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Smart Skies a Blueprint for the Future

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Smart Skies a Blueprint for the Future smart skies a blueprint for the future 2006 Economic Report e r u t u f e h t r o f U.S. Airlines – 2005 t n i 1 2 3 3,4 r Majors (20) Nationals (33) Regionals (31) Commuters (55) p e u l ABX Air Transport International Aerodynamics 40-Mile Pacific Island Aviation b AirTran Air Wisconsin Ameristar Air Midwest Peninsula a s Alaska Allegiant Asia Pacific Air St. Thomas Piedmont e i American Aloha Capital Cargo Alaska Central Express Promech k S American Eagle Amerijet International Caribbean Sun Alaska Seaplane Service Seaborne t r ATA ASTAR Casino Express Aloha Island Servant a Atlas/Polar Atlantic Southeast Centurion Arctic Circle Shuttle America m S Comair Champion Chicago Express Arctic Transportation Skagway Continental Continental Micronesia Custom Arizona Express Skyway Delta Evergreen International Express.Net Baker Smokey Bay ExpressJet Executive Falcon Air Express Bemidji Spernak FedEx Florida West Freedom Bering Tanana JetBlue Frontier Gulf & Caribbean Big Sky Taquan Report Content Mesa Gemini Kitty Hawk Boston-Maine Valley Air Express Northwest Hawaiian Lynden Cape Air Vintage Props & Jets Unless otherwise noted, the data SkyWest Horizon NetJets Cape Smythe Warbelow’s provided in this report reflects the Southwest Independence Northern Chautauqua Ward activity of the 139 U.S. passenger United Kalitta Pace Colgan West Isle and cargo airlines shown on this UPS Mesaba Pan American CommutAir Wings of Alaska page, as recorded by the U.S. US Airways Miami Planet Corporate Wright Department of Transportation Midwest Primaris Ellis Air Taxi Yute Air Alaska (DOT) in 2005, under Chapter 411 North American Renown ERA Aviation of Title 49 of the U.S. Code. Omni Sierra Pacific Flying Boat Pinnacle SkyKing Frontier Flying Service Due to rounding, in some cases, PSA Southeast Grand Canyon Helicopters the sum of numbers in this report Ryan International Southern Grant may not match the printed total. Spirit Sunworld International Great Lakes Also, certain historical data has Sun Country Tatonduk Gulfstream been restated to reflect the most Trans States Tradewinds Hageland current information available. Transmeridian Victory Iliamna USA 3000 Zantop Inland Aviation For a glossary of terms and other USA Jet Island Air Service information regarding content, World L.A.B. Flying Service visit www.airlines.org and click on Mountain Bird Economics. For further information on this report and other ATA publi- 1 Annual revenues in excess of $1 billion. cations, click on Publications. 2 Annual revenues between $100 million and $1 billion. 3 Annual revenues under $100 million. 4 Operate aircraft of 60 or fewer seats or a maximum payload capacity of 18,000 pounds or less. I Member, Air Transport Association 2 | Air Transport Association S m a r t S k i e s Mission Goals Contents a b l The Air Transport Association Founded in 1936, the Air Transport Association of America is the nation’s oldest and largest airline Mission . .3 u e trade association. The association’s fundamental purpose is to foster a business and regulatory Goals . .3 p of America, Inc. (ATA) serves r i its member airlines and their environment that ensures safe and secure air transportation and enables U.S. airlines to flourish, President’s Letter . .4 n t stimulating economic growth locally, nationally and internationally. By working with its members in Officers . .4 f customers by: o Highlights . .6 r the technical, legal and political arenas, ATA leads industry efforts to fashion crucial aviation policy and t Eleven-Year Summary . .7 h • Assisting the airline industry supports measures that enhance aviation safety, security and well-being. ATA goals include: e Results by Region . .8 f in continuing to provide Industry Review . .9 u t the world’s safest system • Championing the world’s safest transportation system u Safety . .9 r of transportation • Protecting airline passengers, crew members, aircraft and cargo, working collaboratively with Environment . .9 e • Transmitting technical the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA) E-Business . .10 expertise and operational • Modernizing the U.S. air traffic management system via the Federal Aviation Administration (FAA) Fleet . .10 knowledge to improve • Challenging government policies that impose unwise regulatory burdens or impinge on Operations . .10 safety, service and efficiency marketplace freedoms Revenues . .12 • Advocating fair airline • Reducing the disproportionate share of taxes and fees paid by airlines and their customers Expenses . .12 taxation and regulation • Improving the industry’s ability to attract the capital necessary to meet future demands Earnings . .13 Capital Structure . .14 worldwide to foster a healthy, • Shaping international aviation policy to ensure that U.S. and foreign carriers can compete Jobs . .14 on equal terms competitive industry Outlook . .14 • Developing and coordinating Smart Solutions . .15 industry actions that are During its 70-year history, ATA has seen the airline industry grow from the small, pioneering companies Environment . .15 environmentally beneficial, of the 1930s into indispensable facilitators of the global economy. ATA and its members continue Air Traffic Control . .16 economically reasonable and to play a vital role in shaping the future of air transportation. FAA Funding . .17 technologically feasible Safety and Security . .18 Index of Charts and Tables . .28 ATA Members . .31 In 1936, 14 airlines met in Chicago to form the Air Transport Association of America “to do all things tending to promote the betterment of airline business, and in general, to do everything in its power to best serve the interests and welfare of the members of this association and the public at large.” Air Transport Association of America goals Founded: January 3,1936 Air Transport Association | 3 e r u t u f e h t r o f President’s Letter Officers t n i r The reauthorization of the Airport and Airway Trust Fund (AATF), slated to occur before October 1, James C. May p e 2007, involves decisions critical to the future of aviation and, equally important, to the future of our President and Chief Executive Officer u l b nation’s vibrant economy. The Air Transport Association and its member airlines want those decisions to John M. Meenan a maximize the benefits to the traveling and shipping public – reaching the smartest solution possible. s Executive Vice President and e i Chief Operating Officer k S Let me explain. Our aviation system faces a classic “fork in the road.” The road that we are on – the t Paul R. Archambeault r existing U.S. air traffic control (ATC) system – is based on 1950s vintage design concepts that can no a longer be efficiently expanded to meet growing demand. As aircraft operations increase, from 45,000 Vice President, m Chief Financial Officer and Treasurer S per day to the more than 61,000 per day projected for 2016, the traditional response of adding more controllers, equipment and facilities will not avert ultimate gridlock. Today’s system – all 21 air Basil J. Barimo traffic control centers and 41,000-plus operations facilities – is aging rapidly and requires billions of Vice President, Operations and Safety dollars in reinvestment just to keep the outmoded technology functioning. The status quo is one choice available to Congress, but it is the wrong course to follow. David A. Berg Vice President, The wise choice – supported by empirical data and decades of analysis – is to begin at once the transition General Counsel and Secretary to an information-centric, satellite-driven, digital air traffic management system, taking full advantage David A. Castelveter of existing and developing technologies and procedures. Additionally, facility consolidation and Vice President, Communications leveraged investments will result in significant resource savings. Efficient growth in system capacity translates into an expanding national economy, environmental benefits and continuing world aviation John P. Heimlich leadership. It is the smart solution. Vice President and Chief Economist While the choice seems obvious, making that choice will be extremely Patricia G. Higginbotham challenging. The transition means a new approach by Congress to the way Vice President, Policy funding and investment decisions are made, as well as systematic facility Sharon L. Pinkerton consolidation – without political interference; congressional jurisdictional Vice President, Government Affairs changes and the establishment of real system-user input on decision-making; innovative financing to accelerate technological deployment; and a commitment by system users to pay for the services Regina A. Sullivan that they consume. All of us must embrace change. Vice President, Government/Congressional Affairs In the coming year, we face both the challenge and the opportunity of change. It is critically important – James L. Casey not only to the airlines but indeed to our nation’s economy – that we meet the challenge and seize Deputy General Counsel the opportunity. To learn more, we invite you to visit the Smart Skies Web site: www.smartskies.org. We look forward to working with all interested parties to implement the fair, safe and smart solution. 4 | Air Transport Association S m a r t S k i e s It’s Time for America to Have a a b l 21st Century Air Traffic Control System u e p FAA Projects Unprecedented Growth in Flight Operations r i The Challenges n t • America’s 1950s-era air traffic control (ATC) system cannot cope 2016F 61.4 f o r with 21st century demands
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