We wanted you to be aware that on Thursday, March 16th, the President released his first preliminary budget request. As part of his plan, he has called for a shift in the air traffic control function of the Federal Aviation Administration to an independent, non-governmental organization. The preliminary budget did not include specific plan regarding the structure of a Private Air Traffic Control System.

The privatization of the Air Traffic Control System will need to be considered and debated in Congress. The effort failed last year in Congress, but is expected to be reintroduced again this year. The proposal introduced in 2015 by Representative Bill Shuster (R-PA), the Chairman of the House Transportation and Infrastructure Committee, would have created a board made up of airline and other aviation stakeholders to oversee a new air-traffic corporation. Under Chairman Shuster's proposal from last year, the system would be funded by fees paid by aircraft operator instead of the current taxes on fuel and airline tickets. The FAA would continue to oversee safety and set aviation regulations.

We will be sure to keep updating N.O.I.S.E. members on developments. If you have any questions or comments, please contact us directly at ejtranter@locklaw.com.

Emily Tranter