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Potential Cost Savings Ideas for FAA and Users
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Filetype[PDF-88.42 KB]

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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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