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Potential Cost Savings Ideas for FAA and Users

Filetype[PDF-88.42 KB]


  • English

  • Details:

    • Resource Type:
    • Geographical Coverage:
    • 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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