Developing a Model for Joint Infrastructure Investment
April 2005
Michele Steinbach, The MITRE Corporation
Stephen Giles, The MITRE Corporation
ABSTRACT
The Federal Aviation Administration (FAA), in conjunction with MITRE's Center for Advanced Aviation System Development (CAASD), is developing operational concepts and working with stakeholders throughout the aviation community to assess the business case for investment in air/ground data communications capabilities by the Aeronautical Data Link System (ADLS). The "next generation air transportation system", as envisioned by the Joint Planning Development Office (JPDO) in its integrated plan [JPDO, 2004], will rely on data link communications to improve the accuracy and timeliness of information exchanged between the ground and the aircraft. This vision of the future requires a responsive air traffic management system that can adapt to a changing environment while reducing costs and improving operational efficiency. ADLS can provide the technological foundation for this system, but without a convincing business case that technology will not be implemented. The pressing need for National Airspace System (NAS) modernization is tempered by the financial limitations of all stakeholders in the current business environment. In the course of conducting a benefit-cost analysis for investment in ADLS, a CAASD team is creating a model to assess investments made jointly by the FAA and airspace users. [MITRE, 2004a] By establishing a common basis for understanding the costs and benefits accruing to each of the investing stakeholders, the model supports synchronized decision-making. This paper has two goals: First, it will describe current benefit-cost analysis practices in order to understand the criteria for investment decision-making used by stakeholders in the NAS modernization process. Second, it will show how the ADLS benefit-cost model addresses the information needs of all stakeholders in a comprehensive and transparent way. The conclusion is that this model can assist the FAA, airspace users, and other industry stakeholders in evaluating a business case for infrastructure investment that satisfies the requirements of all investors in a resource-constrained environment.
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