The Business Case for the Next Generation Air Transportation System: FY 2013

This report presents the Federal Aviation Administration's (FAA’s) business case for the Next Generation Air Transportation System (NextGen). NextGen is a wide-ranging transformation of the air transportation system, including air traffic management technologies and procedures; airport infrastructure improvements; and environmental, safety and security-related enhancements. The business case considers only the air traffic management aspects of NextGen, as the costs of these improvements are most directly borne by the FAA and system users. It considers the shortfalls in the current system that new technologies can help to alleviate, and the costs and benefits of doing so. The business case report considers the improvements described in the NextGen Mid-Term Concept of Operations, most of which are planned for deployment between now and the year 2020. Implementing and maintaining them is expected to cost the FAA and aircraft operators $39 billion through the year 2030. During that period, these improvements are expected to generate $182 billion in total benefits. Applying a 7 percent discount rate, and taking the difference between the present value of benefits and costs, it finds that NextGen mid-term improvements have a Net Present Value of $59 billion. This translates to $3.50 in benefits for every $1 invested.

  • Summary URL:
  • Supplemental Notes:
    • The latest version of this publication is posted under "NextGen Related Documents" at: https://www.faa.gov/nextgen/library/.
  • Corporate Authors:

    Federal Aviation Administration

    Office of NextGen
    800 Independence Avenue, SW
    Washington, DC  United States  20591
  • Publication Date: 2013

Language

  • English

Media Info

  • Media Type: Digital/other
  • Features: Appendices; Figures; Photos; References; Tables;
  • Pagination: 29p

Subject/Index Terms

Filing Info

  • Accession Number: 01532328
  • Record Type: Publication
  • Files: TRIS, ATRI, USDOT
  • Created Date: Jul 29 2014 11:33AM