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88–206 2014

FAA’S 2020 NEXTGEN MANDATE: BENEFITS AND 

CHALLENGES FOR GENERAL AVIATION 

HEARING 

BEFORE THE

COMMITTEE ON SMALL BUSINESS 

UNITED STATES 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED THIRTEENTH CONGRESS 

SECOND SESSION 

HEARING HELD 

JUNE 11, 2014 

Small Business Committee Document Number 113–072 

Available via the GPO Website: www.fdsys.gov 

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Congress.#13
(II) 

HOUSE COMMITTEE ON SMALL BUSINESS 

SAM GRAVES, Missouri, Chairman 

STEVE CHABOT, Ohio 

STEVE KING, Iowa 

MIKE COFFMAN, Colorado 

BLAINE LUETKEMEYER, Missouri 

MICK MULVANEY, South Carolina 

SCOTT TIPTON, Colorado 

JAIME HERRERA BEUTLER, Washington 

RICHARD HANNA, New York 

TIM HUELSKAMP, Kansas 

DAVID SCHWEIKERT, Arizona 

KERRY BENTIVOLIO, Michigan 

CHRIS COLLINS, New York 

TOM RICE, South Carolina 

NYDIA VELA ́ ZQUEZ, New York, Ranking Member 

KURT SCHRADER, Oregon 

YVETTE CLARKE, New York 

JUDY CHU, California 

JANICE HAHN, California 

DONALD PAYNE, JR., New Jersey 

GRACE MENG, New York 

BRAD SCHNEIDER, Illinois 

RON BARBER, Arizona 

ANN McLANE KUSTER, New Hampshire 

PATRICK MURPHY, Florida 

LORI SALLEY, Staff Director 

PAUL SASS, Deputy Staff Director 

BARRY PINELES, Chief Counsel 

MICHAEL DAY, Minority Staff Director 

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(III) 

C O N T E N T S 

OPENING STATEMENTS 

Page 

Hon. Sam Graves ..................................................................................................... 1 

Hon. Nydia Vela ́zquez ............................................................................................. 2 

WITNESSES 

Hon. Michael P. Huerta, Administrator, Federal Aviation Administration, 

Washington, DC ................................................................................................... 3 

Ms. Paula Derks, President, Aircraft Electronics Association, Lee’s Summit, 

MO ......................................................................................................................... 9 

Mr. Tim Taylor, President and CEO, Free Flight Systems, Inc., Irving, TX, 

testifying on behalf of the General Aviation Manufacturers Association ........ 11 

Mr. Bob Hepp, Owner, Aviation Adventures, Manassas, VA, testifying on 

behalf of the Aircraft Owners and Pilots Association ....................................... 13 

Mr. Kenneth J. Button, Director, Center for Transportation, Policy, Operations and Logistics, George Mason University, Arlington, VA ....................... 15 

APPENDIX 

Prepared Statements: 

Hon. Michael P. Huerta, Administrator, Federal Aviation Administration, 

Washington, DC ............................................................................................ 24 

Ms. Paula Derks, President, Aircraft Electronics Association, Lee’s Summit, MO .......................................................................................................... 28 

Mr. Tim Taylor, President and CEO, Free Flight Systems, Inc., Irving, 

TX, testifying on behalf of the General Aviation Manufacturers Association ................................................................................................................. 32 

Mr. Bob Hepp, Owner, Aviation Adventures, Manassas, VA, testifying 

on behalf of the Aircraft Owners and Pilots Association ........................... 39 

Mr. Kenneth J. Button, Director, Center for Transportation, Policy, Operations and Logistics, George Mason University, Arlington, VA ................ 44 

Questions and Answers for the Record: 

Questions and Answers to Hon. Michael Huerta from Hon. Judy Chu ....... 52 

Questions and Answers to Hon. Michael Huerta from Hon. Grace Meng ... 54 

Questions and Answers to Hon. Michael Huerta from Hon. Mick 

Mulvaney ....................................................................................................... 56 

Additional Material for the Record: 

National Business Aviation Association (NBAA) ........................................... 59 

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(1) 

FAA’S 2020 NEXTGEN MANDATE: BENEFITS 

AND CHALLENGES FOR GENERAL AVIATION 

WEDNESDAY, JUNE 11, 2014 

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SMALL BUSINESS, 

Washington, DC. 

The Committee met, pursuant to call, at 1:00 p.m., in Room 

2360, Rayburn House Office Building. Hon. Sam Graves [chairman 

of the Committee] presiding. 

Present: Representatives Graves, Chabot, Luetkemeyer, Hanna, 

Schweikert, Collins, Rice, Vela ́zquez, Schrader, Chu, Meng, and 

McLane Kuster. 

Chairman GRAVES. Good afternoon, everybody. And we will call 

this hearing to order. 

Today, the Committee is going to examine the FAA’s 2020 

NextGen mandate, and how it is going to affect small businesses 

in the general aviation community. 

General aviation includes about 360,000 aircraft carrying 166 

million passengers to 5,000 public airports in the U.S., many of 

which have no scheduled air service. More than two-thirds of these 

25 million flight hours per year are for business purposes. In addition to more than 2,500 small businesses that provide air transport 

services, general aviation employs about 1.2 million people and contributes approximately $150 billion to the overall GDP. 

The NextGen initiative is a project of the Federal Aviation Administration designed to modernize the United States’ aviation system by using satellite-based and digital technologies to make air 

travel more predictable, convenient, safe and reliable. At a time 

when many airports in the United States experience high levels of 

congestion and safety concerns are prevalent, the NextGen initiative offers some very positive solutions. 

As part of NextGen, the FAA is mandating that by January 1, 

2020, all aircraft operating in most controlled airspace be equipped 

with technology systems that are capable of broadcasting continuous, precise positional information to ground stations and other 

aircraft. This technology is known as Automatic Dependence Surveillance-Broadcast Out, or what we all refer to as ADS-B Out. 

Despite the deadline, the general aviation community estimates 

that so far, only a few thousand out of more than 150,000 general 

aviation aircraft that are going to be required to equip with this 

new technology have done so. It seems that cost, a potential installation backlog, and uncertainty surrounding the mandate are creating obstacles to compliance among the general aviation industry. 

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It is important to address these challenges if we are going to reap 

the potential safety benefits that this new technology offers. 

We are very fortunate to have with us today the administrator 

of the FAA, as well as a group of general aviation industry representatives and businesses who are going to be affected by this 

mandate, and we look forward to hearing their perspectives regarding the NextGen mandate, its economic impact on the general aviation community, and the solutions to accelerate and make possible 

the widespread adoption. 

I would like to thank all of our witnesses, the first panel obviously and the next panel, for being here, and I recognize Ranking 

Member Vela ́zquez. 

Ms. VELA ́ ZQUEZ. Thank you, Chairman Graves. 

General aviation operators and the services they provide play a 

key role in our nation’s economy. They fly to towns not served regularly by big airlines, take families on sightseeing tours, and train 

the next generation of commercial pilots. In fact, general aviation 

directly generates more than $20 billion annually and has an overall economic impact of nearly $80 million, employing nearly half a 

million workers. 

General aviation’s future success, however, is linked to continually improving safety across the entire civilian aviation industry. 

With this goal in mind, the FAA has embarked on the NextGen initiative, a large-scale modernization of air traffic control utilizing 

the global positioning system and other technologies. GPS provides 

pilots and air traffic controllers numerous advantages over the old 

radar-based system, namely access to precise real-time data on an 

aircraft’s position, altitude, and speed that does not degrade in bad 

weather or over rough terrain. 

The FAA has mandated by 2020, most aircraft will need to be 

equipped with ADS-B Out and equipment to broadcast GPS data 

to both air traffic control and other aircraft in the area. By combining these technologies, FAA hopes to improve general aviation 

safety records, increase utilization of air space on airports, and reduce environmental impact from noise and emissions. ADS-B is 

also likely to help rescuers locate survivors more quickly in the 

event of an accident. 

However, these benefits are not free. In its rulemaking, the FAA 

estimated the cost of equipment to the general aviation fleet will 

be between $1.3 and $4.5 billion. Some industry stakeholders suggest ADS-B could cost $1,000 to $30,000 per aircraft. 

During today’s hearing, I am interested in learning whether 

these costs will come down as more equipment is certified and installation ramps up. There has also been criticism that FAA’s outreach on the 2020 mandate is lacking. Since not all aircraft will 

need to be equipped, pilots and small operators have become confused about whether the requirements apply to them. This could 

result in planes unnecessarily adding this equipment or unintended violations. Providing clear, concise instruction on the mandate should be an FAA priority going forward. In addition, delays 

in certification are another area of concern. These delays could prevent new businesses from opening and existing businesses from 

complying with the 2020 mandate. 

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Pursuing policies that can improve safety are necessary. However, they must be data driven, clearly articulated, and with minimal delay to prevent excessive industry burdens. More sophisticated avionics technology promises a new era in civilian aviation, 

one that is safer, more efficient, and better for the environment. 

However, all of us must work together to ensure delays and costs 

are minimized. 

I thank the panel of witnesses for traveling here today, and I 

look forward to their testimony. 

I yield back, Mr. Chairman. 

Chairman GRAVES. Our first witness today is the Honorable Michael Huerta, the administrator of the Federal Aviation Administration. In that role he oversees the safety and efficiency of the 

largest aerospace system in the world, and he manages a $15.9 billion budget and over 47,000 employees. He is also responsible for 

leading the FAA’s multi-billion NextGen initiative. 

Administrator, thank you for being here, and we appreciate your 

testimony. 

STATEMENT OF MICHAEL P. HUERTA, ADMINISTRATOR, 

FEDERAL AVIATION ADMINISTRATION 

Mr. HUERTA. Good afternoon, Chairman Graves, Ranking Member Vela ́zquez, Members of the Committee. And thank you for the 

opportunity to speak with you today about NextGen and the benefits and challenges of equipping aircraft to take advantage of 

NextGen capabilities. 

Even though it has been more than 100 years since the Wright 

Brothers made history at Kitty Hawk, the thrill and wonder of 

flight comes alive each time a general aviation pilot takes to the 

skies. Our aircraft are far safer today and they are much more 

powerful, and NextGen procedures give general aviation pilots unprecedented access to runways across America thanks to GPS. 

NextGen technology brings weather and traffic information into 

the cockpits and gives pilots better situational awareness which enhances safety. The entrepreneurial spirit shown by the Wright 

Brothers, which this Committee supports, is alive and well in general aviation. The industry contributes about $40 billion per year 

to our nation’s gross domestic product and it creates a half million 

jobs. NextGen strengthens this economic engine by making our nation’s airspace more efficient. 

One of the foundations of NextGen is satellite-based surveillance. 

As we have discussed, the technical name is Automatic Dependent 

Surveillance-Broadcast (ADS-B). We have completed installing the 

ground infrastructure required for ADS-B—more than 630 

transceivers nationwide. This is an extremely important milestone 

and I am proud of the work that has brought us to this point. 

But what does this mean? What benefits does this bring to the 

general aviation pilot? There are considerable benefits available 

right now to those who equip with ADS-B long before the 2020 

mandate. 

We now have ADS-B coverage in remote areas where radar coverage was limited before. This includes the Gulf of Mexico, mountainous regions in Colorado, and low altitude airspace in Alaska. 

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tant flight information, such as temporary flight restrictions and 

notices to airmen. 

The highly precise GPS-based surveillance provided by ADS-B is 

also improving our ability to perform lifesaving search and rescue 

operations. Air traffic controllers have better information about an 

airplane’s last position, thus helping to take the search out of 

search and rescue. 

ADS-B technology allows general aviation pilots for the first time 

to see what air traffic controllers see. Cockpit displays show the location of aircraft in the sky around them, creating an environment 

of shared situational awareness. Pilots are already seeing the additional benefits of ADS-B in better weather, better traffic, and situational awareness, and we believe that they will equip to enjoy these 

benefits. 

ADS-B Out is a foundational element of NextGen that allows us 

to bring these benefits and a host of others to airspace users. And 

I want to clarify that equipage for ADS-B out will only be required 

in certain airspace. That is airspace where we require transponders 

today so that aircraft can be seen by controllers. Now, this, of 

course, includes air space located around busy airports. But if a 

pilot flies in uncontrolled airspace where no transponder is required today, there is no requirement to equip the aircraft. 

Now, we are confident that the general aviation community sees 

the advantage of investing in the new technology, and ADS-B is no 

exception. Right now, owners of 74,000 general aviation aircraft 

have chosen to equip with a type of GPS technology known as Wide 

Area Augmentation System (WAAS). This is not required by any 

rule, but WAAS allows pilots to use NextGen approaches at smaller 

airports that do not have instrument landing systems. This opens 

up access to airports across the country, and many WAAS receivers 

already come as a package with ADS-B Out. 

Nevertheless, we are very aware that increased technology requires investment, and we are doing everything we can to facilitate 

low-cost alternatives for the general aviation community. To meet 

the minimum requirements for ADS-B Out, you need three things: 

a GPS receiver, an extended squitter or universal access transceiver, and an antenna. You can buy just these three things, or you 

can integrate with other technologies and capabilities. 

We have done a lot of work to certify a range of products, and 

companies are responding, which spurs competition in the marketplace. We encourage aircraft owners to equip soon so that they can 

take advantage of the benefits of NextGen. The increased accuracy, 

predictability, and enhanced safety that come with NextGen are 

taking aviation to heights that no one could have imagined in the 

early days of aviation. We appreciate your help in laying the 

groundwork for a modern air transportation system that will benefit generations to come. 

This concludes my oral testimony today. Thank you for the opportunity to be here with you, and I look forward to answering 

your questions. 

Chairman GRAVES. Thank you, Administrator. 

Obviously, they just called a series of votes, and we will try to 

run through questions real quick and then we will go to the next. 

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5 

And mine, which I will just go right into, when we passed the 

FAA Reauthorization back in 2012, a lot of people do not realize, 

but Congress put together a program to incentivize and accelerate 

obviously NextGen installation through FAA loan guarantees, and 

it has been two years and this financing mechanism has yet to be 

started within the FAA. And I am just curious about the implementation of that. And also, have you considered using the SBA to 

enter into an understanding with them or get best practices? They 

obviously deal with this sort of thing all the time and they are very 

well equipped to process them. But I would be very curious where 

we are in that process. 

Mr. HUERTA. Sure. As you pointed out, the Act did include permissive authority to establish a new loan guarantee program, and 

in 2012, we had two public meetings and issued two market surveys to seek input from interested stakeholders on which NextGen 

capabilities are needed, and then also what would happen in the 

face of this financing opportunity. We also held meetings with aircraft operators and potential private partners. In December 2013, 

an interested private partner submitted an application to the FAA 

for an incentives program specifically targeted at general aviation. 

We are currently reviewing that application, and we are working 

with the DOT’s Credit Council. The DOT does oversee other lending programs on the viability of the application and the program. 

We do currently lack one provision, and that is the necessary appropriations authority in order to implement partnership incentive 

programs with a private investor. But, as we work through the application, that is something we would need to work through with 

the appropriators. 

Now, this would certainly accelerate NextGen equipage. We believe it would do that, and we also know that there are currently 

many other private sector nonsubsidized lending sources that are 

out there to pilots, including a program that is being overseen by 

AOPA. 

Chairman GRAVES. And we would love to help you out with 

that, too, as far as appropriations. We do think that it can be run 

much like some of the SBA programs in terms of ultimately being 

neutral in terms of revenues and fees being able to cover everything obviously. But we would love to work with you and work 

through that process because I think it is a program that is going 

to work. And I do not think the appropriations request has ever actually been made either, and we have to have a request from FAA, 

too, before we can move forward. 

Mr. HUERTA. Yes. And it would be based on the scoping of the 

program. And since we have this single application that we are 

looking at, it would be based on what comes out of that. 

Chairman GRAVES. Ranking member? 

Ms. VELA ́ ZQUEZ. Mr. Chairman? 

Okay, I would like to ask you, what do you need the appropriations for? 

Mr. HUERTA. The Congress long ago recognized that authorizations for agencies to provide loan guarantee programs could have 

an impact on the Treasury if the potential liability was not recognized. So pursuant to the Federal Credit Reform Act of 1990, there 

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6 

propriations act, notwithstanding any other provision of loss. So 

what we need in an appropriations act is essentially the ability to 

enter into the program. 

Ms. VELA ́ ZQUEZ. But also under the act, the costs of guaranteeing and administering the loan program could be upset by fees 

charged to lenders and borrowers similar to the 7(a) program. 

Mr. HUERTA. Sure. 

Ms. VELA ́ ZQUEZ. My question to you is have you ever contacted 

SBA so that you could draw from their experience in this area? 

Mr. HUERTA. Yes. And we have contacted everyone that administers guarantee programs, and essentially, what the appropriation 

deals with is not specifically an appropriation of the fee. 

Ms. VELA ́ ZQUEZ. Okay. 

Mr. HUERTA. What this is an appropriation for is a risk premium as for any lending program in the situation which could 

emerge of a loan default or something like that. That is what we 

need the authority for. 

Ms. VELA ́ ZQUEZ. Okay. What happens if a small operator cannot get equipped in time due to conditions out of their control, like 

supply chain issues or installation backlogs? 

Mr. HUERTA. Well, as of today, we have no installation backlogs, nor do we have a backlog in certifying repair stations to do 

the installation. We are still five and a half years ago, and it is for 

that reason that we encourage people to get ahead of this so as to 

ensure that we do not have an installation backlog as we get to 

January 1, 2020. And we do think there are benefits for early 

adopters because they are able to take advantage of the safety benefits, as well as the operational benefits that come from deployment 

of ADS-B. We do not want people to wait. 

Ms. VELA ́ ZQUEZ. Okay. FAA’s strategy right now is to bring everyone into compliance at roughly the same time. Can you explain 

the pros and cons of this approach? 

Mr. HUERTA. Well, the requirement was implemented in 2010, 

and it provided a 10-year implementation period for commercial, 

non-commercial, all users of the national air space system to be 

equipped with ADS-B Out by 2010. And the reason for that is that 

you can only have the safety benefit, as well as the foundational 

efficiency benefits that come through ADS-B if everyone is 

equipped. Otherwise, there is no incentive because you will have a 

moving target. So you need everybody in the program in order to 

get the benefits across the national air space system as a whole. 

Ms. VELA ́ ZQUEZ. Okay. Thank you. 

Thank you, Mr. Chairman. 

Chairman GRAVES. Mr. Collins? 

Mr. COLLINS. Thank you, Mr. Chairman. I will be relatively 

quick. 

As a VFR general aviation pilot, I can tell you, you have answered my questions. My biggest concern would be the exemption 

for someone flying in uncontrolled airspace. I think that is necessary. You have answered the question. I also think your 10-year 

rollout is quite reasonable, and the fact that you can get benefits 

today, I can imagine a lot of people would go ahead and move forward. And there is always a cost issue to most anything. I do not 

think the cost here—for most people flying airplanes, there is a 

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basic cost in that hobby, and while there is a cost here, I do not 

think that is going to be a detriment to those who want to continue 

flying, and I think the safety far outweighs it. So I applaud everything you are doing there. 

But let me bring up one thing maybe a little bit off topic. I was 

county executive of Erie County when Colgan Flight 3407 went 

down a mile from my house. That was about five years ago. And 

as frustrated as I was and others with some of the FAA delays on 

the safety issues that came out of the Airline Safety and FAA Extension Act in 2010, they are mostly now implemented. The pilot 

fatigue, the pilot training, and the new licensing requirements are 

all now implemented and that is good, but could you quickly update me on the last remaining piece, which is the pilot record database? In this case, the pilot had failed several check rides. He did 

not disclose that on his application to Colgan. There was no way 

for Colgan to verify that, in fact, this particular pilot—and it was 

100 percent pilot error—crashed because of the lack of knowing 

that he was frankly just not qualified. Can you update me, and 

those in Western New York especially, where we stand on the database? 

Mr. HUERTA. Sure. To go back to the beginning, the Act required a 90-day period to begin the development on the pilot 

records database, and we did meet that. We established an aviation 

rulemaking committee in February of 2011, which delivered their 

report to us later that year in July. In August, we issued what we 

call an info. That is an information for operators to ensure that the 

industry is aware of the need to retain records, all in anticipation 

of the development of the planned pilot records database. In August of 2012, we conducted two IT proof of concept tests to determine whether we have a workable technical solution because this 

is information that comes from a whole lot of different sources. 

Based on those results, we did initiate a rulemaking and are currently working toward the development of the notice of proposed 

rulemaking, which we hope to publish soon. 

Mr. COLLINS. Any guestimate on when this might be finished? 

Mr. HUERTA. I will have to take an IOU and get back to you. 

Mr. COLLINS. Yeah, could you? 

Mr. HUERTA. Yes. 

Mr. COLLINS. I get questioned about that all the time. 

Mr. HUERTA. Sure. Okay. 

Mr. COLLINS. I yield back, Mr. Chairman. 

Chairman GRAVES. Mr. Schrader? 

Mr. SCHRADER. Thank you, Mr. Chairman. 

Thank you for coming, Administrator. I appreciate it very much. 

Can you describe briefly your outreach to the industry before the 

mandate came out and stuff so we have a clear impression of how 

the stakeholders are involved? 

Mr. HUERTA. We are working with the various industry groups 

that represent the segments of the general aviation industry. You 

will be hearing from them in the second panel here on this hearing. 

That includes the manufacturers who represent the avionics manufacturers, as well as many of those that are in the business of the 

installations. We are working with the electronics industry, who 

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represents both users, as well as repair stations that supply it, the 

Aircraft Owners and Pilots Association. 

Mr. SCHRADER. I was referring to before the mandate and 

stuff. 

Mr. HUERTA. Before the development of this it was done 

through the standard public process that we would do in terms of 

outreach for any rule that we would develop and any mandatory 

notice and comment in consultation with stakeholders. 

Mr. SCHRADER. Questions come up about why not use the SBA 

for the loan program and you indicated that there are a bunch of 

agencies that do have loan incentive programs. The SBA I would 

respectfully suggest is uniquely set up to do that sort of thing. 

Rather than have the agency itself recreate another process or bureaucracy within itself, it might be smart to contract out with the 

SBA or pick an agency, but SBA is small business friendly. They 

get that. They have a lot of experience with the guarantee-type programs. Have you actually talked to the SBA and gotten involved 

with them in a discussion along these lines? 

Mr. HUERTA. I have not but our credit team and our finance 

team have talked extensively with the government partners, you 

know, about how to structure this. But to be clear, we are not proposing to set up a bureaucracy or an office to do this. The application we have is from a private lending entity that we would simply 

be providing the guarantee behind. 

Mr. SCHRADER. Okay. And I am fine with a private entity as 

long as they are reputable and will follow through on that. I just 

would suggest it might be smart to have at least someone to compare the two, make sure to compare apples with apples frankly. 

But I think it is an option there. 

Mr. HUERTA. Sure. 

Mr. SCHRADER. And then the request for the appropriation authorization. That is a technicality it sounds like. When do you 

think given, working with the provider, maybe the outreach here 

to the SBA, when do you think that might occur? 

Mr. HUERTA. It has to be done in an appropriations act, and so 

it is however that—— 

Mr. SCHRADER. It is probably next year is what you are suggesting unless there is a specific bill that deals with this alone? 

Mr. HUERTA. Probably. Yes. 

Mr. SCHRADER. Okay. Okay. 

And then I guess I just want to thank you personally for how the 

agency works. I have had opportunity to reach out to the agency 

on more than one occasion. We get responses. We get telephone 

calls back. The contract tower program is a big deal for a lot of 

small airports around the country, a lot of general aviation folks. 

And we had an airport in Aurora we were concerned about personally, but I think you guys played straight with us, talked about 

what was in the appropriation bills or not and how that might happen, and I just appreciate the way the agency conducts itself and 

wish other agencies would do the same thing. 

With that, I yield back, Mr. Chair. 

Mr. HUERTA. Thank you. 

Chairman GRAVES. Thank you very much. 

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With votes, we will go ahead and move to that. If any other 

members have a question for the administrator, please submit it 

and I will make sure you get it. 

Mr. HUERTA. Thank you. 

Chairman GRAVES. And I would hope to—I do not know if you 

can leave one of your staff around to hear the industry experts on 

the next panel. 

Mr. HUERTA. Absolutely. We will. 

Chairman GRAVES. That would be fantastic. And we appreciate 

you coming up, and I apologize for the votes, but thank you very 

much for taking the time. 

Mr. HUERTA. Thank you, Mr. Chairman. 

Chairman GRAVES. And we will go ahead and seat the next 

panel while we are in recess, and we will be gone for a little bit. 

[Recess] 

Chairman GRAVES. All right. We will call the hearing back to 

order. I apologize again for the vote series in the middle of this. 

But our first witness today is Ms. Paula Derks. She is the president of the Aircraft Electronics Association, which is based in Lee’s 

Summit, Missouri, which I am very proud to represent. 

As president of AEA, Ms. Derks presides over an organization 

that provides regulatory representation, training, and member 

services to more than 1,300 general aviation and electronics entities in 43 countries. She was named president of AEA in 1996 after 

beginning her career there as managing editor of Avionics News. 

Thank you for being here. I appreciate your testimony. 

STATEMENTS OF PAULA DERKS, PRESIDENT, AIRCRAFT ELECTRONICS ASSOCIATION; TIM TAYLOR, PRESIDENT AND CEO, 

FREEFLIGHT SYSTEMS, INC.; BOB HEPP, OWNER, AVIATION 

ADVENTURES; KENNETH BUTTON, DIRECTOR, CENTER FOR 

TRANSPORTATION, POLICY, OPERATIONS AND LOGISTICS 

STATEMENT OF PAULA DERKS 

Ms. DERKS. Chairman Graves, Ranking Member Vela ́zquez, and 

members of the U.S. House Committee on Small Business, thank 

you for the opportunity to appear before you today to speak about 

the benefits and the challenges of the NextGen mandate on the 

general aviation industry. 

My name is Paula Derks, and I am president of the Aircraft Electronics Association, and as Congressman Graves said, we are an 

international organization representing nearly 1,300 companies of 

which nearly 80 percent are small businesses. Included in our 

membership are nearly 200 avionics manufacturers, many of whom 

are producing systems to meet ADS-B Out requirements. 

Our largest category of membership is the 900-plus governmentcertified repair stations with approximately 700 of those located 

here in the United States and certified by the FAA to maintain and 

install avionics, and an additional 200 repair stations in more than 

40 countries around the world. 

My comments today will focus on three primary areas. Number 

one, industry’s ability to meet the mandate. Number two, certifying 

new equipment and receiving field approvals on the installation. 

And number three, the refocused effort needed from the FAA leadSBREP-219 with DISTILLER

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ership to expedite implementation of this safety-enhancing technology and sign off on the congressionally-authorized financial incentives for the aircraft operator. 

Right here today on this date, repair stations have the capacity 

to perform ADS-B installations at a rate necessary for the expected 

160,000 general aviation aircraft to comply with the mandate by 

January 1, 2020. Obviously, demand is expected to increase as the 

deadline nears, and a recent survey of our membership indicates 

that more than 75 percent of the 700 U.S. repair stations will expand and hire new employees and new technicians and support 

staff. This alone is job creation. 

But industry has received mixed signals from the FAA in regards 

to the mandate, and this leads to confusion, rumors, and mistrust 

of the very agency charged with implementing the Next Generation 

Air Transportation System in our nation. 

As you might imagine, when it comes to being forced by a government mandate to spend hard-earned, personal cash to upgrade 

when benefits to the consumer have not yet been fully realized, it 

is not an easy sell. But since the mandate was first announced in 

2010, my association, along with our sister associations, have 

worked hard to educate industry and encourage early equipage. 

From day one, Administrator Huerta’s office has been a vocal 

proponent of NextGen. They have promised a reasonable transition, 

and they have worked to make sure the ground infrastructure is 

in place, only to have their efforts derailed by the back office of the 

FAA, whose individual interpretation of the rules, excessive micromanagement on projects, and personal opinions compete with the 

overall objectives of this program. 

Rumors are swirling that the mandate will be extended. These 

rumors and mistruths create a very confused consumer. Several of 

our repair stations tell us that their customers, the aircraft operators have decided to wait until the last minute to equip because 

they assume the FAA will operate as usual, with delays, and they 

will have to extend the deadline to equip. 

And for operators who have decided to equip early, the FAA is 

still a constraint. We have a member in Las Vegas who supports 

a helicopter fleet operator wanting to equip a fleet of 90 helicopters. He currently has the correct ADS-B equipment installed, 

but because his aircraft has not been FAA ‘‘approved’’ for ADS-B 

operations, he cannot turn the system on. 

Keep in mind, the systems he is installing in this fleet have already been approved by the FAA in thousands of airplanes, but because this is a fleet of helicopters, the approvals do not count. So 

the penalty for this operator, who is willing to early equip, is experiencing six months of costly administrative burden and tens of 

thousands of dollars in certification fees. 

To avert a chokehold as early as 2016, the certification and approval process must be streamlined. The AEA is also helping promote the NextGen GA Fund. This fund is designed to take advantage of the public-private partnership funding authorized by Congress. It creates low interest, privately-funded government back 

loans for aircraft operators. The lack of FAA’s willingness to embrace the fund is a testimony to the cancer that has reaped havoc 

on the agency for the past decade. The agency seems to have a culSBREP-219 with DISTILLER

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ture of ‘‘cannot,’’ rather than a culture of ‘‘can do.’’ We simply ask 

the FAA administrator to restore the culture of ‘‘can do’’ to his 

agency and encourage his agency and encourage his workforce to 

work with the industry. This should be a partnership with a shared 

goal, and that being safety and efficiency. It is this type of historical culture that has created the greatest general aviation industry 

in the world. 

In closing, the challenges that we ask Congress to address include an effort by the FAA to incentivize aircraft owners by immediately signing the loan guarantee certificate for the NextGen GA 

Fund, streamlining the certification and approval process, and restoring aircraft owners’ confidence in the FAA that this deadline 

will not be extended and their money will be well spent. 

Thank you for this opportunity to testify on behalf of the general 

aviation electronics industry. 

Chairman GRAVES. Our next witness is Tim Taylor, who is the 

president and CEO of FreeFlight Systems, which is an aviation 

manufacturing company based in Texas that is developing innovative solutions to assist in NextGen compliance. 

Mr. Taylor has 35 years of leadership experience in the aerospace 

and defense industries, and prior to starting FreeFlight Systems, 

he was the CEO of Elbit Systems of America, a global defense electronics and commercial aviation company. There, he pioneered new 

technology-based systems for customers, including Gulf Stream 

Aerospace and Federal Express. Mr. Taylor is testifying today on 

behalf of the General Aviation Manufacturers Association. 

We appreciate you being here and look forward to your testimony. 

STATEMENT OF TIM TAYLOR 

Mr. TAYLOR. Chairman Graves, Ranking Member Vela ́zquez, 

and other distinguished members of the Committee, my name is 

Tim Taylor, and I am president and chief executive officer of 

FreeFlight Systems. Today, I have the privilege of also representing the General Aviation Manufacturers Association, and I 

am honored to provide testimony to the Committee on their behalf. 

I appreciate the opportunity to discuss today the benefits of the 

nation’s transition to NextGen for general aviation and to highlight 

the importance and ability of industry to meet the FAA’s 2020 

Automatic Dependent Surveillance or ADS-B Out mandate. As the 

leader of a small aviation manufacturing business, I thank the 

Committee for holding this hearing and look forward to describing 

how NextGen avionics, specifically ADS-B equipage, is readily 

available, affordable and easy to install. 

FreeFlight Systems designs, manufacturers, and supports electronic systems that enable the NextGen air traffic management 

transformation. We certified our first ADS-B Out radio in 2011, obtained our first installation approvals in 2012, and have delivered 

around 1,000 ADS-B radios and around 3,000 ADS-B position 

sources since then. 

As a small business, we made the investments, over $3 million, 

upfront to allow aviation operators the ability to meet the FAA’s 

2020 ADS-B mandate. In short, we have already accomplished the 

‘‘heavy lifting’’ required to make our solutions readily available, afSBREP-219 with DISTILLER

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fordable, and easy to install. We are seeing rapid acceleration today 

in the adoption and installation of ADS-B systems in both airborne 

and airport surface vehicle applications. 

FreeFlight Systems does all this as a small business in Texas 

that currently employs 53 people. We either perform or source our 

manufacturing in the United States, predominantly in Texas, but 

we are also part of the global aviation industry, exporting around 

40 percent of our products. 

The potential benefits of NextGen to the aviation community are 

significant. The transformation enables improved safety, increases 

the capacity of the airspace system, and reduces the cost and complexity of air traffic control. For GA operators, many of these benefits, such as access to weather and traffic information, or ADS-B 

In, are immediately available upon appropriate equipage, but realizing the full-potential of NextGen across the national airspace system will require significant additional work by the FAA. 

The more airplanes that equip, the more dramatic the improvements in capacity and safety become. The full potential can be realized only when all aircraft in controlled airspace are equipped, 

which the FAA has mandated by January 1, 2020. The rule and 

mandate were established early in 2010, giving aircraft operators 

10 years to equip. Equipment manufacturers have had longer. The 

system architecture was finalized in 2007 and the rules and requirements have not changed substantially since then. The ground 

infrastructure for the system is largely deployed and is operational 

across the country. There are no regulatory or infrastructure barriers to full equipage to meet the mandate. This long-term stability 

is essential if small businesses are to participate in the NextGen 

transformation. 

For the light end of GA, ADS-B equipment can be relatively inexpensive and easy to install. FreeFlight Systems offers complete solutions today at a list price that is less than $4,000. That is what 

it looks like as a small system. And we are seeing installation 

times that are typically in the 20 to 40 range, for a total cost of 

$6,000 to $8,000. This estimate includes rule compliant ADS-B 

Out, as well as ADS-B In for aircraft that have no modern avionics 

at all. In newer aircraft, ADS-B In, for example, can utilize existing 

display to show beneficial situational awareness. In an older aircraft that has not seen a new piece of avionics since the 1960s, 

ADS-B can simply utilize an iPad. 

For NextGen to be effective, however, systems users need to 

adopt the technology. For the system to work to its full potential, 

every aircraft that enters controlled airspace needs to meet minimum equipage standards or it will disproportionately disrupt operations. A mandate is the only way to ensure that happens and to 

ensure that everybody who invested in the new system, industry 

users and government, get the return they deserve on the investments that they have made. 

In our view, the best incentives from government and industry 

are already in place: infrastructure, a firm schedule, stable requirements, and aggressive pricing. However, there is always more that 

could be considered. 

One area of concern is the inconsistency in the application of certification standards across different FAA branches and regions. 

SBREP-219 with DISTILLER

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Many NextGen programs are being given priority in modification 

approvals, but strong leadership and training can address these inconsistencies, reducing delays, and increasing the number of installers willing to aggressively price and perform ADS-B installations. 

Low interest, government-backed financing has been discussed in 

the marketplace and authorized by Congress and is popular among 

FreeFlight customers. Congress should examine how this can be 

made to move forward. 

The timely introduction of NextGen technologies is vital supporting the safe and efficient operation of our nation’s airspace system and to maintaining U.S. global leadership in aviation. Any wavering or mixed signals hurt NextGen progress, safety, and small 

businesses that are playing by the rules. 

Thank you for the opportunity to testify this afternoon, and I 

look forward to answering any questions that you may have. 

Chairman GRAVES. Thank you, Mr. Taylor. 

Our next witness is Bob Hepp, who is a retired Army lieutenant 

colonel and owner of Aviation Adventures, which is a flight training school based in nearby Manassas. After graduating from Bowling Green State University and obtaining his private pilot certificate in 1977, Mr. Hepp joined the Army, and in 1989 started Aviation Adventures with one aircraft operating off a public ramp in 

Laughton, Oklahoma. Aviation Adventures has won the Aircraft 

Owners and Pilots Association Outstanding Flight School Award 

twice and won its 2013 President’s Choice Award for innovative 

contributions to the flight training community. 

Mr. Hepp is testifying on behalf of AOPA, and we appreciate you 

being here and look forward to your testimony. 

STATEMENT OF BOB HEPP 

Mr. HEPP. Thank you, Chairman Graves, Ranking Member 

Vela ́zquez, and members of the Committee. I am Bob Hepp, the 

owner of Aviation Adventures, a flight school with locations in Manassas, Warrenton, Stafford, and Leesburg, Virginia. 

Our staff of 41 employees provides flight instruction at all levels 

from initial flight training through the Airline Transport Pilot certification. We also provide rental aircraft. 

I am also representing the Aircraft Owners and Pilots Association (AOPA). I have been a member of AOPA since 1981. AOPA’s 

mission is to effectively represent the interests of its more than 

350,000 members as aircraft owners and pilots concerning the 

economy, safety, utility, and popularity of flight in general aviation 

aircraft. 

My testimony today will cover the following points: 

One, the general aviation community has long supported the 

move from ground-based to satellite-based navigation. However, at 

this time, the benefits associated with the FAA mandate are unclear and inadequate for many general aviation users. 

Number two, the FAA’s mandate to equip ADS-B Out by 2020 is 

costly and will be prohibitive for most small flight schools, businesses utilizing aircraft, and recreational aviators. 

Three, providing low-cost loans for GA equipage and leveraging 

existing cockpit technologies, such as handheld devices, can help 

SBREP-219 with DISTILLER

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move NextGen modernization forward without imposing unmanageable burdens on small businesses. 

For most general aviation pilots, there is no direct benefit of the 

ADS-B Out mandate. Complying with the mandate will simply 

allow pilots to continue using the national airspace system that 

they are using today. Complying will be prohibitively expensive for 

many small aviation businesses, including flight schools. Aviation 

Adventures owns and operates 39 aircraft. I estimate that the total 

cost to equip these aircraft for minimal compliance with the ADSB mandate will be $312,000, a major investment for small businesses and many flight schools, one that many flight schools will 

be unable to make. 

Unlike investing in additional aircraft or facilities, the money 

spent on ADS-B Out equipment will not bring a direct return because it will not increase our customer base, will not allow us to 

serve more clients, provide new capabilities, or otherwise help grow 

our businesses. For that reason alone, it is not currently a sound 

business decision to equip early. 

Continuing uncertainties about exactly what the FAA will ultimately require to fulfill the mandate and the tendency of technology prices to drop over time are further disincentives to equip 

early. We have already seen a decrease in prices for ADS-B equipment, just as Mr. Taylor just showed us, since the mandate was finalized in 2010, making it in the best interest of business owners 

and aircraft owners to wait before making that investment. 

Because of the high cost and low return on equipping for the 

2020 mandate, general aviation operators need a little assistance. 

The establishment of a fund to continue low-cost, federally guaranteed loans to equip GA aircraft could provide the financing needed 

to meet the mandate. 

Handheld devices currently provide ADS-B In information, significantly enhancing safety at very nominal cost. Many aircraft operators are already using handheld devices in the cockpit, and 

similar technology could be used to provide ADS-B Out. 

In conclusion, I believe in its current form, the current ADS-B 

Out mandate fails to provide affordable benefits and support for 

general aviation operators. We look forward to working with the 

FAA to help develop affordable ADS-B solutions for general aviation operators and to help the FAA in their efforts to educate the 

general aviation community on the benefits and options provided 

by these solutions. 

On behalf of the 41 employees of Aviation Adventures and the 

more than 350,000 members of AOPA, I appreciate your leadership 

in addressing the concern of the GA industry and also to continue 

to help small businesses thrive and grow nationwide. 

Thank you for the opportunity to appear before the Committee. 

Ms. VELA ́ ZQUEZ. I am sorry. I am kind of lost. I am just working on the questions as I listen to you. 

Yes, Mr. Chairman, it is my pleasure to introduce Kenneth Button. He is the university professor of Public Policy at George Mason 

School University, where he is the director of the Center for Transportation Policy, Operations, and Logistics. He has published or 

has in press some 80 books and over 400 academic papers in the 

field of transportation economics, aviation policy, and related subSBREP-219 with DISTILLER

15 

jects. Professor Button is the editor of numerous academic journals 

in the fields of aviation and aerospace policy, tourism, and transportation. Prior to coming to George Mason University in 1997, he 

served as a transportation expert for the OECD and taught at several universities throughout the world. Welcome. 

STATEMENT OF KENNETH BUTTON 

Mr. BUTTON. Thank you very much, Chairman Graves, Ranking 

Member Vela ́zquez, and Committee members. 

We are clearly going through an age of technical change. We are 

moving from a technology in aviation, which is probably 80 years 

old, to one which is really 20 years old. I do not mean that in any 

insulting fashion. We want a technology which is robust. We do not 

want today’s technology. 

This change is clearly causing friction. It is not easy. My recent 

experience has mainly been in Europe. We have something like 35– 

40 countries trying to move forward in a single European skies, 

very similar to the NextGen initiative here. I would warn of delaying any introduction of ADS in this country. Europe has done this 

so far once. There were plans in Europe to introduce ADS for new 

aircraft from 2013, a retro fit from 2015. That has been pushed 

back for two years, and probably another pushback is coming. That 

is not the way to incentivize introduction of new technology. So I 

would hope people will stick firmly to the 2020 deadline. I think 

it is very important that this is done. 

In terms of the benefits, the pros, if you like, of ADS, I think 

there are safety benefits but they increase exponentially as more 

people adopt the technology. It is no good having one or two people. 

And in the long term, I think one has to think of a full arrangement including ADS In as well as ADS Out. 

Aviation is growing in this country, and giving the licensing I believe it was yesterday of a drone service in Alaska, we are going 

to see unmanned vehicles out there as well in larger numbers, I believe, over the next 20 or 30 years. And there is a need to actually 

integrate the two sectors, the manned and the unmanned. And I 

think moving towards ADS is one element in that. 

In terms of the costs, which I think can be questioned in some 

senses, it is not an easy thing to adopt a new technology. It does 

cost money. The FAA has put money into the ground facilities. 

That is not a small sum of money, and the airlines, the commercial 

airlines are putting equipment in and the general aviation community area. I think that the costs sometimes which are missed in the 

general aviation community are the time it takes to put this equipment in. A lot of general aviation does involve commercial activities—air taxis, training activities, business jets, and there is a 

downtime equipping the new technology. So the cost is not simply 

the financial cost of acquiring the technology; it is also the implementation and setting up of the arrangements to have it installed. 

There are other issues which I think have been discussed. I want 

to spend a couple of minutes though just talking about the transition. Transitions into any new technology have two elements if they 

are of any use, a stick and a carrot. The stick in this case is you 

have got to have it in place by 2020. Bang. The carrot it seems to 

me is the problem. The initial ruling was made in 2010. That is 

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four years ago. There should be some initial thought about how to 

incentivize early uptake of that point. You do not wait until halfway through and then move forward to a situation of offering loan 

guarantees, et cetera, to help people adopt the new technology. 

There is a problem here. Partly, obviously, there seems to be some 

difficulty with the FAA implementing the current arrangements, 

but one would hope perhaps one would move more rapidly at the 

early stages to get people to equip much more quickly so you do 

not get any potential backlog. 

Other countries are doing things differently and it is worthwhile 

looking at them. I am not saying they are better. I personally do 

not think that they are. Canada tends to be using a sort of geographical outward movement taking airspace which is currently 

under no radar control and introducing ADS there and expanding 

it geographically outwards. Other countries, I believe Australia, are 

trying to expand it downwards, higher flights requiring equipping 

before flights at lower levels. So there are options. I am not all together sure they actually are better than the ones in the U.S. I 

think the bigger bang approach here where everyone has to have 

it in controlled airspace is a wise and sensible one. My concern is 

quite simply that the incentive structure has not been developed 

quite as thoughtfully as it might have been. I appreciate within 

that there are budgetary constraints at the macroeconomic level 

which would slow this down, but I one would hope that the FAA 

will now move forward more rapidly and get moving on putting in 

place the finance which is going to be available to help with the 

adoption of ADS. 

Thank you very much. 

Chairman GRAVES. Thank you very much. 

We will move to questions, and we will start with Mr. Hanna. 

Mr. HANNA. Thank you. 

There is pretty much unanimity here that—and who can blame 

anyone for believing that bureaucracies will not meet deadlines, 

make rules clear, put people in a position where they spend money 

that they find out that they did not have to, or did not have to in 

time, or to your point, Ms. Derks, technology changes. 

So the biggest thing you are all asking for is some degree of certainty. There are plenty of ways to finance things. We could do it 

through the Small Business is one of them. It strikes me that you 

cannot blame people for waiting until the last syllable of recorded 

time with our history on most everything in government. I am a 

pilot. I certainly would not go out and—you know, I bought an ELT 

that I was required to buy to transfer frequency. Sam knows about 

it, and I still do not need the old one, and it is years. So, and I 

can really appreciate Mr. Huerta’s point, the administrator, who is 

moving forward to do his job and it is just—it is more about setting 

deadlines, meeting deadlines, having guarantees, and Flight School 

has some 32 planes you said? 

Mr. HEPP. Thirty-nine. 

Mr. HANNA. Thirty-nine planes. You know, $300,000 is a lot of 

money, but let us be honest. You need to train all those pilots to 

use this equipment because it is going to be what they are going 

to use. So certainty for you makes a big difference, too. And you 

can probably do it easily over time, but much less easier if you put 

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it off, but you are not really sure that you do not have to or could 

not put it off. 

I wish I had a question to ask you. I just sympathize with all 

of you. I wonder though, Mr. Hepp, because you are right in the 

thick of this. You are in a tough industry training people, very expensive feet and a lot of people, so you are probably the person who 

is most detrimentally affected being in the low end of GA with all 

due respect. So you are kind of prepared to do this but you are concerned that you are going to do things that will not benefit you 

that cost you a lot and maybe the FAA will make a mess of it. 

Would you like to respond? 

Mr. HEPP. That is pretty much the crux of the issue is that as 

Ms. Derks pointed out, like anything else, if you buy a flat screen 

to put up in your house today, the only thing you are going to be 

guaranteed is that next year or two years from now you can pay 

half the price for that same TV. And the same thing is going on 

in electronics, just like Mr. Taylor just pointed out to us. So there 

is no incentive to wait. The only thing that is going to happen is 

that capabilities are going to go up, the prices are going to come 

down, the mandate date may shift backwards. It may change. They 

may abandon it. They had the microwave landing system a number 

of years ago that they started and it went away. So the only thing 

that we know is that what we are dealing with today is not going 

to be what it ends up in final state. So there is no incentive right 

now for an operator to equip early but the benefits come from, as 

Professor Button pointed out, from everybody going out there and 

equipping early because it does not do any good to have that technology available in your cockpit if there is nobody out there transmitting the ADS-B Out signal to be received. 

So that is the issue that we are at, and if everybody waits till 

the last minute, we are not going to have the capacity—— 

Mr. HANNA. But every incentive is pointing to the notion that 

people should wait till the last minute—— 

Mr. HEPP. Exactly. 

Mr. HANNA.—because of the way the process is not just rolled 

out, but to Ms. Derks’s point, the way technology is put together, 

the way pilots can—I mean, I cannot tell you the number of GPSs 

I have owned in my life and there is always something new, fancier, better that really is better. I am just glad I am not you today. 

Mr. Taylor, do you want to—— 

Mr. TAYLOR. Yeah, I would like to talk to that a little bit. 

I am in the technology business. I am the GPS guy. The GPS in 

this thing—this is a UAT. This is a transceiver with GPS in it. The 

GPS in that is a 2003 kind of vintage WAAS GPS. It has been updated a little bit in the last couple of years, but that technology is 

mature and I cannot make—that particular GPS, I cannot make it 

any smaller. I cannot make it any less expensive. And certify. 

There are certain minimum standards we have to meet with this 

kind of equipment that you cannot go below. This is a primary air 

traffic control device. You put it on your aircraft and from that moment on other aircraft around you, the rest of the world is depending entirely on what comes out of this box to make decisions about 

separation, movement of aircraft, and so on. So the standards that 

you have to meet are not going to drop—they are not going to drop 

SBREP-219 with DISTILLER

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below the standards of day-to-day. They were well thought out. 

They were well established. I cannot build this any cheaper. I am 

telling you. I cannot build this any cheaper than I am selling it 

today. This is priced—I am buying materials in quantities of 1,000. 

I am not selling in thousands. I am selling in hundreds, so I am 

taking risks on that. But that is the price. The cost is not going 

to go down of the equipment. 

And I think in terms of the rules themselves, in my testimony 

I am asking the rules not to change. I think the rules should not 

change. I think the rules will not change. I think it would be very 

nice to really hear the FAA in some consistent and concrete way 

tell us. 

Barriers to equipage, we are seeing people equip. 

Just one more little thing. I am sorry. 

There are benefits today, by the way. So the FAA provides to 

users of this equipment traffic information, weather information. 

That comes today. You do not need everybody to equip to that. 

That happens today. For flight school, we can provide you fleet 

tracking, so you can use the ADS-B technology to track the assets 

that you have flying for safety, for fuel efficiency, for many reasons. 

So the raw technology is really just a cornerstone of many, many, 

many exciting applications, many of which are available today. 

Mr. HANNA. My time is expired. Thank you for your indulgence. 

Chairman GRAVES. Ms. Vela ́zquez? 

Ms. VELA ́ ZQUEZ. Professor Button, you mentioned that other 

countries have taken a different approach to implementing satellite-based air traffic control. For example, Canada’s geographical 

spread system. Do you think a different approach would have fewer 

negative impacts than FAA’s current strategy? 

Mr. BUTTON. Probably not. I think that the big thing you have 

to remember about the United States is the sheer scale. It dwarfs 

any other general aviation market in the world. There are some figures in my written documentation to give you an impression of 

this. 

I think when you have a large market of this kind you really 

have to go for a big bang approach. It is pretty heterogeneous. Markets interact with one another and I think of these as markets. I 

am an economist by training, so I think the U.S. has actually been 

very wise in taking a big bang approach. It is not totally big bang 

because uncontrolled flight space does not require ADS. It does not 

have complete coverage of the system, but it is fairly reasonable I 

think given the nature of the country, given the nature of general 

aviation here. 

Ms. VELA ́ ZQUEZ. Thank you. 

Ms. Derks and Mr. Taylor, you both mentioned rumors that the 

FAA may delay the 2020 mandate, yet the administrator today 

stated that that will not happen. I would like to hear why you 

think there will be a delay? 

Ms. DERKS. As of today, we do not know that there will be a 

delay. I am simply expressing that those are the stories and the 

rumors in industry right now that based on FAA’s past history, 

there most likely will be a delay. In the past five decades, I do not 

know of one avionics mandate that has not received an extension 

by the FAA. And I think I can speak for Mr. Taylor, we are both 

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asking for the FAA not to extend this mandate; to try to meet the 

January 1, 2020 mandate and work with industry to help us educate the consumer as well. 

Ms. VELA ́ ZQUEZ. Okay. 

Mr. TAYLOR. Just to add, we hear it from customers. This is 

where we hear the rumor. When we are talking to customers about 

equipping, then one of the reasons that they give is the reason you 

gave. The FAA has never successfully brought one of these programs in on time. And that is the concern. 

I agree with Paula. The FAA seems to be doing all the right 

things in terms of providing the framework, providing the rules. 

We are not seeing any sign that they are wavering. But a couple 

of years ago I was hearing them shouting from the rooftops that 

there will be no wavers, no exceptions. You have got to do that. I 

have not heard that so much recently, so it would be nice to hear 

that shouting from the rooftops again. 

Ms. VELA ́ ZQUEZ. Okay. So you all touch on the need for a loan 

guarantee program to help general aviation operators purchase 

equipment. Is there any data available to support this assertion? 

Mr. TAYLOR. I can give you a very small sample. We are a 

small company. So two weeks ago we made 70 outgoing calls to 

people who had asked about the system and who we had quoted 

to but had not purchased. And we asked them, are you going to approach this? What is the decision? Seventeen of them purchased, 

which was wonderful, by the way. Ten said they were waiting for 

the loan guarantee program. 

Ms. VELA ́ ZQUEZ. They are waiting for the loan guarantee program. 

Mr. TAYLOR. It had been announced. We had announced it. We 

thought it was happening. So that was it. And then the others were 

various not decided yet. 

Ms. VELA ́ ZQUEZ. I am troubled with the fact that in reference 

to the question made by the chairman and followed by me regarding the loan guarantee program, he stated that they needed appropriation language or an appropriation. And when I read the statute, the reauthorization, it says ‘‘Subject to the ability of appropriated funds, the secretary may use a financial instrument to facilitate public-private financing for the equipage of general aviation 

and commercial aircraft. To the extent appropriations are not made 

available, the secretary may establish the program provided the 

costs are covered by the fees and premiums authorized by the section.’’ 

So what it means, Mr. Chairman, is basically that they have the 

authority to create a program that is offset with the fees. So we 

should send a letter to the administrator asking for clarification. 

And if, in fact, there is no appropriation, the fact of the matter is 

that they have not submitted a request for such an appropriation. 

So clearly, the message is that they have no intent to create such 

a program. The authority is there and we should request clarification or a certain date as to when they are going to have a program 

up and running. 

I would like to ask Professor Button, as you know, congestion 

around airports results in delays and reduces safety if air traffic 

control cannot accurately track flights both in the air and on the 

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ground. How does ADS-B technology help controllers better manage traffic around airports? 

Mr. BUTTON. Well, in a number of ways. One is you have immediate information, the current system of primary surveillance 

where you send the beam out and it bounces back. There are gaps 

in the information. So you have got more continuity in the information flow you have got. 

There is the ability also to see them fairly easily. I think the 

main advantage will come with congestion when you get both a full 

implementation of ADS In and Out. So the airlines can come 

through and they can sort of interact with one another. It is a difference between commercial aviation—scheduled commercial aviation I should say accurately, and other forms of aviation in the 

sense that they are in sense operated from the ground. They have 

ground controllers who maneuver the commercial aircraft we fly in 

to put them in order for landing to make connections and so on. 

That would be improved. UPS is clearly using it in some of the 

freight carriers which is advantageous to them. 

General aviation, not many places are going to have a huge impact on congestion I do not think because a lot of the flying is done 

at relatively small airports. Not always, of course. So the main 

gains I think here with congestion are probably more with the commercial scheduled carriers because they can manage their schedule 

better. But, of course, there are some airports which do have a 

quite significant general aviation, particularly business aircraft 

coming in, and there again, the controllers have more information 

exactly where things are. 

And the other factor, I think, is the weather information we keep 

forgetting. There is some free information in this. Weather information and other information of that kind can also affect decisions 

of pilots of how to approach delayed flights and so on which can 

be helpful in congestion control. 

Ms. VELA ́ ZQUEZ. Thank you. 

Thank you, Mr. Chairman. 

Chairman GRAVES. Mr. Luetkemeyer? 

Mr. LUETKEMEYER. Thank you, Mr. Chairman. 

A lot of the questions I had have already been asked here, so let 

me just start with Mr. Hepp, you mentioned a while ago something 

about a handheld device. Has the technology gone to where it is a 

handheld device now or something smaller and easier to handle, 

cheaper, or something like that? Are we headed that direction? 

Mr. HEPP. What is available right now is ADS-B In technology 

in a handheld form. 

Mr. LUETKEMEYER. Do you consider that handheld? 

Mr. HEPP. This is an installed—this would go actually installed 

on the aircraft, but apparently, there are applications, iPad applications out there ForeFlight, Garmin Pro, several others that then 

can be mated with an antenna using either Wi-Fi or Bluetooth 

technology, and that antenna is entirely—it has got a self-contained battery. You just turn it on, set it someplace where the antenna has a view of the sky, and you get all of the ADS-B In information that is available. So any aircraft that is equipped with 

ADS-B Out technology, you will see that aircraft pop up as traffic 

on an iPad screen. And also, the weather information that ProSBREP-219 with DISTILLER

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fessor Button was talking about is available from the ADS-B sites 

that are now—I believe that array of sites is fairly robust in the 

U.S. So weather information then is also immediately available to 

pilots at a very low cost. The antennas out there currently run in 

the neighborhood of $800, and then the iPad and the applications 

for the iPad are somewhere between $75 and $150. 

So for that minimal investment, you can get all or most of the 

benefits of ADS-B on the inside, but the requirement is for ADSB Out to broadcast your position information so that other ADSB users with an In capability can see your position. 

Mr. LUETKEMEYER. Okay. 

Someone mentioned a while ago something about drones. Do 

drones have to have this device? Mr. Button, is that you? 

Mr. BUTTON. Very good question, actually. I have no idea. One 

would hope they probably do. There has only been one licensed 

grantor as far as I understand and that was to inspect pipelines 

in Alaska. That was yesterday, I believe. But clearly, the FAA is 

looking at drones very carefully and they presumably—I have not 

thought about this—come under general aviation. Hot air balloons 

do, so drones presumably might have to. 

Mr. LUETKEMEYER. Mr. Taylor? 

Mr. TAYLOR. There is work ongoing right now on this, and the 

FAA recently set up five different test sites across the country to 

manage integration of UAVs and manned aircraft at different levels. One was in Texas. A&M is doing it. One is in Nevada. And I 

think you will see that technology will become part of the solution 

for putting ummanned vehicles in the airspace. But in terms of—— 

Mr. LUETKEMEYER. So it is not required right now? 

Mr. TAYLOR. It is an airspace rule, so the way the FAA and— 

we are on the Joint Government Industry Working Group for ADSB, and the way it has been explained in that working group is that 

it is an airspace rule. So it does not matter if you are an F-16 or 

a UAV or a home build. 

Mr. LUETKEMEYER. Gotcha. 

Mr. TAYLOR. You are going to have to comply with the rule to 

operate in that part of the airspace. 

Mr. LUETKEMEYER. Very good. 

Mr. TAYLOR. May I also comment quickly on the ADS-B Out 

technology again and the handheld? We firmly believe that you 

cannot, should not use any kind of portable technology for ADS-B 

Out. For ADS-B In, I agree. But for Out, as I was saying earlier, 

you land at an airport in a small aircraft with a 757 landing next 

to you, he is going to be making decisions, and air traffic control 

is making decisions of safety of life for him and for his people based 

on what you are saying coming from your aircraft, and I think you 

do not want that to be from something you put in your pocket and 

walk away from the aircraft with. It is just not that kind of technology. It has to be installed, verified, and proven. 

Mr. LUETKEMEYER. Very good. Thank you. 

Mr. Button, Professor Button, you talked about some of the stuff 

that went on in Europe with regards to delays. What was the outcome of the continue to delay, delay, delay? Were there negatives? 

I mean, people get hurt, costs go down, that is a positive. What did 

you see from those constant delays? 

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Mr. BUTTON. Well, as far as I know, there are no detailed studies of this. There are no studies of this. It is very difficult to pick 

up because of the—— 

Mr. LUETKEMEYER. If something does not happen. 

Mr. BUTTON. It does not happen—it’s counterfactual if you like 

what is going on. 

Mr. LUETKEMEYER. Right. 

Mr. BUTTON. I think it is rather indicative to have a bigger 

problem in Europe. The European initiative of the Single European 

Sky of which ADS is a component is really to integrate—it depends 

how you do your numbers—37 different systems. You have got one 

system with the FAA here. So the problems are different. General 

aviation is hardly mentioned in the discussions quite bluntly. 

Mr. LUETKEMEYER. Okay. 

Mr. BUTTON. Military aviation is because we share disparate 

military airspace, but general aviation is not a major consideration. 

Mr. LUETKEMEYER. Thank you. My time is up. 

Thank you, Mr. Chairman. 

Chairman GRAVES. Quick question for Ms. Derks. 

If we do not start doing some installation pretty quickly, we are 

going to run into a real backlog problem. Would you agree? If you 

just do the numbers? 

Ms. DERKS. Most definitely. If you do the math, when we can 

safely do 100 installs today, today’s date, but every day that is delayed and every day that there might not be incentives such as a 

government-backed loan program, those daily installs will increase. 

And you do the math. With the approximately 700 U.S.-based repair stations that are capable of doing ADS-B Out installs, you can 

quickly surmise that we are going to have a huge backlog. 

Chairman GRAVES. My final question for each one of you, real 

quick, if you could give the FAA one piece of advice on moving forward with this, now is your opportunity. What would it be? 

Mr. Button, I will start with you. 

Mr. BUTTON. You are looking at me. Get moving with the cash. 

Chairman GRAVES. Mr. Hepp? 

Mr. HEPP. I think if they worked a little harder to educate the 

general aviation public as to what the benefits and the timeline 

and reinforce that they are either going to slip the timeline or they 

are going to hold on the timeline, and then to make it very, very 

clear to operators at each level, whether it be a flight school, an 

individual operator, or a business that owns an aircraft, a charter 

operation, each type of business, to let them make informed decisions on when they are going to equip their fleet, what makes the 

most sense for them to equip their fleet to meet the requirements 

of the 2020 mandate. 

Chairman GRAVES. Mr. Taylor? 

Mr. TAYLOR. I would say hold fast to the mandate, hold fast to 

the rules, and provide leadership for your field operations so there 

is consistent application of regulation across all installs. 

Chairman GRAVES. Ms. Derks? 

Ms. DERKS. And I am going to expand on that. I would ask 

them to better communicate—headquarters to the aircraft certification offices to the flight standards, district offices, to the rotorcraft, the airport or airplane directorate, and the small airplane diSBREP-219 with DISTILLER

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rectorate, communication so that they are uniform in their regulations and their certifications and in their installation approvals as 

well. And to please sign the loan guarantee for the finance incentive program. 

Chairman GRAVES. Well, I want to thank you all for participating today, and your testimony is going to help us better understand both the benefits that the FAA’s NextGen initiative is going 

to provide, as well as the challenges to the GA community, what 

it is going to face in complying with that 2020 mandate. And it is 

clear that widespread industry adoption is going to be vital in this 

whole process. But in order for it to occur, the GA community has 

to have a way of equipping. 

It has been an honor for me and the other Committee members 

to hear the FAA administrator and to hear you all, the industry 

leaders, and I appreciate you coming in. Some of you from a long 

way. 

But I would ask unanimous consent that members have five legislative days to submit statements and supporting materials for the 

record. 

Without objection, that is so ordered. 

And with that, the hearing is adjourned. Thanks. 

[Whereupon, at 2:45 p.m., the Committee was adjourned.] 

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A P P E N D I X 

STATEMENT OF MICHAEL P. HUERTA, ADMINISTRATOR, 

FEDERAL AVIATION ADMINISTRATION, BEFORE THE 

COMMITTEE ON SMALL BUSINESS, FAA’S 2020 

NEXTGEN MANDATE: BENEFITS AND CHALLENGES 

FOR GENERAL AVIATION, JUNE 11, 2014. 

Chairman Graves, Ranking Member Velazquez, Members of the 

Committee: Thank you for the opportunity to speak to you today 

about the Next Generation Air Transportation System (NextGen), 

the 2020 mandate, and the benefits and challenges of ADS-B equipage for general aviation. 

Through NextGen, the FAA is changing the way the National 

Airspace System (NAS) operates to achieve greater efficiency and 

predictability in air travel. NextGen will improve safety and support environmental initiatives such as reducing congestion, noise, 

emissions and fuel consumption through increased efficiency. 

NextGen will allow the NAS to expand to meet future demand and 

support the economic viability of our country’s aviation system. 

Through NextGen, the FAA is moving from ground-based surveillance and navigation to more dynamic and accurate airborne-based 

systems and procedures in order to enhance capacity, reduce delay, 

and improve environmental performance. 

Automatic Dependent Surveillance-Broadcast (ADS-B) is a key 

component of NextGen, which will move air traffic control (ATC) 

from a radar-based system to a more precise satellite-derived aircraft location system. ADS-B equipment combines an aircraft’s positioning source, aircraft avionics, and a ground infrastructure to 

create an accurate surveillance interface between aircraft and ATC. 

The baseline installation of ADS-B ground station is now complete, 

so operators who equip now will see benefits now—there is no need 

to wait until 2020. 

ADS-B has many benefits for users of the NAS, including the 

general aviation community. ADS-B provides air traffic controllers 

with more accurate information to help keep aircraft safely separated in the sky and on runways. With ADS-B, controllers get an 

update of aircraft position almost continuously, compared to every 

five seconds or longer with radar. This improves the precision of 

our tracking, leads to enhanced safety and greater efficiency, and 

ultimately results in a smoother flow of air traffic. 

Since ADS-B ground stations are easier to install and offer a 

greater distance of coverage than radar towers. We have also been 

able to expand access through ADS-B. We now have ADS-B coverage in remote areas where radar coverage was limited due to 

constraints on the surface or over bodies of water, such as in the 

Gulf of Mexico, mountainous regions in Colorado, and low altitude 

airspace in Alaska. Operators in those areas are seeing benefits, including increased flight hours by virtue of being able to operate in 

periods of low visibility. 

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The improved accuracy, integrity and reliability of satellite signals over radar means it will be possible to safely reduce the minimum separation distance between aircraft and increase capacity in 

the nation’s skies. Increased equipage by the aviation community 

will allow the benefits of the ADS-B to be realized and benefit all 

users of the NAS. 

Equipage and Benefits of ADS-B Technology 

ADS-B consists of two different services: ADS-B Out and ADSB In. ADS-B Out periodically broadcasts information about each 

aircraft operating within the NAS, such as identification, current 

position, altitude, and velocity, through an onboard transmitter. 

ADS-B Out provides air traffic controllers with real-time position 

information that is, in most cases, more accurate than the information available with current radar-based systems. With more accurate information, ATC will be able to position and separate aircraft 

with improved precision and timing. 

All users operating in designated airspace must be equipped with 

ADS-B Out avionics by January 1, 2020. The rule does not preclude 

other navigation sources; it simply requires that aircraft flying in 

certain airspace be equipped with avionics that meet performance 

requirements. The designated airspace includes Class A, B, and C 

airspace, as well as Class E airspace areas at or above 10,000 feet 

mean sea level (MSL) over the 48 contiguous United States and the 

District of Columbia, excluding the airspace at and below 2,500 feet 

above the surface. This airspace is more complex, with relatively 

diverse users. The rule also requires that aircraft operating in the 

airspace within 30 nautical miles (NM) of the nation’s busiest airports be equipped with ADS-B Out capabilities. This will enhance 

safety, efficiency, and performance around those airports. 

If you never fly into ADS-B designated airspace, there is no requirement to equip your aircraft with this technology. For the most 

part, the ADS-B Out requirement covers the same airspace where 

transponders are required; just as some aircraft are not required 

to be equipped with transponders, not all aircraft will need to be 

equipped with ADS-B Out. Users who never fly into designated airspace will not be impacted by the new requirements at all. In those 

cases, equipping with ADS-B technology is optional, but the benefits of ADS-B technology are available to any user who equips their 

aircraft. 

ADS-B In technology allows pilots, including general aviation pilots, to see what air traffic controllers see: displays showing the location of aircraft in the sky around them. This creates an environment of shared situational awareness that allows for greater safety 

and efficiency. ADS-B In displays in the cockpit also pinpoint hazardous weather and terrain, and give pilots important flight information, such as temporary flight restrictions. Operators who have 

equipped with ADS-B In technology are already seeing these benefits in the cockpit. 

Flight Information Service-Broadcast (FIS-B) and Traffic Information Service-Broadcast (TIS-B) are free services that are automatically transmitted to aircraft equipped to receive ADS-B In. 

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FIS-B provides a broad range of textual/graphical weather products 

and other flight information to users, including the general aviation community; it includes the following: 

Æ Aviation Routine Weather Reports (METARs) 

Æ Non-Routine Aviation Weather Reports (SPECIs) 

Æ Terminal Area Forecasts (TAFs) and their amendments 

Æ NEXRAD (regional and CONUS) precipitation maps 

Æ Notice to Airmen (NOTAM) Distant and Flight Data Center 

Æ Airmen’s Meteorological Conditions (AIRMET) 

Æ Significant Meteorological Conditions (SIGMET) and Convective SIGMET 

Æ Status of Special Use Airspace (SUA) 

Æ Temporary Flight Restrictions (TFRs) 

Æ Winds and Temperatures Aloft 

Æ Pilot Reports (PIREPS) 

TIS-B is an advisory service that increases pilots’ situational 

awareness by providing traffic information on all transponderbased aircraft within the vicinity of the ADS-B In equipped aircraft 

receiving the data. The costs of these broadcast services are absorbed by the FAA, so NAS users do not pay any subscription or 

usage fees for traffic, weather, or aeronautical information services. 

Nearly seventy-five percent (75%) of weather-related general 

aviation accidents are fatal. Free traffic and weather information 

automatically transmitted to the cockpit is something the general 

aviation community benefits from. General aviation pilots with 

proper equipage are already taking advantage of these nationwide 

services. 

When displayed in the cockpit, this information also improves 

the pilot’s situational awareness in aircraft not equipped with a 

traffic alert and collision avoidance system (TCAS/airborne collision 

avoidance system (ACAS). Equipage for ADS-B In is not required 

under FAA regulations, but users who are equipping with both 

ADS-B Out and In are seeing the wider range of functionality afforded by ADS-B than those only equipping with ADS-B Out. 

Challenges and Solutions Moving Forward 

We are confident that users of the NAS, including the general 

aviation community, will see the advantages to ADS-B as they continue to equip and begin using the technology it offers. But, we also 

realize that increased technology generally requires increased investment for the government, private industry, which includes both 

large and small businesses, and individual aircraft owners. The 

FAA has made a significant investment in infrastructure to enable 

the technology being delivered through NextGen, including ADS-B. 

We are now calling on users of the NAS to equip their aircraft in 

a way that allows us to maximize the benefits of NextGen in designated airspace. 

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We are doing everything we can to ameliorate the burden on operators and facilitate low-cost alternatives for the general aviation 

community. Users already have a wide range of options to meet the 

2020 mandate, if it will impact them. A variety of manufacturers 

have rule-compliant technology in various different price ranges on 

the market today. We commend the industry for what they are 

doing to facilitate equipage, and we look forward to continuing to 

work with stakeholders in this important endeavor. As required by 

Section 221 of the FAA Modernization and Reform Act of 2012 

(P.L. 112–95), FAA is evaluating financing options and considering 

loan guarantee programs, but we also encourage users to take advantage of the financing options already available on the private 

market and through their respective associations. 

The FAA believes that ADS-B technology is a key component in 

achieving many of the goals set forth in the NextGen Implementation Plan. The ADS-B Out equipage requirement is a major step toward establishing an air traffic system that accommodates future 

requirements and responds to shifts in demand from users by 

leveraging enhanced surveillance capabilities to increase capacity 

and efficiency of airspace use. ADS-B technology not only assists in 

the transition to a system with less dependence on ground infrastructure and facilities, but also creates capabilities for precision 

and accuracy, which in turn will make the system more operationally and environmentally efficient. 

Mr. Chairman, this concludes my statement. I would be happy 

to take questions at this time. 

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Testimony of Tim Taylor 

President and CEO, FreeFlight Systems, Inc. 

On Behalf of the General Aviation Manufacturers Association 

Committee on Small Business 

U.S. House of Representatives 

FAA’s 2020 NextGen Mandate: Benefits and Challenges for General 

Aviation 

June 11, 2014 

Introduction 

Chairman Graves, Ranking Member Vela ́zquez, and other distinguished members of the Committee, my name is Tim Taylor, and 

I am president and chief executive officer of FreeFlight Systems. 

Today, I have the privilege of also representing the General Aviation Manufacturers Association (GAMA) and am honored to provide 

testimony to the Committee on their behalf. 

I appreciate the opportunity to discuss today the benefits of the 

nation’s transition to the Next Generation Air Transportation System (NextGen) for general aviation (GA) and to highlight the importance and ability of industry to meet the Federal Aviation Administration’s (FAA) 2020 automatic dependent surveillance-broadcast (ADS-B) Out mandate. As the leader of a small aviation manufacturing business, I thank the Committee for holding this hearing 

and look forward to describing how NextGen avionics—specifically 

ADS-B equipage—is readily available, affordable, and easy to install. 

At a basic level, NextGen represents the shift from the existing 

radar-based air traffic control (ATC) system to a more automated 

aircraft-centered, satellite-based system. FreeFlight Systems designs, manufactures, and supports electronics systems that enable 

and support the NextGen air traffic management transformation. 

We are experts in the essential technologies at the heart of 

NextGen and we apply these technologies to platform equipage 

across a broad spectrum of air and ground vehicles, and to infrastructure development and services. 

Since NextGen equipage presents unique challenges from a retrofit perspective, we have focused on developing a series of core elements that can be easily installed into the diverse, and often quite 

old, aircraft fleet. We certified our first ADS-B Out radio in 2011, 

obtained our first installation approvals in 2012, and have delivered around 1,000 ADS-B radios and around 3,000 ADS-B position 

sources since then. 

As a small business, we made the research and development investments—more than $3 million—upfront to allow aviation operators the ability to meet the FAA’s 2020 ADS-B mandate. In short, 

we have already accomplished the ‘‘heavy lifting’’ required to make 

our solutions readily available, affordable, and easy to install. We 

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are seeing rapid acceleration today in the adoption and installation 

of ADS-B systems in both airborne and airport surface vehicle applications. 

FreeFlight Systems does all this as a small business located in 

Texas that currently employs 53 people. We either perform or 

source out manufacturing in the United States, predominantly in 

Texas, but we are also part of the global aviation industry, exporting around 40% of our products. I should note that our exports are 

enabled in part by the Export-Import Bank of the United States 

(Ex-Im). Ex-Im guarantees credit that we grant to offshore customers, allowing us to access cash from our commercial banking 

partners at the point of sale. Like Free Flight, many other small 

manufacturers across the country depend on Ex-Im and we hope 

Congress will move the reauthorize the Bank before the end of September when the current authorization expires. 

Why NextGen Matters to GA 

While today’s hearing focuses on ADS-B, I would like to note that 

ADS-B is only one of a number of core capabilities that make up 

the broader NextGen program, including Data Communications 

(DataComm), Performance-Based Navigation (PBN) and SystemWide Information Management (SWIM), to name a few. 

The potential benefits of NextGen to the aviation community are 

significant. The transformation enables improved safety, increases 

the capacity of the airspace system, and reduces the cost and complexity of ATC. For GA operators, many of these benefits are immediately available upon appropriate equipage, but realizing the full 

potential of the broader NextGen programs across the National Airspace System will require significant additional work by the FAA. 

Before ADS-B, information on aircraft position was gathered by 

radar systems only and then used by air traffic controllers to separate aircraft. The current ATC system does this by drawing a bubble around each aircraft that represents its possible positions. As 

long as the bubbles do not touch, separation is assured. Using 

radar, these bubbles can be tens of miles across, and they are updated every 12 seconds or so. In contrast, an aircraft that is 

equipped with a rule-compliant ADS-B Out system is broadcasting 

key parameters once per second, along with a parameter that precisely describes the size of the bubble, for that aircraft. These ADSB bubbles can be tens of feet across instead of miles. 

This high-quality, high-update rate broadcast allows ATC to better manage airspace and air traffic management, becoming more 

automated and less dependent on human decision-making. The 

transmitted information is also available to other aircraft that are 

equipped with an ADS-B In system, so pilots get that same highquality traffic picture right in their cockpits. The FAA also provides 

an additional uplink to ADS-B users of Flight Information Services, 

which includes local and national graphical weather pictures, as 

well as important information about meteorological and other conditions across the system. 

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This high-precision traffic picture has other benefits. Fleet operators, such as flight schools, can track their aircraft and ensure that 

they are operating in accordance with plan and procedure. Additionally, if an aircraft should experience difficulties, ATC can provide quick and precise direction to the aircraft. 

The more airplanes that equip, the more dramatic the improvements in capacity and safety become. The full potential can be realized when all aircraft in controlled airspace are equipped, which 

the FAA has mandated by January 1, 2020. The rule and mandate 

were established early in 2010, giving aircraft operators 10 years 

to equip. Equipment manufacturers have had longer. The system 

architecture was finalized in 2007 and the rules and requirements 

have not changed substantially since then. The ground infrastructure of the system is largely deployed and is operational across the 

country. There are no regulatory or infrastructure barriers to full 

equipage to meet the mandate. This long-term stability is essential 

if small businesses are to participate in the NextGen transformation. 

ADS-B Compliant Equipment is Readily Available 

In addition to providing a consistent set of rules and requirements, as well as providing a 10-year window to equip aircraft, the 

FAA has taken other positive steps to ensure that rule-compliant 

equipment is available and ready for the marketplace. 

In several cases, the FAA formed ‘‘in-kind’’ partnerships with 

early adopters, such as Gulf of Mexico helicopter operators, and collaborated with them to work on installation and certification efforts, solve problems, and capture lessons learned. FreeFlight Systems was chosen by several of these early adopters to provide the 

avionics equipment for these activities and, in each case, it was a 

rich learning environment that allowed us to improve our product. 

Many of these aircraft have now been operating for several years, 

providing additional opportunities to test and develop the system. 

The products that FreeFlight Systems offers today are already 

third-generation, as we have been able to incorporate lessons from 

these early activities. 

Many other manufacturers have participated in these proving exercises across all strata of the National Airspace System. Mature, 

rule-compliant equipment is available today from multiple vendors 

for light GA, rotorcraft, business aviation, and airline transport aircraft. More products are entering the market this year. They are 

being offered both by the traditional major avionics suppliers and 

by some specialist small businesses, such as FreeFlight Systems. In 

fact, some of the major brand products are private-label versions of 

these small business offerings. 

In 2013, FreeFlight Systems was pleased to be awarded a direct 

FAA contract in full and open competition to replace early version 

ADS-B units with rule-compliant systems for several hundred aircraft in Alaska. These aircraft were part of the original Capstone 

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1FAA: ‘‘The Capstone Project was a joint industry and FAA research and development effort 

to improve aviation safety and efficiency in Alaska. Under Capstone, the FAA provided avionics 

equipment for aircraft and the supporting ground infrastructure. The Capstone Project operated 

from 1999 to 2006, and its success in Alaska laid the groundwork for the nationwide deployment 

of ADS-B.’’ (http://www.faa.gov/nextgen/implementation/programs/adsb/wsa/archival/) 2 Aircraft weighing less than 12,500 pounds. 

ADS-B development program.1 This contract gave FreeFlight the 

opportunity to install our ADS-B equipment in a variety of aircraft 

types typical of the larger GA fleet. This experience gave us firsthand knowledge of installation complexity, time, and cost. 

FreeFlight Systems today offers rule-compliant ADS-B radios 

suitable for light GA 2 and rotorcraft in a variety of configurations, 

with optional internal global positioning system (GPS) receivers. 

We have installation approval for several hundred aircraft types 

(fixed and rotary wing), and we are constantly adding to this list. 

Additionally, we provide a range of rule-compliant, low-cost, standalone position sources that are compatible with other suppliers’ 

ADS-B radio offerings for all aircraft segments. 

ADS-B Compliant Equipment is Affordable and Easy to Install 

For the light end of GA, ADS-B equipment can be relatively inexpensive and easy to install. FreeFlight Systems offers complete solutions today at a list price that is less than $4,000, and we are 

seeing installation times that are typically in the 20 to 40 hour 

range (with—$2,000 to $4,000 for labor), for a total cost of $6,000 

to $8,000. This estimate includes rule compliant ADS-B Out, as 

well as ADS-B In. In a newer aircraft, ADS-B In can utilize an existing display to show the beneficial navigation/situational information. In an older aircraft that has not seen a new piece of avionics 

since the 1960s, ADS-B In can simply utilize an iPad. Costs can be 

lower for aircraft that already have some elements of the system. 

Using the same products, uncertified aircraft can be equipped for 

less than $4,000. These prices appear to be acceptable to the light 

aircraft market. 

For larger aircraft, the costs become more dependent on the type 

of transponder fitted. For most aircraft, there is an upgrade path 

for the transponder and a FreeFlight Systems position source that 

lists in the range of $2,500 for light GA to $11,000 for larger aircraft. FreeFlight Systems offers a complete package for aircraft 

that operate in 18,000 feet to 24,000 feet range for $7,600. For 

heavier aircraft, the total cost is driven by the transponder manufacturer. Installation times for these systems are well within aircraft maintenance scheduled downtimes. 

Why the ADS-B Out Mandate is Important 

In the past few weeks, we have seen aircraft near-misses at 

major airports in the United States. Management of aircraft in 

crowded airspace is a complex, fast-moving, four-dimensional puzzle. The nation’s air traffic controllers do an amazing job maintaining separation between aircraft. However, the tools they have at 

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ing dramatically. NextGen provides the capability to completely rethink and re-tool air traffic management. 

For NextGen to be effective, however, there needs to be a change 

in infrastructure and a change in aircraft equipage. The FAA has 

implemented the infrastructure and has provided details and complete rules for equipage, but for the system to work to its full potential, every aircraft that enters controlled airspace needs to meet 

minimum equipage standards or it will disproportionately impact 

operations. Think of all the ADS-B aircraft, safely inside their 

small bubbles, flowing smoothly in and around an airport. One unequipped or poorly-equipped aircraft enters the picture with a bubble that is tends of miles across, pushing everybody else out of position and disrupting the system until it is safely out of the way. To 

avoid that scenario, everybody has to equip, and to equip properly. 

A mandate is the only way to ensure that happens, and to ensure 

that everybody who invested in the new system—industry, users, 

and government—gets the return they deserve on the investments 

they have made. 

The mandate also provides the framework for implementation of 

the system and equipage. In the light GA segment alone, there are 

almost 200,000 aircraft in the United States today. Not all of those 

are flying, of course, and not all of them need to enter controlled 

airspace, but between 120,000 and 140,000 aircraft need to equip. 

Currently, only some 4,000 of those aircraft are equipped. 

With approximately 2,000 days between now and January 1, 

2020, we need to equip 60 to 70 aircraft per day—including weekends and holidays—or 85 to 100 aircraft per work day. As a nation, 

we comfortably have the capacity to equip at this rate, but only if 

there is reasonable linearity. 

Incentivizing Equipage 

The government has provided the environment to make equipage 

by January 1, 2020 possible. Industry has stepped up to provide 

the equipment at the right price point and has the capacity to install it. Before considering other actions that could be taken to further incentivize equipage, it is worth considering actions and messages that could damage the gains already made—snatching defeat 

from the jaws of victory. 

First and foremost, the mandate must remain in effect and the 

aviation community has to believe it will hold. If the community 

thinks there is any chance of delay, equipage will stop. 

Second, the rules that have been put in place need to stay in 

place—and the community has to believe that also. There are some 

well-intentioned initiatives like ‘‘Low Power Surveillance Equipment’’ (LPSE) that are designed to provide equipage options for aircraft like gliders with special needs. The general population sees 

this as an opening of the door to lower standards—and equipage 

will slow down while they wait to see how that plays out. FAA 

should consider such options where appropriate, but FAA also 

needs to clearly articulate that this is a limited exception and the 

fundamental requirements will stay in place. 

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Additionally, the idea that has been suggested by some that equipage is going to get cheaper as we get closer to the deadline is misleading and a major reason for delay. The prices we are offering 

for equipage now are artificially low. FreeFlight Systems is making 

high-volume purchases and we have reduced our margin expectations to get products in the market at an acceptable price point. As 

volumes start to go up, we will not be able to hold these low prices. 

The same is true for installation. Forward-thinking installers, just 

like forward-thinking equipment suppliers, are offering low prices 

to get equipage started. 

In our view, the best incentives from government and industry 

are already in place: infrastructure, a firm schedule, stable requirements, and aggressive pricing. However, there is always more that 

could be considered. 

Low interest, government-backed financing has been discussed in 

the marketplace, and authorized by Congress, and is popular 

among FreeFlight customers. FreeFlight Systems announced a 

partnership with the Nexa Capital NextGen GA equipage fund and 

aircraft owners have responded favorably. I believe more aircraft 

owners would equip as the Nexa program becomes available, or 

other programs with a similar format develop. Unfortunately, the 

implementation of these financing options have faced delays and I 

urge Congress to examine ways to expeditiously move them forward. 

Additionally, inconsistency in the application of certification 

standards across different FAA branches and regions is a barrier 

to equipage and innovation in all areas of aircraft modification. 

Many NextGen programs are being given priority in modification 

approvals, but strong leadership, training, and consistent application of standards will reduce delays and increase the number of installers willing to aggressively price and perform ADS-B installs. 

Conclusion 

The timely introduction of NextGen technologies is vital to supporting the safe and efficient operation of our nation’s airspace system, and to maintaining U.S. global leadership in aviation. 

The nature of the transformation is such that there are multiple 

opportunities for small businesses to participate, and a stable government position on equipage standards and timing for equipage 

are essential elements to the success of the transformation itself 

and to small business involvement. 

Government and industry, both large and small, have worked in 

harmony to ensure that equipment is available at the right price, 

that there is plenty of time to plan and execute installation, and 

that the infrastructure is in place to provide both immediate and 

potential longer-term benefits to those who equip today. 

While some initiatives could perhaps speed up the ongoing equipage of the fleet, the absolute key to meeting the equipage deadline 

is to hold fast to the current rules and schedules. Any wavering or 

mixed signals hurt NextGen progress, safety, and small businesses 

that are playing by the rules. 

SBREP-219 with DISTILLER

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Thank you for the opportunity to testify this afternoon, and I 

look forward to answering any questions that you may have. 

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SBREP-219 with DISTILLER


Insert offset folio 39 here 88206.005
40 

Chairman Graves and Members of the Committee: 

I am Bob Hepp, Owner of Aviation Adventures. 

Aviation Adventures is a highly regarded flight school with locations in Manassas, Warrenton, Stafford, and Leesburg, Virginia. 

Our staff of 41 employees provides flight instruction at all levels 

from initial training through the Airline Transport Pilot certificate. 

We also provide rental aircraft to certificated pilots. 

I started Aviation Adventures in 1989 with one aircraft and myself as the only instructor. Today we have 39 aircraft and are 

known as the premier flight school in Virginia and the leader in 

providing training in Technologically Advanced Aircraft. 

I am also representing the Aircraft Owners and Pilots Association (AOPA) of which I have been a member since 1981. AOPA is 

a not-for-profit individual membership organization representing 

more than 350,000 members nationwide. AOPA’s mission is to effectively represent the interests of its members as aircraft owners 

and pilots concerning the economy, safety, utility, and popularity of 

flight in general aviation (GA) aircraft. 

My testimony today will cover the following key points: 

1. The General Aviation community has long supported the 

move from ground-based to satellite-based navigation. However, at this time, the benefits associated with the FAA mandate are inadequate and unclear for general aviation users. 

2. The FAA’s mandate to equip for ADS-B (Automatic Dependent Surveillance - Broadcast) Out by 2020 is costly and 

will be prohibitive for most small flight schools, businesses utilizing aircraft, and recreational aviators. 

3. Providing low-cost guaranteed loans for GA equipage and 

leveraging existing cockpit technologies, such as handheld devices, can help move NextGen modernization forward without 

imposing unmanageable burdens on small aviation businesses. 

General Aviation 

As pilots flying in the United States, we are fortunate to have 

access to the safest and most efficient air transportation system in 

the world. The aviation network of 5,200 public-use airports, complemented by the more than 13,000 privately owned landing facilities is a unique national resource. General aviation is a significant 

economic engine that contributes approximately $150 billion to the 

annual gross domestic product and approximately 1.2 million jobs 

in communities nationwide. Each year, 170 million passengers fly 

using personal aviation, the equivalent of one of the nation’s major 

airlines. 

General aviation is of special importance to small businesses, 

and a significant amount of all general aviation flights are conducted for business and public services. Additionally, the Small 

Business Administration has estimated that approximately 94% of 

the firms that provide cargo and passenger air transportation servSBREP-219 with DISTILLER

41 

ices are considered small businesses, as are 90% of businesses involved in the development and manufacture of aircraft and parts. 

In addition to these businesses, general aviation activity directly 

supports thousands of small businesses from flight schools to repair 

shops to line operations. Thousands more small businesses of every 

type use general aviation to transport personnel, move products, 

extend their geographical reach, meet clients, provide support services, and manage distant operations. 

The ADS-B Mandate 

Effective January 1, 2020, any aircraft operating in busier airspace where a Mode C transponder is required today, will also be 

required to carry an ADS-B Out transmitter. The rule does not 

mandate ADS-B In equipage and does not impact the current 

transponder requirement—menaing aircraft will continue to be required to carry their transponders in addition to this requirement 

for ADS-B Out equipage after 2020. 

Unlike most rulemaking activities which are safety based, the 

basis of the mandate is to support the FAA’s Next Generation Air 

Transportation System (NextGen). The FAA has indicated that the 

mandate will not greatly increase or decrease safety, but is necessary to move forward with NextGen. 

Lack of Benefits for General Aviation Equipage 

For more than 20 years AOPA has supported the transition from 

ground-based infrastructure to satellite-based systems. AOPA also 

supports ADS-B provided it is affordable and delivers clear, tangible benefits to users. The Association is hopeful that changing 

technology and modifications to the implementation approach will 

make ADS-B more valuable to the GA community. However, at this 

time, it is difficult to identify adequate benefits in the current 

ADS-B implementation strategy. 

For most general aviation pilots, there are no direct benefits of 

the ADS-B Out mandate. Rather, complying will simply allow pilots to continue using the national airspace system as they do 

today. 

Mandate Is Costly And Could Be Prohibitive to Small 

Businesses 

Aviation Adventures owns and operates 39 aircraft for flight 

training and rental. The ADS-B mandate will require significant 

changes to these aircraft, including the removal of some equipment 

and possibly the redesign of the control panel to accommodate the 

new equipment. 

The actual avionics required to meet the mandate would cost ap- proximately $5,000 per aircraft. Additional costs associated with 

SBREP-219 with DISTILLER

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changes to the control panel and installation of the new equipment 

would add approximately $3,000 to $4,000 per aircraft. I estimate 

that the total cost to equip my fleet will be $312,000 for minimal 

compliance—a major investment for a small business and one 

many small aviation businesses will be unable to make. 

I recently participated in a Flight School Conference with 88 

Flight Schools in attendance. The topic of investing in avionics upgrades was part of the discussion. When the question was asked 

how many flight schools were profitable and could afford to invest 

in new avionics, representatives of only three schools indicated 

they were ready to make such an investment. 

Unlike investing in adding aircraft or facilities, the money spent 

on ADS-B Out equipment will not bring a return because it will not 

increase our customer base, allow us to serve more clients, provide 

new capabilities, or otherwise help grow the business. 

For that reason alone, it is not a sound business decision to equip 

early since there will be no return on investment. 

Continuing uncertainties about exactly what the FAA will ultimately require to fulfill the mandate further reduces the incentive 

to equip the aircraft in advance of the mandate. Business owners 

are reluctant to make a large investment in new equipment when 

that equipment may ultimately not meet FAA requirements. 

The tendency of technology prices tend to drop significantly over 

time also serves as a disincentive to equip early. Anyone who purchased a large flat screen television a few years back is familiar 

with this phenomenon. A television that I purchased a few years 

ago when the technology was relatively new cost $3,000. Today, the 

same television can be purchased new for just $800. Similar trends 

apply in avionics. We have already seen a decrease in prices for 

ADS-B equipment since the mandate was finalized in 2010. It is in 

the interest of business owners to wait for further price drops before investing in new equipment. 

Loans and Existing Technology Can Help More NextGen 

Forward 

Because of the high cost and low return on equipping for the 

2020 mandate, general aviation operators need assistance to equip. 

The establishment of a fun to provide low-cost, federally guaranteed loans to equip GA aircraft could provide the financing needed 

to help the GA community meet the mandate. 

At the same time, maximizing the utility of existing cockpit technology can help move NextGen modernization forward without imposing unmanageable hardships on general aviation operators. 

Handheld devices can provide ADS-B In information, significantly enhancing safety at nominal cost. Many aircraft operators 

are already using these handhold devices in the cockpit, and the 

same devices could be used to provide ADS-B Out. 

By focusing on providing added capabilities to GA operators 

using existing cockpit equipment, the FAA could increase operSBREP-219 with DISTILLER

43 

ational efficiency. Providing precision approaches to airports that 

don’t already have them would allow pilots to make all-weather use 

of airports that do not currently have that capability. Offering surveillance outside of the existing radar footprint would increase 

safety for operators flying at low altitudes and outside of large airports. Additional capabilities could include more efficient point-topoint navigation and better routing through congested airspace. Together, these capabilities can boost general aviation use and the resulting economic impact by saving fuel and time, increasing safety, 

and lowering the cost of flying. 

Conclusion 

In conclusion, I believe the current ADS-B Out mandate fails to 

provide the needed benefits and support for general aviation operators and businesses to equip. At the same time, there are a number 

of steps the FAA can take to move NextGen modernization forward 

while promoting safety, encouraging general aviation activity, and 

reducing the burdens on small general aviation businesses. 

By creating a fund to provide low-cost guaranteed loans and 

leveraging existing equipment to provide benefits like improved 

point-to-point navigation, extended surveillance, and precision approaches at airports not currently served, the FAA can take advantage of the equipment already in cockpits, keep NextGen moving 

forward, and help GA businesses thrive. 

On behalf of the 41 employees of Aviation Adventures and the 

more than 350,000 members of AOPA, we appreciate your leadership in addressing the concerns of the general aviation industry so 

that it can continue to help small businesses nationwide grow and 

thrive. 

Thank you for the opportunity to appear before this Committee. 

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1This is a topic that is not dealt with here but has posed practical issues in the United States 

as well as elsewhere; e.g. see; OFFICE OF INSPECTOR GENERAL, Audit Report: Federal Aviation 

Federal Aviation Administration’s 2020 NextGen Mandate: Benefits 

and Challenges for General Aviation 

Kenneth J. Button PhD, AcSS, FCILT, FCIHT 

University Professor 

School of Public Policy 

George Mason University 

Evidence to the U.S. House of Representative’s Committee on Small 

Business 

Room 2360 of the Rayburn House Office Building 

June 11, 2014 

BACKGROUND 

There have been considerable technical advances in air traffic 

navigation over the past 30 years leading to potentially safer and, 

from a commercial perspective, more efficient air travel network. 

The changes allow, for example, reduced separation between aircraft that permit greater flexibility in routing. In particular, a 

move from ground-based radar technology to satellite systems offers many long-term advantages. There are a multiplicity of air 

navigation providers around the world currently developing, and at 

various stages of implementing, a wide-range of new technologies 

aimed at developing a common platform for satellite based navigation and control systems. The challenges nationally and internationally to bringing about a shift to satellite systems are both 

technological and economic in nature. 

As with any change, reaching an accord on common standards 

and transitioning this into a working system is not a simple technical matter. In terms of costs, there is the need for new equipment, an inevitable transitional wastage from duplication as the 

old and new systems overlap in time, and considerable stranded 

costs as technically sound radar based systems are made economically redundant. There are still concerns about the technical reliability of the systems being introduced, and, for example, their capacity to handle large volumes of information, particularly in the 

transition phase, and, as far as general aviation is concerned, over 

the anonymity of the information obtained. Added to this is the 

matter of how the new system is to be financed. There have been 

problems in the past in financing and administering the ground 

based elements of the system. The 2012 FAA Air Transportation 

Modernization and Safety Improvement Act, for example, was the 

first reauthorization of Federal Aviation Administration funding 

since 2007; the Administration had the uncertainty of 23 extensions in the interim.1

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Administration’s Contraction Practices are Insufficient to Effectively Manage its Systems Engineering 2020 Contracts Federal, Report Number: ZA–2012–082, 2012. 2Strictly the ADS-B system relies on two avionics components—a high-integrity GPS navigation source and a data link. The current transponder or RVSM maintenance requirements are 

not changed or affected by the ADS-B rule. 

The automatic dependent surveillance-broadcast (ADS-B) technology that forms one of the cornerstones for the new approach to 

air navigation, and which is to be a requirement for use of certain 

United States airspace by 2020, is a cooperative surveillance technology for tracking aircraft.2 The Federal Aviation Administration 

rule requiring the uptake of this technology was announced in 

2011. The system relies on aircraft or airport vehicles broadcasting 

their identity, position and other information derived from onboard systems. The information is more accurate than that available to primary systems, such as radar surveillance. 

The ADS-B Out signals transmitted from an aircraft can be captured for surveillance purposes on the ground but only on board 

other aircraft equipped for ADS-B In. The latter enables airborne 

traffic situational awareness, spacing, separation and self-separation applications; basically it provides a three dimensional halo 

around each plane. With ADS-B In an aircraft essentially determines its own position via satellite navigation and broadcasts this 

via a radio frequency with knowledge of what is going on about it. 

For a comprehensive ADS-B structure without primary surveillance by radar, all planes must be equipped with both ADS-B Out 

and In. This is a long-term objective, simple location is with some 

additional information is the short-term objective. 

The issues addressed here focus on three interrelated areas: 

• The pros and cons of ADS-B 

• Payment for the system 

• The phasing-in of ADS-B 

THE PROS AND CONS OF ADS-B 

The ADS-B concept is at the core of both the $40 billion Next 

Generation Air Transportation System (NextGen) which was initiated in 2009 in the United States and of Single European Sky ATM 

Research (SESAR) in Europe that was initiated in 1999. 

The European Single Sky initiative has a somewhat different objective to NextGen. The United States challenge is to replace a unified radar based system that has grown in a rather ad hoc way and 

thus in need of serious efficiency improvement to handle traffic 

growth. The Federal Aviation Administration, for example, has estimate that increasing congestion in the air transportation system 

of the United States, if unchanged, would cost the American economy $22 billion annually in lost economic activity by 2022. In addition to addressing this, NextGen is specifically seen as reducing 

aviation fuel consumption and emissions. In contrast, the European 

challenge is to initially reduce the large number of air navigation 

service providers from nearly forty to a one; i.e. structurally to 

make it akin to the American system. Despite difference in motives, there is agreement between the United States and 

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3GENERAL AVIATION MANUFACTURERS ASSOCIATION, 2013 General Aviation Statistical 

Databook & 2014 Industry Outlook, Washington DC, 2014. 4They are also required at all altitudes within 30 miles of some airports and some other 

flights over water. 5The Federal Aviation Administration is publishing its final rule justified this; ‘‘Standards for 

ADS-B In air-to-air applications are still in their infancy ... it is premature to require operators 

to equip with ADS-B In at this time.’’ 6General aviation includes businesses engaged in on-demand passenger or cargo charter flying; corporate flight departments; owner-flown aircraft; flight schools; companies offering aircraft fuel, storage, maintenance and parts; and aircraft sales, brokerage and rental firms. 

EUROCONTROL over broad approaches towards interoperable satellite based systems. 

The issue of general aviation, while of considerable importance in 

the United States, has attracted little attention in Europe with its 

Single European Sky initiative quite simply because it is of a far 

smaller order of magnitude. For example, while there were 209,034 

registered general aviation planes in the United States in 2012, 

there were 21,462 in Germany in 2013, 32,410 in France in 2011, 

19,850 in the United Kingdom in 2013, and 3,657 in Switzerland 

in 2012.3

The United States will require the majority of aircraft operating 

within its airspace to be equipped with ADS-B Out by 1 January 

2020; the specific categories of airspace involved are seen in 

TABLE 1. These are airspaces where a more basic transponder is 

already required.4 There is no requirement for aircraft to have 

ADS-B In capabilities by January 1, 2020.5 In terms of general 

aviation the requirement has been variously estimated to affect between 157,000 to 165,000 aircraft 6. 

TABLE 1 

Airspace Altitude 

A All aircraft equipped 

B All aircraft equipped 

C All aircraft equipped 

E Above 10,000ft MSL 

but not below 2,500 ft AGL 

One of the major challenges of NextGen is to develop a system 

that caters for the requirements of a diverse range of air transport 

users, often with quite distinct characteristics and needs. At one 

level are large civil scheduled commercial airlines that in 2013 had 

642 million passenger enplanements in the United States and carried 19,729 million lbs of cargo and mail. The scheduled passenger 

carriers currently operating with wafer thin financial margins and 

with a legacy of inabilities to even recover their operating costs, 

often see the burden of even the small cost per revenue passenger 

mile as difficult to justify at the operational level. At the longerterm, strategic level, however, the ability to increase the reliability 

and capacity of services across large networks is generally seen as 

a significant development. In contrast, the scheduled cargo/express 

carriers that tended to enjoy higher margins, have largely been 

more enthusiastic about the change with; for example, UPS, has 

adopted it because it is seen as a tool for improving fleet operations 

with it knowing exactly where planes are (and de facto where conSBREP-219 with DISTILLER

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7The more efficient use of aircraft and the consequential lower fuel burn is also likely to have 

env8ironmentally beneficial effects, see US GOVERNMENT ACCOUNTABILITY OFFICE, Aviation and 

the Environment: NextGen and Research and Development Are Keys to Reducing Emissions and 

Their Impact on Health and Climate, GAO–08–706T, 2008. 8There seems to be no single gathering of information of the search costs involved when a 

general aviation plane goes missing, a simple search of the Web, however, provides numerous 

examples. 9http://www.iasa.com.au/folders/Safety—Issues/others/wrong-ways.html provides a list of commercial aircraft landing at the wrong airport. There appears to be no complete record of general 

aviation incidents of a similar kind. 

signments are) when outside of radar surveillance and for managing their flights in real time.7 FedEx has supported it for similar 

reasons. 

More generally, the recent events involving commercial scheduled passenger flights AF477 and MH370 has brought a heightened public awareness of the inadequacies of modern air navigation 

systems, or at least their deployment, and in the inability to locate 

flights all of the time. The costs of trying to locate a crashed plane 

are high both in economic and human terms; something that extends to general aviation. General aviation crashes are more common than for scheduled flights, which is not surprising because 

they represent about 96% of the United States air fleet, but involve 

fewer details and injuries per incident; e.g. there were 1,471 accidents in 2012 resulting in 432 fatalities. 

While it is important to be wary of making comparisons, particularly when data is collected in different ways, this situation can be 

put in the context of commercial aviation being about 50 times 

safer and car travel 20 times safer than general aviation in terms 

of fatalities per hour traveled between 2002 and 2012. (The use of 

alternative matrices, such as accidents or serious injury, changes 

the picture slightly ADS-B should reduce the accident rates for 

general aviation and make research and rescue operations more effective and less costly. While most general aviation accidents occur 

at or near airfields, some, often weather related, are in more remote locations. The extent to which the types of flights involved 

would come under the 2020 ADS-B regulation is, however, unclear.8 A full ADS-B strategy may well produce far greater benefits 

for the marginal costs it would entail. 

Even large planes get lost. The most tragic and best know cases 

are perhaps the Uruguayan Air Force Flight 571 that crashed in 

the Andes in 1972 because of bad navigation, and AF477 into the 

South Atlantic partly because of poor information on altitude, but 

there are regular instances of aircraft landing by mistake at the 

wrong airports in the United States; luckily accidents are rare.9

ADS-B Out, and ADS-B In more so, provides a mechanism for pilots and ground control to have greater awareness of aircraft locations. ADS-B In, for example, reduces the risk of runway incursions 

with cockpit and controller displays that show the location of aircraft and equipped ground vehicles on airport surfaces. In addition, 

ADS-B Out can provide local information regarding real-time 

weather conditions. 

Putting a money value on these benefits, and others that are 

general aviation specific is difficult. There will be savings in fuel, 

weather information will be better, and provided automatically, 

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10 US DEPARTMENT OF TRANSPORTATION’S INSPECTOR GENERAL OFFICE, Use of the National Air 

Space System, CR–2008–028, Washington DC, 2008. 

and flying should be safer beside other things. Putting a price on 

such changes is not easy. The Federal Aviation Administration has 

put a value of $200 million on the identifiable benefits to the sector, but argues that wider benefits are extensive. Additionally, 

given the massive heterogeneity of the general aviation fleet, there 

will inevitably by wide variations across beneficiaries. What this 

should also be set against, and to my knowledge has not been to 

date, is the current situation whereby general aviation uses approximately 16 percent of air traffic control services but contributes 

only 3 percent of the costs 10. 

But what is often missed in these types of very static calculations 

is the allocation of costs during a transition when operating both 

radar and satellite based systems. As transfer takes place the 

amount of traffic using primary surveillance will decline while that 

using ADS-B based systems, and especially when ADS-B In is 

widely adopted, will increased implying a much higher cost burden 

being placed on those using radar surveillance. The burden, for example, of the radar-based system on general aviation would increase significantly if scheduled airlines moved to comprehensive 

ADS-B navigation systems. 

PAYMENT FOR THE SYSTEM 

There is no-such thing as free lunch, and moving to satellite 

based air navigation requires resources. In particular, unlike primary radar-based surveillance, full ADS-B requires equipping aircraft so that they can interact with other aircraft and ground installations in much wider range of ways. This means that its use 

involves two distinct costs to users; one to reflect the infrastructure 

costs involved and another the costs of the on-board equipment. 

The costs of equipping a plane varies according to such things as 

whether it is a retrofit, whether it includes both ADS-B Out and 

In, or just the former, and the extent to which equipment offers information beyond that required for certification. Given these facts, 

the estimated costs range from $4,000 to $17,000 to equip an aircraft with ADS-B Out, although in the case of new aircraft there 

is the off-setting cost of a saving from not having a separate transponder fitted. The costs of ABS Out and In equipment has been estimated to cost up to $30,000. In addition, there are annual costs 

associated with the ground infrastructure of the system and, in the 

short-term, of operating the current radar surveillance system. 

There is certainly no consensus on the aggregate costs in involved; 

e.g. a Federal Aviation Administration estimate suggests that the 

cost to equip general aviation aircraft from 2012 to 2035 would 

range anywhere from $1.2 to $4.5 billion. 

There has been little market-based incentive for early adoption 

of a new technology like ADS-B where many of the benefits are not 

immediate. Indeed, the reverse is almost the case because the main 

gains come after widespread adoption and ‘‘first movers’’ have the 

burden of having equipped with only partially useful equipment; 

the network economies take time to be realized. 

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11http://www.nextgenfund.com/ 

There is some intended financial support for general aviation 

from the NextGen GA Fund 11 to help up-grade existing aircraft to 

meet the Federal Aviation Administration’s 2020 deadline. The 

fund is a public-private partnership between the United States 

Congress, the aerospace industry and the private-sector investment 

community. It began with a capital base of $550 million with the 

intention of eventually provide some $1.3 billion in financing to the 

general aviation sector over 10 years. It is focused on the more 

costly retrofits; those of over $10,000. This measure, however, has 

come some time after the notification of the 2020 requirement, and 

thus has done little to stimulate early adoption of the necessary 

avionics. 

In addition to the money costs of fitting ADS-B In there is in the 

case of the existing general aviation fleet, the time costs of retrofitting that can take from a day or so to more than a week. For 

those elements of the fleet that are used for such as training, taxi, 

charter, and business travel this is a de facto financial cost as aircraft are out of action. Additionally, while many flights may fall 

outside of the Federal Aviation Administration’s 2020 requirement, 

there will inevitably occasions when planes that are normally used 

at lower altitudes will be brought within the ADS-B threshold. This 

means that for users of these aircraft there will be a requirement 

for ADS-B Out equipment that is not always needed, and maybe 

seldom needed; ‘‘portable’’ equipment is not really an option. 

THE PHASING-IN OF ADS-B 

The United States has chosen a particular path for phasing in 

ADS-B, it is not the only possible way of doing this and some other 

countries have taken different routes; the differences may be due 

the underlying objectives sought, the nature of the traffic, or the 

broader institutional structures involved. 

While NextGen entails large scale infrastructures investment, 

the United States aircraft fleet is both large and diverse and the 

Federal Aviation Administration has sought to embrace a large 

part of this fleets’ use of airspace as one action by mandating it an 

make use of the ADS-B system. The creation of the ground infrastructure began in August 2007 when the FAA awarded ITT Corp. 

a contract to develop and build a nationwide network of 794 ADSB ground stations. This is also essentially what is happening in 

Europe, with planes with a weight above 12,600lb or a max cruise 

of over 250 knots being required to carry ADS-B from 2017, and 

new planes from 2015 (originally this was 2015 and 2013 respectively but there has been slippage). This has all the pros-and-cons 

of any big-bang strategy (actually more of a medium bang because 

ADS-B In is not included.) with high set-up costs but a relatively 

quick flow of benefits and more solid information to help individual 

actors make decisions. 

The approach helps shorten the transition tot he satellite based 

systems, and gives a clear target for those involved. The latter is 

not just important for aircraft users but also for those that manuSBREP-219 with DISTILLER

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12The United States active general aviation fleet fell from 223,700 to 209,034 between 2010 

and 2013, although the Federal Aviation Administration forecasts growth as economic recovery 

takes place. The degree to which this growth will involve the new entry of aircraft to the United 

States fleet will affect retrofitting needs. 

facture the hard and software that is required on the plane and 

ground, and those that conduct the equipage of the existing fleet. 

It removes some of the production uncertainties and allows the 

build-up of necessary equipage capacity. In the long-run it is likely 

that all aircraft will require to be fitted with at least ADS-B Out, 

and possibly ADS-B In, equipment and advanced notice would 

allow new aircraft to be prepared for this, and lessen the costs of 

retrofitting. This latter factor can reduce the costs of producing the 

hardware and lead to greater diversity in the products offered; a 

number of alternative models become financially viable to produce. 

Added to this, a substantial market has room for a large number 

of suppliers thus keeping up competitive pressures and minimizing 

prices. 

The evidence of retrofitting the United States general aviation 

fleet is that to-date progress has been slow. Data from the Federal 

Aviation Administration suggest that by early 2014 less than 1,500 

aircraft met certification requirements. This is well below the trend 

required to meet the 2020 target, although some caveats should be 

taken into account. First, not all the planes that are ultimately 

likely to fly in the designated ADS-B Out required airspace will 

need to do so by January 1st 2020, and some of the existing fleet 

will be out of service by that date anyway for other reasons.12 Second, the existing equipage facilities are likely to be expanded as demand increases for retrofitting; this is, after all, a commercial activity with financial rewards coming from the equipage service. 

Third, there is some general evidence from other areas that when 

there are mandatory requirements, economies of experience have 

some effect with both money and time costs of installing a new 

technology at the micro-level falling as more operations are completed. 

Other countries have adopted slightly different road maps for 

change. Canada has essentially adopted more of what may be 

called a ‘‘geographical spread system’’ under which ADS-B capacity 

has been provided over some areas that have no radar surveillance, 

e.g. the Hudson Bay where separation has been reduced from 80 

nautical miles to five. A variation on this them is to spread the 

technology vertically, beginning say with A and B airspace, this 

similar to the Australian approach. The underlying problem with 

all these approaches is that underlying any significant change in 

air navigation, and indeed in any transportation sector, namely 

that users are not static and many move between parts of the overall system. 

CONCLUSIONS 

Changing any air navigation system is difficult, not least because 

the existing structure cannot be closed down while the new is introduced. The United States, with the world’s largest air transportation system, typifies the sorts of compromise that have to be 

made in piecemeal change. The hope is that NextGen will, once 

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fully in place, provide a more flexible long-term framework within 

which air traffic can grow efficiently to the benefit of the country. 

Nevertheless, the change has not been proving easy, and never 

seemed likely to be. 

The move to the use of satellite surveillance represents a significant improvement to air navigation, filling gaps in the existing 

radar based systems and offering enhanced and faster information 

flows. While the initial adoption of ADS-Out in the United States 

will provide only some of the potential benefits of a full ADS system it, nevertheless, will impact positively in terms of safety and 

more efficient use of air space; there seems to be general agreement on this. The costs to both the aviation sector and taxpayer 

are not small, and the expenses of retrofitting part of the general 

aviation fleet to meet new certification standards by 2020 are 

equally far from negligible. It is perhaps unfortunate that incentives for early adoption have been slow to transpire, but firm mandates have been shown to stimulate market responses that allow 

targets to be met. 

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Questions from Members of the Committee on Small Business 

Rep. Judy Chu (CA-27) Question for the Record 

Small Business Committee Hearing: FAA’s 2020 NextGen Mandate: 

Benefits and Challenges for General Aviation 

Question for FAA Administrator, Michael Huerta 

Hearing date: June 11, 2014 

—————————————————————————————— 

We’re here today to talk about how we can help small businesses 

operate in the NextGen space. In addition, I am concerned with the 

fact that it has been a struggle to achieve the government-wide 

23% goal of federal contracts that should be awarded to small business. 

I have a minority-owned, small business in my district that is involved in the NextGen movement. Located in Claremont, CA, NBP 

has worked with the FAA for the past 40 years. They are evolving 

the existing legacy equipment to NextGen, specifically, the Integrated Control Monitoring System (ICMS), that monitor and control navigational and visual aids on the airfield. In fact, their ICMS 

system is installed in 15 airports across the country, which includes some of our busiest airports like Chicago O’Hare and Atlanta. It has been operating for over 12 years and has a great safety record. 

However, in March of this year, the VP of Technical Operations 

Services at the FAA, Mr. Vaughn A. Turner, issued a Memorandum that stated the FAA would ‘‘not support any new installations of ICMS, maintenance and logistics of the ICMS in the National Airspace System.’’ Instead, the memo states that the FAA 

recommends ‘‘installation of the Universal Interlock Controller 

(UIC) in lieu of ICMS.’’ The UIC, the memo states, is an ‘‘FAA-developed system and has FAA-provided logistics, training’’ and support. 

Question 1: 

To me, it sounds like the FAA is in direct competition with a 

small business in my district. Can you tell me if the FAA has a 

plan for developing or using this type of technology—similar to the 

ICMS? 

FAA Response: 

The FAA’s policy, consistent with OMB mandates, is not to compete with the private sector in the provision of goods and services. 

When alternatives are available, the FAA strives to return the 

greatest value to the taxpayer. In this instance, the FAA has an 

existing system that uses different technology to perform Instrument Landing System (ILS) control, interlock, and monitoring functions. The FAA began developing this system in 2005 and it is 

operational at 12 airports. Engineering to expand these functions 

to include monitor and control of other navigational aids beyond 

ILS began in 2011. The decision to use the existing system took 

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into account the fact that the government already owned a highly 

reliable and safe infrastructure that can be deployed, maintained, 

and enhanced very cost effectively. 

Question 2: 

Small business is the backbone of America and it’s what keeps 

our country working. This is why we must continue supporting 

policies and actions that support the growth of small businesses, 

particularly those like NBP that have a performance record in delivering quality products. Now, I understand that NBP has been 

working with the FAA for the past few months to address issues 

that were raised by FAA’s officials. They recently met with Chief 

Operating Officer, Teri Bristol, and the VP of Technical Operations, 

Vaughn Turner. Could you provide any updates on this situation? 

FAA Response: 

The FAA maintains a very robust small business program and 

has met or exceeded government-wide small business goals in all 

categories for years. Part of our program is providing access at all 

levels to small businesses that want to discuss concerns and opportunities for contracting with the FAA. We appreciate the opportunity to meet with NBP to discuss their concerns, and there will 

be subsequent discussions in the near future. 

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Rep. Grace (NY-6) Questions for the Record 

Small Business Committee Hearing: FAA’s 2020 NextGen Mandate: 

Benefits and Challenges for General Aviation 

Question for FAA Administrator, Michael Huerta 

Hearing date: June 11, 2014 

—————————————————————————————— 

Administrator Huerta - 

Thank you for being here today. 

As you know, my constituents have had many struggles with airplane noise. I represent a district that is between LaGuardia and 

JFK, an area that is in the busiest air space in the country. With 

new route procedures, such as TNNIS, the NextGen mandate, Airspace Redesign, and now the Metroplex study on the horizon, it’s 

difficult to make sense of what the FAA is really working on at this 

moment. 

When the TNNIS procedure was made permanent, the FAA 

erred by not informing the community and elected officials. Since 

then, communication with the FAA has been better, but still has 

room for improvement. Dennis Roberts, the Director of Airspace 

Service at the Air Traffic Organization, said in a recent briefing 

that the recently established New York Airport Roundtables would 

be helpful for the FAA to communicate with our communities. 

These roundtables were created because of community advocacy 

and my work soon after coming to Congress. Although 11 other 

major airports had these roundtables, New York City was left without a proper venue for community concerns. I ask that FAA use 

these roundtables to ensure my constituents are kept up to date 

with any changes and new information from the FAA. I am 

pleased, and I’m sure my constituents are as well, that the 

Metroplex studies will use one Environmental Assessment or Environmental Impact Statement when analyzing the air space. This is 

a marked improvement over individual airports being studies, as 

the proximity of the airports should not be ignored. 

I also ask that as Phase 1 of Metroplex is initiated in January, 

2015, that the LaGuardia and Kennedy Roundtables receive consistent updates. 

Question 1: 

Please let me and my office know of how we can be helpful with 

this process. The noise pollution over my district is a top concern, 

and I want to work with the FAA to remedy these problems as 

quickly as possible. 

FAA Response: 

The FAA has had positive experiences in other metropolitan 

areas with community-based roundtables. As we stated at the JFKLGA meeting on June 18, 2014, the FAA commends the NYNJPA 

and community representatives for the establishment of the 

roundtables for the three major New York metropolitan airports. 

These forums provide a venue whereby communities, the NYNJPA 

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and the FAA alike can share information and work toward resolution of issues. The FAA will collaborate with the NYNJPA, as sponsors of the Roundtables, making its leadership available to share 

updates on the NY Metroplex project as it takes shape. The FAA 

appreciates the support your office has offered with this important 

project. 

Question 2: 

One of the biggest benefits of the NextGen Initiative will be reducing the environmental impacts of noise and emissions. Can you 

explain how the 2020 Mandate reduces carbon emissions and reduces noise pollution around airports? 

FAA Response: 

The 2020 ADS-B Out mandate will impact noise and emissions 

through the following capabilities: 

• Increased ability to fly Optimal Profile Descents (OPDs) 

through initial application of Ground-based Interval Management - Spacing (GIM-S) 

Æ The goal of the GIM-S tool is to increase OPD use at 

major NAS airports; OPDs have been shown to decrease 

emissions and decrease noise for some noise sensitive 

areas during arrival and approach 

• More efficient en route metering and conflict resolution 

using ADS-B in the User Request and Evaluation Tool (URET) 

and Traffic Management Advisor (TMA) 

Æ The improved accuracy of ADS-B as an input to decision support tools, such as URET and TMA, provides for 

more efficient operations. 

• More efficient ATC management of surface movement 

using the ADS-B Surface Surveillance Capability (ASSC) 

Æ The ASSC tool will also decrease carbon emissions on 

the surface at the airports where implemented. 

• More efficient spacing and optimal routing in non-radar 

environments (Gulf of Mexico, Mountainous Regions of Colorado, low-altitude Alaska) 

Æ Even in non-radar regions, aircraft equipped due to 

the rule may impact noise and emissions. For example, the 

primary helicopter operator in the Gulf of Mexico has reported a noticeable reduction in noise complaints surrounding regional heliports after ADS-B surveillance was 

implemented. The increase in IFR services after ADS-B 

implementation has driven an increase in the use of higher 

altitude Instrument Flight Rules (IFR) routes that are relatively quiet as compared to lower altitude Visual Flight 

Rules (VFR) trajectories. 

All of the capabilities mentioned above reduce fuel burn and the 

requisite carbon emissions. The estimates performed for the rulemaking suggested a decrease near 18 million tons of carbon dioxide 

by 2035. 

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Rep. Mike Mulvaney (SC-5) Question for the Record 

Small Business Committee Hearing: FAA’s 2020 NextGen Mandate: 

Benefits and Challenges for General Aviation 

Question for FAA Administrator, Michael Huerta 

Hearing date: June 11, 2014 

—————————————————————————————— 

Mr. Huerta, the FAA has ruled that aircraft operators equip for 

ADS-B Out by 2020. However, a follow-on requirement for ADS-B 

In was sidetracked when an FAA aviation rulemaking committee 

(ARC) concluded that the required multi-billion-dollar investment 

by airline and general aviation operators cannot be justified at the 

present time. 

Question 1: 

In order to ensure sufficient buy-in by airline operators, do you 

plan to lay out the business case for ADS-B In and other long-term 

NextGen programs? 

FAA Response: 

In order to develop the business cases and ensure buy-in for the 

aviation community, the FAA has used Other Transaction Agreements (OTAs) to help expedite early adoption of ADS-B by air carriers. Through OTAs with industry partners, the agency is able to 

demonstrate real benefits of advanced ADS-B In applications and 

procedures while allowing the FAA to share costs and risks with 

the participants. The use of ADS-B In applications will give the 

agency and airlines detailed cost and benefit data, and encourage 

other airlines and operators to equip early to capitalize on ADS-B 

benefits. For example, in 2009, the agency began a partnership 

with United Airlines to demonstrate an ADS-B In-Trail Procedures 

application in the Oakland Oceanic Flight Information Region. An 

operational evaluation of this capability is ongoing. This demonstration has validated the equipment performance standards 

that were published in 2011. In May 2012, the FAA made the decision to fund the integration of In Trail Procedures into the automation system for use by air traffic controllers. This will fully be operational in 2017. 

Based on ADS-B-In application research and feedback from the 

Aviation Rulemaking Committee (ARC), the major near-term benefits from ADS-B-In will be generated by Interval Management applications. Current FAA plans call for an Investment Analysis 

Readiness Decision for changes to the automation systems to support Interval Management to occur this year, with a Final Investment Decision to occur in 2016. If these investment decisions are 

made on this schedule, then FAA would expect to be able to commence support of Interval Management operations by 2020–2021. 

Interval Management avionics could be available in the 2017–2020 

timeframe. 

Question 2: 

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Given your background in the private sector, are you persuaded 

that airlines today will receive a return on their investment on 

NextGen equipage? Why or why not? 

FAA Response: 

Airlines that have chosen to equip and use NextGen technologies 

are already seeing a significant return on their investment. US Airways, for example, is saving $14.7 million per year using Optimized 

Profile Descents at its hub in Phoenix. JetBlue is using ADS-B 

routes over the Gulf of Mexico to avoid lengthy reroutes around 

thunderstorms, thereby meeting scheduled arrival times. Horizon 

Air is using RNAV GPS (WAAS LPV) approaches that enable consistent access to small airports, thus avoiding cancellations and 

delays, and is annually saving 500,000 gallons of fuel. Horizon has 

equipped its entire fleet with WAAS. Alaska Airlines is using RNP 

approaches into Juneau and is saving $15 million a year by avoiding cancellations and delays. Because airlines have different operating models for their businesses, it’s hard to pinpoint when a particular airline will recoup its investments for NextGen equipage. 

Some airlines may choose to invest in equipping its entire fleet 

with the full suite of NextGen technologies and the training to use 

those technologies. Others may choose to equip and train differently, depending on the services that they provide. 

NextGen benefits will accrue as more aircraft become equipped 

because the national airspace system will overall operate more efficiently. There is a direct correlation between equipage levels and 

NextGen system benefits. 

Question 3: 

Mr. Huerta, as you know, the U.S. aviation industry has lost billions of dollars and hundreds of thousands of jobs over the last decade. While our commercial and general aviation industries are recovering, I’m concerned that these gains could be mitigated by the 

tax increases and regulatory policies advocated by this administration. The President’s FY 2015 budget included over $4 billion in 

new or higher aviation taxes and fees, including a new $100 per 

aircraft departure fee that is projected to cost operators $1 billion 

annually. 

What is your position and that of the DOT on the proposed increases in the industry’s taxes and regulations? Do you think these 

taxes and regulations undermine the global competitiveness and 

economic viability of our aviation industry? Why or why not? 

FAA Response: 

The FAA recognizes the critical role aviation plays in supporting 

jobs and generating significant economic activity for the country. 

Aviation is a global industry and we have to continue our heritage 

as world leaders in aviation and setting the safety standard for 

others to measure against and engage our partners internationally. 

The FAA’s mission is to provide the safest and most efficient aerospace system in the world. In promulgating new regulations, the 

agency considers the impact on affected users and industry. We 

rely primarily on excise taxes and fees collected from users of the 

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tribute the cost of air traffic services across the aviation community, the Administration proposes in the FY15 Budget Request to 

Congress that the Department of Transportation establish a new 

surcharge for air traffic services of $100 per flight. Military aircraft, public aircraft, piston aircraft, air ambulances, aircraft operating outside of controlled airspace, and Canada-to-Canada flights 

would be exempt. The revenues generated by the surcharge would 

be deposited directly into the Airport and Airway Trust Fund. The 

health of the Trust Fund is critical to ensuring FAA’s ability to fulfill our mission and serve our diverse set of aviation stakeholders, 

most importantly the traveling public, but also industry. 

Other fees beyond the $100 per flight air traffic services fee that 

the Administration has proposed on the aviation industry pertain 

to the Department of Homeland Security. 

As part of the upcoming Reauthorization, the FAA looks forward 

to working with Congress and aviation stakeholders on funding 

and other policy issues. 

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