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The Economic Viability of the Civil Reserve Air Fleet (Craf) Program

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The Economic Viability of the Civil Reserve Air Fleet (Craf) Program THE ECONOMIC VIABILITY OF THE CIVIL RESERVE AIR FLEET (CRAF) PROGRAM (111–30) HEARING BEFORE THE SUBCOMMITTEE ON AVIATION OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION MAY 13, 2009 Printed for the use of the Committee on Transportation and Infrastructure ( U.S. GOVERNMENT PRINTING OFFICE 49–950 PDF WASHINGTON : 2009 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 P:\DOCS\49950 JASON COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE JAMES L. OBERSTAR, Minnesota, Chairman NICK J. RAHALL, II, West Virginia, Vice JOHN L. MICA, Florida Chair DON YOUNG, Alaska PETER A. DEFAZIO, Oregon THOMAS E. PETRI, Wisconsin JERRY F. COSTELLO, Illinois HOWARD COBLE, North Carolina ELEANOR HOLMES NORTON, District of JOHN J. DUNCAN, JR., Tennessee Columbia VERNON J. EHLERS, Michigan JERROLD NADLER, New York FRANK A. LOBIONDO, New Jersey CORRINE BROWN, Florida JERRY MORAN, Kansas BOB FILNER, California GARY G. MILLER, California EDDIE BERNICE JOHNSON, Texas HENRY E. BROWN, JR., South Carolina GENE TAYLOR, Mississippi TIMOTHY V. JOHNSON, Illinois ELIJAH E. CUMMINGS, Maryland TODD RUSSELL PLATTS, Pennsylvania LEONARD L. BOSWELL, Iowa SAM GRAVES, Missouri TIM HOLDEN, Pennsylvania BILL SHUSTER, Pennsylvania BRIAN BAIRD, Washington JOHN BOOZMAN, Arkansas RICK LARSEN, Washington SHELLEY MOORE CAPITO, West Virginia MICHAEL E. CAPUANO, Massachusetts JIM GERLACH, Pennsylvania TIMOTHY H. BISHOP, New York MARIO DIAZ-BALART, Florida MICHAEL H. MICHAUD, Maine CHARLES W. DENT, Pennsylvania RUSS CARNAHAN, Missouri CONNIE MACK, Florida GRACE F. NAPOLITANO, California LYNN A WESTMORELAND, Georgia DANIEL LIPINSKI, Illinois JEAN SCHMIDT, Ohio MAZIE K. HIRONO, Hawaii CANDICE S. MILLER, Michigan JASON ALTMIRE, Pennsylvania MARY FALLIN, Oklahoma TIMOTHY J. WALZ, Minnesota VERN BUCHANAN, Florida HEATH SHULER, North Carolina ROBERT E. LATTA, Ohio MICHAEL A. ARCURI, New York BRETT GUTHRIE, Kentucky HARRY E. MITCHELL, Arizona ANH ‘‘JOSEPH’’ CAO, Louisiana CHRISTOPHER P. CARNEY, Pennsylvania AARON SCHOCK, Illinois JOHN J. HALL, New York PETE OLSON, Texas STEVE KAGEN, Wisconsin STEVE COHEN, Tennessee LAURA A. RICHARDSON, California ALBIO SIRES, New Jersey DONNA F. EDWARDS, Maryland SOLOMON P. ORTIZ, Texas PHIL HARE, Illinois JOHN A. BOCCIERI, Ohio MARK H. SCHAUER, Michigan BETSY MARKEY, Colorado PARKER GRIFFITH, Alabama MICHAEL E. MCMAHON, New York THOMAS S. P. PERRIELLO, Virginia DINA TITUS, Nevada HARRY TEAGUE, New Mexico VACANCY (II) VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00002 Fmt 0486 Sfmt 0486 P:\DOCS\49950 JASON SUBCOMMITTEE ON AVIATION JERRY F. COSTELLO, Illinois, Chairman RUSS CARNAHAN, Missouri THOMAS E. PETRI, Wisconsin PARKER GRIFFITH, Alabama HOWARD COBLE, North Carolina MICHAEL E. MCMAHON, New York JOHN J. DUNCAN, JR., Tennessee PETER A. DEFAZIO, Oregon VERNON J. EHLERS, Michigan ELEANOR HOLMES NORTON, District of FRANK A. LOBIONDO, New Jersey Columbia JERRY MORAN, Kansas BOB FILNER, California SAM GRAVES, Missouri EDDIE BERNICE JOHNSON, Texas JOHN BOOZMAN, Arkansas LEONARD L. BOSWELL, Iowa SHELLEY MOORE CAPITO, West Virginia TIM HOLDEN, Pennsylvania JIM GERLACH, Pennsylvania MICHAEL E. CAPUANO, Massachusetts CHARLES W. DENT, Pennsylvania DANIEL LIPINSKI, Illinois CONNIE MACK, Florida MAZIE K. HIRONO, Hawaii LYNN A. WESTMORELAND, Georgia HARRY E. MITCHELL, Arizona JEAN SCHMIDT, Ohio JOHN J. HALL, New York MARY FALLIN, Oklahoma STEVE COHEN, Tennessee VERN BUCHANAN, Florida LAURA A. RICHARDSON, California BRETT GUTHRIE, Kentucky JOHN A. BOCCIERI, Ohio NICK J. RAHALL, II, West Virginia CORRINE BROWN, Florida ELIJAH E. CUMMINGS, Maryland JASON ALTMIRE, Pennsylvania SOLOMON P. ORTIZ, Texas MARK H. SCHAUER, Michigan VACANCY JAMES L. OBERSTAR, Minnesota (Ex Officio) (III) VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00003 Fmt 0486 Sfmt 0486 P:\DOCS\49950 JASON VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 P:\DOCS\49950 JASON CONTENTS Page Summary of Subject Matter .................................................................................... vi TESTIMONY Bauer, Brian, President, Evergreen International Airlines, Inc. ......................... 18 Coretz, Robert K., Chairman, Omni Air International ......................................... 18 Flynn, William J., President and Chief Executive Officer, Atlas Air Worldwide Holdings, Inc. ........................................................................................................ 18 Graham, David R., Strategy Forces and Resources Division, Institute for Defense Analyses ................................................................................................. 18 Mcnabb, General Duncan J., USAF, Commander, United States Transpor- tation Command, Scott Air Force Base .............................................................. 4 Smith, Frederick W., Chairman and CEO, Fedex Corporation ........................... 18 Zoeller, Thomas E., President and CEO, National Air Carrier Association ....... 18 PREPARED STATEMENTS SUBMITTED BY MEMBERS OF CONGRESS Costello, Hon. Jerry F., of Illinois .......................................................................... 37 Mica, Hon. John L., of Florida ................................................................................ 42 Mitchell, Hon. Harry E., of Arizona ....................................................................... 44 Oberstar, Hon. James L., of Minnesota ................................................................. 45 PREPARED STATEMENTS SUBMITTED BY WITNESSES Bauer, Brian ............................................................................................................. 49 Coretz, Robert K. ..................................................................................................... 54 Flynn, William J. ..................................................................................................... 69 Graham, David R. .................................................................................................... 79 McNabb, General Duncan J. ................................................................................... 86 Smith, Frederick W. ................................................................................................ 93 Zoeller, Thomas E. ................................................................................................... 105 SUBMISSIONS FOR THE RECORD Airline Pilots Association, International, written statement ............................... 128 McNabb, General Duncan J., USAF, Commander, United States Transpor- tation Command, Scott Air Force Base, response to question for the Record 133 (V) VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 P:\DOCS\49950 JASON vi VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00006 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 1 here 49950.001 vii VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00007 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 2 here 49950.002 viii VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00008 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 3 here 49950.003 ix VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00009 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 4 here 49950.004 x VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00010 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 5 here 49950.005 xi VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00011 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 6 here 49950.006 xii VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00012 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 7 here 49950.007 xiii VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00013 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 8 here 49950.008 xiv VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00014 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 9 here 49950.009 xv VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00015 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 10 here 49950.010 xvi VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00016 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 11 here 49950.011 xvii VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00017 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 12 here 49950.012 xviii VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00018 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 13 here 49950.013 xix VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00019 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON Insert offset folio 14 here 49950.014 VerDate Aug 31 2005 11:32 Aug 11, 2009 Jkt 000000 PO 00000 Frm 00020 Fmt 6602 Sfmt 6602 P:\DOCS\49950 JASON HEARING ON THE ECONOMIC VIABILITY OF THE CIVIL RESERVE AIR FLEET PROGRAM Wednesday, May 13, 2009 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON AVIATION, COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE, Washington, DC. The Subcommittee met, pursuant to call, at 10:00 a.m., in Room 2167, Rayburn House
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