U.S. Transportation Dept. Secretary Ray LaHood and FAA Administrator Randy Babbitt today revealed the formation of a new federal advisory committee that will study every facet of the aviation industry.

LaHood further promised that within one year, that committee will submit a blueprint for change.

The announcement was made during closing remarks to an invitation-only, five-hour meeting of airline, airport, labor and consumer group representatives yesterday, who were called together to discuss the future of U.S. aviation. It appeared to have covered the gamut, and ended with LaHood asking the participants to go home and send him an email with three things: how many people should be on the committee, what the mix of participants should be, and the five issues they think must be addressed for the DOT to create a road map for aviation.

The forum addressed everything from FAA reauthorization to antitrust immunity and alliances to foreign repair stations to passenger rights and major labor issues. According to one airline source, "It was like being at an industry Halloween party; there were 172 costumes in the room, and the only one anyone recognized was NextGen."

LaHood addressed NextGen in his closing remarks, which were open to the press, and afterward in a press-only briefing. He made it clear that NextGen is not just an aviation or a DOT issue, but is one of the top priorities of the White House as well. "We got it," everyone wants NextGen, he said. LaHood said he has had two meetings at the White House with Larry Summers, Obama's top economic adviser, over NextGen. He also added as an aside that not one word in this administration has ever been uttered to him about re-regulating the industry.

It seemed to several participants that the administration feels the industry dropped the ball in not offering up NextGen as an easy target in the last round of stimulus dollars, and now it is scrambling to find a way to get more funding.

But as Babbitt pointed out, "We all know NextGen is not an option. It is happening. We're doing it now," he said, referring to steps that are already being taken to replace older systems with programs such as RNP and RNAV. For example, in one month, NextGen will be deployed across the Gulf of Mexico, replacing some old ATC grid systems.

LaHood said, "Today, we only began to scratch the surface of the changes we need to address--ranging from regulatory issues to structural changes within the aviation industry itself." As the committee begins to work on these issues, it will report quarterly to LaHood.

Babbitt also noted that a strong message that came out of the meeting is that America needs aviation, but the industry has not done a good enough job of promoting it. The industry also faces global competition, and not just businesses, but for people. The industry needs to find ways to compete for its people to "keep the best and the brightest," Babbitt said.

Pilot professionalism was brought up a few times by the press, and Babbitt said safety clearly is the top priority, but like any profession, refresher courses are needed, especially with new technology. "We set the stage for an open dialogue."

One participant, Allan McArtor, chairman of Airbus Americas, told AviationWeek the earlier meeting was positive, as far as being a good way to bring the DOT into the industry's thought process, but also a little confused about how to move forward. With aviation representing such an important slice of the economic pie in the U.S., he said it would seem that these meetings need to also include the secretaries of State and Commerce. "We're preaching to the choir here." A consumer advocate, Bill McGee, said, "It was the same old butting of heads. Not a lot of new ground was covered."

As for the NextGen funding issue, US Airways Chairman and CEO Doug Parker, who was unavailable to attend the meeting, sent LaHood a letter Nov. 11 saying that the best thing the department can do for aviation is to "do no harm." He went on to say that means not imposing any new taxes, fees or unfunded mandates, as well as allowing the industry to make rational business decisions and to take actions, such as self-help mechanisms. Concerning the latter, he said this could include a broad spectrum of initiatives, but most visibly, those include "trading or selling assets to allow more productive use, the formation of alliances or joint ventures and mergers."

Parker also that while U.S. carriers are expected to rebound in 2010, they have no extra money for additional investments, such as NextGen. He said that although the industry is supportive of NextGen, "if the cost of deploying NextGen has to be covered by even higher taxes or fees imposed on the airlines, we prefer to live without it at the current time" because the industry "currently lacks the financial wherewithal to finance costly projects like this.

According to the Air Transport Association, airline executives that participated called for: No new taxes and fees, which would burden an already overtaxed industry and travelers/shippers; fully funded and accelerated modernization of the nation's air traffic control system; enhanced oversight of energy markets to excessive speculation and the resulting volatility of oil prices; elimination of arcane restrictions on airlines' ability to operate efficiently in the global marketplace, and a global sectoral approach to climate change for aviation developed through the International Civil Aviation Organization

Photo credit: Chicago Dept. of Aviation