House Transportation and Infrastructure Committee chairman Bill Shuster (R-Pa.), flanked by other Republican leaders on his committee, today unveiled his much anticipated FAA reauthorization proposal that would separate the nation’s air traffic control system into an independent organization paid primarily through air carrier user fees and run by an 11-member board. During a press conference on Capitol Hill, Shuster said the bill was “taking on the establishment” by removing the ATC functions from direct funding control of Congress.

The proposal would transition the ATC organization to a federal, not-for-profit corporation over a three-year period. The board would include four representatives of air carriers and two from the general aviation community, along with representatives of the controllers' and pilots' unions and two people appointed by the Transportation Secretary. Shuster, however, stressed that the federal government would remain the ultimate authority over the airspace.

Shuster added that under his proposal taxes would not go up but, for most commercial carriers, would transition to user fees. Part 91-operated piston and turbine aircraft would be exempt from user fees, as would Part 135 operators in “remote locations” such as Alaska. But business aircraft used for “commercial operations”—meaning Part 135 charter—would be on the hook to pay user fees. The proposed bill does not specify how fees will be structured, leaving it up to the ATC corporation to decide whether to charge per trip, by distance flown or another method. Some taxes would remain in place to pay for the FAA’s functions and the Airport Improvement Program, Shuster said. The bill specifies that neither the amount of charges and fees paid nor applicability of the fees “shall be determinant of access to airspace.”

The chairman acknowledged that getting the proposal through Congress will be a “challenge” and that he and his Democrat counterpart on the committee, Ranking Member Peter DeFazio (D-Ore.) have differing views on how to move forward on FAA reform. But he also noted that the air traffic controllers organization has offered support for the proposal and a large part of the bill was written in bill was written in a bipartisan fashion. Shuster reiterated his case for the ATC proposal, saying the congressional budget cycles have hamstrung modernization and the FAA is not set up to efficiently modernize the system. As a result the lack of efficiency is costing the U.S. $30 billion a year. 

“Our system is incredibly inefficient, and it will only get worse as passenger levels grow and as the FAA falls further behind in modernizing the system,” Shuster said.

But the proposal, largely backed by the scheduled airlines, immediately drew concern from a number of corners. The Air Line Pilots Association complained that proposal would not require all users to pay the user fees, noting that commercial air carriers would shoulder the financial responsibility. “As aviation stakeholders, we have a shared responsibility to advance safety and not move in the opposite direction,” said ALPA president Tim Canoll.

The Aircraft Owners and Pilots Association president Mark Baker said the proposal raises “important questions that demand meaningful answers. Ultimately, we need to know that any FAA reauthorization legislation will protect the interests of general aviation now and into the future.”

General aviation groups have long expressed concern about the prospect of such a proposal, fearing a transition to a user fee system as well as the potential for a long-term erosion of its access into congested airports and airspace. While the bill addresses access according to fees, that is an area that advocates have said they will closely watch.

Rep. Mike Pompeo (R-Kan.), who represents Wichita, was pointed in his concerns over access. “This bill picks winners and losers in America’s airspace and gives special interests and commercial airlines disproportionate control over our air traffic control system.”

In the days leading up to the release of the proposal, House General Aviation Caucus co-chair Sam Graves (R-Mo.) had offered his support for a transition to an independent ATC organization. He originally was scheduled to appear at the unveiling of the legislation, but was not in attendance.

DeFazio, meanwhile, held a separate press conference expressing opposition, saying he will offer alternative “targeted amendments” to mandating spending of FAA and reform personnel and procurement processes.

Following the press conference, the National Air Traffic Controllers Association released a statement that: "We applaud the very hard work that the committee has done to think outside the box and come up with a comprehensive bill that addresses the concerns we have shared with them. While the legislation currently addresses NATCA’s primary issues of concern, we want to emphasize that today is only the beginning stage of the legislative process.”

In addition to ATC reform, the bill covers a host of other issues, including certification and third-class medical reforms.