FAA shutdown impacts more than air transport industry

The ongoing FAA shutdown is having a broad and deep negative impact on aviation and the US economy. As a result of Congress‘ failure to pass an authorisation extension, the FAA has been forced to issue stop work orders on contracts reportedly worth more than US$7 billion, says Aerospace Industries Association (AIA) president & CEO Marion Blakey.

Reports from AIA member companies reflect contract employee layoffs as well as disruptions to second- and third-tier suppliers, often small businesses. It’s also unclear whether the FAA will be able to make significant payments to contractors in the next couple of weeks. Most small businesses lack the flexibility to absorb delayed payments – lack of cash flow could force these contractors to furlough or lay off additional employees.

In addition, while there is no immediate impact to air traffic control operations, many of the FAA furloughs have occurred in Next Generation Air Transportation System and air traffic control program upgrades. Significant delays in these programs would undermine the economic and environmental benefits they are expected to provide.

"It is long past time for Congress to pass a full FAA Reauthorisation bill," says Blakey. "We strongly urge Congress to pass an immediate extension of authorities while working to resolve their differences over a full authorisation. Allowing the authorisation to lapse has resulted in unconscionable and completely avoidable negative impacts to aviation and our economy. The longer Congress waits, the worse those impacts will be."

The AIA trade association represents US manufacturers and suppliers of civil, military and business aircraft, helicopters, unmanned aircraft systems, space systems, aircraft engines, homeland and cyber-security systems, materiel and related components, equipment services and information technology.

Quelle: eyefortransport
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