Analysis of Alternative Institutional Arrangements for Reform of U.S. Air Traffic Control

Abstract

A considerable amount of New Public Management-oriented research investigates alternative institutional arrangements for provision of services to the public. Some of this work argues in support of service delivery through an increase in outsourcing or by privatization of existing government functions. Air traffic control is provided to aircraft operators using airports and airspace all over the world. This article studies institutional arrangements of provision of air traffic control employing a comparative analysis of six nations: Australia, Canada, New Zealand, Switzerland, the United Kingdom, and the United States. The objective of the study is to determine whether a modification of the governance of the U.S. air traffic control system is appropriate and, if so, what alternatives seem most appropriate to replace the current system. Conclusions based upon the analysis suggest that air traffic control is most effectively provided on a not-for-profit basis, with indirect participation by stakeholders including airlines and airport operators in the governance of the air traffic control provider. For reasons related to safety, national security, and international obligations, governments remain ultimately responsible for providing this essential service. However, a strong argument may be made that the U.S. system should be reformed