For example, under enhanced-surface-traffic  operations, a service provided by FAA’s Data Communications program  allows an air traffic controller to send flight-departure clearance  instructions to aircraft electronically, which can expedite clearances and  reduce communication errors. FAA Is Implementing NextGen Incrementally and Has Taken Various Actions to Address Challenges

FAA is implementing NextGen incrementally through six NextGen-related  areas—communications, automation, navigation, surveillance, weather,  and foundational programs. FAA has faced challenges in including  stakeholders and in measuring and reporting on NextGen progress. Navigation programs that use more efficient routes and procedures to  save fuel, reduce flight times, increase traffic flow and capacity, and  reduce exhaust emissions. For example,  Data Communications departure clearance services have been deployed  at 55 airports—all of the locations for the first phase of the Data  Communications program, including 39 of the 40 busiest commercial  airports in the United States. FAA Plans to Complete the Majority of Planned NextGen Implementation by 2025 and within Earlier Cost Estimates

			FAA Plans to Implement Most NextGen Concepts by 2025, but Has Deferred Some Activities Until after 2030

According to FAA officials, current segments of NextGen programs are  generally on schedule, and FAA documents indicate that FAA plans to  implement the concepts that will complete the transformation of the NAS  to a NextGen system by 2025. The Current Cost Estimate for NextGen is Within Earlier Estimates, But NextGen Has Changed Over Time

FAA’s current total cost estimate for implementing NextGen through 2030  is within the JPDO’s 2007 estimates. FAA also estimated $15.1 billion in  costs for the aviation industry—also within the range of the 2007  estimate. FAA Faces Various Challenges to Implementing NextGen

FAA faces several remaining challenges as it continues to implement  NextGen, such as uncertainties regarding future funding, leadership  stability, aircraft equipage, and cybersecurity issues. FAA is taking some  actions to address these challenges by, for example, prioritizing and  segmenting NextGen improvements into smaller pieces that each require  less funding. While it is not possible to eliminate all uncertainties, FAA is  adopting Enterprise Risk Management (ERM) as a tool to help it  anticipate and manage risks across NextGen programs, and plans to use  ERM to mitigate future risks. FAA is Taking Steps to Address Challenges to NextGen Implementation

			Uncertain Funding

Most of the aviation stakeholders we interviewed (22 of 34) told us that  uncertain funding has been a challenge and has affected FAA’s efforts to  implement NextGen. This proposal could affect the implementation of NextGen. Appendix I: Objectives, Scope, and Methodology

Our objective was to assess the status of the Federal Aviation  Administration’s (FAA) efforts to implement the Next Generation Air  Transportation System (NextGen). For our review, we addressed (1) how  FAA has implemented NextGen and addressed implementation  challenges; and (2) the challenges, if any, that remain for implementing  NextGen, and FAA’s actions to mitigate these challenges. Additionally, to  determine actions FAA is taking to address risks to NextGen, we  reviewed FAA’s risk management documents and interviewed FAA’s NAS  Systems Engineering Services Office, an organization within the Office of  NextGen responsible for designing and maintaining the FAA’s NAS  Enterprise Architecture and providing systems engineering related to  NextGen, which has established a process to manage risks to NextGen. We  further developed the list of stakeholders by identifying industry  stakeholders that have made NextGen-related recommendations to FAA,  conducting a literature review of NextGen issues.
Why GAO Did This Study

FAA is leading the implementation of NextGen, which is designed to transition the nation's ground-based air traffic control system to one that uses satellite navigation, automated position reporting, and digital communications. Planning for NextGen began in 2003 and in 2007 the effort was estimated to cost between $29 and $42 billion by 2025. NextGen is intended to increase air transportation system capacity, enhance airspace safety, reduce delays, save fuel, and reduce adverse environmental effects from aviation.
Given the cost, complexity, and length of the project, GAO was asked to review FAA's NextGen implementation efforts. This report examines: 1) how FAA has implemented NextGen and addressed implementation challenges; and 2) the challenges, if any, that remain for implementing NextGen, and FAA's actions to mitigate those challenges.
GAO reviewed FAA documents, advisory group reports, and NextGen-related recommendations made to FAA by GAO and others. GAO interviewed a non-generalizable sample of 34 U.S. aviation industry stakeholders, including airlines, airports, aviation experts and research organizations, among others, to obtain their views on NextGen challenges and FAA's efforts to address them. Stakeholders were selected based on GAO's knowledge of the aviation industry and includes those that have made NextGen-related recommendations to FAA, among other things. GAO also interviewed FAA officials regarding NextGen implementation and stakeholders' views.

What GAO Found

The Federal Aviation Administration (FAA) is implementing the Next Generation Air Transportation System (NextGen) incrementally and has taken actions to address challenges to implementation. NextGen has enhanced surface traffic operations at 39 of the 40 busiest airports in the United States by providing electronic communications to clear planes for departure, technology that can expedite clearances and reduce errors. FAA has taken steps to address challenges such as limited stakeholder inclusion that affected early implementation of NextGen. For example, FAA established groups of industry stakeholders and government officials, who worked together to develop implementation priorities. By 2025, FAA plans to deploy improvements in all NextGen areas—communications, navigation, surveillance, automation, and weather. While specific NextGen initiatives and programs have changed over time, FAA's 2016 cost estimates for implementing NextGen through 2030 for 1) FAA and 2) industry—$20.6 and $15.1 billion, respectively—are both within range of 2007 cost estimates.
FAA's challenges as it continues to implement NextGen include uncertainties regarding future funding; whether aircraft owners equip their aircraft to use NextGen improvements; potential air traffic control restructuring; FAA's leadership stability; and cybersecurity issues. FAA is taking actions to address challenges within its control by, for example, prioritizing NextGen improvements and segmenting them into smaller pieces that each require less funding. While it is not possible to eliminate all uncertainties, FAA has adopted an enterprise risk management approach to help it identify and mitigate current and future risks that could affect NextGen implementation. Moreover, FAA has implemented most of GAO's related recommendations.