Air Traffic Management Concept Baseline Definition - The Boeing ...

aviation. it was agreed that ICAO’s existing policies on seeking exemption,
reduction and elimination of taxes on international air transport be continued. [Ref.
4, page 51] (S), (E)
Aero-Political Pressures: ...the multilateral/bilateral traffic rights debate,
especially where ‘fifth freedom’ is concerned...seems most likely to dominate aeropolitical
affairs...it is pointed out that where the U.S. is involved, many countries in
the region (Asia-Pacific) feel they have had an unfair deal ...described as
‘inequitable and antiquated bilaterals’, which has led to ‘damaging disputes’ with
such countries as Australia, Japan and Thailand, disrupting trade and travel.
Singapore feels that its own liberal attitude-‘Singapore’s skies are open to all U.S.
carriers’-is not fully reciprocated by the Americans....it is felt that the U.S. now
enjoys an unacceptable level of ‘fifth-freedom traffic’ which accounts for some
40% of the total air traffic in the Asia-Pacific region. [Ref. 4, page 79-80] (S),
(E)
Issue # 4: FAA Funding Reform
• Although the FAA’s budget grew significantly in the 1980’s, the years of growth in FAA
funding appear unlikely to continue...the FAA’s budget has been cut by $600 million over
the last few years. The FAA also has substantially reduced the number of employees and
eliminated many technology programs...funding for FAA is expected to continue to
decline in the foreseeable future because of spending reductions in transportation
programs proposed in the recent balanced budget resolution...because of efforts to balance
the federal budget, future funding will fall far short of what the FAA will need to provide
even the current level of services, and drastic cuts in services will need to be made if new
revenue is not found. The administration...projects an aggregate $12 billion shortfall in
FAA funding over the time period from fiscal year 1997 to fiscal year 2002. This projected
shortfall represents the difference between FAA’s stated need of $59 billion during that
period and an estimated budget cap of $47 billion...the year-to-year appropriations process
makes it difficult for the FAA to operate under a long-term capital investment plan. This
leads to reactive, near-term investment decisions by the FAA based on an artificially
imposed federal budget process, rather than on the basis of need or sound business
decisions. [Ref. 7, page 9] (O), (E)
Issue # 5: Environmental Considerations
• ...the impact of world air transport on the environment has been far less severe than
other modes of transportation in energy consumption, emissions, global warming, land
use, and noise. However, tougher standards are being proposed. IATA has argued...that
such new requirements would affect the development of new aircraft, which are currently
in their earliest conceptual stages, already appear to offer the prospect of substantial
environmental benefits in terms of fuel and emissions efficiency, but if tougher new
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