FAA IG Questions FAA NextGen Business Case Estimates | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-07.07.25

Airborne-NextGen-07.08.25

AirborneUnlimited-06.25.25

Airborne-AffordableFlyers-06.26.25

AirborneUnlimited-06.27.25

Sun, Aug 20, 2017

FAA IG Questions FAA NextGen Business Case Estimates

Does not Include All Capabilities They Expect Will Produce Benefits

The DOT's Office of Inspector General has responded to a request from the leadership of the House Transportation Committee and its Aviation subcommittee concerning a review of the FAA's benefits projection in its July 2016 Next Generation Air Transportation System (NextGen) Business Case.

In its business case, FAA projected that NextGen will deliver about $161 billion in benefits by 2030, of which the Agency states that $2.7 billion has already been delivered to airspace users and the traveling public. At the Chairmen’s request, we provided information on the: (1) programs FAA included as NextGen programs and whether projected benefits represent a realistic assessment, (2) assumptions behind FAA’s benefits calculations, and (3) various groups FAA assumes will benefit and how the benefits are valued.

In the 18-page letter sent to Full Committee Chair Bill Shuster (R-PA) and Frank LoBiondo (R-NJ), Inspector General, Calvin Scovel III said that the office found that the FAA’s benefits estimate is overly optimistic given past experience with introducing new capabilities and the use of out-of-date schedules for some key projects.

The majority of FAA’s estimates are for new capabilities that have not yet been implemented, and some new capabilities continue to face challenges in delivering benefits to airspace users. In addition, while FAA recognizes that the key assumptions behind its benefits calculations are aggressive, the Agency does not provide alternative outcomes or adjust for risks that may impact the delivery of benefits to airspace users. Further, FAA relies heavily on valuing the time saved by passengers to make a positive business case for NextGen.

While this is a generally accepted practice, some airline representatives are concerned that reporting benefits in one, broad category makes it appear that airlines are receiving more substantial benefits than they actually have achieved.

FAA officials also noted that the business case does not include all capabilities that they expect will produce benefits but have yet to be quantified. As a result, FAA’s business case does not communicate the range of uncertainty or complex factors associated with NextGen implementation.

(Source: DOT OIG)

FMI: Full Letter

Advertisement

More News

Airborne 06.30.25: US v ADS-B Misuse, NatÂ’l STOL Fire, Volocopter Resumes

Also: Netherlands Donates 18 F16s, 2 737s Collide On Ramp, E-7 Wedgetail Cut, AgEagle's 100th In S Korea The Pilot and Aircraft Privacy Act was introduced in the House by Represent>[...]

Aero-News: Quote of the Day (07.06.25)

“This delivery represents more than just a milestone. It symbolizes our shared commitment to national security and our unwavering support for the men and women who serve on t>[...]

ANN's Daily Aero-Linx (07.06.25)

Aero Linx: Vintage Wings of Canada Foundation Vintage Wings of Canada is a not-for-profit, charitable organization with a collection of historically significant aircraft and is run>[...]

Classic Aero-TV: Portrait of the Army Aviation Heritage Foundation

From 2023 (YouTube Edition): To Preserve and Teach Incorporated as a non-profit domestic corporation in June 1997, the Army Aviation Heritage Foundation (AAHF) is a one-of-a-kind, >[...]

Airborne-NextGen 07.01.25: Volocopter Returns, B23 Energic, Iran Tech In UAVs?

Also: Air Taxis May Be Close, AgEagle Sells 100th, VAI Likes Bedford, AURA AERO Cleans Up Volocopter has resumed work towards the certification of its VoloCity eVTOL, this time und>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2025 Web Development & Design by Pauli Systems, LC