The U.S. government has allocated significant funding to improve infrastructure and capacity at airports, focusing on enhancing cargo flows and recruiting additional traffic controllers to reduce congestion at busy hubs. President Joe Biden signed the Federal Aviation Administration (FAA) Reauthorization Act, allocating $105 billion over four years for air traffic control, airport operations, and infrastructure. This initiative aims to address constraints hindering traffic development, improve system safety, and better prepare for future disruptions while accommodating growth.
The package includes $19.35 billion for airport infrastructure improvement grants, with a portion dedicated to enhancing airfreight capabilities. Bob Imbriani, President of the Airforwarders Association (AfA), emphasized that this funding addresses longstanding cargo congestion issues at many airports. During the pandemic, freight forwarders experienced long wait times at airports, sometimes up to seven hours. Despite normalized volumes, reports indicate that wait times still average around 2.5 hours. Brandon Fried, the AfA’s Executive Director, expressed approval of the legislation.
In previous funding rounds, airlines received $25 billion of the $115 billion they requested from Washington, with no specific mention of cargo. Recognizing the need for dedicated advocacy, the AfA and the National Customs Brokers and Forwarders Association of America (NCBFAA) surveyed over 400 stakeholders in the air cargo sector, resulting in a 65-page white paper that garnered Congressional support.
The legislation mandates the General Accountability Office to conduct a comprehensive assessment of U.S. air cargo operations over the next year. Although the exact allocation for air cargo improvements is not yet clear, estimates suggest $4 billion to $6 billion may be required, according to airport consultants. Challenges vary by airport, including outdated road systems, labor issues, and antiquated technology. A key objective of the legislation is to alleviate the overburdened air traffic control system. Last summer, IATA noted that U.S. airlines had to reduce schedules by 10% due to a shortage of traffic controllers. Airlines for America reported in January that the number of controllers was 3,000 short of FAA targets, 10% lower than in 2012.
Recruiting more traffic controllers could lift flight restrictions at airports like Washington National and improve aviation safety, addressing concerns following recent incidents and near-misses, as well as quality issues at Boeing. The legislation also calls for advanced airport surface technology to prevent collisions. Additionally, the legislation permits Boeing to extend production of its B767 freighter for another five years, potentially increasing demand for the aircraft in the near future.
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