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Speech

ATCA

Neil [Planzer], thanks for that introduction. And a good morning to you all.

While “change” has been a slightly over-used phrase this year, I’d like to stick with that theme for a minute and walk you through a couple of areas that have undergone the most significant transformations over the past couple of years.

In 2007, for example, we changed the nature of our management of over-the-ocean traffic with the completion of ATOP. While perhaps little-noticed, ATOP is allowing us to safely reduce separation standards and deliver more fuel-efficient and environmentally-friendly tracks and altitudes.

But this is only the beginning. As our AIRE and ASPIRE demos show, this tool provides a solid base for collaboration and further improvements in delivering both economic and environmental value. And, we’re evaluating expansion of ATOP to other parts of the Atlantic and Caribbean airspace.

This year will also mark the completion of the roll-out of TMA to all 20 Air Route Traffic Control Centers.

Traffic Management Advisor has proven its value in not only metering arrivals to effectively fill the runways and manage delays in a fuel efficient way, but it’s also been extremely important in managing departures as well.

Continental has shown up to a four-minute decrease in flight times entering into Newark during metering compared to when we’re not. We expect to begin metering to LaGuardia in the middle of January, followed by JFK in April, further building on our operational focus in the New York area.

Again, this is just the start. Over the next few years, we’ll tailor TMA to better support even more busy airports, and to strategically support the use of RNP and RNAV. These Performance Based Navigation procedures, as we all know, allow for increased capacity and better efficiency.

To date, 130 RNP procedures have been developed at 45 airports, with 250 RNAV procedures at 86 airports. Going forward, our goals for fiscal ’09 total more than 100 for both.

When you talk in terms of progress and achievement for NextGen’s building blocks, look no further than the milestone we’re about to hit with ERAM. Seven years in the making, ERAM — our biggest program — is on budget and on schedule.

Early next year it’s going to come online, marking a major upgrade to our enroute flight and surveillance data automation system. It’ll serve as the cross-cutting fundamental NextGen building block for terminal, enroute and strategic flow.

Looking ahead, future releases of ERAM will be designed to support a range of NextGen capabilities, including Trajectory Based Operations.

ASDE-X, another major program, continues to move forward. This year we went IOC at six sites, including Dulles, Detroit and Phoenix. Four of those six weren’t even supposed to be up and running until 2009, but I’ve made this a priority.

We’re looking to replicate that acceleration in 2009, with DFW, Miami, Minneapolis and Reagan.

These are the milestones we’re hitting with some of our NextGen programs. We’ve accomplished quite a bit, but we all know there’s still more to do.

As administrations change and budgets begin to tighten, it’s incumbent on all of us to keep the pressure on implementing NextGen. Everyone in the aviation community has an interest in making sure it’s done right, and it’s done on time.

Continuing resolutions hurt our ability to keep these and other programs on track, especially as new programs come on-line and NextGen funding increases.

We have a crucial opportunity right now, what with the airlines pulling back because of the economy and fuel prices.

Like the traffic drop after 9/11, it’s given us the breathing room — a temporary respite — before the capacity demands bear down on us once more.

As we move forward into the next phase of NextGen — the mid-term, the 2015, 2016 timeframe — here’s how I see us staying ahead.

One, by embracing a more meaningful role for the private sector. I say that not because I think industry can do it better, but because it’ll help us move programs faster, and better resolve tough issues, like the ADS-B timeline and equipage.

Two, the proper talent — in both industry and government — will be required.

For our part, the National Academy of Public Administration just did an analysis of the skill sets that the FAA will need to accomplish NextGen, along with recommendations on how to obtain and maintain these skills.

As we “hire up” for NextGen over the next two years, we’ll certainly be mindful of those recommendations.

Another step is an equipage strategy that defines a target set of avionics linked to infrastructure that supports mid-term capabilities. That set is based on what’s available today, with additions for ADS-B, data communications and a few other capabilities.

With new routes, we’re considering changes to principles like “first come, first served.”  We’re looking at options for encouraging early adoption, and, ultimately, maximizing the number of aircraft fully equipped for mid-term capabilities.

The strategy also includes stimulating equipage, for both safety and efficiency. We’ve recently announced agreements with several airlines to install moving map displays and aural warning systems in the cockpit, to enhance runway safety.

Today, I’m pleased to announce additional partnerships with Honeywell, ACSS and US Airways, which will help us accelerate ADS-B deployment and the standards for Surface Applications and Conflict Detection, and Alerting on the Surface.

Honeywell is awarded $3 million to develop various requirements, standards and human factors analysis. Working with pilots from JetBlue and Alaska Airlines, testing will take place at Sea-Tac and Paine Field using Honeywell planes to provide operational input throughout the program.

Six million will go to ACSS, which is partnering with US Airways to equip twenty of their A330s with the SafeRoute suite of avionics. They’ll be providing cockpit displays, transponders, wiring kits and transponder upgrades.

This partnership will allow us to bring the same arrival and operational improvements we’ve demonstrated with UPS at Louisville to Philadelphia, one of our key sites for ADS-B. And, we’re working on an MOU with US Airways to further accelerate NextGen capabilities.

The Philadelphia activity will benefit both US Airways and UPS, both major players at that airport. It also adds to our focus on the East Coast, and we’re targeting the New York metro airspace as our next potential key area for the ADS-B program.

This will bolster other technological changes to New York, including TMA at Newark, JFK and LaGuardia, which I mentioned earlier, as well as ASDE-X at JFK.

We’ve made significant gains in New York this past summer versus the summer of 2007, and we plan to review those results with the customers and stakeholders later this week.

These are the kind of forward-looking steps we’re taking to stimulate equipage and obtain the early benefits of ADS-B for both the FAA and the user community.

What’s more, we intend to work with early adopters to minimize the business risk associated with changes in standards and early deployment of NextGen equipage. And, we’ll strive to minimize any disruptions to operators, like time out of service, or time until the capability becomes operational available.

We’ll share more information about this equipage strategy in the January 2009 edition of the NextGen Implementation Plan, but I wanted to tee up those — and one other thing — that is on my mind at the moment.

Facility collocation and consolidation. Realigned facilities provide the opportunity to break from traditional airport-centric locations and ground-based technologies to a more efficient, collaborative system. Facility realignment enables operational efficiencies through better airspace design.

Realignment also means lower infrastructure costs, a smaller carbon footprint, and newer automation systems that can handle more sensor inputs and functionality.

That eliminates the traditional linkage of ATC services and a specific geographic location.

For our employees, realignment presents a valuable opportunity to pre-position new hires to areas where the needs are greatest. Another plus is that employees can advance without uprooting their families.

Numerous plans have been proposed over the years and the issue has been discussed for decades.

Today, we have over 300 staffed facilities. The average age of our staffed terminal facilities is 28 years. For Centers, it’s 46. They’re not in the best condition either. Twenty-one percent are classified as being in “poor” condition.

We’ve got a backlog of $683 million in the tower replacement program. Meanwhile, the current maintenance backlog for terminal facilities is $147 million. That doesn’t include an extra $160 million in upgrades to bring them up to code.

While we have whittled this backlog down over the last several years, this path is not sustainable and needs to be tackled head-on.

We have been looking at this on a case-by-case basis, but what we need is a comprehensive facility plan led by an integrated facility serving New York that leverages what we’re learning in our NextGen testing in Florida and our targeted implementations there.

Congress and the White House have both advocated this comprehensive approach — another reason why we need reauthorization, and we need to work in that direction.

I’ve covered a lot of ground this morning, and I think you get the point. “Change” is already here. But we have to remind ourselves that the government’s not going to build the system of tomorrow by ourselves. Like many of our efforts, we’re going to need the ingenuity and the creativity that your companies are famous for to keep the focus on NextGen.

Thanks very much. Have a great conference.