Fiscal woes delay airline upgrades

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Fiscal woes delay airline upgrades
By Alan Levin, USA TODAY

WASHINGTON =97 The economic problems ravaging the airline industry could=20
imperil or delay several programs to modernize the nation's aviation=20
system. Federal officials and aviation experts fear that the industry will=
=20
not have the money to ease delays and improve communications.That=20
investment is key because the next wave of technologies will be based in=20
cockpits instead of on the ground. The Federal Aviation Administration=20
estimates airlines and private jet owners need to spend $11 billion in the=
=20
next decade on these technologies.But airlines, which have been set back by=
=20
terrorist attacks and a slow economy, expect to lose $7 billion this year.=
=20
Airlines say they remain committed to FAA-sponsored programs. "However, at=
=20
the moment, we are struggling for our financial survival," says Michael=20
Wascom of the trade group, the Air Transport Association.At US Airways,=20
which entered bankruptcy protection earlier this year, the court must=20
approve all major expenditures. Several other airline officials told USA=20
TODAY that their companies' financial situations made it difficult to=20
justify large new expenditures.The issue highlights a dilemma. Economists=20
and government officials say continued investment in the aviation system is=
=20
essential to assure growth. But investing in specific programs rarely makes=
=20
financial sense on the bottom line, so companies postpone spending as long=
=20
as possible.

The FAA's Charles Keegan, who oversees attempts to modernize air traffic,=20
is concerned. "The condition of the major carriers could limit their=20
ability to equip with what's necessary to implement these new programs," he=
=20
says.Among the programs that are threatened:=B7Connecting pilots and=20
controllers with e-mail. Allowing routine air traffic commands to be=20
transmitted by e-mail could immediately improve traffic flows. But airlines=
=20
must invest up to $100,000 per aircraft to make it work. =B7Adding=
 navigation=20
equipment that would cut delays in bad weather and improve safety at a cost=
=20
of several hundred thousand dollars per aircraft. =B7Adding capacity to=20
high-altitude airspace. New equipment would allow many more jets to squeeze=
=20
into some congested areas. The airlines say they will be ready for the=20
change, but charter companies and private jet owners are lobbying the FAA=20
to delay implementation for cost reasons.



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