FAA is moving to a  system safety approach to oversight and has established risk-based, data- driven safety programs to oversee the industry and a workforce that  includes approximately 4,500 safety inspectors and engineers to  implement those programs, about 15,420 air traffic controllers, and nearly  7,200 technicians responsible for maintaining FAA’s air traffic control  equipment and facilities. Our recent work has identified data  limitations and human resource challenges facing the agency that affect its  ability to implement these programs and oversee aviation safety. While FAA has developed risk-based processes for monitoring and  inspecting the aviation industry, in some cases, the implementation of  those processes is hampered by the lack of reliable and complete data,  which are important for identifying and mitigating safety risks. FAA Faces Workload Challenges for its Safety Inspectors

Changes to FAA’s oversight programs, such as the planned rapid  expansion of the Air Transportation Oversight System (ATOS), from 16 air  carriers in 2005 to approximately 115 air carriers by the end of 2007, will  pose workload challenges for FAA’s safety inspector workforce of about  3,600. FAA estimated it will lose 10,291 controllers, or about 70 percent  of the controller workforce, during fiscal years 2006 through 2015,  primarily due to retirements. FAA Faces Challenges in Furthering and Institutionalizing Management Improvements While Moving Toward Implementing NextGen

FAA has made significant progress in implementing management  processes that use leading practices of private sector businesses, but  further work remains to fully address past problems. FAA has taken steps to improve its software acquisition and investment  management processes and for the last 3 years has reported meeting its  cost and schedule targets for the acquisition of major systems, including  air traffic control systems. In addition, the agency has yet to implement its cost  estimating methodology. Progress Continues to Be Made in Planning for NextGen, but Challenges to Successful Implementation Remain

Work to determine the capabilities and requirements that will be needed  for NextGen and to produce a comprehensive vision for that system is  nearing completion; however, given the staggering complexity of this  ambitious effort to modernize and transform the air traffic control system  over the next two decades, it will not be easy to move from planning to  implementation. In November, we recommended  that FAA examine its strengths and weaknesses with regard to the  technical expertise and contract management expertise that will be  required to define, implement, and integrate the numerous complex  programs inherent in the transition to NextGen. Funding Issues May Affect Airports’ Investment and Other FAA Programs

As it modernizes the national airspace system to meet the nation’s future  air transportation needs, FAA must not only transform the air traffic  control system, but also work with airport operators to provide increased  capacity at airports to safely handle the projected growth in the demand  for air travel. Airports are an integral part of the nation’s transportation system  and maintaining their safety and efficiency is an important FAA  responsibility. The Administration has proposed cuts in AIP funding and is considering  possible changes to the AIP allocation formula as well as increasing the  cap on passenger facility charges for airport development projects. Any  change in the level or allocation of these funds could have implications for  funding airport capital projects. Without a  continued flow of funds to the trust fund, FAA’s ability to carry out AIP  and other programs during fiscal year 2008 may be in jeopardy. FAA’s Recent Estimate of Planned Capital Development Similar to Past Estimate

FAA estimates the total cost for planned airport projects that are eligible  for AIP funding, including runways, taxiways, and noise mitigation and  reduction efforts, will be about $42 billion for fiscal years 2007 through  2011. FAA and the Congress Will Face a Challenge Funding FAA Programs in Fiscal Year 2008 if Reauthorization is Not Timely

With the excise taxes that fund the Airport and Airway Trust Fund  scheduled to expire at the end of fiscal year 2007, Congress will need to  act if there is to be no lapse in revenue to the trust fund to fund FAA. Most of FAA’s  funding comes from the trust fund—the fiscal year 2008 budget request for  FAA proposes about 80 percent of the agency’s funding from the trust fund  with the remainder from the general fund.
Why GAO Did This Study

FAA operates one of the safest air transportation systems in the world. It is, however, a system under strain. The skies over America are becoming more crowded every day. FAA faces the daunting task of safely integrating a growing influx of passengers and aircraft into the system and simultaneously leading the transition to the Next Generation Air Transportation System (NextGen)--a complicated effort to modernize the system. FAA's broad responsibilities to maintain and modernize the nation's air transportation system must be met in an uncertain budgetary and long-term fiscal environment. GAO's concerns about financing the nation's transportation system, including aviation, led GAO to designate this issue as high-risk.

What GAO Found

To ensure continued safety within the national airspace system, FAA is using risk-based, data-driven safety programs to oversee the industry; however, the agency faces data and human resource challenges that affect its ability to fully implement these programs. GAO has previously recommended that FAA improve the accuracy and completeness of the safety data and analysis of that data needed to monitor safety trends, fully implement its safety programs, and assess their effectiveness to determine if they are focused on the greatest safety risk. FAA has made progress in this area but more remains to be done. FAA's ability to oversee the aviation industry will be further affected by its ability to hire, train, and deploy its primary workforce of safety inspectors, engineers, and air traffic controllers. The expansion of FAA's oversight program for air carriers will result in workload shifts for its inspectors that will make it important for FAA to improve its staffing process. In addition, the agency estimates that it will lose about 70 percent of the air traffic controller workforce over the next 10 years, primarily due to retirements. FAA has made significant progress in implementing management processes and systems that use leading practices of private sector businesses; however, further work remains to institutionalize these efforts. For example, new and improved acquisition processes and oversight have contributed to FAA meeting its acquisition cost and schedule goals for the last three years. Additional work remains, though--FAA received a qualified opinion on its most recent financial audit as a result of lack of support for the accuracy of about $4.7 billion for equipment. Moreover, GAO has previously recommended that FAA should undertake additional efforts to consolidate its facilities and outsource some of its services to further cut costs. Some key challenges for the transition to NextGen include completing the design and cost estimates for NextGen and proposing how that cost will be funded. FAA will also need to assess its capacity to handle the technical and contract management expertise that will be required to oversee the implementation of NextGen. FAA estimates that the total cost for planned airport development that is eligible for funding from the Airport Improvement Program (AIP) will be about $42 billion for 2007 through 2011. FAA's budget request for fiscal year 2008 proposes significant cuts in AIP. These cuts, along with changes to the way AIP is allocated among airports and possible increases in the cap on passenger ticket charges for airport projects, could have implications for the amount of funding available for planned airport development, especially at small airports. Additionally, the taxes that fund the Airport and Airway Trust Fund are scheduled to expire at the end of fiscal year 2007. Until Congress reauthorizes those taxes, FAA's ability to carry out programs related to airport development as well as some other programs throughout the agency may be in jeopardy, compounding the safety and management challenges facing FAA.