NextGen

In 2009, the airlines provided 11.5 million jobs, that’s 396 billion wages, 1.3 trillion to the economy, and a contribution of 5.6% of the nation’s GDP.  The airlines, obviously, have a huge impact on our economy, and they affect millions of people’s lives everyday.  In 2011 (June ends the 12 month period), 363 million people flew in commercial planes to get to destinations.  By 2025, air traffic is expected to increase by 50%.  That’s a lot of people and planes.  How are we going to be able to fit all those planes in the air? 

The solution: NextGen.  The FAA describes NextGen as “a comprehensive and ongoing transformation of our National Airspace System.”  NextGen is going to replace the current radar-based system to a satellite-based system.  Satellites, along with the required equipment for NextGen, allows planes, pilots, and ATC to do incredible things:

• Direct routes
• Real time weather
• Pilots know where they are at all times in relation to ground and other aircraft
• 20% reduction in radio communications
• Precise flight paths
• Efficient use of airspace
• More informed decisions
• Fly shortest distance between two points
• FAA, National Security, and Military will be able to monitor airspace easily
• Airport diagrams displays in cockpit and ATC with moving plane and vehicle locations on ramps, taxiways, and runways
• Better airfield capacity
• Airport design flexibility – parallel runways closer to allow for more runways and more flights
• And more…

All of these things save time, money, and fuel, and reduces CO2 emissions.  In fact, NextGen claims to be a friend to the environment.  NextGen allows continuous descents when coming in on approaches with very little power, reducing noise and fuel consumption.  A study done at MIA airport reveled that planes that have continuous descents saved, on average, 50 gallons of fuel and reduced CO2 emissions by 1,000 pounds.  It is estimated that by 2018, taking into consideration of increased air traffic, NextGen will reduce delays by 21%, reduce CO2 14 times, and save 1.5 billion gallons of fuel. 

This all sounds amazing, futuresque, and wonderful; but who’s going to pay for it?  In a recent article from Information Week Government, the FAA expected costs for NextGen to be close to a total of $40 billion, where now they think that cost is going to be closer to $160 billion.  The FAA has already invested $1.9 billion, but we still have a long way to go.  The cost is broken up into two pieces: (1) infrastructure – things like radar, radios, and landing system equipment, this will be paid for by the FAA and at no direct cost to users; (2) Cockpit Equipment – all the equipment for the plane to receive, transmit, and display information is at the cost of the operator.  Airlines are hesitant to install this new equipment because they will not be getting a near-future payback, it will take a while to be able to pay it off. 

The Air Transportation Association has be pushing for grants to fund this massive technology move, but because of the current economy, it is expected they will not receive any grants.  The company ITT has a solution.  ITT had the idea to start the NextGen Equipage Fund.  ITT, aerospace companies, and other investors are working to provide $1.5 billion in borrowings and equity.  It is estimated that the $1.5 billion will fund 75% of the commercial cockpit installations, including data communication and ADS-B.  ITT will call back loans as the airlines make their profit off their new equipment, all while being a “good corporate citizen.”

So, the airlines have help, but what about GA and their pilots?  For GA to have NextGen they need GPS, a Universal Access Transceiver – making their current transponder a back up, a Multi-Functional Display, and an antenna.  AOPA online reported that, today, more than 80% of GA aircraft have GPS, and 20% have WAAS.  Therefore, the transition is possible with just a few upgrades.  AOPA just asks the NextGen plan to remember the cost to GA and their pilots.