DOT  concurred with these recommendations, but as of August 2014, had not  yet implemented them. Industry Stakeholders Were Generally Positive Regarding the Performance of the Current ATC System but Cited Challenges to Transitioning to a Modernized System

		Stakeholders Said that the United States’ Current ATC System is Efficient, whereas NextGen Has Experienced Difficulties

Stakeholders’ views on FAA’s capability to operate an efficient ATC  system generally align with the two international analyses described  previously. Four stakeholders did not rate FAA on this issue. (See table 1 for the stakeholders’ ratings.) Stakeholders Identified Challenges Related to Overcoming NextGen Implementation Difficulties

Almost all (75) of the 76 stakeholders identified challenges that they  stated FAA faces in improving ATC operations and overcoming difficulties  in implementing NextGen. Mitigating the Effects of an Uncertain Fiscal Environment

Both the aviation stakeholders and FAA officials we interviewed regard  budget uncertainty as a challenge for FAA. We have also reported on FAA’s workforce training and staffing issues in  the past. Industry Stakeholders Suggested Changes That Could Improve ATC System Performance and Modernization and Identified Issues to Be Considered If ATC Operations Were Separated from FAA

		Stakeholders Suggested Changes to Improve Performance of ATC Operations and Modernization of the ATC

Overall, while stakeholders generally thought the current ATC system  was operating at least moderately efficiently under FAA’s leadership,  when asked what potential changes, if any, to FAA could improve the  performance of ATC operations and NextGen implementation, 64 of the  76 stakeholders we interviewed suggested changes. The change suggested by the most  stakeholders (36 of the 64 stakeholders who suggested a change) was to  modify how FAA’s ATC operations and NextGen programs are funded. Improve Coordination with Industry Stakeholders. While Most Stakeholders Agreed That Separating ATC Operations from FAA Was an Option to Consider, They Identified Several Issues That Would Need to be Taken into Account

In light of the ongoing discussion within the aviation industry on new  approaches for operating and modernizing the ATC system, we also  asked stakeholders about changing the provision of ATC services to  improve ATC efficiency and NextGen implementation. Congressional involvement: Twenty-nine of these 65 stakeholders  suggested that the extent of Congress’s role in overseeing a separate  ATC system must be clarified. Agency Comments

We provided DOT with a draft of this report for its review and comment. DOT provided technical comments, which we incorporated as  appropriate. This report examines stakeholder perspectives on: (1) the  performance of the current ATC system and its modernization through the  NextGen initiative, and any challenges the Federal Aviation  Administration (FAA) may face in managing these activities; and (2)  potential changes, if any, that could improve the performance of the ATC  system, including FAA’s modernization initiative. To obtain aviation stakeholders’ perspectives on these issues, we  interviewed a non-probability sample of 76 aviation stakeholders. We used a semi-structured interview format  with both closed- and open-ended questions to obtain aviation  stakeholder perspectives on the efficiency of the current ATC,  implementation of NextGen, and changes, if any, that could improve the  operation of the ATC and implementation of NextGen. GAO classified  respondents’ answers as “Maybe” for those who answered that this was  an option, but generally said either it was not a good idea, it was not  feasible in the United States, or that they had very strong reservations  about such a change. For the three industry categories  with fewer than four respondents—other federal government agencies,  passenger and safety groups, and research and development  organizations—we combined these into one category and refer to them in  table 2 as Other stakeholders. Appendix IV: List of Challenges FAA Faces in Improving the Efficiency of the Air Traffic Control (ATC) System and Implementing NextGen, as Raised by the 76 Aviation Industry Stakeholders GAO Interviewed

Description and examples of challenge cited by stakeholders  Due to the expense and uncertainty over FAA’s ability to meet  timelines for deploying NextGen technologies users have been  reluctant to equip their aircraft   Budget uncertainty makes it difficult for FAA to continue operation of  an efficient ATC system and/or implement NextGen  FAA does not match workforce skills with needs for hiring and  staffing, provides insufficient training, and has insufficient planning  for upcoming retirements  FAA’s development and implementation of PBN-related procedures  is not working well or is moving too slowly. FAA needs to improve human capital activities including updating the air traffic  controller handbook, improving the training air traffic controllers receive on new  technologies, and streamlining the hiring process. Next Generation Air Transportation System: FAA Has Made Some  Progress in Implementation, but Delays Threaten to Impact Costs and  Benefits.
Why GAO Did This Study

Over the past two decades, U.S. aviation stakeholders have debated whether FAA should be the entity in the United States that operates and modernizes the ATC system. During this period, GAO reported on challenges FAA has faced in operating and modernizing the ATC system. FAA reorganized several times in attempts to improve its performance and implement an initiative to modernize the ATC system, known as NextGen. Recent budgetary pressures have rekindled industry debate about FAA's efficiency in operating and modernizing the ATC system.
GAO was asked to gather U.S. aviation industry stakeholder views on the operation and modernization of the current ATC system. This report provides perspectives from a wide range of stakeholders on
(1) the performance of the ATC system and the NextGen modernization initiative and any challenges FAA may face in managing these activities and
(2) potential changes that could improve the performance of the ATC system, including the NextGen modernization initiative.
Based on GAO's knowledge and recommendations from interviewees, GAO interviewed a non-probability, non-generalizable sample of 76 U.S. aviation industry stakeholders—including airlines, airports, labor unions, manufacturers, and general aviation—using a semi-structured format with closed and open-ended questions. GAO also discussed the perspectives with current FAA officials. The Department of Transportation provided technical comments on a draft of this product.

What GAO Found

The 76 aviation industry stakeholders with whom GAO spoke were generally positive regarding the Federal Aviation Administration's (FAA) operation of the current air traffic control (ATC) system but identified challenges about transitioning to the Next Generation Air Traffic Control System (NextGen). Specifically, the majority of stakeholders rated FAA as moderately to very capable of operating an efficient ATC system, but the majority also rated FAA as only marginally to moderately capable of implementing NextGen, FAA's initiative to modernize the system. Almost all (75) of the stakeholders identified challenges that they believe FAA faces, particularly in implementing the NextGen initiatives. These challenges included difficulty in (1) convincing reluctant aircraft owners to invest in the aircraft technology necessary to benefit from NextGen (46 stakeholders) and (2) mitigating the effects of an uncertain fiscal environment (43 stakeholders). FAA officials acknowledged and generally agreed with these challenges.
Sixty four stakeholders suggested a range of changes they believe could improve the efficiency of ATC operations and NextGen's implementation. The change stakeholders suggested most often was to modify how FAA's ATC operations and NextGen programs are funded, including the need to ensure that FAA has a predictable and long-term funding source. Other suggested changes were to improve human capital activities, such as air traffic controllers' training, and improve coordination with industry stakeholders. GAO has reported on these issues in the past, and in some cases, made recommendations, with which FAA concurred but has not yet implemented. GAO also asked stakeholders whether separating ATC services from FAA, such as the privatization of the ATC service provider, was an option; 27 of the stakeholders believed it was an option; another 26 believed it was an option, but had significant reservations about such a change. Support for this option was mixed among categories of stakeholders (see table below). Stakeholders identified several issues that would need to be taken into account before making any changes to the provision of ATC services, including lessons learned from other countries, funding sources for such a system, and the extent of Congress's role in overseeing a separate ATC system.
a Maybe represents stakeholders who qualified their “Yes” responses with significant reservations.
b Included in this other category are three industry categories with fewer than four stakeholders—Research & Development Organizations, Other Federal Agencies, and Passenger and Safety Groups.