That is the accounting that the faa has in the current budget. As much as we wish it would the budget picture will not change we will see more and more spending restraint with the impact of sequestration and layoffs with onagain and offagain stock in star funding from continuing resolutions. That is what the faa is confronted with nobody could or would bill the major new Technology Projects with those types of challenges. Here is the headline from last week and though it causes heart ache but commack the faa is not delivered as promised. The first of the modernization that is why change is needed the consensus of the stakeholders was we need to restructure to a Government Corporation for a Nonprofit Organization that has Stable Funding and the ability to control and finance the march to modernization we have now reached the Tipping Point i am not the typical spokesperson to come to the table to suggest that is the case i would weigh in to have the agency do it there will not be Stable Funding to move to the leadership necessary with the next opportunity for air Traffic Control by a understand this is not easy to be discussed before but it needs to be done now. A number of other countries have done this successfully in so cannery. We know the history data and 03 will learn to fly dash pc the bonfires for guidance then for groundbased radar and we have not changed me to go quickly and effectively the only way that will happen is of the different structure if a Nonprofit Organization and can accomplish what we want to. One final point to know the word privatization has been used. I did not use it this structural focus from Nonprofit Organizations that i think will solve the problem for this country to insist the government retain anb is stakeholder in a new organization. Mr. Chairman thank you for the invitation is a pleasure to be sure. Thank you senator dorgan spent a thankyou chairman and Ranking Member and members of the committee 40 opportunity to be here for the nation of the air Traffic Control system for users of air space in passengers and employees and the many stakeholders across the country that benefit. Airlines for america is dedicated a tremendous amount of resources time and attention to a fact based study of air Traffic Control reform including a Global Survey of Proper Service providers. All of the work points to one conclusion, the american air Traffic Control system needs a complete transformation to modernize to meet the demands of the future a of the time is now. We cannot continue with a status quo. Today all users of this system is behold and to the world were to era system that is inefficient. For decades policymakers and stakeholders unanimously recognized the need for modernization. Long string of reports from commissions dot Inspector General a gao and independent private sector experts have found the faa progress has not met exhortations calling into serious question in the agencys ability to deliver on its mission under the current structure. The problem is not the work force or the leadership of the funding and governance that we must fix many countries around the world have successfully transformed their own air Traffic Control system. We have done extensive benchmarking we show the six basic success. Number one is separation of the operation of the atc safety regulation function number to a Nonprofit Corporation with independent multistate kohler board of governors free from political influence. A professional Management Team incentivize to pursue efficiency without numerous constraints imposed on government agencies. Number for a self funded user fee model based on the cost of services allowing access to Capital Markets and a steady predictable stream of funding not subject to budgetary constraints. Number five. Managing assets and Capital Investments with far greater speed to market of technological information in which user fees so they know what they pay allow them to have full ability to recover cost. Under their transformed atc system plus any new fees to fund the remaining should not exceed the total tax burden of today. With independent governments and operation and funding of the atc system the faa could turn the full attention to safety regulation and oversight for the transform atc system could maintain safety as the utmost priority while creating efficiencies delayed reductions in the environmental benefits for the inefficiencies the delays and the cost will only grow over time so there is no better time to transform the atc system than now we are capable to rise to a challenge as many others have before us if we do this methodically and thoughtfully well as giving proper consideration to Risk Mitigation the results is a modernized air Navigation Service provider to better deliver the benefits to the users of the system of employees and passengers that they people of this nation expect and deserve. Thank you. Mr. Chairman is editors of the committee thank you for the opportunity to testify that this hearing to discuss the future of our Aviation System. Riyal have a stake in the National Airspace the economic engine contributes 1. 5 trillion to the gdp provides over 12 million american jobs. Reinvented aviation as an american tradition over the last 100 years we have created innovated implemented the unbelievable for current labor you run the largest most complex diverse system in the world it is income parable nine equaled and unrivaled by any other country. For example, the next Largest Aerospace is canada they have 12 million operations per year on average we have over 132 million operations per year the United States air Space Systems is considered the Gold Standard in the community by yet the reality is to keep that honor changes needed. Currently we face many challenges to respond to a given problem so unpredictable funding stream concluding the inability to finance longterm projects the inability to grow the airspace for new users the ability to modernize the aging infrastructure currently our centers throughout the country are over 50 years old with no plan to replace them. Their struggling to maintain proper resources at the air Traffic Control facilities are Certified Air controllers are of the alltime low the of coming bill must address the lack of the of predictable Stable Funding stream for the hypercritical safety aviation operations and. Well understand this stop and go funding problems leads to an examination of a structure change and we believe it is time the Current System is not dynamic enough to address the needs of airTraffic Control operations in the future but any such change reform must be carefully examined to prevent the unintended consequences of safety and efficiency of National Airspace system every stakeholder should Work Together to make sure the United States continues to be a Global Leader in aviation. Any reform must address the safety and efficiency of the airspace system to be misunderstood to provide a stable and predictable funding stream. To adequately support staffing inspiring. Any change must allow for continued growth in the Aviation System and must be dynamic to provide all services for all segments of the community. Any change that we make needs to be precision like to interrupt the daytoday operation of the airspace it is an american treasure. Aviation is uniquely in american tradition. We cannot continue to shortchange it. Were still currently recovering from sequestration cuts of 2013. Another round of cuts better set to take place this year will shrink the footprint for ever we need to make appropriate changes to secure a Stable Funding stream and establish a proper governance structure that is not laden with your credit lines of business or burgeoned with bureaucratic process we need a dynamic structure that will allow was to grow aviation and not shrink it and to modernize facilities and equipment procedures in a realistic time frame to give us the Competitive Edge to ensure the future leadership in the global aviation community. Thank you for the opportunity to testify collophore to answering your questions. Thank you. Mr. Chairman and members of the committee general aviation is an important industry representing target billion dollars to our economy with over 1 million workers Business Aviation unit states Fosters Economic Development and small town and roll committees and helps companies of all sizes be efficient and productive to help with a humanitarian efforts whether responding to forest fires or flooding or transplant organs. Were honored to be here today. We represent over 10,000 Member Companies of all sizes. And in all types of industry we represent hospitals, universities and nonprofit. 85 of the numbers are small and midsized generally operating out this small towns and secondary markets generally flying tour from an airport with no commercial service. Business aviation is fundamental to the economy smalltown and midsized communities in the United States. Typical of membership status washington schweitzer is a hightech Engineering Company in a community with very little commercial service. But it can compete effectively in the International Market because it has access to Business Aviation. Mr. Chairman, every member of this committee has a company like schweitzer in a community. As a matter of perspective there are fewer than 500 communities in the United States with any type of airline service. 5,000 in the communities that rely on Business Aviation for support. The faa reauthorization bill has a lot to do with communities and Companies Like those. Because the airspace above our heads belongs to the American Public not to anyone stakeholder or industry segment the air Transportation System must continue to serve all americans across this country the question on the table the fundamental question of reauthorization is who will ensure that the public airspace serves the Public Benefit . Will it be the public elected officials . Or a combination of self interested parties . For decades suggestions have been made that Congress Wash their hands of the air Traffic Control system. To give over to other parties taxing authority to determine if you can access airports and airspace. This is something pushed long before next gen was the concept in before sequestration they have wanted Sweeping Authority to determine who gets taxed and who can fly where and when. Mr. Chairman the power to tax is called the power to destroy. Today that authority resides with the elected officials for also the power to insure nondiscriminatory access to airports and airspace. Congress should not abdicate or relegate delegate or outsource its authority over taxes and access to. The Congressional Research service said to do so could become such and constitutional United States has the measures the largest and safest and most efficient and most complex and diverse air Transportation System in the world. But the Business Aviation community is not content with status quo and no american should be. To be the best today does not mean the customer and complacency is our enemy. That is why the Business Aviation community has been active and outspoken for its support for next general industry segment has done more. We have invested in technology we urge congress to do the same. Serious problems to exist with the Nextgen Program programs have been delayed and implementation has been slow. We still have a lot of work to do to certify technologies it is time to focus like a laser on those problems. It is time to not be distracted by what we need to do. We need to use the faa reauthorization bill to make sure we make nextgen a reality and improve the certification we are protecting our nations system of airports to certify end employment and integrate in a safe way there is a lot of work to be done the Member Companies look forward to working closely with you but lets never forget the public airspace should serve a Public Benefit. Thank you mr. Bolen your very efficient everybody came very close to the five minute rule even hour former colleague. [laughter] over the weekend indicating is Security Research claim could barely take control by hacking into the Inflight Entertainment system of true it is a disturbing incident and to analyze those on passenger aircraft . So what they are finding is as it relates to the larger question of cyberit is something weve looked very carefully at that only in the operation of our system to how it changes for those rare of security to access to Critical Systems but a cyberis it will continue to be a challenge not just with aviation and but a Technology Based sector tuesday ahead of. Nothing to report at this time . The academys student would require significant effort with those challenges going forward. To talk about that issue with the agencys efforts with the Government Faces of the private sector employers . Do we offer a competitive job and composition . To ensure the net debt it is important 2. 0 there is a significant portion of the pool interested coming to work for the faa because of their belief of the mission in public service. We will never paid the top salaries that Top Technology companies pays so the focus to have an orderly process. To be interested in the cybersecurity support to begin touched with that subject. To turn back to the subject at hand talk about status quo is not be acceptable situation. In bed with the system of the courage government model we have been studying the last 18 months the other countries when they broke off airTraffic Control services from their Government Entity some have done well summer struggling. What we are looking at is a funding stream to change the structure was a thing we know for sure that we dont want is to put another hurdle in front of us to provide the most efficient system is the worlds. There is a lot of discussion as the model for comparison. To a understand with some reluctance to copy that effort to that he finds most appealing. I was there last week to look at the Technical Center to have day true collaboration to develop a the Nextgen Technology to Work Together from conceptual stage through training and implementation and deployment with their facilities to save time and money with the 30 year time frame because of the procure reprocess. In the context of the independent Services Provider some of the referenced of preference several different models. Can you speak to the difference of a federal corporation or federally chartered nine profit from the approach . Reconvened this group in the consensus was a Nonprofit Corporation allowed to maximize Shareholder Corporation but also what happened is the ability to have that bombing authority to talk about the nextgen Capital Project we were done in a fairly short period of time to continuously improve. It is the entity but i would say those people tend to rely on the Nonprofit Corporation with the shareholder management if you will. It gets you the most bang for your buck and gets us out to the edge where we are not today. Mr. Cherry have submitted a Research Document for the folks that were involved have produce