The Air Traffic Organization: Building Today to Ensure Our Future John Staples Director of Flight Services Program Operations Federal Aviation Administration Aviation Weather Panel October 13, 2004 2/23/2019 F E D E R A L A V I A T I O N A D M I N I S T R A T I O N • A I R T R A F F I C O R G A N I Z A T I O N

The FAA’s Air Traffic Organization Foundation Focus CUSTOMERS ATO Federal Employees Labor Unions U.S. Citizens* Traveling public* Taxpayers* *As represented by Congress Office of Management and Budget Secretary of Transportation Inspector General RESULTS Commercial Aviation Airlines Cargo Business Aviation Private Aviation DHS (and other Government Agencies) Military (DOD)* *Partner with ATO’ OWNERS EMPLOYEES COO hired in Aug. 2003 Established in Feb. 2004 Performance-Based Organization (PBO) Budget: $9.1 billion Operations: $6.2 billion Capital: $2.9 billion Replacement Cost of Assets: $30 billion plus Employees: 36,336 National Airspace System: 40,997 components ATC facilities: 631 En route aircraft handled: 43.7 million ATO concept evolved from 1990s studies such as the National Civil Aviation Review Commission (NCARC), chaired by now-Secretary Mineta. Basic concept is to separate air traffic services from regulatory roles of the FAA, and to create a PBO that can provide customer-focused services at lowest possible cost with minimal bureaucratic oversight. “Operate like a business.” Our major stakeholders are our Customers, our Owners, and our Employees. If ATO were a corporation, it would be ranked 220th on the Fortune 500 list, based on our budget ($9 Billion). 2/23/2019 F E D E R A L A V I A T I O N A D M I N I S T R A T I O N • A I R T R A F F I C O R G A N I Z A T I O N

Air Traffic Organization Administrator & Deputy Administrator National leadership and policy Chief Operating Officer (COO) ATO Transition* SR. VICE PRESIDENT Agency Liaisons Agency Liaisons Joint Planning & Development Office (JPDO) DIRECTOR Assistant Administrator for Financial Services/Chief Financial Officer *temporary Support Service Units Associate Administrator for Regulation & Certification Assistant Administrator for Human Resource Management Safety VICE PRESIDENT Communications VICE PRESIDENT Operations Planning VICE PRESIDENT Finance SR. VICE PRESIDENT Acquisition & Business Services VICE PRESIDENT Federal Acquisition Exec. Office of System Safety Office of the Chief Counsel Office of Government & Industry Affairs Operating Service Units Assistant Administrator for Civil Rights Office of Public Affairs The new organization contains 10. Five operating services and five support units direct the day-to-day activities of the organization. To strengthen our safety focus, we’ve appointed a vice president for safety to provide day-to-day safety oversight within the ATO and to maintain close coordination with the agency’s safety oversight office. Selection of a senior vice president for finance ensures our strong emphasis on financial management and cost control. These 10 leaders serve as the executive council for decision-making, planning, and policy formulation within the ATO. Assistant Administrator for Information Services/ Chief Information Officer En Route & Oceanic VICE PRESIDENT Terminal VICE PRESIDENT Flight Services VICE PRESIDENT System Operations VICE PRESIDENT Technical Operations VICE PRESIDENT Assistant Administrator for Region & Center Operations Assistant Administrator for Aviation Policy, Planning & Environment Associate Administrator for Commercial Space Transportation Assistant Administrator for International Aviation Assistant Administrator for Security & Hazardous Mtls. Associate Administrator for Airports 2/23/2019 F E D E R A L A V I A T I O N A D M I N I S T R A T I O N • A I R T R A F F I C O R G A N I Z A T I O N

Start up Strategies Organize around the products and services we provide Compress management layers to flatten the organization Deliver greater value with activity value analysis Reach out to customers Create and foster a culture of safety Strengthen financial management controls Seek out cost-savings initiatives from employees We’re organizing around the products and services we provide, consolidating functions, reducing management layers, and aligning our people and dollars with those services most valued by our customers. We’re evaluating our activities, products and services to eliminate unnecessary costs and investments in the system. This activity value analysis will help us understand the detail of what our people produce, who it is for, and what it costs. Then, these activities will be linked to customers of that output so we can learn what is valued. 2/23/2019 F E D E R A L A V I A T I O N A D M I N I S T R A T I O N • A I R T R A F F I C O R G A N I Z A T I O N

Four Strategic Themes Ensure Viable Future Increase Capacity Enhance Financial Disciplines Address revenue gap Develop sustainable business model Facilitate external consensus Achieve Operational Excellence Collaborate effectively with stakeholders Increase system capacity safely where and when needed Reduce costs Manage acquisition programs to budget Improve owner relationships Operate safely Deliver quality services to customers Increase predictability 2/23/2019 F E D E R A L A V I A T I O N A D M I N I S T R A T I O N • A I R T R A F F I C O R G A N I Z A T I O N

AVIATION WEATHER How much information is enough? Where is the added value? Pressing need for us to look at bold and innovative approaches Work together to attain common ground 2/23/2019 F E D E R A L A V I A T I O N A D M I N I S T R A T I O N • A I R T R A F F I C O R G A N I Z A T I O N

Conclusion: ATO Goals Owners Customers More Capacity Better Services Lower Costs Owners Employees Effective Cost Control Financial Accountability Maximum Return on Investment More Training Better Infrastructure and Tools Acceptable Pay and Benefits 2/23/2019 F E D E R A L A V I A T I O N A D M I N I S T R A T I O N • A I R T R A F F I C O R G A N I Z A T I O N

www.ato.faa.gov Slide 13 – End Slide 2/23/2019 F E D E R A L A V I A T I O N A D M I N I S T R A T I O N • A I R T R A F F I C O R G A N I Z A T I O N