Airline Privatization – Will It Happen?

The 35-day government shutdown temporarily ended on Friday, after beating historic records for length of time.  The shutdown affected hundreds of thousands of federal government employees, but it also wreaked havoc upon airlines. For them, the damage came up to the tens of millions, as Southwest Airlines reported that the shutdown cost them more than $10 million, and Delta claims to have lost more than $25 million in revenue for January alone.

The shutdown has affected federal airport workers particularly hard, as they had to continue working without pay, missing two paychecks. Some TSA employees were forced to live in cars and get on food stamps after receiving eviction notices. These realizations have led to statements from industry leaders that may improve the case for privatizing parts of the airline industry. Privatization of the air-traffic-control system would be a move many in the industry already support, and have supported for a while.

Whether or not it will happen remains to be seen, but the big airlines would certainly welcome the news. Airlines For America (A4A) is a trade organization that champions the cause of privatization. The organization is backed by members including United Airlines, UPS, Fedex, and other airline industry powerhouses. A4A, in agreement with a plan put forward by President Trump to privatize the air-traffic-control system stated “Flight delays cost the economy $25 billion last year, and our antiquated ATC system is responsible for almost half of those delays,”

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5 years ago