Asian Business Aviation Conference & Exhibition

Thank you very much for the introduction.  I appreciate the opportunity to speak with you today.  It is a pleasure to be here in Shanghai – it is a fascinating city. 

The link between Asia and the United States continues to grow stronger by the day, and this is largely thanks to aviation.  Our forecast, in fact, shows that air travel between Asia and the United States will continue its robust growth over the next decade.  And, as Asian economies expand, we’ll see this increase in air travel and linkages between our aviation sectors.  Given this strong expansion, an open dialogue is more important than ever. 

In addition to creating safe, efficient, and reliable commercial air links between our countries, the United States also wants China to benefit from expanded general and business aviation sectors.  In the United States, we have a fleet of about 220,000 general aviation aircraft, two thirds of which are for "personal use".

This group forms the foundation of our aviation system.  It supplies pilots and mechanics, it supports and maintains infrastructure, and it embodies the enthusiasm and passion that sustains the industry.

While China's general aviation industry remains relatively young, it is poised for tremendous growth.  We look forward to more policies being implemented that will help the industry safely grow to its full potential.

As our ties grow, and as the world becomes more interconnected, we must ensure a strong dialogue and partnership between government and the aviation industry if we are to deliver the economic and social benefits to our citizens on either side of the Pacific.  Neither can deliver the full benefits that aviation offers by operating alone; rather, there must be an effective partnership and complimentary roles.  General and business aviation is a perfect example of where this dialogue must take place.

To steer the growth and changes in aviation, I recently rolled out my vision for the FAA for the next several years.  Safety and global leadership are two of the main components of my vision.  We have to be engaged internationally.  In the United States, we want global aviation to be safer, more efficient and environmentally friendly.  We want to work with other countries to help set the standards for safety and technology around the world.   

Given the increase in air traffic around the globe, we need to ensure that all of our efforts are well-coordinated across borders.  We need to foster harmonized standards and an open, consultative approach to facilitate the safety of air travel across the globe.  No one country or region can do it alone – we must work together to improve safety and efficiency, and to protect the environment. 

We’ve seen rapid changes in aviation over the last several decades.  Safety has made great improvements.  New aircraft are more cost effective and more energy efficient.  The latest technologies are transforming the way we manage air traffic.  And, we now enjoy expanded aviation networks across the globe that link us to one another, and to the far reaches of the world.

Despite these great advances, we must not lose sight of the basic foundation, which is safety.  It is our main priority at the FAA, as I know it is elsewhere.  We all face the challenge of how to accommodate growth, while always enhancing safety.  But, we need to recognize that these are not two different goals.  Ultimately, effective safety is just plain good business. 

And, this extends to general and business aviation, as well.  As general and business aviation continues to grow, and aircraft become more sophisticated, this is crucial.  Just two weeks ago, the FAA announced the start of a year-long general aviation project aimed at safety data-sharing.  We are demonstrating the capabilities of the Aviation Safety Information Analysis and Sharing program for the general aviation community.  Along with industry, we are working through the General Aviation Joint Steering Committee to use data to identify safety risks and emerging trends.  It is a proactive way to measure and analyze safety.  We will use this information to help prevent accidents in the future, rather than waiting for the next accident to happen and then responding and determining its cause.

This proactive approach is also part of the strategic initiatives for the FAA.  To maintain and improve our safety record, we want to use safety data before accidents and incidents occur. 

We are also addressing the human factors area of aviation, as well.  Fatigue is an important safety issue and we addressed this through new flight and duty time limitations and rest requirements for commercial pilots.  This rule became effective on January 14 of this year, and it revised pilot flight and duty regulations.  It is one of the biggest shifts in pilot requirements in the last 20 years.  It addresses duty time and rest issues that directly affect pilots of U.S. commercial operators.

In November 2013, we also issued a rule noting that carriers must implement training programs within five years to train pilots to recognize, avoid and recover from stalls.  This is an area where we cannot lose focus.  Manual handling skills are still important in today’s automated environment.

Additionally, we have published advisory circulars to address fitness for duty, fatigue awareness, flight crew rest facilities, and fatigue risk management.  These circulars will deal with key issues that can have a direct impact on safety.  These improvements will help us to maintain and advance safety as aviation continues to expand and grow. 

The challenge is to keep the system safe going forward, especially as our airspace grows and utilization changes.  Our risk-based initiative does just that – it seeks to gather and review data before an accident or incident occurs.  It also creates a program that is more transparent to system users. 

As our system continues to evolve, we are also focusing on the introduction of new users into the National Airspace System.  Unmanned Aircraft Systems and commercial space operators offer new opportunities for us.  Our primary focus is to introduce these users safely into our airspace. 

We must ensure that unmanned systems are integrated in a measured, systematic manner.  These aircraft are distinctly different from manned aircraft.  They offer great benefits to many, but we must ensure that we first have enough data to effectively integrate them.      

Space transportation is another area with great possibilities.  As this business grows, we face important decisions.  One of our main tasks is to accommodate the increased number of launches.  Usable airspace is a limited resource, and safety considerations require careful coordination of aviation and space activity. 

Influencing all of our changes in aviation is modernization.  Back in the U.S., for example, we are transforming the way we manage air traffic through NextGen, the Next Generation Air Transportation system.  We are evolving from ground-based radar to a satellite-based system, and one of the key goals of my agency is to continue NextGen’s implementation.  

NextGen is moving air traffic more efficiently, while reducing flight times and reducing emissions.  This has a direct impact on both the safety and environmental footprint of flight, and industry is actively involved in this program.  There are many NextGen benefits for all aviation. 

In today’s world, our growth and upgrades must be done in the context of responsible environmental policies.  We owe it to one another, and to future generations, to ensure that changes are done prudently, while minimizing the impact to our environmental footprint.  We need to continue to research and develop alternative fuels.  The way of the future is to invest in equipment and aircraft that create more efficient routes and fewer emissions.  We strongly support the work ongoing at ICAO to find ways to address international aviation’s greenhouse gas emissions–including a global market-based measure.  We are encouraged by the good participation across the world–including China–in this effort to find practical, cost-effective solutions.

As you can see, we have much to be proud of in aviation.  We have come a long way in just decades.  And, new changes will continue to transform our industry.  We should embrace these changes, while remembering our fundamental safety mission.  

Thank you, again, for your kind invitation–it is a pleasure to be with you today.  I appreciate the opportunity to speak with you, and I look forward to our continued collaboration.  Thank you.

Steady and Reliable

Remarks As Prepared for Delivery

Good morning.  Thank you, Todd, for the introduction.  It is a pleasure to be here, and I would like to express my gratitude to you and AAAE for hosting this conference.  The forecast for aviation looks good, which, given the vibrancy of this industry, is not surprising.  We anticipate steady growth and a healthy international market.  That is very good news for all of us.  The impact of aviation literally touches every aspect of our lives.  It is indeed the tie that binds our national economy. 

The Forecast points to a very busy future.  Managing the National Airspace System is becoming increasingly complex, and not just because of the activity that we see in the system.  While we’re not facing the capacity and delay challenges that burdened the system years ago, we are facing a fundamental change in the complexity of the system overall which includes the integration of new users in the system—commercial space vehicles and unmanned aircraft systems. 

Concerning the Forecast itself, as the economy recovers from the recession, aviation grows as well.  Air carriers are maintaining their profitability, from a combination of strong yield and fees. They have learned new ways of managing the ever-changing mix of passengers and destinations, and we see that load factors continue at record highs, contributing to both profitability and congestion. 

Keep in mind that aviation is more than a 5 percent chunk of America’s GDP.  It’s a 1.3 trillion dollar industry with 10 million jobs.  That’s an impact that makes this business a driving force, an economic engine with a lot of horsepower.  In a lot of ways, America’s bottom line and aviation’s bottom line are inextricably linked.  We don’t often stop to think about this, but it’s true:  There are very few products that haven’t been touched at some point by an airplane on their journey to our homes and our businesses.  That’s a broad swath, and with that as context, this forecast is a very clear mandate for the strategic actions we’re taking to shape aviation over the coming decades. 

We anticipate steady growth in passengers and operations.  We expect passengers to grow at an average rate of just over 2 percent, with even higher growth rates in international travel and nearly 4 percent for enplanements. 

The international market is indeed a bright spot as growth in passengers for all world regions is strong, with the Latin region growing fastest and the Pacific region just behind. 

Today, the number of international passengers on U.S. airlines is 50 percent greater than in 2000, and more than 80 percent higher than it was 20 years ago. The advent of faster, more efficient jets is literally changing our ideas about what a “long flight” is.  Lindbergh crossed the Atlantic in 34 hours.  Nowadays, the flying public doesn’t think twice about an early morning flight out of Paris that gets them to Washington, D.C. for lunch.

Our domestic airports … especially the busiest ones … are on an upward trend.  At our top 30 airports we see passenger numbers growing 2 percent a year over the forecast period.  Take a look at the names that are popping to the top of the list:  Newark, Washington Dulles, Orlando, New York’s Kennedy Airport and Las Vegas.  We’re seeing new faces at the table when we’re talking about the hot spots.  Time was when that was a discussion about New York, Chicago and Atlanta.  As the forecast shows, the rest of the system is growing as well.

In thinking about forecasts for aviation, it’s important to remember we are not only talking about the Commercial National Airspace System.  Our forecast shows why.  GA includes everything from two-seat trainers to intercontinental biz jets.  In the U.S. alone, GA racks up 24 million flight hours … and much of those are for businesses that deliver employees and services to communities across our country. 

General Aviation is a proving ground.  It’s the place where our commercial pilots get valuable training.  All of that is to say that this isn’t just a commercial forecast, it’s an aerospace forecast, and it would be unwise to overlook the role GA plays in forming the backbone of aviation and aviation safety here in the U.S. and abroad.

The forecast tells us the GA is alive and well, with more than 200,000 active aircraft in the U.S.  While pistons dominate, there is a decided upward tick in the number of turbine aircraft.  That’s confirmation that investments we’re making in technology are the right thing at the right time. 

Stepping back just a bit from the numbers … system safety continues to be strong.  That’s a tribute not just to how well we maintain the infrastructure, but it shows quite clearly that the players … all the players … are bringing their A game to work.  Pilots, mechanics, flight attendants, dispatchers, technicians, engineers and controllers … every person who touches the airplane has a direct hand in the safety of the system.

Our goal is to continue to proactively become smarter about safety and recognize and mitigate hazards before they become a problem.

What the forecast shows is a growing industry.  What it doesn’t show yet is the growing complexity in the system and the need to accommodate new entrants.  There was a time when that phrase – new entrant – referred to an airline.  But in this context, we need to think directly about the advent of commercial space travel and the increasing use of unmanned aircraft systems.  We’re taking steps to establish processes and procedures to integrate space traffic into the system.  As the headlines have been indicating lately, there’s also a need to integrate unmanned aircraft into the national airspace system.   Frankly, these are a new breed of “new entrants,” and they bring a kind of complexity to the system that we’ve never faced before.  Integrating them into the system is a challenge that we’ll be facing now and into the future, but one that I'm confident we'll be able to meet. 

We’ve developed a set of strategic initiatives that will lay a foundation for the aerospace system of the future, today.  We stand at a unique point in time. The industry is changing.  In addition to new users we face a much more constrained and unpredictable fiscal environment.  And new technologies that bring benefits to the system are rapidly evolving.  I believe that this confluence of events puts us at a unique point in time where the decisions we make today will shape aviation for a very long time.      

We’ve adopted four strategic initiatives … four goals that were crafted with our stakeholders in mind.  And we’ll be looking to our stakeholders as we move forward with refining and implementing them. 

As always, safety needs to come first, and we need to make aviation even safer by being smarter about how we do safety.  To do this, we must focus on risk-based decision making.  When you’re faced with a system in which commercial fatalities are the rarest of the rare events, moving forward with safety management systems is the right thing to do.  We need to rely on safety data from the people who work in the system … the pilots and flight crews, the controllers and technicians, the mechanics, the manufacturers.  Instead of waiting for accidents, we’re instead studying data … looking for emerging trends … identifying the hazards before they become an accident. 

We’re not tip-toeing into this.  We’re pushing to decrease the safety risk, decrease the commercial fatal accident rate, and to put a priority on our resources based on where we see the risk.  Ultimately, I expect us to develop a new safety oversight model that prioritizes safety inspection efforts based on risk.  This model will provide us with the tools to consider stopping certain oversight activities for known system operators that have strong safety management systems and safety management cultures.  This is a bold step, but as we all know, it’s the right step.

Following on the heels of safety is our second strategic priority … the pledge to deliver benefits through technology and infrastructure.  We’re talking about completing NextGen’s foundational programs by 2015 … upgrading our en route airspace with ERAM, completing the instillation of ADS-B ground stations, and upgrading our terminal airspace with TAMR.  Those might be unfamiliar acronyms, but what those systems do is deliver improvements that directly address the requests from the people who use the system most.  Better software, smoother transitions, putting us in a better position to handle the forecast that we see. 

This priority also entails integrating new types of users into the our airspace—namely unmanned vehicles and commercial space operations…ensuring that these operations are safe while balancing their needs with the needs of current airspace users. 

It’s also time to take a look at the national airspace system so we can deliver more efficient, streamlined services.  Historically, the FAA has provided all services to all users in many different locations with little differentiation.  We are increasingly being asked to do more and do it with less.  It’s time for us to have a robust discussion about what services the FAA should be providing … and what we might be able to stop doing … or do differently through innovative business methods and new technologies.  This approach will require a shift in traditional thinking.  We’ll have to prioritize services, knowing that the agency cannot continue doing everything we’ve done in the past the same way. 

Internationally, you heard that the numbers are up.  Our third initiative – global leadership – recognizes the increasing globalization of the aviation industry.  Frankly, it’d be shortsighted of us not to spread the net of safety as far as we possibly can.  As the global marketplace becomes more and more of a reality, we need to take specific and direct steps to influence the standards for safety and technology throughout the world.  But just like our other initiatives, there is no blank check.  We have to be more strategic about how and where we spend.  You can’t establish yourself as a global leader from the back seat.  This initiative keeps us at the forefront.

None of these initiatives is possible without all of us in the industry supporting a first-class workforce, a workforce that’s pushing the envelope with creativity and innovation.  We know that the need to establish a workforce for the future is upon us.  At the FAA, we must ensure that the technical, functional and leadership skills are in place.  We are moving to make sure that happens.  We’re moving to make sure that we hire the right people and that we retain them. 

In closing, let me say with emphasis that aviation has never been stronger.  The numbers point to a brighter future.  We anticipate steady growth in passengers and steady growth in operations.  The international market is up.  General aviation is also trending upward.  Each of these confirm the need for us to focus on how we plan for that future.  As prospects go, steady and reliable is a very good place to be.  What you’ll hear today and tomorrow is that we are indeed headed in that very direction.  What we are looking at is a very bright future. 

Before the House Transportation & Infrastructure Committee Subcommittee on Aviation concerning Moving NextGen Forward: Leveraging the Assets of the William J. Hughes Technical Center

Good afternoon, Chairman LoBiondo and Ranking member Larsen.

Thank you for the opportunity to testify today.

Before we begin, I would like to take a moment on behalf of the agency, to say that our hearts go out to the families of those on Malaysian Air flight 370.  On Saturday, the FAA sent representatives as part of the NTSB investigative team, supporting the Malaysian government with the accident investigation.  The United States Government is in communication across agencies and with international officials to provide any additional assistance necessary.

Turning to the matter at hand—the Tech Center—I’m pleased to have the opportunity to highlight this facility’s vital role in deploying NextGen … and in integrating unmanned aircraft into our nation’s airspace.   

Let me start by noting that we are nearly complete with the foundation of NextGen.  This foundation includes a much-needed upgrade of the automation in our air traffic control facilities … and the building of ground stations to enable the transition from a radar-based to a satellite-based system.

• Right now, 18 of our 20 en route centers have started running ERAM to control traffic in high altitude airspace.  More than half are using it exclusively to control air traffic, instead of the legacy system from the 1960s.  All 20 en route centers are expected to be running ERAM exclusively by March of next year, which will allow us to pull down the legacy Host system.
• We’re also upgrading the computer system that runs the lower altitude airspace closer to airports.  This project – TAMR – requires switching out computer processors, screens and software in more than 150 TRACON facilities across the country.
• And throughout the United States, we have installed more than 95 percent of the ground stations for ADS-B … and we will complete the baseline installation this month.  With this technology, we’ll achieve more precise surveillance of aircraft, which will make the air traffic system safer and more efficient.
• In addition to this foundation, we continue to implement performance based navigation procedures.  PBN allows NextGen-equipped aircraft to fly on more direct paths across the country and in congested airspace.  These advanced navigation procedures are cutting flight time and reducing fuel burn and emissions. 

This is all good progress … but it’s just the beginning.  Completing NextGen’s foundation will enable new capabilities that will make aviation safer, more efficient, and more environmentally friendly. 

NextGen technologies are also making it possible to safely introduce unmanned aircraft into the airspace system.  Let me give you a few examples of the connection between NextGen and unmanned aircraft systems. 

In order for many unmanned aircraft to operate safely in shared airspace, we must develop technologies that enable them to “detect and avoid” other airborne vehicles.  The agency is researching and developing a collision avoidance system specifically designed for unmanned aircraft.  It’s a technology called ACAS-Xu.  The Tech Center will be aiding this effort by conducting flight testing.  

Also, ADS-B can help achieve collision avoidance through more precise surveillance – and separation – of both manned and unmanned aircraft in the same vicinity.        

Another NextGen technology that will support unmanned aircraft is NAS Voice System.  NVS modernizes the voice communication capabilities that we use for air traffic services.  It will enable controllers to communicate with the ground pilot of an unmanned vehicle … even if that pilot is located on the other side of the country. 

With its world-class laboratories and engineering expertise, the FAA’s Tech Center plays a central role both in the deployment of NextGen … and in the safe introduction of unmanned aircraft.  As you mentioned, this past December, we announced the selection of six test sites for unmanned aircraft across the country.  These test sites, which include state governments and public universities, will provide data to help us determine the safety certification and navigation requirements for unmanned systems.     

We expect that a significant portion of the test site data collection and analysis will take place at the Technical Center. 

Later this year, we’ll be conducting simulation modeling for the Department of Defense to assist them in standardizing procedures for unmanned aircraft across the various branches of the military.  The FAA is working with other government agencies including NASA and the Department of Homeland Security on unmanned aircraft projects.  By working with other agencies here at the Tech Center, we’re able to leverage each other’s expertise and resources, and minimize the duplication of efforts. 

Let me close by saying that NextGen is already delivering benefits across the country.  We’ve made great progress toward completing the foundation of NextGen … and we’re well positioned to reap more benefits in air traffic efficiency, reduced delays, fuel savings and environmental improvements.

The Tech Center is enabling us to realize these benefits … and enabling us to safely introduce unmanned aircraft.      

Mr. Chairman, this concludes my remarks. I would be happy to take any questions.

Before the House Committee on Transportation and Infrastructure Subcommittee on Aviation concerning NextGen Priorities Roundtable

Good morning, Chairman LoBiondo, Ranking member Larsen and members of the Subcommittee.  Thank you for convening this listening session to talk about NextGen and how we are working together with the NAC to deliver benefits to users.

One of my first initiatives after joining the FAA last summer as Chief NextGen Officer was to recommend a structured engagement with the NAC to ensure that our work is aligned with industry priorities.

A complex, long-term undertaking such as NextGen requires a constant dialogue with airspace users to ensure we are on track and delivering benefits. The NextGen Advisory Committee is one of our most effective resources in understanding the priorities of our stakeholders.  It represents a good cross section of airlines, trade associations, labor, airports, manufacturers, technical experts and our European counterparts.

The request to the NAC was sent July 12^th, and by September 20^th, the committee provided us detailed feedback on stakeholder priorities. It was thoughtful, excellent work, and it did two things: it validated that the industry values all the program components of NextGen, and it gave a clear prioritization of the benefits that NextGen brings.  

We thoroughly reviewed these recommendations with the NAC Subcommittee and we agreed that we need to concentrate on bringing NextGen benefits in key three areas: Performance Based Navigation; Surface Data Sharing; and Multiple Runway Operations. These three areas encompass the top priorities identified by the NAC and provide the greatest opportunity to deliver benefits in the short term without requiring additional equipage.

We briefed our preliminary findings in these three areas to the full NAC last week, and the NAC agrees that focus in these areas will address the top priorities as identified.  Our next step is to sit down again with the NAC Subcommittee in the coming weeks and develop actionable plans around this work.

We will develop a series of concrete initiatives as a result of these priorities – with targets and milestones – and that will be done with input and active participation of industry and our employees. Continued collaboration with both industry and our labor partners will remain a vital part of our approach.

That is a brief summary of our dialogue to date. I am happy to go into more detail and look forward to a fuller discussion today.

Thank you very much.

NextGen Advisory Committee Meeting (NAC)

Remarks as Prepared for Delivery

Introduction
It’s great to see all of you again. Thanks to our host Honeywell Aerospace.

A lot has happened since we last met – I have a feeling I will be saying that at each NAC meeting from now on!

I want to cover a few topics today:

• the budget situation;
• the NAC prioritization recommendations;
• an update on some major NextGen programs;
• Administrator Huerta announced his strategic initiatives for the FAA for the next four years;
• and my meeting with some of our European counterparts last month.

Budget
In October we had a 16-day government shutdown. This of course caused the suspension of many NextGen activities.  But beyond the actual 16 days of delay, we do not anticipate any knock-on delays to the NextGen programs.

Congress then passed a compromise spending bill in December that provides a framework that lends stability for the next two years. This compromise has still left us at historically low funding levels. We are in an extremely tight fiscal environment, though we anticipate we will have adequate funding to remain on track with NextGen and provide focus to the priorities identified by the NAC – as we will be discussing today.  But we are still in a situation where we need to find ways to operate more efficiently.

Two years from now, it will be time to reauthorize the FAA again. We are beginning to look at what changes we want to allow us to operate more efficiently. 

We rely upon Congress for a substantial portion of our budget and that is a fundamental challenge. With that reliance, we are subject to politics and gridlock, which is especially challenging when trying to run a complex endeavor like NextGen. Providing air traffic service is a fundamental and important job for our economy, and modernizing our system is a critical investment for our future. We can best do both with stable funding so that we can predictably plan and build our nation’s infrastructure.

NAC Prioritization
Since our last meeting we continue to engage with the NAC subcommittee on the NextGen priorities. I want to again thank everyone who worked on the recent NextGen prioritization task. I know it was very challenging, and a lot of work and thought went into that project in a very short time frame. Going through the entire NextGen Implementation Plan, and giving recommendations for what work we should prioritize is not easy, but it’s very useful. We want and need industry feedback. Coming from a career in the airline industry, I understand that we need to align our efforts to obtain the maximum benefit, so thank you again.

Today we’ll hear from Ed Bolton and Paul Fontaine with more details on the FAA’s response to this prioritization work. Also:

• Dennis Roberts will share our response on PBN priorities.
• Carl Burleson will share our response on categorical exclusions.
• And Nancy Kalinowski will share with you our fuel data sharing response and plans going forward.

Update on Major NextGen Programs
I am also pleased to report that we continue to make substantial progress on key NextGen foundational programs – including ERAM and ADS-B. As Bill has said in the past, we are reaching a tipping point with many NextGen programs, and we are starting to see the final stages of some key initiatives.

Right now, 18 of our 20 en route centers have started running ERAM. More than half are using it exclusively to control air traffic, instead of the legacy system of the 1960s. All 20 en route centers are expected to be running ERAM exclusively by March of 2015, which will allow us to pull down the legacy host system.

As for ADS-B, we have installed nearly 90 percent of the ground transceivers needed to track airplanes using satellite-based information. As you know, ADS-B will transmit aircraft location to controllers with a dramatically faster update than radar. It provides surveillance where radar cannot, such as in mountainous regions and over water. All of this enhances safety and saves operators time, fuel and money.  We’ll complete the nationwide deployment of the ground transceivers this year. 

Also, this year we plan to make some important investment decisions on the next stages of DataComm, SWIM and NAS Voice System. We are on track to validate the business case and make a final investment decision, which means that the FAA will plan to roll out the next phases of these technologies and use them in our everyday work.

For SWIM, we’re planning to go from sharing limited surface and weather data information to providing full flight data publication services. For NVS, we’re going from the demonstration phase to full production of dynamically reconfigurable voice services, with the new internet protocol voice system for air traffic. For DataComm, we’re going to the second phase, from tower departure clearances to using DataComm for en route services.

We have a lot to look forward to in 2014.

Strategic Initiatives
Yesterday, Administrator Huerta announced four strategic initiatives for his tenure. These are the areas where we can make the most impact and will focus our efforts in the next few years to shape the FAA and aviation for years to come. These are:

• Deliver benefits through technology and infrastructure
• Make aviation safer and smarter
• Enhance FAA’s global leadership
• Empower and innovate with FAA’s people

This first initiative – what we call the NAS initiative – is one that I am leading. It involves three areas of work.  First is delivering the benefits of NextGen.  This involves keeping NextGen on schedule and on budget, but also encompasses the delivery of benefits to users – the work that the NAC has been engaged in with us.

The NAS initiative also focuses on the integration of new users into the NAS – specifically UAS and Commercial Space flight.  Both of these growing technologies present technological and process challenges for us.

The NAS initiative also acknowledges that we remain in a constrained budget environment, so we’re taking a serious look at the services that the FAA provides. We will look at streamlining and becoming more efficient.

We need to match the services we provide and the facilities we maintain with the demand from our stakeholders—an effort that we are calling right-sizing the NAS.

Right now, there is a mismatch. The aviation industry as a whole is going to have to have a thoughtful conversation about what it makes sense for the FAA to continue doing, and what we might be able to stop doing, or do differently. 

We have traditionally provided a variety of services to our airspace users in addition to air traffic control. We are increasingly being asked to do more with less.

Our industry has many segments and interest areas. Each segment promotes the parts of the system that are most important to its constituency, of course. But what we have seen with the sequester, and what we have seen with the government shutdown, is that we need to have a comprehensive view of our priorities. And that conversation needs to involve all of us. We must come together to decide what kind of system we want and need. The NAS initiative is an important one and I look forward to working with all of you on this.   

That is a summary of the NAS initiative.

Our second initiative builds on safety management principles to proactively address emerging safety risk. We want to make smarter, system-level, risk-based decisions.  This initiative is being led by our Associate Administrator for Aviation Safety, Peggy Gilligan.

Third, it’s important for the FAA to play a leadership role globally. We want to improve safety, air traffic efficiency, and environmental sustainability across the globe. We’ll do this through shaping global standards and enhancing collaboration and harmonization. This initiative is being led by our Acting Assistant Administrator for Policy, International Affairs and Environment, Carl Burleson.

And finally, we need to prepare for the future by improving how we recruit and train our workforce. We need the leadership, technical, and functional skills to ensure the U.S. has the world’s safest and most productive aviation sector.  This initiative is being led by our Assistant Administrator for Human Resource Management, Carrolyn Bostick.

These are the areas where we feel we can make the greatest contributions in the next four years, and where we can best serve the public and improve our nation’s airspace.

Brussels
Finally, and speaking of the global leadership initiative, I’d like to say a little about meetings we had with our European counterparts last month. (January 21-24, 2014)

Ed Bolton and I met with our government counterparts and industry representatives in Brussels to get a sense of where we are in our cooperative efforts with SESAR, Europe’s modernization program.  We were pleased to see that many of our joint modernization programs are working well under the existing agreement between the FAA and Europe.  We also discussed areas where we can conduct further cooperative efforts, and we pledged to continue to engage at senior levels across the Atlantic.  Ed, Teri, and David Batchelor, SESAR’s representative based in Washington, will give a more detailed review of the trip later this morning. 

This concludes the FAA report. I’m happy to answer questions.

Before the House Committee on Transportation and Infrastructure Subcommittee on Aviation concerning FAA Modernization and Reform Act of 2012 – Two Years Later

Chairman LoBiondo, Ranking Member Larsen, Chairman Shuster and members of the Subcommittee, it’s a pleasure to be here to talk about what we have accomplished since the very important reauthorization of the FAA two years ago.

We are grateful that everyone came together to reauthorize the FAA and support the work we do in running the largest and safest aerospace system in the world.

We also appreciate the compromise spending bill that Congress passed in December. It provides a framework that lends stability for the next two years during what may still be an uncertain budget environment.

The reauthorization of the FAA was truly comprehensive in nature and contained more than 200 deliverables from the FAA. We have either completed, or are on track to complete, more than 80 percent of those requirements. I’d like to highlight a few areas where Congress gave us direction, and where we have made considerable progress.

First, we have strong leadership in place for NextGen. Last time I appeared before you we had just named Mike Whitaker as Deputy Administrator of the FAA and Chief NextGen officer, a role that was mandated by the reauthorization.  Now, General Ed Bolton has joined the FAA as Assistant Administrator for NextGen. He is a retired Air Force general with many years of experience as an engineer and manager of large, complex programs.

We want to be sure that the modernization of our nation’s airspace is creating benefits. As part of reauthorization, Congress asked us to track 12 metrics – things like arrival and departure rates; system capacity; and gate-to-gate travel times, to name a few. These metrics can help determine the impact our work is having on airlines and passengers. We are collecting these data and posting them every month on our public website.

And we are close to finalizing the software and hardware updates to our air traffic control system that will form the foundation of NextGen and will allow us to deliver those benefits.

One essential program is ERAM – the En Route Automation Modernization. This modern computer system will control aircraft at cruising altitudes. We are making great progress and right now, 18 of our 20 en route centers have started running ERAM. More than half are using it exclusively to control air traffic, instead of the legacy system of the 1960s. All these en route centers are expected to use the new system exclusively by March of 2015.

I’d like to turn to another mandate in the reauthorization – namely unmanned aircraft systems. This class of vehicle is truly a game changer. The FAA released two documents in November to set the stage:  A comprehensive plan to integrate unmanned aircraft into our nation’s airspace and a detailed roadmap for how to do it.  The roadmap addresses the policies, the regulations, the technologies, and procedures we will need to integrate unmanned aircraft on a routine basis. To accomplish this, we must change the way we do business. 

In December, we announced six test sites across the nation that will conduct essential research into the safe use of unmanned systems.

Safety is our priority. We need to address operational issues, such as ensuring that unmanned aircraft can detect and avoid other aircraft; and that unmanned systems operate safely if they lose the link to their pilot; and this is why developing additional research data from the test sites is so important.

Agencies across the government are coming together to address privacy concerns that may arise with the increasing use of unmanned aircraft. We recognize there has been a great deal of public concern about privacy. For the test sites, we have issued a privacy policy that requiresoperators to comply with all local, state and federal laws concerning privacy and civil liberties.

The FAA has successfully brought new technology into the aviation system for more than 50 years, and I have no doubt we will do the same with unmanned aircraft.

Finally, we’ve completed work on a range of other important reauthorization provisions. Last fall, we created the Center of Excellence for alternative jet fuels and the environment. This research will help developand deploy alternative jet fuels, which will provide supplemental supply and help to cushion petroleum’s price volatility. We’ve also completed reports on a number of safety related matters, such as staffing for safety critical positions. And wedelivered a report to Congress, as requested, reviewing the agency’s operations, and ensuring that we take every opportunity to operate as efficiently and effectively as possible. 

Two years ago, reauthorization gave our agency needed predictability and stability, as well as guidance on priorities. Next year, we will be considering FAA reauthorization in the context of a challenging fiscal backdrop, with increasing demands. I look forward to continuing to work with you on creating that vision as we work on the next reauthorization.

Thank you very much and I am happy to answer any questions.

Policy, Research and Operations

Thank you, George [Nield].  Good afternoon.  I am relatively new to the FAA – actually, anyone with less than 20 years is considered “new” at the FAA!  I have been here eight months now – but I am not new to aviation.  I spent over 20 years in the airline business before joining the FAA.

I have a lot of experience with aircraft that fly horizontally … and rarely venture above 38,000 feet.  I confess to not having had much experience in commercial space – and I rarely used terms such as suborbital or geosynchronous.  But I can say now that it is undoubtedly one of the most exciting and interesting areas of my work at the FAA. And one of the fastest growing.

There is a lot going on.  From a policy perspective – the President recently issued an important new policy concerning commercial space transportation.  From a research perspective – there is a lot of interesting research underway.  And first and foremost, operationally – there is a lot happening in the marketplace as we work to keep up with fast changing technologies and a dramatic increase in space launches.     

So this afternoon I would like to talk about these three aspects of commercial space – policy, research and operations – from the FAA’s perspective.

Operations
First, operations … and some context.  There were three commercial launches in the U.S. in 2012.  There were that many commercial launches just in the second week of January this year:

- SpaceX launched at the Kennedy Space Center …

- Orbital Sciences at Wallops Island, Virginia …

- and Scaled Composites conducted a suborbital flight test of SpaceShipTwo  at the Mojave Air and Space Port.

Space-X alone has nearly 50 launches on its manifest, over half of which are with commercial customers.  This represents a significant resurgence in American competitiveness in the international launch services market.

Commercial space tourism is just around the corner. This is a big new market that has been talked about for a while, and is now about to come to fruition.  It too will be fueled by private industry.  Space tourism will be possible because of recent advances in both composite structures and innovative propulsion systems.

Finally, the FAA’s Office of Commercial Space Transportation has more than two dozen ‘pre-application consultations” – new ideas that have been proposed, including proposals for new vehicles, new spaceports, safety approvals and requests for payload reviews. 

This is all very exciting but it presents challenges for the FAA – an agency whose operational focus has always been to regulate and operate a safe National Air Space (or NAS).  And the NAS is by its nature a horizontal system! 

How do you balance these competing business models and operating systems?  We have always focused on safe and efficient operations of this horizontal system: minimizing delays in the system. 

How do we balance that against the important economic benefits of the vertical operations of commercial space?  This is not an apples-to-oranges problem.  This is apples-to-rhubarb! And we are not always sure what to do with the rhubarb!

As you know, we currently approve commercial launches on a case-by-case basis.  But as the commercial space industry expands, we need to be able to regularly and consistently integrate this traffic into the national airspace system. In the horizontal system we use file-and-fly.  I am not sure we will get there very soon for commercial launches, but we have to make the process more routine. 

We have to equitably and efficiently balance the needs of commercial space users with traditional airspace users, such as commercial and general aviation. The FAA’s Air Traffic Organization and our Office of Commercial Space Transportation are working to establish the processes and procedures for this integration.  That’s Operations.

Research
In the new budget that just passed, Congress allocated one million dollars of research funds specifically to support and maintain the FAA Center of Excellence for Commercial Space Transportation.  This is a great demonstration of support and recognition of the importance of this emerging industry.

The Center’s most important research area is safety: the safety of space transportation, the safety of humans, and the safety of vehicles.  For example, there is research on the health of space flight candidates.  Traditional research has focused on the safety of adult astronauts, mostly young to mid-life, healthy individuals.  But as commercial space tourism may include children and older people, we’re supporting research focused on these demographic groups as well. 

As a secondary goal, we have a research area dedicated to the viability of this industry.  This area addresses questions about the industry’s structure, economics, law, governance and regulation. 

The Center includes nine universities, which combined, bring more than 50 government, industry and academic organizations together as research partners.

There is also significant research going on elsewhere in the government.  DARPA, the Defense department’s research agency, is developing a new program called the Experimental Spaceplane, or XS-1.  DARPA hopes to demonstrate the viability of a low-cost launch vehicle for taking small payloads into low earth orbit.  This would be a reusable vehicle that could be manned or unmanned and serve both government and commercial markets.  Like other DARPA research, this work could lead to later development of similar commercial capabilities that could be operated by private companies. 

And there is constant research and innovation taking place in the private sector, in addition to the two dozen pre-applications consultations that are underway between FAA and industry.  Last year, we granted an experimental permit to Scaled Composites, authorizing it to conduct rocket-powered flights of SpaceShipTwo to suborbital altitudes. So far, the company has completed three tests in Mojave, California.

Eventually, the system will be operated by Virgin Galactic from Spaceport America in New Mexico.  Two other companies, XCOR and Blue Origin, are also making progress on developing new suborbital vehicles to carry tourists. 

Last month, NASA received proposals from industry for the next phase of their Commercial Crew program.  The goal of this program is to develop vehicles to transport astronauts – in addition to cargo – to the space station by the end of 2017, an impressive time frame for this type of endeavor.  Again, an example of public-private partnership. These crew missions will be licensed by the FAA.

Which brings us to Policy
In November, the President signed a new “National Space Transportation Policy.”  The document, signed as a Presidential Policy Directive, provides comprehensive guidance to all federal departments and agencies on national priorities, and roles and responsibilities in space transportation.  The President’s policy is significant in a couple of key ways.  First and foremost, the policy recognizes the contribution that commercial space makes to the U.S. economy – in the ways I previously mentioned. The policy explicitly recognizes the importance of industry in the space industry.

Second, the new policy tasks government agencies to work together to support the industry.  This is a point worth emphasizing: the need for agencies to work together and with industry to support commercial space.  A great example of this cooperation is found at the Kennedy Space Center, a national landmark that is undergoing a transition as assets are transferred to the private sector.  I visited the Space Center last month and was struck by the degree to which it has changed. I toured Space Launch Complex 40 at Cape Canaveral, which had just been used to launch a Space X Falcon 9 rocket carrying a Thaicom 6 satellite the week before.

SpaceX completely repurposed the facility into a streamlined launch facility that can quickly be cycled for re-use.  But I also visited the Air Force launch control center, NASA facilities, and the FAA offices.  Collaboration between these government entities – and between these agencies and industry – is key to making the transition to the type of successful public-private partnerships envisioned in the President’s policy.

The new space policy also directs all departments and agencies to cultivate innovation and entrepreneurship through the use of nontraditional acquisition arrangements. This includes the use of fixed price acquisition instead of the traditional cost plus arrangement.  The goal here is to encourage the expansion of commercial space transportation beyond the role of government by using commercial style contracts.  The government assumes less of the risk of development of new technology, and private companies are incentivized to innovate and operate more efficiently … and potentially see greater profits.

In addition the policy facilitates the sharing of databases containing valuable lessons learned from human space flight. These data, held by NASA and the FAA, will be made available to support commercial development of space transportation.

The new policy also supports continuation of the current indemnification risk-sharing regime.  As part of the recent budget agreement, Congress extended the regime for three years.  Keeping this risk-sharing regime in place helps U.S. companies remain competitive with foreign launch providers that have similar support from their own governments.

The new policy also reinforces the Department of Transportation’s authority to address orbital space debris mitigation practices for commercial launches. 

And finally, the new policy advocates internationally for the adoption of U.S. government safety regulations to enhance global interoperability and safety of commercial space transportation activities. 

This is just a snap shot of the many things that are going on in commercial space.

The FAA is committed to supporting the new commercial space era in three key ways.  First, through safe integration in the airspace system.  Second, by supporting commercial space transportation research … and third, through the President’s new National Space Transportation Policy.  As we do that, we look forward to working with all of you, so we can all realize the great benefits of commercial space.   

Partnership for Production

Thank you,Steve (Csonka,Executive Director of CAAFI), for that introduction.  And good morning to everyone. I am delighted to be here today.

Anyone who works in aviation knows that how you deal with the cost of fuel and how you deal with conserving fuel is one of your central problems. At the FAA, we are lending strong support to developing the next generation of sustainable fuels, and to producing them on a mass scale.

Everyone here today is a pioneer of the second century of flight. And the decisions we make today will affect aviation for decades to come. We are transitioning to NextGen and to satellite-based navigation and surveillance. And we’re also embarking on the creation of a whole new jet fuel system that is sustainable and draws from a variety of sources. We are launching a new energy industry. 

Visionary thinking is what is needed. And also close collaboration across government and industry. I am encouraged that we will hear from a variety of leaders today. This includes CAAFI industry sponsors Airlines for America and the Aerospace Industries Association, as well as a representative from the airlines and leaders from the Departments of Energy, Agriculture and the Navy.

We all need to work together to create the framework for what will be a sea change in how we fuel aviation. This year’s meeting is focused on commercializing alternative fuels. It is a very real challenge that requires collaboration. We need to scale up for the challenge of producing these amazing new sustainable fuels.

At the turn of the 20th century, mom and pop stores started selling gasoline to owners of new “horse-less carriages” that rolled off Henry Ford’s assembly line.  As the number of automobiles grew, the technology for producing and distributing gasoline grew. The petroleum industry was not built over night. It took more than 100 years of investment. We are not going to replace petroleum overnight, so we need to be patient.

But there is no denying the future. And it takes courage to make big changes.  Winston Churchill switched the British Navy from coal to oil. It was a strategic decision. It was a forward-looking decision. It was controversial at the time for a country with large supplies of coal and no oil. But it was a bold step towards the future because oil was superior to coal for naval power.

We find ourselves at a similar point now. We have plenty of oil, but the times require us to think strategically and look for cleaner, more secure sources of energy to power our daily lives and commerce.  

We’re at an historic time where we can work together to make that happen in aviation.

Innovation has always been the hallmark of aviation. Each generation of aviators and engineers has moved the world of flight forward in ways that were not thought possible.

The work of CAAFI is indispensable in this effort. CAAFI has formulated a strong coalition, and it is thanks to this hard work on the part of many, that we are moving forward.

The FAA is committed to enabling development and use of alternative jet fuels.

These fuels have the potential to save the industry a great deal of money.

Fuel represents as much as 40 percent of an airline’s total expenses, on average.

Consider that last year U.S. airlines spent about $49 billion on jet fuel. That’s $32 billion more than in 2000 even though the airlines consumed almost three and a half billion gallons less.   

Even a decrease of 10 cents per gallon could mean an industry savings of $1.7 billion per year.

If we are successful, aviation will benefit because alternative jet fuels will provide supplemental supply and help to cushion petroleum’s price volatility.

Sustainable fuels are also greener, and are crucial to meeting the environmental goals that we have set for NextGen.

Airlines used about 17 billion gallons of jet fuel last year.  The FAA’s goal by 2018 is for U.S. aviation to use 1 billion gallons of alternative jet fuel per year. I would be the first to admit this is ambitious.  On the other hand, we’ve come a long way in the seven years from CAAFI’s first meeting.

We have proven that drop-in alternative jet fuels are technically feasible and we have a number of additional pathways that may be approved for use very soon. So the challenge we face now is to scale up production. And we need government and industry to continue to come together to make this happen.

We’re starting to see some very positive progress and many airlines are taking a lead.

In June, United Airlines announced a three-year deal with Seattle-based AltAir Fuels. United will buy alternative jet fuels to be delivered to Los Angeles International Airport. The deal involves retrofitting a petroleum refining facility. It was creative in that it shared the risk. This partnership will result in 15 million gallons of alternative jet fuel coming into the fuel supply very soon. The fuel will come from waste oils and will reduce air pollution around LAX. This is great news.

Also this year KLM Airlines conducted regular biofueled flights between John F. Kennedy Airport and Amsterdam’s Schipol. Key support for this effort came from the Port Authority of New York and New Jersey, JFK Airport and Delta Airlines.

And Alaska Airlines, United, Lufthansa, Finnair, Thomson, Interjet, Aeromexico and others around the world have conducted revenue flights with alternative jet fuels.

These flights are educating the public and furthering our understanding about how to integrate these fuels into the fuel supply. They represent the beginning of the industry reaping the benefits of these fuels.

Currently there are seven new alternative jet fuel types that are under evaluation for possible approval by the international standards association – the ASTM International. And a strength here is that these different fuel types can use a diversity of resources as feedstocks. They can use fats and oils, sugar, cellulose, solid waste, and even carbon monoxide and carbon dioxide waste gases from industry. This is exciting! This is hopeful!

The FAA supports performance and operability testing of alternative jet fuels in partnership with industry. We’re doing this through our Continuous Lower Energy Emissions and Noise program (or CLEEN). The testing develops data that advances evaluation of these fuels for approval by ASTM International.

In the past year about a half dozen alternative jet fuels have been tested with FAA support, including alcohol to jet fuels; sugar to synthetic kerosene; direct sugar to hydrocarbon; renewable oil to jet fuel; and jet fuel blended with renewable diesel. We anticipate a number of approvals to occur later this year.        

This kind of innovation is happening across the world and is really a global effort. The FAA is working with international partners to further our joint success. In the last couple of years we have signed a number of bilateral cooperative agreements—with Spain, Germany, Australia, and Brazil—to exchange best practices and coordinate our efforts.

Jet fuel initiatives are also underway in the Netherlands; Indonesia; China; and the United Arab Emirates. Some of these initiatives have government sponsors. Some are privately led. Some are public-private coordination efforts. And others are developing a supply chain to produce fuel.

Because of the diversity of conditions in different countries we don’t believe that there will be just one solution. Similarly there is a diversity of possible alternative jet fuel technologies, but they won’t work in all places.

So as we each address the challenges to making this happen, there is a tremendous opportunity to learn from, and support each other. And in the end, as a global industry, anywhere sustainable alternative jet fuels are produced is a benefit to global aviation—so the hope is we will all be successful.

Key to CAAFI’s success thus far has been an unprecedented level of partnership. Partnership between the public and private sectors, between academia and industry and between federal agencies.

Last year, the FAA took a prominent role alongside seven other federal agencies in an interagency working group to develop a national alternative jet fuel R&D strategy for the federal government. Many of you in this room are providing input to that group.

We are grateful for the tremendous efforts of our colleagues across the U.S. Federal government. Here are a few examples of the work that’s going on across government agencies.

·      The U.S. Departments of Agriculture, Energy and Defense are leading a $510 million effort to develop first-of-a-kind bio-refineries that will produce alternative diesel and jet fuel through the Defense Production Act.

·      The FAA is partnering with the Air Force and the Navy to test novel alternative jet fuels in  development.

·      NASA is conducting projects to measure the air quality and climate benefits of alternative fuels.

·      The National Science Foundation is supporting alternative fuel R&D, and Department of Energy is funding alternative jet fuel conversion projects in the testing stage.

·      The Department of Commerce supports standards development. And the U.S. Environmental Protection Agency is examining greenhouse gas benefits of these fuels and including them in Renewable Fuel Standard production incentives.

As I said, earlier, the next big challenge is enabling significant production of alternative jet fuels. And it looks like this will be lead at a state and regional level.

In April former Secretary of Transportation Ray LaHood and Agriculture Secretary Vilsack signed the Farm to Fly 2.0 agreement. Associations representing U.S. airlines, U.S. airports, aerospace manufacturers and business aviation also signed

Farm to Fly 2.0 represents a commitment by the agricultural and aerospace community to combine efforts to build a supply chain to meet our goal of 1 billion gallons of alternative jet fuel in use by military and civil aviation by 2018.  That’s about 5 percent of annual fuel use in the U.S. To be successful this will require a farm bill that funds energy efforts.

Last year, FAA established a new university Center of Excellence for Alternative Jet Fuel and Environment --The Aviation Sustainability Center, or ASCENT. It is led by Washington State University and the Massachusetts Institute of Technology. This innovative partnership with academia and industry will help us take environmental and alternative jet fuel technology to the next level.

I’d like to close by offering some words of encouragement.

All this progress would not have been possible but for the hard work of many of you in this room.

These steps in creating and using alternative fuels are important not only to the FAA–they are important to our nation and are a key priority for our President.

Sustainable alternative jet fuels offer benefits for both our environment and our economy.  The creation of a new industry – what you are trying to do – is not easy. Innovation on this scale takes time and support. We at the FAA and across the government are committed to stand with you in this.

We need continued collaboration among government, aircraft manufacturers, airlines, airports, researchers and the energy industry.   It’s going to take a lot of work from everyone at CAAFI and all stakeholders to move aviation into a new era of fuel efficiency and sustainability.

You are the people who are making this happen. I can’t thank you enough for your hard work and dedication.

Cultivating Innovation

Thank you, George. Good morning, and welcome guests and Advisory Committee members. Thank you for your service on this important committee. This is a very dynamic time for those of us in the space business.              

On the policy front, the President signed the new National Space Transportation Policy last month. It recognizes the increasingly important role of commercial space in supporting both our civil and national security missions.

The new policy recognizes the contribution that commercial space makes to the U.S. economy. This sector is growing rapidly. In 2012 there were three commercial launches. Last fiscal year that number grew to 18 – a six-fold increase.

The new policy comes at a key point in our nation’s space program. Let me give you a quick tour of what’s happening now in commercial space – and how much has changed.

·      After 30 years and 135 great missions, the U.S. Space Shuttle program has ended. The last shuttle launch was in 2011.  

·      In September, industry completed the last launch under the innovative Commercial Orbital Transportation Services program. The COTS program successfully demonstrated the ability of private industry to deliver cargo to the International Space Station.

·      Now cargo is delivered under contract between NASA and commercial providers. Space-X with, the Falcon 9, and Orbital Sciences with the Antares, use their launch vehicles to transport this cargo according to NASA’s requirements – a fundamental shift in how these missions are met.

·      Space-X also just launched its first customer satellite into geosynchronous orbit – that’s more than 22,000 miles into space. The company has announced that more than 60 percent of its customers are private companies, as opposed to governments. This success demonstrates the growth potential for American companies in this market.

·      Last month, NASA published a request for proposals for the next phase of their commercial crew program. The goal of this program is to develop vehicles to transport astronauts – in addition to cargo – to the space station by the end of 2017. These crew missions will be licensed by the FAA.

·      Meanwhile, DARPA is developing a new program called the Experimental Spaceplane, or XS-1.  DARPA hopes to demonstrate the viability of a low-cost launch vehicle for taking small payloads into low earth orbit. This kind of new, reusable vehicle could be manned or unmanned and serve both government and commercial markets. This work could lead to later development of similar commercial capabilities that could be operated by private companies.

Commercial space tourism operations are just around the corner. This is a big new market that has been talked about for a while, but has not come to fruition until now. It too will be fueled by private industry. Space tourism will be possible because of recent advances in both composite structures and innovative propulsion systems.

Finally, earlier this year, the FAA granted an experimental permit to Scaled Composites, authorizing it to conduct rocket-powered flights of SpaceShipTwo to suborbital altitudes. So far, the company has completed two tests in Mojave, California.  Eventually, the system will be operated by Virgin Galactic from Spaceport America in New Mexico. Two other companies, XCOR and Blue Origin, are also making progress on developing new suborbital vehicles to carry tourists. It’s possible that private industry could fly these tourist space vehicles as early as next year.  The FAA will continue to work closely with these and other suborbital companies as this new market emerges.

So, the president’s new National Space Transportation Policy is coming at an important time, and will support the expanding capabilities of commercial companies. The White House has continued to emphasize the importance of commercial space transportation in achieving our national goals.

I’d like to mention a few highlights in the new policy that are of particular interest to the Department of Transportation and the FAA.

·      The new space policy directs all departments and agencies to cultivate innovation and entrepreneurship through the use of nontraditional acquisition arrangements. This includes the use of fixed price acquisition instead of the traditional cost plus arrangement.

·      The goal here is to encourage the expansion of commercial space transportation beyond the role of government. By using commercial style contracts, the government assumes less of the risk of development of new technology and private companies potentially see greater profits.

·      In addition, more than ever before, the policy facilitates the sharing of databases containing valuable lessons learned from human space flight. These data, held by NASA and the FAA, should be made available to support commercial development of space transportation.

·      The White House policy asks all government agencies to work together to pursue policy, regulatory, and other measures that foster the emerging commercial human spaceflight market. DOT Secretary Foxx has a key role in working with other agencies to achieve this.

·      Stemming from this new direction, the DOT will have exclusive authority to address orbital debris mitigation practices for commercial launches. Debris in orbit is a serious challenge. The recent movie Gravity shows an extreme example of the problems of space debris whirling around the Earth at 17,500 miles per hour. While this is a dramatic, fictional portrayal of debris, the threat is real. If we manage it responsibly, we can mitigate these risks, consistent with FAA’s safety mission.

·      The new policy also supports continuation of the current indemnification risk-sharing regime. This will expire at the end of 2013 unless Congress acts to extend it. Keeping this risk-sharing regime in place helps U.S. companies remain competitive with foreign launch providers that have similar support from their own governments.  

·      And finally, the new policy advocates internationally for the adoption of U.S. Government safety regulations to align global standards. 

Conclusion
So, commercial space transportation is growing at a volume and pace never before seen. This new presidential policy emphasizes the critical importance of commercial space in achieving national goals. At the FAA, we’re working to safely integrate commercial space operations into our airspace. It’s one of our top priorities.

COMSTAC plays a key role in these efforts – facilitating dialogue and collaboration with industry. You help us foster innovation, enhance safety and promote business expansion.  We are looking forward to working with all of you—our partners in government, our colleagues in industry, and international stakeholders to create a bright new future for commercial space transportation.

We Still Have More to Do

As Prepared for Delivery

Thank you all for coming today.

We have made significant progress in improving flight crew training over the years, especially with the new pilot training rule that we published this month. It was a long time in the making, and it represents one of the most significant updates of air carrier pilot training in the last 20 years.

With the technology now available in flight simulators today, we will be able to greatly enhance training.   

But even as this rule covers a lot of ground, we still know there’s more that we can and should do to move to the next level of safety and improve training for all of the aviation professionals involved in flight operations.

We have published a number of significant safety rules over the past several years, and we are proud of those accomplishments. But during that time, a lot of very talented people have worked collaboratively with the FAA to produce many additional recommendations for pilot training on stalls, upsets and flight deck automation issues.  And there are still areas where we can improve, including training for flight attendants and dispatchers.

Today, I am announcing the creation of an Air Carrier Training Steering Group. This group is composed of industry and government representatives who will study training issues and advocate for voluntary adoption of the best practices that we have identified together.

In order to help this group, we are asking you today to sort through about 25 recommendations on training and come up with the five top priorities that the Air Carrier Training Steering Group should first pursue – because it makes sense and it’s in our best interest.  

In particular, I would like you to specifically discuss the best recommendations for how to improve training for flight attendants and dispatchers.

Today, I am also going to reach out to the airlines, including smaller carriers, as well as organizations providing training to air carriers, to ask them to support their trade associations and the people those associations nominate to serve on this steering group.

We want to identify additional areas for improvement in training, and make voluntary efforts to address these. We live in a world today where we cannot regulate every aspect of safety.  One of the most successful safety engagements we’ve had between government and industry is CAST – the Commercial Aviation Safety Team. We are sharing data and looking at trends. When we do this, it’s obvious to all of us where we need to act.

Our system is so safe that we have been moving from a system of forensic review to a system of pre-emptive actions. Proactively instituting safety management systems and identifying and mitigating risks is how we can act smarter about safety and take our system to the next level.

The pro-active work you are starting today is very valuable. So I want to thank you again for coming out today, and for your thoughts on how to make the best voluntary improvements to air carrier training.

I look forward to stopping back later to hear about your discussion and conclusions.