Bush administration to consider reform of FAA

Airline Industry Information, March 2, 2001

AIRLINE INDUSTRY INFORMATION-(C)1997-2001 M2 COMMUNICATIONS LTD

The US Federal Aviation Administration (FAA) looks like it may be heading for a reorganisation after the Bush administration indicated on 28 February that it was looking to reform the aviation agency.

The White House has suggested that it favours a market-oriented approach to managing the air traffic system, but has not gone so far as to endorse full privatisation, Reuters reported. The Bush administration is however intending to look at the operations of privately-run systems as part of an overall review of the FAA and how it can be strengthened to reduce congestion and resulting flight delays.

The government's plans were outlined in the fiscal 2002 budget outlook released on 28 February, which proposes USD13.3bn in aviation funding. The budget blueprint stated 'The time has come to implement urgently needed management reforms. The administration supports efforts to institute improved business practices, organisational changes and market-oriented techniques.'

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