Monday, March 18, 2013

Our Problems Are Not Sequestered


            Federal sequestration will officially take effect. Aviation is poised to take some lumps and bruising as a result. In an industry with an impossibly difficult risk/margin ratio, this federal dilly-dallying could possibly set the aviation industry further behind an already distant “eight ball”. One cannot help but wonder, What? Why? How?
            Sequestration was originally designed as a stop-loss measure back in 2011 when Congress realized that the US needed to raise the federal debt limit, or go over the infamous “fiscal cliff”. The approval to increase the federal debt limit was made under the condition that budget cuts would be agreed to. However, no exact cuts were approved just the sweeping plan to require all government programs to cut roughly 11% of current operating budgets. Congress, at the time, agreed that this sweeping plan was so heinous and damaging that more effective and intelligent cuts would be designed and implemented. Well, these modifications were never realized and sequestration has become reality (Choksi, 2013). Whether this is the result of a bogged-down and sludge filled federal government engine or the lack of ingenuity amongst federal department heads or a combination of the two, the system has failed again. The ramifications of sequestration will not necessarily be too damning for many industries, but for aviation, sequestration could severely stunt growth and business performance overall.
            The most obvious place to look to for an understanding of how sequestration will effect aviation is to look to the FAA. In a statement issued in October, FAA Chief Michael Huerta identified some of the more pressing program problems that could result from sequestration, “..these cuts would impact air traffic control services, NextGen implementation, and aircraft certification…” (National Business Aviation Association, 2013). NextGen air traffic systems are already nearly a decade behind original implementation goals. This proposed system would greatly improve the efficiency of the aviation industry as a whole, and save operators millions of needed dollars. Secondary air traffic control towers will likely become unmanned at non-peak hours, something that the National Business Aviation Association is very leery of. At the 38th annual FAA Forecast & Policy Summit held March 6 in Washington D.C., NBAA COO Steve Brown voiced his concerns saying, “We’re very concerned about sequestration, and the effect it will have on economic growth.” He went on to say that it is his intent to offer alternatives to tower closings at future meetings (National Business Aviation Association, 2013). The idea that secondary tower closings could negatively affect business aviation is not unfounded. Business aviation is unique in that many different types/sizes of aircraft are used. Different types of aircraft need different conditions for a safe landing. If an airfield tower is unmanned, conflicts between smaller aircraft and faster jet aircraft could prove to be catastrophic. The results of increased incidents is a perception of a lack of safety, and let’s be honest with ourselves here, unmanned towers is dangerous. The effects on commercial aviation, aside from the NextGen impacts, will likely be limited to some delay as the result of slower security screening and some possible congestion problems as the result of fewer controllers being on staff (Patterson, 2012). These delays could result in some ticket price increases as well. There are some aviation insiders that are not even slightly upset about sequestration.
            The people in aviation who stand to benefit from sequestration are the minority, but they exist. In an article published last week by Government Executive magazine, author Eric Katz was able to identify a few beneficiaries of the sequestration in aviation. First mentioned was the airport concessions industry, these companies stand to see an increase in sales as the result of the masses of people who are delayed and trapped inside the airport terminal. Not exactly a wonderful business story, though this could lead to the emergence of new airport terminal amenities like “pay’n lay” sleep cots. Katz also mentions that currently overworked government employees will now be afforded a much-needed day off in many cases (Katz, 2013). Anyone who knows an FAA employee or two knows that he/she could work 24/7 and still be behind. Although, does this not really just create an even worse backlog for the bewildered government employee?
            The reality of sequestration for aviation appears to be wholly negative. Reduced operating efficiency, delayed infrastructure updates, and potentially unsafe airspace is a recipe for trouble. What aviation professionals have to ask themselves is, “How do we let this happen?” If there was anything that could have been done to prevent these cuts, or to prepare planned cuts ahead of time, it should have been done. This was a risk, which was predictable and mollifiable. At least if there had been some planning, we could have been prepared for, and accordingly limited, the effects of sequestration. It seems that whenever a program fails to meet expectations, we are quick to let everyone else know about how Congress or Lawmakers let us down. Perhaps, what we need to do is look at what our role in the failure was. I hope that we will be able to ramp-up the professionalism and find ways to make the automatic cutbacks have minimal effect on our industry.  

-Jay Dankoff


Works Cited

Choksi, N. (2013, February 28). What is Sequestration and What Does It Mean for Me? Retrieved from nationaljournal.com: http://www.nationaljournal.com/congress/what-is-sequestration-and-what-does-it-mean-for-me-20130226
Katz, E. (2013, March 14). Not Everyone Hates Sequestration. Retrieved from govexec.com: http://www.govexec.com/pay-benefits/pay-benefits-watch/2013/03/not-everyone-hates-sequestration/61858/
National Business Aviation Association. (2013, March 11). Business Aviation Works to Mitigat Sequester's Impact. Retrieved from nbaa.org: http://www.nbaa.org/ops/20130311-business-aviation-works-to-mitigate-sequesters-impact.php
Patterson, T. (2012, November 27). Will Potential FAA Cuts Hurt Fliers? Retrieved from cnn.com: http://www.cnn.com/2012/08/16/travel/faa-budget-cuts

5 comments:

  1. The people who benefit from this sequester are barely tied to aviation in my opinion. Yes, they sit at the airport and want layover passengers to eat their food, but is this the FAA's intent of the sequester? I certainly hope not. This is what I get from the sequester (and I think you state it in other words in your blog), because we spent too much money on stuff with little importance, we have to sacrifice safety and furlough you. By sacrifice safety, I mean by reducing control towers. I know a Citation Mustang pilot who is going to be furious if Ann Arbor tower closes. He said it will be very difficult and painful sequencing himself between a C152 and PA28.

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    1. Steve, I agree, I thought maybe Mr. Katz, who wrote the article, was being sarcastic at first because vendors are not in the aviation industry mainstream. It is difficult to find any winners here at all. Maybe when I am part of the aviation machine on a managerial level I can help get some issues like this addressed before they become scary and dangerous problems. When you're an industry leading pilot, I hope you will help get involved in improving the industry approach to some of these issues too.

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  2. 'An impossibly difficult risk/margin ratio' is exactly what the aviation industry deals with, and cutting funds further is a scary thought. I agree with you that NextGen is something that should be pushed to the forefront and continued to be worked on, instead of set on the back burner and further delayed. Its benefits will be incredible to the industry and is, what I believe, exactly what we need to jump start aviation to get it back to where we were pre 9/11. I also agree with you that sequestration is only going to be a nightmare for the aviation industry as a whole and hope that it will not have as harsh of an effect as what it sounds like.

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    1. Hopefully 'nightmare' is not the most accurate descriptor in the end, but things do not look great right now. NextGen will be critical to the future success of aviation and any further setbacks aught to be avoided at all costs. Fortunately, we do have some terrific minds in aviation and I am confident this will be a river that we can ford.

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  3. Jay, I thought your write-up was awesome. The sequestration is most certainly not helping the aviation community in any way. I know that there are some things that can be cut back on spending-wise, but the things that are on the chopping block are not going to help anyone, only hurt and potentially kill.

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