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Potential Cost Savings Ideas for FAA and Users
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  • NTL Classification:
    NTL-AVIATION-Aviation Economics and Finance
  • Abstract:
    The intent of this paper is to catalogue potential cost-savings ideas which impact both the FAA and the aviation community. These ideas have come from various sources including MITRE, Coopers & Lybrand (C&L), FAA studies, General Accounting Office (GAO), user groups, and the insights of individual staff members. Some of these ideas are currently being implemented by the FAA to various degrees but might be expedited if certain implementation problems can be overcome, including additional capital investment funds. Most, if not all of these ideas, have opponents. Some have been proposed previously but have met resistance from stakeholders and/or customers (both internal and external to the FAA). Savings are separated into two categories: those impacting the FAA's operating and maintenance costs, and those cost-saving ideas that reduce the operating costs of airlines and other users. Some "savings" estimates are actually FAA cost avoidance (i.e., the FAA will not have to increase costs as much as originally planned or at all). Other "savings" ideas are actually realigning costs from the FAA to the private sector because of the nature of the activity. Cost saving opportunities for users in some cases require both up-front investments and additional follow-on operational and maintenance support. Our approach is to lay out the cost-savings ideas and associated issues, describe the impacts on FAA and the aviation community, state the time frame in which savings might be achieved (near term being up to 2002, mid term being 2003 to 2007 and far term being 2008 and beyond), describe up-front investments required, and show projected savings (either annually or the total through 2002). 24p.
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