Press Release
For Immediate Release
5 June 2008
ACTE DEMANDS NEW FAA PRIORITY FOR SYSTEMS THAT COULD REDUCE AIRLINE FUEL CONSUMPTION
Alexandria, Va. --
The Association of Corporate Travel Executives (ACTE) is demanding both long- and short-term action on behalf of the Federal Aviation Administration (FAA) to provide “realistic” assistance to the beleaguered U.S. airline industry in the face of skyrocketing fuel costs, service cutbacks, and layoffs. According to a statement issued today by the association’s Executive Director Susan Gurley, there are at least two major proposals that need to be given top priority in alleviating the operating costs of the nation’s carriers.
“The revitalization of the Air Traffic Control (ATC) system is paramount to alleviating congestion, specifically in the northeastern part of the country,” said Gurley. “This flight control enhancement has been dangled before the industry and flying public for the last 10 years. Now, with carriers looking to charge for every conceivable aspect of a trip to pay for the fuel, it’s essential that this system be fully developed and implemented as soon as possible. In addition, the potential of point-to-point flying, as opposed to channeling aircraft through routings like jammed highways in the sky, needs to be fully explored immediately.”
Published reports indicated that airways congestion cost carriers and travellers a combined $45 billion (USD) in 2007, much of which was spent on fuel for aircraft circling airports, or running their engines waiting in line for takeoff. It is estimated that airlines will spent $65 billion (USD) on fuel this year. ACTE leadership believes that making the touted GPS Air Traffic Control System (described as the backbone of the FAA’s Next Generation Air Transportation System) a top priority will shave billions of dollars off projected fuel costs – costs which could eventually get passed onto the consumer.
The problem is that current estimates do not see this system as coming online before 2025. The cost of the new system, $15-22 billion, is far less than revenue lost to congestion, and about a third of what carriers will spend in fuel increases. “This is more than just an essential tool for aviation,” said Gurley. “This new air traffic control system will also make a major contribution to the national economy at a critical time – even if it still takes three years.”
Flying point-to-point would put more control over the aircraft in the hands of pilots; by choosing the shortest routing it would save substantial amounts of fuel on each flight. Some experts think that this process requires more pinpoint data on the positioning of aircraft, however, mandating a new air traffic control system first. Gurley is under no illusions that any technological advancement will return the industry to the era of inexpensive fuel. “However, these developments could lead to greater economic stability within the industry, for both carriers and consumers.”
ABOUT ACTE:
The Association of Corporate Travel Executives (ACTE) represents the global business travel industry through its international advocacy efforts, executive level educational programs, and independent industry research. ACTE's membership consists of senior travel industry executives from 82 countries representing the €200 billion business travel industry. With the support of sponsors from every major segment of the business travel industry, ACTE develops and delivers educational programs in key business centers throughout the world. ACTE has offices in Africa, Asia-Pacific, Canada, Europe, Latin America, Middle East and the United States. For more information on ACTE, please go to www.acte.org.
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For more information, contact:
Debbie Flynn
CEO
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Bridges Wharf, Battersea
London SW11 3BE England
T: 020 7326 9880
F: 020 7326 9890
E: [email protected]
W: www.brightergroup.com