017 progressed, more and more industry leaders turned to our report as the foundation for debate. It has also been gratifying to see the thoughtful approaches that have been taken to the issue by other groups, including the Experimental Aircraft Association, which featured an excellent article on the subject in its May edition of Sport Aviation.
So where do we go from here? As you will see in the article on our annual leadership conference (page 51), your association met the issue head-on with a panel that included pilots, FBOs, airports and fuelers. A dialogue started there that I hope will continue into 2018.
Finally, I don’t want to leave you with the idea that all we do at NATA is try and beat back bad ideas. We take seriously our responsibility to advance a positive, member-driven industry agenda. There are proposals in Congress and before the agencies across a range of issues, including taxes, addressing illegal charter, air carrier training and others that we hope to see implemented in 2018.
As we reflect on 2017 and look ahead to 2018, one thing is clearer than ever. We are in it together. To advance big ideas or defeat major threats, is a job that requires all of us to be engaged.
Republished from the 2017 Q4 Aviation Business Journal.