Scott, if I remember properly the Secretary of Transportation at the time, Drew Lewis, was aided by and then became one Andrew Card,the current Bush Junior Chief of Staff. FAA Administrator was J Lynn Helms and his API -1 also supported this stuff.
So you didn't have to be a genius to predict the privatization thing before the election.
As far as whether private or semi private is better BEXIL is on the right track. They buy low, highly leveraged and would sell high if they could, but I don't think anyone ever has (think about it...no market liquidity). So how to make money other than on the front end through the magic of sweatheart financing and bags of gold that seem to disappear, though somebody is on the hook to pay it back.
How about provide the service for less cost, cus' you aren't going to be able to change the navigation fees and such very much or very frequently. The cost is composed of labor and capital. labor cost changes help or hurt you immediately, capital can take a little longer to help (years) but starts costing as soon as you pay out. Or creatively use the capital available to you. For example, with property going the way it is is West Drayton more valuable to an industrial estate developer than as an ATC facility?
The other factor is liability. Can't imagine anyone wanting to provide ATC services (or CNS for that matter) and still having liability for anything that happens. Bet there is an indemnification clause buried someplace in all the privatization schemes that says the government will cover it.
In the US case all the money spent for capital improvements comes from the Airport and Airways Development Trust Fund that is funded through taxes on tickets, fuel, spares, freight and stuff. But is still must all be authorized and approrpiated by Congress and this year (FY2003 from 1 October 2002 to 30 September 2003) no appropriation has been made yet. And of course this money is under the control of Congress where all politics is local and all manner of interesting things get directed. And in spite of what you might be told there really is no cash in the trust fund because it all got spent as it was taken in.
It is possible that privatization on the order of what you are fighting could occur, but not without an act of Congress and it will be tough to get an evenly divided legislative branch to agree on anything.
Privatization is happening right under your nose and has been for years. The FAA supply system is essentially privatized, the data processing is all contracted out, all the facilities maintenance, lots of the second level engineering labor hours are expended by CSC, LM and others and if that isn't privatization I don't know what is. When will ER get the contract to run the Academy?
edited for spelling
Last edited by Iron City; 12th December 2002 at 13:30.