Categorized Under: Aviation, Economic + Financial Analysis, Strategy, Policy Analysis, + Regulatory Development, Transportation
ICF International was tasked by the Federal Aviation Administration (FAA) to develop a high-level study that evaluated public-private partnership alternatives to improve the business case for airlines’ investment in NextGen avionics. The FAA is preparing for future air traffic control needs through NextGen, a program that represents the evolution from a radar and voice communication-based air traffic control system to a data link and satellite-based system of air traffic management.
Recognizing that a significant portion of airline fleets must be appropriately equipped to take advantage of NextGen improvements, FAA asked ICF to examine public-private partnership financing alternatives that would incentivize air carriers to equip with NextGen avionics. Alternatives evaluated included grants, loans, loan guarantees, and tax rebates to avionics manufacturers.
NextGen will require investment by government and the private sector to successfully deliver the desired National Airspace System (NAS) performance improvements through upgrades in in ground- and satellite-based air traffic control equipment as well as aircraft avionics.
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