Incentivizing Avionics Equipage for the Next Generation Air Transportation System

November 2012
Topics: Air Traffic Management, Airspace, Avionics, Investment Risk Analysis
Forrest W. Colliver, The MITRE Corporation
Stephen L. Giles, The MITRE Corporation
Deborah A. Kirkman, The MITRE Corporation
Sean F. McCourt, The MITRE Corporation
Jack McQueston, The MITRE Corporation
Quang A. Nguyen, The MITRE Corporation
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The MITRE Corporation (MITRE) has been researching the Next Generation Air Transportation System (NextGen) avionics equipage incentives for a number of years, and through our privileged industry and government contacts, we are exposed to the frank perspectives of many National Airspace System (NAS) stakeholders. MITRE believes that these perspectives should be documented and shared, in order to better inform NextGen policy-decision making. MITRE sees challenges that, if addressed, would improve chances of government incentive program successes in motivating NextGen equipage investments. MITRE also believes that activities launched as a result of the recent Federal Aviation Administration (FAA) reauthorization offer an opportunity to advance NextGen equipage. Accordingly, the purpose and key objectives of this paper are as follows: To help in educating key decision-makers as to options and implications of different incentives strategies by providing an executive-level synopsis of MITRE findings related to potential NextGen equipage incentives. To communicate our incentives research experience in a way that the FAA could use to inform an integrated policy on the various forms of incentives, including operational, financial and regulatory approaches. To illustrate how intended stakeholder behaviors may or may not be influenced by incentives strategies, by providing a hypothetical walk-through of the aircraft operator decision process. The paper concludes with suggested research questions and proposed next steps.

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