Friday, May 28, 2010

Must Be Important

It made The New York Times and it made Marketplace so it must be important.

F.A.A. Tries to Accelerate Air Traffic Conversion

”The government is seeking to speed up the installation of a new air-traffic network ahead of a 2020 deadline.

The system, called the Next Generation Air Transportation System, or NextGen, by the Federal Aviation Administration, uses satellites to direct aircraft rather than ground-based radar. “

Yeah, yeah, we’ve heard all that. Why is it in the news? I think this is why.

”The Obama administration has considered offering incentives to airlines as a way to install the satellite navigation equipment sooner, Transportation Secretary Ray LaHood said in the call, without offering details.

“We have the White House’s attention on this, significant enough people where there could be some opportunities for us to be helpful to them along the way,” Mr. LaHood said.“

Or the next part.

”On Wednesday, the agency awarded Boeing, General Dynamics and the ITT Corporation contracts to help integrate new procedures and technologies into the air-traffic system, the F.A.A. said. The contracts are worth as much as $4.4 billion in the next 10 years, it said. “

Of course, that made me wonder about the number I’d read five paragraphs previously.

”The upgrade of the network is intended to increase safety, cut delays and save fuel. It will cost $2.1 billion to $4.1 billion, which will be shared by the government and airlines, Randy Babbitt, the agency’s administrator, said Thursday in a conference call with reporters.“

I can’t explain why they say it costs up to $4.1 billion when they just awarded contracts that are “worth as much as $4.4 billion”. But I’m just an ex-controller so what do I know?

I did find it kind of interesting that The New York TImes is getting their news from Bloomberg News.

By BLOOMBERG NEWS Published: May 27, 2010

Don Brown
May 28, 2010


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