BOEING OFFERS $10-$15 BILLION REVAMPING OF AIR TRAFFIC CONTROL
Boeing said it would provide details of its proposal to revamp U.S. air traffic control system by May, but industry officials said key issue remained $10-$15 billion cost of effort. Details of plan remained sketchy, but Boeing had said its plan could allow 50% increase in number of airline flights by using new technology, such as Global Positioning Systems (GPS). FAA spokeswoman called Boeing plan “intriguing” and said agency would be monitoring situation closely.
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Funding would be critical element in developing new system. Boeing hasn’t ruled out investing its own money, but has made no firm commitments. Industry sources said new system could cost up to $10-$15 billion. Boeing could invest money to build system with hope of leasing services back to U.S. agencies that control air traffic and airlines. “It would be a major coup,” satellite official said: “If they can pull it off, it would be a shrewd move. It would put them at the top of the food chain for federal contracts. That’s enough to move forward on this.”
“From the government side, we welcome any efforts to advance technology,” FAA spokeswoman said. She called it “tremendous challenge” that would take “creative juices” of public and private sectors working together. Details about plan still were sketchy and in early stages of development, but Boeing spokesman said company would provide FAA with comprehensive details by May. “We're in preliminary discussions,” spokesman said: “We're looking at all the technologies, including satellite and GPS, but we have made no final decisions.”
Early reaction by satellite and aviation interests has been positive. Satellite Industry Assn. (SIA) Pres. Clay Mowry said organization couldn’t comment on “specific companies,” but was “broadly supportive” of using GPS technology in commercial applications such as managing air traffic control. “GPS can certainly provide additional accuracy in managing air traffic control for landings and in-flight” applications. Satellite consultant Leslie Taylor said she was “glad” Boeing was being proactive in offering satellite technology to aerospace industry. “Somebody needs to do something to shake the FAA up.”
Aerospace Industries Assn. (AIA) said GPS technology definitely could help. “This is something we've been advocating for a long time,” spokesman said: “We think it’s a good move.” Aircraft Pilots & Owners Assn. (AOPA) spokesman, whose group represents 50% of U.S. pilots and has membership of 355,000, told us that despite fact Boeing hadn’t “fleshed out their proposal,” AOPA is “long-time advocate of using satellite-based navigation” for air control systems. “We were among the earliest advocates for civilian use. GPS is already the primary source of navigation. We've already moved down that road.”
Boeing believes its systems can provide capacity for 50% more flights in available airspace while improving air safety. U.S. has largest air traffic system in world. In 1999, FAA said U.S. airlines carried 694 million passengers on 13 million flights. Routine delays for arrivals and departures aren’t uncommon and Boeing spokesman said new airspace unit developed following acquisition of Hughes and Preston Group in last year gave rise to plan. If company can pull it off, it would be major coup and provide major revenue stream for Boeing over next 10 years, industry sources said, but problem is going to be finding way to finance system that would replace “antiquated radar-based” technology that handles nearly 100,000 aircraft that fly daily in U.S.
Reaction by Boeing competitors was mixed. Raytheon official said he was waiting to receive more information before commenting. “We're still trying to figure out what it is,” one spokesman said. Lockheed Martin believes changes in air traffic control should be made carefully, spokesman said: “When you touch any one part of the system, you have to be mindful of changes in the entire system. At this point, we really don’t know what Boeing is trying to accomplish. We need more information.” Raytheon and Lockheed are developing plans for similar use of GPS technology and are skeptical of Boeing proposal until more details are released, spokesmen for companies said. Group of cargo carriers that includes UPS also reportedly is testing satellite-based system.