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This report looks at past proposals to corporatize or privatize FAA air traffic functions and examines the way air traffic management is structured in other countries, particularly focusing on those that have opted for corporatization or privatization.

Mode of access: Internet. ; Some copies issued by Office of Aviation Economics.

This report presents a recounting of the steps taken by France to establish national and international regulation over air traffic.

National borders substantially matter in passenger air traffic. Empirical estimates based upon a new data set on domestic and international departures from German airports indicate that the German border reduces air traffic activity by a factor of four to five. This result adds a further piece of evidence to the significance of border effects in various kinds of economic activity.

National borders substantially matter in passenger air traffic. Empirical estimates based upon a new data set on domestic and international departures from German airports indicate that the German border reduces air traffic activity by a factor of four to five. This result adds a further piece of evidence to the significance of border effects in various kinds of economic activity.

It is thought that one of the affected industries of the 9/11 terror event was the global airline industry through the attack's effects on global air traffic demand for international, scheduled flights. Using data from the International Civil Aviation Organization, this article considers whether this was indeed the case. The study applies panel data analysis, focusing on the 20 largest airline companies. We find that when one takes account of potential confounding factors such as the general state of the economy, global air traffic was not greatly affected by the general level of terrorist attacks worldwide, and that it takes a truly exceptional event such as 9/11 to find a measurable impact on air traffic demand. Even then, the measured effect for the industry as a whole is small in magnitude. The reason for this finding appears to be that the demand for international scheduled air flights is rather heterogeneous across airlines. Aggregating across the whole of the global industry is not in all instances warranted.

SUMMARYThe empirical literature on border effects suggests that national borders substantially reduce the level of economic transactions. This paper adds another piece of evidence to the significance of border effects by applying a new data set which is completely independent of the data sets of previous studies. Our data refer to domestic and international passenger departures from German airports. The econometric results indicate that the German border reduces passenger air traffic by a factor of four to five. This magnitude is in line with the results of previous studies for trade and investment flows.

Simulation exercises with bilingual controllers from Montreal Center were conducted in order to develop procedures for the safe implementation of bilingual communications for aircraft operating under instrument flight rules in the Province of Quebec. Representative pilots from professional and general aviation associations flew aircraft simulators linked to the Air Traffic Control simulator in order to evaluate the proposed bilingual system and to generate data on the party-line aspect of the listening watch in air-ground communications. The effects of language, type of sector, traffic characteristics, and exceptional conditions on communication characteristics and controller performance were observed in four different studies. In addition, data on controllers' communications in actual operations and on reported incidents involving the listening watch were obtained. Information from both the simulations and the real-world operations were then analyzed to determine the implications for control procedures and to assess the general impact of bilingual control on system safety.