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.

UAS Roadmap

Remarks as Prepared for Delivery

Good morning, Marion, and thank you for that introduction. It’s great to be here today.

Aviation and aerospace hold a special place in the American consciousness. They are a symbol of American innovation. And innovation is what makes this country grow and prosper.

As we move into the second century of flight, we are transforming our airspace to take advantage of technological breakthroughs, and to maintain our position as a global leader. Through NextGen, we are transitioning from a system of ground-based radar and navigational aids, to a system that uses satellites and GPS for greater precision, more direct routes, greater fuel efficiency and better predictability.  

NextGen is about taking the enormous advances that are taking place today in communications, computing and navigation, and incorporating these advances into our nation’s aviation system.

With the growth of the Internet, of data-sharing, and of precise mapping, we have no choice but to leverage these benefits in the world of flight. NextGen is bringing these advances to aviation and allowing us to create the airspace of the future. And in that airspace of the future, we will have new users. We will have more commercial space launches and we’ll have more unmanned aircraft systems. As you know, it requires significant work to build consensus on how to safely integrate game-changing technologies such as these. 

I’m pleased to say that we have made solid progress. Today I would like to announce that the FAA has released its first Unmanned Aircraft Systems roadmap. This document, developed with key stakeholders, outlines what we need to do to safely integrate unmanned aircraft into our national airspace. It provides a five-year outlook and will have annual updates.

The roadmap addresses the policies, the regulations, the technologies, and procedures that we will need to integrate unmanned aircraft on a routine basis. To accomplish this, we must change the way we do business. We have operational goals as well as safety issues that we must consider when planning to expand the use of unmanned aircraft.

As the provider of air traffic services, we must ensure the safety and efficiency of the entire airspace, including all aircraft, people and property – both manned and unmanned – in the air and on the ground.

Unmanned aircraft are inherently different from manned aircraft. They run a very wide range, with a number of different physical and operational characteristics. Some are the size of a fist, and fly at low altitudes. Others have glider-like bodies with the wing span of a 737 and can fly above 60,000 feet.  Many can fly longer and hover longer than manned aircraft. They are also lighter and slower than traditional aircraft and have more lift and not as much drag. What unites them all is that the pilot is on the ground and not on board the aircraft.

Our FAA forecast estimates that we can expect 7,500 small unmanned aircraft in our national airspace in the next five years, provided the regulations are in place to handle them.

Right now, almost all of the unmanned aircraft operations we approve for public use and research purposes are on a case by case basis.

For the last two decades, the FAA has authorized the limited use of unmanned aircraft for important missions in the public interest. These include firefighting, disaster relief, search and rescue, law enforcement, border patrol, military training, and testing and evaluation.

About 80 law enforcement agencies operate unmanned aircraft now under special certificates of authorization. Universities also use unmanned aircraft for research into weather, agriculture, and industrial uses.

And more recently, in September, the first commercial flight of an unmanned aircraft took place in the rainy skies above the Arctic Circle. A Scan Eagle completed a 36-minute flight to view marine mammals and survey ice. These surveys are needed to meet environmental and safety requirements before drilling on the sea floor.

This flight was coordinated by ConocoPhillips, the FAA, the manufacturer of the Scan Eagle, and other federal and international agencies. This Arctic region is the only area to date where we have authorized the use of small unmanned aircraft for commercial purposes.

In moving forward, we recognize that the expanded use of unmanned aircraft presents great opportunities, but it’s also true that integrating these aircraft presents significant challenges.

There are operational issues that we need to address, such as pilot training. We also need to make sure that unmanned aircraft sense and avoid other aircraft, and that they operate safely if they lose the link to their pilot.

This is why developing more test data is so important. By the end of the year, we plan to choose six test sites for civil unmanned aircraft. Congress required us to do so, and we need to make sure we use these sites to obtain the best data that we can.  The test sites will provide invaluable information to help us develop policies and procedures to ensure safe, responsible and transparent integration.

Today, we are also releasing the privacy policy that will apply to the UAS test sites. This policy requires operators to comply with all local, state and federal laws concerning privacy and civil liberties. We’re requiring the test site operators to create a privacy policy that is available to the public. And they must require anyone operating unmanned aircraft at the test sites to have a written plan for how they will use and retain any test data acquired. On a broader level, agencies across the government are coming together to work on privacy issues that may arise with the increasing use of unmanned aircraft beyond these test sites.

Our airspace system is not static. And it’s important for industry to understand that unmanned operations will evolve over time.

In addition to the roadmap, the Department of Transportation is releasing a Comprehensive Plan that dovetails with the FAA’s roadmap. This Comprehensive Plan details the multi-agency approach to the safe and timely integration of unmanned aircraft. The plan establishes goals to integrate both small and larger unmanned aircraft, and to foster America’s leadership in advancing this technology.

All three of these new documents – the  Comprehensive Plan, the Roadmap and the privacy policy for the test sites – are available today on our web site at FAA.GOV.

We are dedicated to working with stakeholders in this growing industry and with our government partners – the Departments of Defense and Homeland Security, as well as NASA and the Joint Planning and Development Office – to define parameters to safely integrate these very diverse systems into the world’s most complex airspace.

Rest assured the FAA will fulfill its statutory obligations to integrate unmanned systems.  But we must fulfill those obligations in a thoughtful, careful manner that ensures safety and promotes economic growth.   

While aviation is unquestionably an industry known for innovation, it is also an industry with a strong history of collaboration between government and industry. This collaboration has enabled us to achieve a position of international leadership. The U.S. is recognized as the “gold standard” for aviation safety, efficiency and technology. 

And we need to keep it that way.

Together, we need to address the many areas where we need standards for these new unmanned aircraft. This includes standards for manufacturing and standards for pilot training.

We have a challenging task ahead and we all have a stake in this goal.

For us to be effective, funding for the government needs to happen in a predictable and reliable way so that we can consistently work towards the greater good.  Short-term, stop-gap funding is no way to run a government or an aviation system.

We must move forward with NextGen and the rollout of new technologies, such as modern communications, navigation, and surveillance systems for our nation’s airspace. The integration of unmanned aircraft relies on these kinds of NextGen advancements.  We are building a complex and inter-related airspace. We need to join together again and vocally support the priorities that we have established.

By working together, government and industry will overcome the challenges that face us, and open the door to a more diverse and dynamic aviation future.  

Thank you.

Pilot Training Rule

Thank you for joining us today.

As the Secretary said, this rule will give our pilots the most advanced training available to handle emergencies they may encounter.

We are focusing on pilot training for events which – although rare – can be catastrophic.  Focusing on these events will provide the greatest safety benefit to the flying public.

The FAA has consistently issued strong training guidance to carriers. But this rule 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.  

We want pilots to have extensive training so that they have the skills and confidence to appropriately handle any situation. This includes more emphasis on manual flying skills, and how to prevent and recover from stalls and upsets. We also want pilots to have more experience with crosswinds and gusts. And more experience with how to handle the loss of reliable airspeed data.

At the FAA we are becoming smarter about safety and moving towards a system where we collect and analyze data to see patterns. We want to address issues long before there is a problem. This rule will allow airlines to view a pilot’s training performance over time. And airlines will have the data to evaluate whether a training program is effective.

Airlines will be able to better track a pattern of deficiencies in a pilot’s training performance. If the same type of failure occurs again, or if a similar failure occurs, the airline and the pilot will need to take additional steps to demonstrate the pilot’s capability. Changes can be made – based on the data – that improve both the training program and pilot performance.

We always expect that the pilot who is not flying the aircraft will monitor the pilot who is flying the plane, during all phases of flight. This rule requires airlines to train pilots on how to effectively monitor the pilot who is flying. The pilot who is not flying has an active job to do. He or she must act as a second set of eyes and ears to assure situational awareness and to intervene when necessary.

And finally, the rule requires training to enhance runway safety precautions. It will reinforce that pilots need to confirm the assigned runway as part of their pre-departure briefing. They will also need to confirm that the correct runway is loaded into the aircraft’s flight management system.

This rule has been a high priority for the Colgan families and for the Secretary and myself. We made a promise that we’d get this rule out this year, and we have kept that promise. As the Secretary said, the families of Colgan Flight 3407 have been of great help not only with this rule, but with rules to reduce pilot fatigue and improve pilot qualifications.

Today’s rule is a tremendous achievement for safety. But, I also want to call on the industry to continue to embrace voluntary initiatives to make air carrier training programs as robust as possible. I will meet with airline safety leaders later this month to determine how we can best move forward to constantly enhance safety in a collaborative way.

Finally, I would like to thank our safety team at the FAA who have worked tirelessly to get this rule across the finish line.  You do great work every day on behalf of the traveling public.

Mr. Secretary?

Portable Electronic Devices Presser

Good morning. Thank you for joining me today.

As you may know, in January of this year, when I became Administrator, I wanted to take a thoughtful look at the rules governing the use of portable electronic devices in flight – rules that have been in effect for nearly 50 years. I assembled a team of industry and aviation experts to explore the issue and today we want to share the conclusion.

After reviewing the report and the committee’s recommendations and consulting with agency specialists, I am pleased to announce that airlines can safely expand passenger use of Portable Electronic Devices during all phases of flight. Today, the FAA is providing the airlines with implementation guidance to do so.

The committee determined that most commercial airplanes can tolerate radio interference from portable electronic devices. It’s safe to read downloaded materials like e-books and calendars and to play games. But, the committee found that in some instances of low visibility – about one percent of flights – some landing systems may not be proven to tolerate the interference. In those cases, passengers should be asked to turn-off devices. We agree with that recommendation and our guidance to airlines reflects that.

It’s important for everyone’s safety that passengers obey all requests to store such devices if need be. The committee recommended that heavier devices be safely stowed under seats or in the overhead bins during takeoff and landing. This is something we’ll ask airlines to implement.

This was not our typical aviation rulemaking committee. While the team was made up of representatives from the airlines, aviation manufacturers, pilots and flight attendants, we also included organizations that represent passengers and the mobile technology industry. This diverse group assured that we protected aviation safety while addressing the passenger desire to use their portable devices. I commend the detailed and thorough work of the group, which represented all of the stakeholders. The report can be found on our website, at FAA.gov.

These changes won’t take effect immediately. But we will be working with the airlines to get it done as quickly as we can, and to maximize consistency across the industry.

Cabin safety is extremely important and each airline will evaluate its fleet and may need to change the rules for stowing carry-on items and passenger safety announcements. Each airline will also need to revise manuals, checklists for crewmember training materials, and passenger briefings before expanding the use of portable electronic devices. Each airline will determine how and when it will allow passengers the broader use of tablets, e-readers and smartphones at all altitudes. We’re committed to working with carriers to review their plans expeditiously and to promote consistency for passengers.

I want to be clear that you still cannot talk on your phone during a flight. The Federal Communications Commission governs cell phone use during flights, and the committee did not consider that issue. All devices should be in airplane mode. However, you will be able to connect through Wi-Fi to an airplane’s wireless network if the airline provides the service. And you will be able to connect to Bluetooth accessories like a mouse or keyboard.

There’s one thing that won’t change. Passengers must take a break from their devices, their music, or whatever they’re doing, and listen to the safety briefing before each flight. It could save your life in the event of an emergency.

In closing, I want to commend the dedication and excellent work of all the experts who spent the past year working together to give us a solid report. It has allowed us to move forward with a science-based decision on expanded use of electronics on airplanes during all phases of flight. And while it will take some time for each airline to verify that its fleet is PED tolerant, I expect expanded use will come soon.

Thank you again for joining me today. I’ll take some questions.

Building a Seamless Global Airspace

Thank you, Henry, (Steingass) for that introduction. It is a pleasure to be here today, and to see so many of my colleagues from industry and government. And, I extend a special welcome to our friends from India.

I would first like to say a sincere thank you to both the U.S. Trade and Development Agency for sponsoring this event, and to the American Association of Airport Executives, for coordinating this week’s meetings. Events like these are crucial to expanding business and trade, and for improving cooperation across borders.

We are here during a time of rapid change in aviation. I frankly am in awe of how far aviation has come over the past several decades. Safety has made great leaps. New aircraft are smarter 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.

Because of these increased aviation connections, the link between Asia and the United States continues to grow stronger. Our 2013 Forecast Report shows that air travel between Asia and the United States is anticipated to remain one of the healthiest markets. And, as Asian economies expand, we’ll likely see this increase in air traffic continue. In India, in particular, it is projected that you will see aviation grow by leaps and bounds in the coming decades. With this strong growth and a world that is evermore linked, an open dialogue is important.

As two of the world’s major democracies and large economies, it is vital that we have strong connections. Despite challenging economic times, trade between the United States and India grew substantially between 2009 and 2012, and we expect it to continue to increase. This growth is due in part to positive aviation links.

And, as we strengthen our ties, we must involve both government and industry. It is vital that government understands from industry how changes in the public sector can affect operations. And, it is crucial that industry hears why governments make the decisions we do.

The Aviation Cooperation Program that we have in place between the U.S. and India is a positive mechanism for expanding this public – private relationship. I’m pleased that it remains an active vehicle for communication between our governments and businesses. This helps support aviation modernization and trade.

I would also encourage both government and industry to capitalize on existing groups to share safety information and best practices. ICAO, of course, remains an important piece in the safety of aviation, and its technical groups are making tremendous progress in certain areas of the world. Thanks to the ICAO Regional Aviation Safety Group for Asia, safety harmonization and coordination is reaching a new level across the Asian continent.

Safety is not a competitive business. Sharing information that could potentially affect the safety of flight in any country is crucial, and we need to invest time and effort in forums such as the regional groups that support this collaboration. And, this will all be enhanced by the recent endorsement at the ICAO Assembly of the Global Aviation Safety Plan. This multilateral effort allows us to approach safety on a global basis.

An effective and solid safety oversight program is paramount for the success of any country’s aviation system. The culture of effective safety oversight starts at the very top of an organization, and filters down to every level. Each aviation authority must maintain a strong safety structurewithin the global context.

We will also enhance safety by changing the way we manage air traffic control, and by taking advantage of new technology. Here in the United States, we are transforming the way we manage air traffic through NextGen. We are evolving from ground-based radar to a satellite-based system of tomorrow. This will help us move more air traffic efficiently, while reducing flight times and emissions.

This upgrade to satellite-based technology is beginning in many locations across the globe. And a way to help further that progress is the ICAO Global Air Navigation Plan that was endorsed at the ICAO Assembly. This plan helps to harmonize and advance air traffic management globally. It provides a framework for countries to improve the capacity of their air traffic systems.

With the tremendous growth in air traffic around the globe, we must make these upgrades and modernize our system. If we don’t, the price we will pay in lost efficiency and economic productivity will outweigh the costs of the upgrades and changes. Let’s not miss out on economic expansion because of equipment that is no longer compatible or usable with the rest of the world. And, economic growth is also bolstered by airports that have invested in long-term planning with the objective of meeting the growing aviation demand of the future.

We all share the common path of continuously improving aviation. The United States seeks to partner more with other countries and regions as we all develop new technologies. These systems must be interoperable, even as we maintain technological independence in our own countries.

Of course, all of 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 expanding or changing the airspace and airport infrastructure is done prudently while minimizing the impact to our environment. 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.

Collaboration with one another is the key to success on environmental issues. Since 2006, the FAA has worked with other governments, regional groups, and industry partners to research, develop, and deploy alternative jet fuels through the Commercial Aviation Alternative Fuels Initiative, or CAAFI. And, countries across the globe have made great strides in developing, producing and using alternative fuels in other modes of transportation. We can all learn from this work. Efforts to create a sustainable, alternative jet fuel, as well as development of new aircraft bodies and more efficient engines, will protect the environment for generations to come.

And, as we seek to ensure aviation is environmentally sustainable, it is once again vital that we continue to work through the multilateral process to find practical and collaborative solutions.

As we celebrate the inherent international connection in aviation, let us acknowledge the tremendous accomplishments we have seen in flight throughout the world. And, by agreeing to move forward collaboratively, we will continue to see growth, trade, and expansion across the globe, linking us all even closer.

The solid partnerships between countries like India and the United States will not only lead the way for more trade, investment, and development in aviation, but will also serve as a model for other countries around the world to work across borders.

Thank you, again, for inviting me here today, and I wish you much success for the Summit.

Aeroclub

Thank you, Pete (Dumont), for that introduction. It’s great to be here today.

I’m not a superstitious man, but I have to say “13” is not my favorite number. And I am very glad that this year, which ends in the number “13,” is almost coming to an end…(pause)

And, I never realized how long 16 days could be. Last week, more than 12,000 furloughed FAA employees came back on the job, and the agency is gearing back up. It will take time to assess the backlog of work that developed during the shutdown. NextGen work was stopped or reduced. We issued about a thousand stop-work orders on contracts, which we have rescinded now.

This was a very challenging time, but I can tell you that we worked through this as best we possibly could. A shutdown is inherently an inefficient process and frankly I don’t want us to get good at it.  

FAA employees spent countless hours planning the 2013 furloughs, the sequester budget and the shutdown. Our energy needs to be spent running and improving the largest and safest aviation system in the world. As always, safety is our top priority and as we resume work we will reflect that commitment.

It’s hard to push the “pause” button on a complicated and wide scale operational agency like the FAA.  Suddenly speeding it up or slowing it down – either direction – is extraordinarily disruptive. We operate most efficiently and effectively under conditions of certainty. It’s what we need in order to carry out our mission.

Right now, we are finding ourselves in the middle of the aftermath of the recurring conflict over the fiscal course of the country, and the larger question of what do Americans want from their government and what role should government play in their everyday lives? 

And we are seeing the result – gridlock, denial of government services and economic disruption. 

Last week, Congress was able to reach agreement on a short-term continuing resolution and an increase in the debt ceiling.  While welcome news, it is not the final resolution of the debate that has consumed Washington, and the nation as a whole, over the past few months.

The multi-week shutdown has reminded many Americans of how integral government is in our everyday society.  Whether it’s the closure of national parks, cessation of critical medical research, or the certification and registration of new aircraft – the impact of removing government from the equation touches every economic bracket and every community across the country.

Aviation and aerospace hold a special place in American consciousness and are a symbol of American innovation.  Aviation was invented here.  It was 110 years ago that the Wright Brothers completed their first flight at Kitty Hawk.  Since then, aviation has grown to be our largest export industry.  It accounts for $1.3 trillion in economic activity and 10 million U.S. jobs.  And aviation has done so much to tie our country together, linking thousands of runways, landing strips and terminals, in major cities and our rural areas. Air transportation has allowed us to unify America in a way that would have been unimaginable 100 years ago.  

And the next 100 years will bring advances that we can’t even imagine now. While aviation is unquestionably an example of innovation, it’s also an example of collaboration between government and industry.  This collaboration has enabled us to achieve a position of international leadership. The U.S. is held up as the “gold standard” for aviation safety, efficiency and technology. 

And we need to keep it that way.

The aviation industry needs efficient regulation and certification to bring new products to market in a timely and competitive way.

The industry needs government to participate in building infrastructure, like NextGen, that benefits the nation and moves us forward.

It needs government to tackle long-range planning and solve the big problems that individual companies cannot possibly tackle on their own.

It was not that long ago that we all came together during the reauthorization of the FAA and recognized that the work we do is vitally important to our nation and to our economy.  We need to join together again now and vocally support and work on the priorities that we have established.

We need government and industry working together. That is how we are going to overcome the challenges that face us. One of us can’t do it without the other.

If these last few weeks have shown us anything, it’s that we can’t do everything as individuals.

For example, we want and need government to do things like ensuring we have clean water and safe food.  We want our government to ensure that our aviation system is safe. That aircraft and equipment meet the highest standards of safety—and that the men and women who control air traffic, fly airplanes and run our system are properly trained and qualified. We want and need our government to provide the framework and investment to create the infrastructure to allow the continued growth and innovation of the American Aviation sector.

Finally, we want government to do everything it can to ensure that we have a strong economy – one that generates jobs and is a global leader.  Toward this end, government’s role in aviation – in collaboration with industry – is critical.

Let me be clear – I am not saying that the government should do everything, and I firmly believe that there are many things that the government should not do at all.  What I am saying is that there are things that we do look to government to enable, to support and to lead. 

Funding for the government needs to happen in a predictable and reliable way so that we can consistently work towards the greater good.  Short-term, stop-gap funding is no way to run a government or an aviation system.

I think one of the biggest questions that our industry has to come together to answer is, what kind of an aviation system do we want? We need to think comprehensively about what we want to provide and how we provide the support for it.

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 earlier this year with the sequester and what we have seen in the last few weeks with the shutdown, is that we need to have a comprehensive view of our priorities and also stable funding.

• We must move forward with delivering the benefits of NextGen. 
• We have to certify new aircraft and introduce new users into our airspace such as unmanned aircraft systems and commercial space launches – areas where America can, and should lead.
• We know that we need to constantly raise the bar on safety and the way to do that is to be smarter about how we ensure safety and use the wealth of data that is available to us.
• We need to work on improving safety and sustainability across the globe. This is both for the benefit of Americans who fly overseas and for the economic benefits of having a robust aviation industry that provides a level playing field to compete on the global stage. We need to maintain America’s place as the premiere aviation leader.
• Finally, we need to recruit and train our workforce to adapt to the innovation that we’re seeing in the industry and to forge the way towards the aerospace system of the future.  

These are broad priorities which I think we can agree on. The details of exactly how we get there is something that we need to work through.  The FAA has traditionally provided a variety of services to our airspace users in addition to air traffic control. We provide flight plans, weather briefings, updated navigation charts, aircraft certification and pilot certificates. We are increasingly being asked to do more with less. We have an aviation trust fund, but this trust fund only covers about two-thirds of our budget. I think we need to ask ourselves – and ask you, our stakeholders –whether we really want to, and need to, do everything the way we’ve always done it. What should industry and the public expect the FAA to provide? Are there reasonable changes we can make to align with our future vision of the industry?

One thing I think is vitally important is for the aviation industry to start having serious conversations about the structure of our aviation system, as well as the way to fund it. In the past, we have had debates over how to fund our system. I have heard from many of you that these discussions, which have historically been difficult are starting to happen.  And that’s significant. 

The continuing resolution provides a fresh start and the possibility of a fresh budget agreement to move forward. I certainly hope it lays the groundwork for a broader budget deal in the future. I’m also encouraged that the continuing resolution provides the FAA with an annual rate of $100 million more than last year’s budget. It’s an acknowledgement that the cuts we are facing have serious consequences on both the FAA workforce and the sustainability of the system.

That being said, the FAA still must cut hundreds of millions of dollars this year under the sequester. We are operating at historically low levels of funding and the continuing resolution just keeps us at these reduced levels.

In addition, we are facing a $5 billion backlog in deferred maintenance of the facilities and equipment we use to run our national airspace system.

In this extremely difficult financial environment, we’re going to have to prioritize. We can’t keep doing minimal across-the-board maintenance. We’re 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. 

And that conversation needs to involve all of us. We must come together to decide what kind of system we want and need.

Aviation has always been about innovation and boldly trying new ways of doing things. That’s what has made the industry grow and prosper.  This willingness to seek new solutions is what turned two bicycle mechanics from Ohio into the world’s first pilots. It’s what put a man on the moon, and it’s what is going to create another 100 years of breakthroughs in aviation.   

As we move forward, the question is, are we really going to address the important issues we need to face and are we going to forge a new future, or, are we going to hold back and wait for something to happen?  I don’t think any of us want to wait and we should not.  Instead, we need to look at the big picture. Our industry, our advancement, our priorities are too important to sit back. We must take hold of the reins and take charge.

If we do that, I’m optimistic that today’s gridlock will not be here to stay.

Completing NextGen’s Critical Foundation

Remarks As Prepared For Delivery

Thank you, Pete [Dumont].  I often begin my remarks by saying I’m glad to be here.  Well, this morning, I’m REALLY glad to be here!

As Pete knows, it didn’t look like I would be able to join you today because of the shutdown.  I am glad to talk about NextGen again, after almost three weeks with virtually the entire NextGen organization on furlough.  

As you probably are aware, during this shutdown, the FAA had to focus only on essential functions immediately related to safety.  The system ran – and ran well – with a skeletal staff.  Our operations staff carried out our safety mission, even as they weren’t being paid.  I thank them for their enduring professionalism. 

But all “discretionary” activities – like NextGen, like the aircraft registry, like new aircraft certifications – came to a halt. 

Last week, we brought back more than 12,000 furloughed employees.  Now we will restart NextGen work.

You may also know we have a new Assistant Administrator for NextGen, Major General Ed Bolton.  He was only on the job six days before the government shutdown.  General Bolton is here today and he will be speaking here on Wednesday.  His engineering background and extensive experience managing complex programs with the Air Force will be a huge benefit for the FAA as we resume our work on NextGen.  

In our early conversations, Ed made a point to me that I think is worth reiterating here – and the engineers in the room I think will agree with it.  He said, “NextGen is a complex systems engineering project.  It has a huge number of interdependencies and tight schedules.  We can’t just turn it on or off.  We can’t speed it up or slow it down without ripples through the entire system.” 

General Bolton’s absolutely right. ?Yet, we’ve spent much of the past year looking at various budget scenarios … suspending program efforts during FY'13 furloughs … then determining which ones to restart.  Then planning for FY'14 furloughs.  Then navigating the shutdown.  And now reopening with a budget that carries only to January 15 – less than three months from now.

And unless the sequester is permanently fixed, we’re going to deal with this issue through the remainder of the fiscal year.  And then again in FY'15.

This is not a sustainable course of action.  It’s no way to run a business … and it’s no way to run a government.

NextGen is the most transformative infrastructure project currently under way in the United States.  It’s why I’m here.  It’s why General Bolten is here.  We know its success is crucial to enable the growth and change in aviation and make us more competitive in the global economy. 

We remain committed to its full implementation AS IS.  It doesn’t need to be reset.  It needs to be implemented, and we need a budget to do that.  A project of this complexity will not succeed if we don’t have consistent, budget certainty.   

Having said all that … the good news is we are getting close to completing NextGen’s critical foundation.  This foundation includes a much-needed upgrade of the basic hardware and software systems that allow us to control the airspace.  These are programs you’re familiar with— ERAM, TAMR, ADS-B, ATOP.  Much of this work has been disrupted by the sequester, furloughs and now the shutdown … and we’re evaluating the budget impact on programs through January 15th.  But in broad terms, these important upgrades are in the final stages.  Let me give you a quick overview of where these programs are.   

• ERAM—we are in the final stages of upgrading the computer system that has been running our nation’s high altitude airspace system.  This upgrade program provides the platform for many future NextGen technologies and will increase the capacity and efficiency of the system.  To date, 17 of our 20 en-route centers have been upgraded.  
• TAMR—We have also made progress upgrading the computer systems that run our nation’s approach radar airspace.  This program will provide a common platform for terminal automation.  This is a massive project that requires switching out computer processors, screens and software, and re-training controllers in over 150 TRACONS—all without disrupting air traffic service.
• ATOP—We have already completed the upgrade of our oceanic centers in New York, California and Alaska – with the program known as Advanced Technologies and Oceanic Procedures, or ATOP.  This technology allows us to benefit from the efficiency of NextGen in controlling 24 million square miles of oceanic airspace.
• ADS-B—And finally we have installed more than 70 percent of the ground transceivers across the country for Automatic Dependent Surveillance-Broadcast.  ADS-B will transmit aircraft location to controllers and other ADS-B equipped aircraft with a dramatically faster update than radar.  That enhances safety and saves operators time, fuel and money.  We’ll complete the nationwide deployment of ground transceivers by next year. 

All of this software, hardware and equipment form the foundation of NextGen.  

I like to use the metaphor of the iPad.  We are building a new platform on which we will be able to run new “apps” – new air traffic capabilities.  Some of these capabilities – such as Time Based Flow Management, or TBFM, have already been rolled out.  Others – Data Communications and the NAS Voice System, for example, are in the testing phase.  And still others are in the research pipeline at our Tech Center in New Jersey, which will ultimately enable us to operate a 4D trajectory system.

Many of the benefits of NextGen will be realized after the foundational work is complete and new capabilities are added.  In the meantime, we’ll continue to work to deliver benefits to current users, leveraging technologies such as …

• Performance Based Navigation—which enables aircraft to use more direct routings, saving fuel and time. 
• And Optimized Profile Descent—which enables aircraft to reduce engine power and virtually glide down to the runway, a procedure that uses less fuel and requires less tower-to-cockpit communication. 
• NextGen procedures are being used today in cities like Denver, Seattle, Atlanta, and Washington DC, and we will continue to roll out these procedures more widely throughout the country. 

In conclusion, we remain committed to NextGen, and to our partnerships with operators, local communities, unions, airports … and certainly with industry, in implementing this important program.     

But we can’t keep taking one step forward, followed by a half step back.  Our ability to invest in NextGen and other modernization efforts depends on having greater fiscal certainty, this year, and beyond.  With fiscal certainty, we can deliver benefits in a timelier manner.  In doing so, we’ll have a more efficient, greener air transportation system – one that continues to be a model for the world.

NextGen Ahead

Thank you, Ed (Hazelwood), for that introduction.  I am pleased to be here today with such an accomplished group of aviation professionals discussing such an important subject. 

I want to talk this morning about the progress we have made in recent years in implementing the Next Generation Air Transportation System.  NextGen, as you know, is one of the largest infrastructure development projects currently underway in the United States, and I would argue, the most important.  Even though much of it seems like invisible infrastructure, it is a crucial advancement for our aviation system.  We have made tremendous strides building the NextGen system, and will continue to do so.  We must continue to move forward with its development.  Its success is crucial to build and sustain our nation’s aviation system and make us more competitive in the global economy.

The early phase of NextGen has been focused on a much-needed upgrade of the basic infrastructure that runs our airspace – moving us from a ground-based radar system to a satellite-based system.  This has included an upgrade of the basic hardware and software systems that allow us to control the airspace.  These are programs you’re familiar with—ERAM, TAMR, ADS-B, ATOPS.  To update you:

• Starting with ERAM—we are in the final stages of upgrading our 1980s-era computer system that has been running our nation’s high altitude airspace system with a much more sophisticated program.  This program – ERAM (En Route Automation Modernization) – will provide benefits for users and the flying public by increasing capacity and efficiency, as well as allowing us to build new capabilities into the system.  Sixteen of our 20 en-route centers have been upgraded.  The remaining four will be completed by the end of 2014.
• We have also made progress upgrading the old computer systems that runs our nation’s approach radar airspace.  This program, Terminal Automation Modernization and Replacement, or TAMR, will increase efficiency by combining and upgrading several air traffic control technologies into one single system.  This is a massive project that requires switching out the computer processors, screens and software, and re-training controllers in over 150 TRACONS—all without disrupting service.  That program will be substantially complete in 2016.
• We have already completed the upgrade of our oceanic centers in New York, California and Alaska – with the program known as Advanced Technologies and Oceanic Procedures, or ATOP.  This technology allows us to benefit from the efficiency of NextGen in controlling 24 million square miles of oceanic airspace.
• And finally we have installed more than 70 percent of the ground transceivers across the country for Automatic-Dependent Surveillance Broadcast.  ADS-B will transmit aircraft location to controllers and other ADS-B equipped aircraft with a dramatically faster update than radar – in essence, taking us from 2D to 3D awareness of aircraft location.  That enhances safety and saves operators and passengers time, fuel and money.  That program will be complete next year. 

All of this software, hardware and equipment form the foundation of NextGen. You could liken it to building an iPad.  This first phase of the NextGen program – replacing and upgrading the hardware, software and systems that run our airspace – gives us the ability to add new capabilities and technologies going forward.  This foundation allows us to add apps to the iPad. 

For example, one of these apps or capabilities is Time Based Flow Management, or TBFM.  TBFM allows the more efficient en-route spacing of aircraft.  It will help us line up planes in such a way that more aircraft can take advantage of the benefits of new NextGen procedures as they enter congested airspace.  

In addition to building this new foundational infrastructure, we are building new procedures that allow users to take advantage of new technologies.

Building these new procedures is at the core of delivering the benefits of NextGen to the system users.   

Right now, we have several programs underway to build more efficient routing procedures for NextGen-equipped aircraft.  These procedures, known as PBN or Performance-Based Navigation, use this technology plus the precision of GPS to create more efficient approaches into and out of our airports and allow aircraft to operate more direct routings, reducing the noise footprint and saving fuel and time.  For example, new descent procedures allow aircraft to reduce engine power and virtually glide down to the runway, like sliding down the bannister, rather than today’s typical descent, which uses more fuel by requiring the pilot to level off at each stage.  These NextGen procedures save time, burn less fuel, produce fewer emissions, and reduce noise, and they are being deployed today.  Examples include:

• At Phoenix Sky Harbor International Airport, we have developed and now use four of these approaches.  The total cost savings by two air carriers there is estimated at $6.4 million per year. 
• In Seattle, as part of the FAA’s Greener Skies initiative, airlines are using NextGen precision routes to shave four to eight minutes off flight times, providing projected annual savings of more than $13 million.  Going forward, this new technology will allow us to build new capabilities that will enhance both safety and efficiency as PBN routes are rolled out elsewhere.
• In Atlanta, we added departure routes that safely allow jets to take off on headings that are slightly closer together.  This small change has resulted in a 10 percent increase in departures per hour from the world’s busiest airport.  We estimate customers saved more than 11,000 hours of waiting in line to take off last year thanks to this new procedure.  We expect these improvements will save the airlines $20 million in Atlanta on an annual basis.  And we intend to bring this type of efficiency to other major airports.

One of the most exciting new capabilities we have underway is Data Comm.  As we complete the basic infrastructure of NextGen, we can look forward to many new capabilities and procedures.   

Data Comm allows us to communicate through written instructions to pilots, which reduces the possible “read-back, hear-back” errors of radio communications.  More importantly, Data Comm allows us to communicate highly complex clearances that are not practical to convey over the radio – instructions that can be automatically loaded into the aircraft’s flight management system.  This will ultimately save operators and passengers time and money, and will vastly improve the flexibility and efficiency of our operations.

As we develop these new technologies, it is also important that we create a seamless airspace between the United States and the rest of the world.  To that end, I’m pleased that the United States and Europe were able to reach an agreement in principle last month on standards for Data Comm.  

The final standard will ensure that both the United States and Europe will build their systems so that they will be able to handle the same set of tasks.

This standard will:

• Allow for more advanced communication regarding the use of satellite-based procedures, such as RNP or Required Navigation Performance, which will provide more flexibility to use NextGen routes.
• It will allow controllers to convey detailed information to pilots about the wind conditions along the path they are scheduled to fly.
• And it would address aircraft spacing.  For example, it could provide the type of complex clearance that would be required for an aircraft to establish and manage the appropriate spacing in relation to other aircraft.

In every case, the new standard will enable Data Comm to provide more complex information than can be provided via voice communications today.  We will all benefit from the increased efficiency and safety of Data Comm and from a seamless system based on one set of common capabilities.

Reaching a consensus with our European partners on Data Comm highlights the importance of harmonized standards in today’s world.  We continue our outreach with many international partners, and we maintain a close relationship with ICAO in an effort to promote global harmonization.  Our successes will go no further than our borders without close contact and partnership with other countries.  It is crucial that we continue together toward the goal of seamless global operations. 

In this regard, we are in full support of ICAO’s plans for modernization, including the Global Air Navigation Plan, which provides a framework for countries to improve air traffic capacity according to their own needs and resources.  We will revisit this modernization concept at the ICAO Assembly in a few weeks, as we move toward global harmonization and integration.        

In conclusion, the FAA remains committed to NextGen and the benefits it will deliver.  Our partnerships with operators, local communities, unions, aviation groups, and airports are already making NextGen a success, but there is much more to come. 

Of course, our ability to make future infrastructure investments, such as NextGen, depends on stable funding for the FAA for the next fiscal year and beyond. 

The President has called on Congress to replace the damaging budget cuts imposed by the sequester with a balanced approach.  His plan reduces the deficit while protecting critical priorities like infrastructure investment and funding for education.   

I appreciate the opportunity to speak with you today on the progress we’ve made building NextGen and the successes we’ve already seen.    

This modernization is necessary not only for current users of our aviation system, but also for future generations.  We owe it to them to create a more efficient, sustainable transportation system that can serve us well throughout the 21^st century and beyond. 

Thanks again for the invitation to speak to you today.