WashingtonWire - 2002-10-07

Air System Needs Big Fix

Without any further improvement to airports and air traffic control, the cost of air traffic delays will approach $170 billion over the next 10 years, according to a new study released Oct. 1 by DRI-WEFA in conjunction with the Campbell-Hill Aviation Group.

The Unites States will need to undergo a massive initiative to modernize the nation's aviation infrastructure if it is to support projected long-term capacity requirements and avoid harm to the economy, the study found.

Yet, even if all of the projects in the Federal Aviation Administration's current modernization plans are completed on schedule, delays in 2012 will be greater than they were in 2000, as air traffic returns to historic levels of growth.

According to the study, the economic penalty associated with those delays—even with the completion of FAA's plan—will be an estimated $157 billion over the next 10 years. While construction of additional runways and other industry-identified infrastructure improvements above and beyond FAA's current plans would cut projected delays in 2012 by 25 percent and reduce the projected 10-year cost of delays by $17 billion, the cumulative cost of delays over that period still would total $140 billion.

Findings were based on commonly used U.S. economic models, which measure lost business opportunities and efficiency, and loss of passengers/cargo that could be carried and passenger time, such as missed sales opportunities, increased travel time and loss of productivity.

The study was sponsored by Boeing Co., the Aerospace Industries Association, Air Transport Association, Cargo Airline Association, General Aviation Manufacturers Association and the National Business Aviation Association.