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Frequently Asked Questions

  1. The budget out-year analysis underscores the fact that for aviation purposes, the government collects too much and appropriates too little. This is because what gets collected to pay for air traffic services is not tied to the cost of those services.

    Appropriating more isn’t the answer. Taking air traffic control services out of the government solves that problem. As a non-profit, independent cooperative, the air tarffic organization will collect only what it needs and spend no more than it collects.

  2. In a recent letter to Senator John McCain, Secretary of Defense James Mattis said that the Defense Department is supportive of a possible privatization of Air Traffic Control (ATC) services.

    A fundamental principle of ATC reform is the seamless continuity of airspace use coordination between the new entity and the Department of Defense (DOD). The White House Statement of Principles maintains DOD’s role in terms of its interaction with the new air traffic organization.  Moreover, in times of conflict, the President will continue to have the same authority to transfer to the Secretary of Defense a duty, power, activity or facility of the FAA Administrator or the new air traffic organization.  Finally, the White House proposal would prohibit the imposition of user fees and charges on aircraft operated by DOD.  

  3. Claims that this proposal will devastate rural and general aviation are unfounded.  The Adminsitration’s principles include a number of protections to ensure the viability of our nation’s vital General Aviation sector and its access to rural communities. Also, at the May 18, 2017, House Transportation & Infrastructure Committee hearing, Chairman Shuster committed to strengthen the protections for rural communities to address this very concern.  

    Some in the corporate jet community wrongly assert that passenger carriers will control governance of the new entity. Dilution of passenger carrier representation on the Board of Directors is addressed in the White House principles. The Administration supports legislation that specifically prohibits the new air traffic organization from restricting airspace access in any way.  General Aviation operators would be guided through the national airspace by controllers operating under the same rules that apply today – with safety as their first priority.

  4. After safety, aviation noise is still the number one Air Traffic Control (ATC) issue of concern for most Americans. The new entity will be required to coordinate all changes to flight tracks around airports with local communities, just as the FAA does today. FAA will retain oversight authority over adherence to the requirements of the National Environment Policy Act as they pertain to airspace changes.

  5. The FAA retains FULL oversight over all safety related issues, and Congress has full oversight over the FAA. This proposal, which separates Air Traffic Control (ATC) operations from safety oversight, will improve safety by providing truly independent arms-length oversight. 

    Currently, the FAA is in the difficult position of both operating and regulating the ATC system.  The FAA already regulates aircraft operations, maintenance, and manufacturing.  ATC should be no different.  The U.S. is one of only two countries in the free industrialized world that has not adopted this internationally recommended practice.

  6. That’s not the proposal. The Administration’s principles are designed to benefit anyone who flies, and in any kind of aircraft.

    A 13-person Board of Directors composed of the CEO and independent directors will oversee the Air Traffic Control organization.  A wide range of public and private sector stakeholder groups, including the Secretary of Transportation, airports, recreational and business aviation operators, airline pilots, air traffic controllers, and airlines will nominate the directors.  Furthermore, directors cannot be employed by stakeholders and will owe a fiduciary duty to the organization – not to the stakeholder groups that nominated them.

  7. The solution is to remove federal budgetary uncertainty from air traffic operations funding which will allow us to modernize and ensure the system can’t be interrupted by fiscal impasses. 

    The federal appropriations process does not allow for the strategic, long-term, capital investment planning required to run a world-class air traffic control operation.  A non-governmental cooperative would have a predictable funding stream and access to private capital, giving it the ability to accelerate technical innovation.  

  8. The stop and go approach of the annual appropriations process with the political overlay and sequester is not conducive to responsible long-term planning. A large, complex federal government agency and an unpredictable appropriations process will, at best, only deliver sporadic and incremental change. 

  9. System-wide efficiencies will improve the customer experience by providing more direct flights, shorter routes, and fewer delays and cancellations. It will stabilize funding for Air Traffic Control (ATC) operations and provide a reliable way to pay for implementation of new, advanced technologies. Efficiency from a modernized ATC system will also generate lower operating costs for all users through lower fuel use and more, direct routing.

  10. Sound business practices, operational excellence and advanced technology are all scalable.  Although the U.S. operates the largest air traffic control system, it is already scaled from an operational perspective. 

    The goal is not to take the Canadian ATC system and transplant it to serve the needs of the U.S. ATC system.  The goal is to fundamentally reform the ATC system with uniquely American governance and financing structures to ensure its long-term financial health, safety and to secure America’s role as the global leader in aviation. 

    Moreover, separating air traffic control operations from safety oversight is an internationally recommended and widely adopted best practice. Canada is not alone; more than 50 countries have reformed their air traffic control systems with proven results. The U.S. can build on the existing decades’ long experience of Canada and many other countries.

  11. A new air traffic entity will have no direct impact on the price of air travel.  Ticket prices are driven by demand and competition.  We also know that demand for air travel services will continue to rise. The ATC proposal includes a governing board representing all aviation stakeholders. The new entity will charge system users, not passengers. This approach eliminates most ticket taxes. In Canada, where they use a similar model, air traffic user charges are 30 percent lower than the government taxes they replaced 20 years ago.

    Consumers and other airspace users, however, will stand to benefit from a more modern system. Reduced flight delays and cancellations as well as more flight options should save time and money.  All of the air traffic operations that are performed today by the FAA will transfer to the non-profit organization.

  12. To remain the world leader in aviation, the U.S. must operate the safest, most efficient air traffic system. To do this, our nation requires predictable and sustainable funding to modernize air traffic control to match growing demand and advances in technology.  Smarter decision making and reliable funding--that is not tethered to complex and unpredictable federal procurement and appropriations processes--will modernize our air traffic control system faster and more cost-effectively. Consumers, the economy, and all airspace users stand to benefit from a system that delivers more flight choices, fewer delays and lower operating costs. 

    The Federal Aviation Administration (FAA) is best at ensuring aviation safety, not system efficiency, so a federally chartered, non-government cooperative is needed to manage a high-tech service operation such as our air traffic control system. This new entity would leverage private sector financing tools with technological agility and ingenuity to speed up advances in aviation technology.  This concept, already in practice by more than 50 countries worldwide, would deliver a safer, more efficient national airspace system, and assure the U.S. remains the gold standard for aviation around the world.

  13. Common carriers provide for-hire truck transportation to the general public. Common carriers must file both liability (BI & PD) insurance and cargo insurance.

    Contract carriers provide for-hire truck transportation to specific, individual shippers, based on contracts. Contract carriers must file only liability (BI & PD) insurance.

    Brokers arrange for the truck transportation of cargo belonging to others, for compensation, utilizing for-hire carriers to provide the actual truck transportation. Brokers must file either a surety bond or trust fund agreement.

  14. The definition of an "authorized for-hire " carrier is a person or company that provides transportation of cargo or passengers for compensation. If you are a for-hire carrier, in addition to the USDOT Number you will also need to obtain Operating Authority (MC Number).

  15. Each individual Operating Authority is $300. Separate filing fees must be submitted with the application at the time of processing for each Authority sought. For instance, requests for Common Carrier of Property Motor Carrier and Contract Property Motor Carrier Authority will require two $300 fees ($600). Payments can be combined. FILING FEES ARE NON-REFUNDABLE..

    1. You can file for the following operating authorities with the OP-1 Application For Motor Property Carrier and Broker Authority:
      • Motor Common Carrier of Property except Household Goods;
      • Motor Contract Carrier of Property except Household Goods;
      • Motor Common Carrier of Household Goods,
      • Motor Contract Carrier of Household Goods,
      • Broker of Property except Household Goods,
      • Broker of Household Goods,
      • United States Based Enterprise Owned or Controlled By Persons of Mexico Providing Truck Services For The Transportation of International Cargo (Except Household Goods);
      • United States Based Enterprise Owned or Controlled By Persons of Mexico Providing Truck Services For The Transportation of International Household Goods
    2. OP-1(FF) - Application for Freight Forwarder Authority
    3. OP-1(P) - Application for Motor Passenger Carrier Authority
    4. OP-1(MX) - Application to Register Mexico-based Carriers for Motor Carrier Authority to Operate Beyond U.S. Municipalities and Commercial Zones on the U.S.-Mexico Border
    5. OP-2 - Application for Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers Under 49 U.S.C. 1302.
  16. The answer varies from state to state. In most states, intrastate non-hazardous-material motor carriers do not require a USDOT Number, but several States participate in programs such as PRISM, which does require intrastate motor carriers, with or without HazMat, to have a USDOT Number. If you do not know whether your state requires intrastate motor carriers to have a USDOT Number, contact the Office of Motor Carrier Safety field office in your state. For a listing of State offices, go to the FMCSA Field Roster.

  17. Interstate commerce is trade, traffic, or transportation involving the crossing of a State boundary. Either the vehicle, its passengers, or cargo must cross a State boundary, or there must be the intent to cross a State boundary to be considered an interstate carrier. Intrastate commerce is trade, traffic, or transportation within a single State.

    If your operations include interstate commerce, you must comply with the applicable Federal safety regulations andOperating Authority rules, in addition to State and local requirements. You must notify the State in which you plan to register your vehicle(s) of your intentions to operate in interstate commerce to ensure that the vehicle is properly registered for purposes of the International Registration Plan (IRP), and International Fuel Tax Agreement (IFTA). The base State will help you by collecting the appropriate fees and distributing a portion of those fees to the other States in which you operate commercial motor vehicles.

    If you operate exclusively in intrastate commerce , you must comply with applicable State and local regulations. The only Federal regulations that are applicable to intrastate operations are: the commercial driver's license (CDL) requirement, for drivers operating commercial motor vehicles as defined in 49 CFR 383.5; controlled substances and alcohol testing for all persons required to possess a CDL; and minimum levels of financial responsibility for the intrastate transportation of certain quantities of hazardous materials and substances.

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