
News From Dot
U.S. Transportation
Secretary Peters Unveils Bush Administration’s
New Approach for America’s Transportation Future
ATLANTA – A clean and historic break with the
past is needed to encourage the future vitality of our country’s transportation
network, said U.S. Transportation Secretary Mary E. Peters, who today unveiled
the Bush Administration’s new plan to refocus, reform and renew the national
approach to highway and transit systems in America.
“Without a doubt, our federal approach to transportation is broken. And no
amount of tweaking, adjusting or adding new layers on top will make things
better,” Secretary Peters said. “It is time for a new, a different and a better
approach.”
The Secretary said the plan sets a course for reforming the nation’s
transportation programs by outlining a renewed federal focus on maintaining and
improving the Interstate highway system, instead of diverting funds for wasteful
pet projects and for programs clearly not federal priority areas like restoring
lighthouses.
Addressing urban congestion and giving greater flexibility to state and local
leaders to invest in their most needed transit and highway priorities is another
key focus of the reform plan, said Secretary Peters. Local leaders will have
greater freedom and significantly more resources to fund new subways, bus routes
or highways as they choose, based on the needs of local commuters instead of the
dictates of Washington.
As part of this focus on congestion, the plan would create a Metropolitan
Innovation Fund that rewards cities willing to combine a mix of effective
transit investments, dynamic pricing of highways and new traffic technologies,
the Secretary said.
The reform plan also calls for greatly reducing over 102 federal transportation
programs which have proliferated over the last two decades replacing them with
eight comprehensive, intermodal programs that will help focus instead of dilute
investments, and cut the dizzying red-tape forced upon local planners, she said.
Secretary Peters said a hallmark of the plan is a refocused and redoubled
emphasis on safety, using a data and technology-driven approach that also gives
states maximum flexibility to tackle their toughest safety challenges. Using a
data-driven approach, she said, we are and must continue focusing on issues that
put drivers, commercial drivers, passengers and pedestrians at risk, including
crashes involving drunk drivers, motorcycles, work zones and rural roads.
And to improve the current 13-year average it takes to design and build new
highway and transit projects in the United States, the Secretary said the
federal review process would be streamlined to ask the same stringent
environmental and planning questions, but get answers more quickly.
The Secretary emphasized that central to any reform for transportation is
finding new revenue sources to supplement the unpredictable and unsustainable
gas tax, in order to fund maintenance and pay for new needed projects. She said
the gas tax is an antiquated mechanism, underscored by the current climate of
high gas prices. Americans are driving less and taking advantage of transit
options, but less driving also results in less revenue for transit operations.
Secretary Peters said more direct pricing options like tolling are needed and
states must be empowered to take advantage of the over $400 billion available
worldwide for infrastructure investments from the private sector. “The idea is
simple: use federal funds to encourage new sources of investments for
transportation, instead of replacing them,” she said.
“Our plan will make it easier to pay for and build roads and transit systems. It
will deliver fewer traffic tie ups, better transit services and a stronger
economy. It will make our roads safer and give Americans new confidence that the
money they invest in transportation will actually deliver results,” Secretary
Peters said.
The Secretary said the plan lays out the Administrations’ framework for
completely overhauling the way U.S. transportation decisions and investments are
made, and is intended to spur local, state and federal debate about how best to
incorporate the new reforms into surface transportation legislation slated to be
considered by Congress in 2009. She will personally brief Members of Congress on
the contents of the plan this week.
“I look forward to working with my colleagues on Capitol Hill over the next few
months to really explore the innovative ideas contained in this proposal,”
Secretary Peters said. “While I understand that this plan represents a
significant departure from the status quo, I hope that Congress will shed
partisan labels and come together to consider a piece of legislation that will
keep our transportation system viable well into the next decade.”
A copy of the reform plan is available at
www.fightgridlocknow.gov.
A copy of the remarks can be found at http://www.dot.gov/affairs/peters072908.htm.
Nearly 10 Billion Fewer Miles Driven in
May 2008 than May 2007 Seven-Month Decline in Travel Reflected in Highway Trust
Fund
WASHINGTON - New Federal data showing further steep declines in the number of
miles Americans are driving is additional proof that the country needs new means
- other than the gas tax - to finance the nation's transportation
infrastructure, U.S. Secretary of Transportation Mary E. Peters said today.
"By driving less and using more fuel-efficient vehicles, Americans are showing
us that the highways of tomorrow cannot be supported solely by the federal gas
tax," Secretary Peters said. "We must embrace more sustainable funding sources
for highways and bridges through more sustainable and effective ways such as
congestion pricing and private activity bonds."
Secretary Peters said that Americans drove 9.6 billion fewer vehicle-miles
traveled (VMT) in May 2008 than in May 2007, according to the Federal Highway
Administration data. This is the largest drop in VMT for any May, which
typically reflects increased traffic due to Memorial Day vacations and the
beginning of summer, and is the third-largest monthly drop in the 66 years such
data have been recorded. Three of the largest single-month declines - each
topping 9 billion miles - have occurred since December.
VMT on all public roads for May 2008 fell 3.7 percent as compared with May 2007
travel, the Secretary added, marking a decline of 29.8 billion miles traveled in
the first five months of 2008 than the same period a year earlier. This
continues a seven-month trend that amounts to 40.5 billion fewer miles traveled
between November 2007 and May 2008 than the same period a year before, she said.
As Americans drive less and rely increasingly on mass transit, carpooling or
other options, the federal Highway Trust Fund receives less revenue from
gasoline and diesel sales - 18.4 cents per gallon and
24.4 cents per gallon, respectively.
"Less driving means less money for the Highway Trust Fund," said Acting Federal
Highway Administrator Jim Ray. "The status quo cannot and will not work in the
21st century."
To review the FHWA's "Traffic Volume Trends" reports for May 2008, visit
http://www.fhwa.dot.gov/ohim/tvtw/tvtpage.htm.
Transportation Public-Private Partnerships Soar to Record Levels
The number of public-private partnerships in the U.S. transportation sector has soared to record levels in recent years and continues to climb, according to a new Department study, announced today by U.S. Transportation Secretary Mary E. Peters.
“This nationwide trend on the part of state and local governments is further proof that innovative approaches to financing and managing transportation are increasingly attractive compared to traditional tax and spend methods,” Secretary Peters said. “States and local governments across the country are recognizing public-private partnerships are an effective means to deliver transportation projects.”
The new report found that more transportation public-private partnerships were completed over the last three years than in any other compatible time period in history. According to the report, more than 20 major highway and transit projects are currently being conducted in partnership with the private sector at various stages of development in the United States.
The report also found that the use of
public-private partnerships is increasing at record pace due to their proven
track record of relieving congestion and encouraging infrastructure development,
Secretary Peters said. They do this by substituting or adding private capital
for fuel tax revenue and helping leaders tap into the more than $400 billion of
private capital available globally today for investment in infrastructure.
Another find shows that states and localities can reduce project costs,
accelerate project delivery, and transfer risks to the private sector while also
protecting public sector interests through well-balanced concession agreements,
she said.
“Together, we can make more of these projects happen throughout Virginia and
across America,” Deputy Secretary Thomas J. Barrett said today in announcing the
study at a groundbreaking for new High Occupancy Toll lanes on the Capital
Beltway in Virginia.
A full copy of the report, “Innovation Wave: An Update on the Burgeoning Private Sector Role in U.S. Highway and Transit Infrastructure,” can be found at http://www.fhwa.dot.gov/ppp/dotpppreport071808.doc
STATEMENT OF
JEFFREY F. PANIATI, EXECUTIVE DIRECTOR
FEDERAL HIGHWAY ADMINISTRATION
U.S. DEPARTMENT OF TRANSPORTATION
BEFORE THE
COMMITTEE ON ENVIRONMENT & PUBLIC WORKS
U.S. SENATE
HEARING ON SAVING LIVES ON OUR NATION’S HIGHWAYS
JULY 17, 2008
Chairman Boxer, Ranking Member Inhofe, and Members of the Committee, thank you for the opportunity to appear before you today to discuss the Federal Highway Administration’s (FHWA) role in saving lives on our Nation’s highways.
The safety of the traveling public is the United States Department of Transportation’s (DOT) most important priority. As you well know, improving highway safety requires a comprehensive, multi-agency and multi-disciplinary effort. Through the combined efforts of the entire highway safety community, our highways are safer than ever before, but with over 42,000 highway fatalities in 2006, much work remains.
FHWA takes seriously its charge to ensure the safety, reliability, and efficiency of America's highways, roads, and bridges. We are committed to continued work with you, the safety community, and our sister agencies, including the National Highway Traffic Safety Administration (NHTSA) and the Federal Motor Carrier Safety Administration (FMCSA), to reduce highway fatalities and injuries.
The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) (Public Law 109-59) significantly increased the national policy emphasis on safety and the resources available to reduce traffic fatalities and injuries on all public roads. The Act also introduced new programs and provided greater flexibility to meet the challenges of improving safety. Using the tools SAFETEA-LU provided, and working together, we are making progress and seeing results.
Reducing Highway Fatalities
In 2006, the last year for which we have final data, the number of people who lost their lives on the Nation’s roadways fell by 868 deaths from 2005, equating to a fatality rate of 1.41 per 100 million vehicle miles traveled (VMT)—the lowest rate ever recorded. The number of fatalities in 2006 represents the largest drop in total deaths in 15 years.
Passenger car occupant fatalities declined for the fourth year in a row to 30,521, the lowest annual total since 1993. The fatality rate per 100 million VMT for passenger vehicles also reached an all time low of 1.10 in 2006. In addition, the number of people suffering incapacitating injuries as a result of motor vehicle crashes in 2006 was 26 percent lower than in 2000.
At 1.94 fatal crashes per 100 million large truck VMT, in 2006, the large truck fatal crash rate reached its lowest point since the Department began tracking these figures 30 years ago. From 2005 to 2006, large truck fatalities decreased from 5,240 to 4,995, representing a 4.7 percent reduction.
Although final data are not yet available for 2007 and 2008, preliminary State data show promising signs of a further reduction in fatalities in 2007 (compared to 2006) and more significant declines in fatalities in at least 35 States in 2008 (compared to 2007).
Despite the gains we have made in improving highway safety, 42,642 individuals still lost their lives in motor vehicle crashes in 2006. Motorcycle rider fatalities continued their nine-year increase, reaching 4,810 in 2006—an increase of 5 percent over the 2005 number and a 127 percent increase since 1997. Motorcycle rider fatalities now account for 11.3 percent of total motor vehicle fatalities, exceeding the number of pedestrian fatalities for the first time since DOT began collecting fatal motor vehicle crash data in 1975. In 2006, 17,602 people were killed in the U.S. in alcohol-related motor vehicle crashes—about 40 percent of total motor vehicle fatalities. This proportion has remained relatively unchanged since 2000.
In 2005, according to the Centers for Disease Control, once again motor vehicle crashes were the leading cause of death for Americans for every age 2 through 34. And, the associated financial costs are staggering—over $230 billion each year.
These numbers are not acceptable. That is why the DOT considers safety its top priority and remains committed to the goal of reducing highway fatalities to a rate of 1.0 per 100 million VMT by 2011. To most effectively align program and policy actions needed to meet key challenges, the Department has established four fatality sub-measures—passenger vehicles, nonoccupants (e.g., pedestrians and bicyclists), motorcycle riders, and large-truck and bus-related fatalities—which represent the breadth of all highway users. The purpose of this approach is to examine more closely the fatality rates of the various segments of highway users and develop targeted strategies to combat trends within these segments of highway users.
Additionally, data from the NHTSA Fatality Analysis Reporting System (FARS) highlight crash trends and areas where major fatalities are still occurring. We use this information to assist States in maximizing returns from safety investments. Some of the greatest gains in reducing fatality rates in the short term lie with influencing driver behavior. Over 90 percent of crashes are caused by human factors, such as speeding, lack of seat belt use, and alcohol impairment. The DOT has implemented a number of driver behavior programs, including the primary safety belt use law incentive grant program, the alcohol-impaired driving countermeasures program, and others.
FHWA’s Role in Highway Safety
Comprehensive Safety Programs and Partnerships
FHWA’s Office of Safety is responsible for leading FHWA in the development and delivery of a comprehensive range of programs that will enable the Department to meet its 1.0 safety goal. FHWA actively pursues improved highway safety through a collaborative, multi-faceted approach that addresses the “4Es of safety”—engineering, education, enforcement, and emergency medical services. Using a data-driven approach, we work with other safety agencies at DOT and with our safety partners to develop and deliver technologies, processes, and policies that direct resources to activities that can yield the highest highway safety gains. While FHWA concentrates primarily on infrastructure-oriented solutions, we recognize that highway deaths are often the result of some failure of the driver or vehicle, in addition to the roadway, so we work closely with both NHTSA and FMCSA on intermodal activities such as the DOT Speed Management Strategic Initiative. We not only work at the national level to provide leadership for highway safety, we work directly with roadway owners and operators at all levels to deliver safety-related programs and funding that yield benefits that include improvements in system conditions and operations. As part of this comprehensive approach, FHWA safety funding is targeted at improving the safety of roadway designs and operations, removing roadway hazards, and advancing high-quality safety data collection and analysis systems in collaboration with others.
FHWA’s efforts with our partners to improve data quality are extensive. FHWA takes an active role, in conjunction with our partners at NHTSA and FMCSA, in the USDOT Traffic Records Coordinating Committee, an intermodal team that provides coordinated Federal leadership to maximize the efficiency and effectiveness of integrated roadway, traffic and safety data collection and analysis. FHWA also supports NHTSA in the implementation of the State Traffic Safety Information System Improvement Grant program, authorized under SAFETEA-LU, which provides grants to States to improve their data systems. FHWA has developed, in consultation with FMCSA and NHTSA, a Crash Data Improvement Program that gives States a detailed analysis of their crash data systems, training on how to make improvements, and individualized attention from data systems experts. This program has been piloted in two locations, and we are in the process of expanding it to other locations.
Perhaps one of the most difficult and wide reaching issues related to usable data is the availability of roadway information. Many States have, via their asset management systems, good data on engineering features, but in many cases, these systems cover only State-owned roadways and do not include some safety-critical elements. FHWA is working on the Model Minimum Inventory of Roadway Elements (MMIRE) program to more clearly define a set of standardized elements that will be beneficial in performing analyses to make program and project decisions. In 2006, preliminary MMIRE elements were vetted with traffic records professionals and “cross-walked” with safety analysis tools available or under development. FHWA has initiated a number of activities to move the concept forward, including establishing an executive steering committee, developing outreach materials on MMIRE for State and local partners, and initiating a contract to begin development of the MMIRE. Through these efforts and others, FHWA will continue to emphasize the need for data-driven decision-making.
SAFETEA-LU Implementation
Since the enactment of SAFETEA-LU in 2005, FHWA has worked aggressively to make the authorized funds available, and issue guidance and regulations as necessary to carry out programmatic modifications in SAFETEA-LU.
Highway Safety Improvement Program. SAFETEA-LU authorized the Highway Safety Improvement Program (HSIP) as a new core Federal-aid formula program and more than doubled the amount of highway safety funding for the States by authorizing $5.1 billion over 4 years. The HSIP emphasizes a results-based, data-driven, strategic approach to improving highway safety. The program provides States with flexibility to use funds for safety projects on all public roads and publicly-owned pedestrian and bicycle paths, and to focus State efforts on implementation of State Strategic Highway Safety Plans (SHSPs). FHWA assisted States in developing their SHSPs. We helped States convene the stakeholders necessary to solve highway safety problems and worked to analyze data to identify critical emphasis areas individualized for each State’s safety needs. We are happy to report that every State now has an SHSP. We are also pleased to report that 32 States identified data and data system improvements as a priority in their SHSPs and that, in 2007, 40 States used HSIP funds for data improvements. FHWA's emphasis on a collaborative approach to improving safety is especially critical in the HSIP, where each State’s SHSP addresses all "4Es" of safety described above. FHWA will continue to assist States with their SHSP implementation and safety planning so that safety funds will be used where they yield the greatest safety improvement.
We have cooperated with the Government Accountability Office (GAO) on its ongoing review of the HSIP and look forward to the issuance of its report on the program.
Safe Routes to Schools. SAFETEA-LU also authorized $612 million for a new Safe Routes to School (SRTS) program to: enable and encourage children, including those with disabilities, to walk and bicycle to school; make walking and bicycling to school safe and more appealing; and facilitate the planning, development, and implementation of projects that will improve safety, and reduce traffic, fuel consumption, and air pollution in the vicinity of schools. Working with States, FHWA moved quickly to implement this new program. Each State has appointed a SRTS coordinator as required by SAFETEA-LU, and States are well underway in awarding grants and implementing projects. We also have fulfilled another SAFETEA-LU program requirement, creating a national clearinghouse for SRTS. The National Center for Safe Routes to School located at the University of North Carolina at Chapel Hill assists communities and States in developing successful SRTS programs and strategies. The National Center offers training, technical assistance, case studies of successful programs, and information on how to start and sustain a SRTS program. The Clearinghouse makes information available on its website at http://www.saferoutesinfo.org. At Congress’ direction, we have also established and convened a Federal Advisory Committee that has studied and developed a strategy for advancing SRTS programs nationwide. The report on the Committee’s findings will be transmitted to Congress soon.
High Risk Rural Roads. Rural two-lane, two-way road fatality rates are significantly higher than the fatality rates on the Interstate. The fatality rate for rural crashes is more than twice the fatality rate for urban crashes. The High Risk Rural Road portion of the HSIP sets aside $90 million each year to address safety considerations and develop countermeasures to reduce these higher rural road fatalities. On February 29, 2008, Transportation Secretary Mary E. Peters announced a new national strategy that will concentrate resources and technology on reducing deaths on the Nation’s rural roads. The Rural Safety Initiative, led by DOT Deputy Secretary Thomas J. Barrett, is a comprehensive effort among several agencies within DOT that will help States and communities develop strategies to eliminate the risks drivers face on rural roads. Approximately $287 million in existing and new funding is available to support the Rural Safety Initiative. This new initiative highlights available resources and solutions and addresses 5 key goals: safer drivers, better roads, smarter roads, better-trained emergency responders, and improved outreach and partnerships. For example, the Rural Safety Innovation Program, a component of the Rural Safety Initiative, is offering $15 million to rural communities across the country to apply and evaluate innovative safety solutions.
Work Zone Safety. SAFETEA-LU included an increased emphasis on work zone safety. Fatalities in highway work zones currently number over 1,000 annually. Four out of 5 of these deaths are motorists. Under the Work Zone Safety Grants program, FHWA has awarded grants to nonprofit and not-for-profit organizations to provide training to prevent and reduce work zone injuries and fatalities. SAFETEA-LU authorized $5 million for each fiscal year of the program, starting in 2006. The grants may be used for construction worker training to prevent injuries and fatalities; development of guidelines to prevent work zone injuries and fatalities; and training for State and local governments, transportation agencies, and other groups implementing these guidelines. SAFETEA-LU also authorized $1 million annually for a national nonprofit foundation to operate the National Work Zone Safety Information Clearinghouse. The Texas Transportation Institute is operating this clearinghouse under contract with the American Road & Transportation Builders Association (ARTBA). The Clearinghouse provides a wide variety of information related to improvement of roadway work zone safety available at http://www.workzonesafety.org/.
In addition, FHWA has been working with the American Association of State Highway and Transportation Officials (AASHTO) to advance and promote accelerated bridge construction technology, which enables bridge systems to be built offsite and then installed, in part or the whole bridge, at the job site over a weekend or overnight. The technology reduces the exposure time in the work zone and significantly reduces traffic disruption.
Bridge Safety Efforts. Highways, by definition, include bridges. The Highway Bridge Program supports State and local efforts to improve conditions, and thus safety, of highway bridges. The expansion of the Highway Bridge Program’s scope under SAFETEA-LU is recognition of the importance of preserving bridges that are in better condition, as well as replacing and rehabilitating bridges that have suffered from deterioration. Since its inception, the Highway Bridge Program has been successful in reducing bridge deficiencies. As of December 2007, there were 116,025 bridges out of 599,319 inventoried nationwide that were on the National Highway System (NHS). Of those, 25,780, or 22.2 percent, were considered deficient. That represents a reduction of 4 percent from 1997, when 33,558 out of 128,432, or 26.1 percent, of NHS bridges inventoried were deficient.
Thousands of well-trained and dedicated bridge inspectors in the National Bridge Inspection Program work every day to ensure the safety of the nearly 600,000 existing bridges in the National Bridge Inventory. Through these inspections, critical safety issues are identified and acted upon to protect the traveling public. With an aging infrastructure and limited resources, it is vitally important to continuously monitor the condition of the Nation’s bridges and frequently assess the load-carrying capacity of those bridges that are showing signs of deterioration.
Focused Approach to Safety
To reduce the number and rate of fatalities in traffic-related crashes, FHWA launched a performance-based approach to safety several years ago that better focuses our resources where the greatest opportunities to save lives exist. To accelerate development and delivery of tools and technologies where they will make the biggest impact, we have focused resources on 4 areas where we see the greatest percentage of highway fatalities that are addressable by infrastructure-oriented solutions: roadway departure crashes (58 percent of all highway deaths); intersection-related crashes (21 percent of all highway deaths); pedestrian crashes (11 percent of all highway deaths); and speeding-related crashes (32 percent of all highway deaths). We maintain our focused approach to safety in the 4 critical areas in several ways, including:
| Providing technical assistance and training to States; | |
| Advancing the use of countermeasures such as shoulder and center-line rumble strips, cable median barriers, roundabouts and other operational improvements; | |
| Promoting the implementation of USLIMITS, a web-based expert advisory system to help States determine appropriate speed limits; | |
| Implementing PEDSAFE, an interactive system to diagnose pedestrian-related issues; and | |
| Supporting Roadway Safety Audits that bring together multi-disciplinary teams to review the safety performance of specific corridors or locations and develop countermeasures. |
Safety Research, Technology and Innovation
Developing new technologies and tools through a strong research and development program in highway safety is a key component of FHWA’s strategy to reduce highway deaths and injuries. FHWA conducts its own research and collaborates extensively with others who sponsor highway safety research and technology, including States and universities. Numerous safety research and technology projects that contribute to our highway safety objectives are currently under development with a strategic focus on areas with the greatest fatalities, including roadway departure, intersections, pedestrians, and speeding. Examples of our research and technology efforts include:
| Evaluating low cost safety improvements for State and local partners; | |
| Using advanced crash simulation and analysis to enhance the design of median cable barriers and edge-pavement dropoffs to make roadsides safer; | |
| Deploying SafetyAnalysis software to assist States in making cost-effective safety investment decisions; | |
| Working on Human Centered Systems to ensure that driver responses are considered in road design and in the development of new roadside safety technologies; |
| Releasing targeted technical briefs on innovative intersection designs, such as the Diverging Diamond interchange, that enhance safety, alleviate congestion and reduce construction costs; | |
| With the US DOT Intelligent Transportation Systems Joint Program Office (ITS JPO), researching advanced vehicle-highway cooperative systems to avoid collisions at intersections; and | |
| Issuing an information report on the illumination of Mid-Block Pedestrian Crossings, to improve pedestrian safety. |
FHWA is also active, along with others throughout the safety community, in supporting the future Strategic Highway Research Program (SHRP2), established by Congress and managed by the Transportation Research Board (TRB). Along with NHTSA and FMCSA, we are excited about the potential impacts of an increased understanding of crash causation, including how driver performance is affected by roadway features and conditions. We are providing input to TRB as it studies SHRP2 implementation needs, and we look forward to further collaboration on this topic.
Program Guidance and Implementation
FHWA Division Offices work closely with State and local officials to assure that highly-effective systems, technologies, and processes are utilized when investing Federal dollars in highway safety countermeasures. We develop and disseminate guidance on program expectations and information on “best practices” on a continuing basis. Most recently, we provided information to States on high-priority safety countermeasures, which we encourage all States to consider as part of their regular project development and delivery. In addition, we work closely with national associations representing States, localities, enforcement officials, safety advocates, and others to facilitate sharing of information and tools to maximize the value of all our safety programs.
Conclusion
Highway fatalities are a national tragedy, and FHWA is committed to reducing their numbers. As we approach reauthorization, we look forward to continued work with this Committee, the States, and our partners in the transportation community to find solutions for the safety problems on our highways and develop methods to attain our safety goal.
Thank you for the opportunity to appear before you today. I would be happy to answer questions.
New Rule Reduces Risk of Fuel Tank
Flammability on Passenger Jets
ASHBURN, Va.– Within two years, all new aircraft
must include technology designed to significantly reduce the risk of center fuel
tank fires as part of a final rule announced today by U.S. Transportation
Secretary Mary E. Peters. In addition, passenger aircraft built after 1991 must
be retrofitted with technology designed to keep center fuel tanks from catching
fire, she said.
“We want to do everything possible to make sure safety examiners won’t have to
investigate another plane shattered by an exploding tank,” said Secretary
Peters. “We can’t change the past, but we can make the future safer for
thousands of air travelers, and this rule does just that.”
The Secretary, who spoke on the day before the anniversary of the crash of TWA
Flight 800, said the new rule was needed to help avoid a similar tragic
incident. She said the rule requires aircraft to have technology to neutralize
or eliminate flammable gasses from fuel tanks under the center wing of
commercial passenger planes.
Secretary Peters noted that in the wake of the TWA crash researchers with the
Federal Aviation Administration developed a breakthrough system that replaces
oxygen in the fuel tank with inert gas, which effectively prevents the potential
ignition of flammable vapors. She added that commercial aircraft manufacturer
Boeing also has developed a similar system.
“Today’s rule will add another layer of safety reducing the chance that the
vapors in the tank will ignite, even if there is a spark,” said FAA Acting
Administrator Robert A. Sturgell.
Secretary Peters noted the cost of installing the new technology would range
from $92,000 to $311,000 per aircraft, depending on its size. She said this cost
could be as little as one-tenth of one percent of the cost of a new aircraft.
The U.S. aircraft that will be retrofitted include approximately 2,730 aircraft
belonging to the A320 family of 900 airplanes, 50 A330s, 965 Boeing 737s, 60
Boeing 747s, 475 Boeing 757s, 150 Boeing 767s and 130 Boeing 777s.
“I recognize that this is a challenging time for commercial aviation,” Secretary
Peters said. “But there is no doubt that another crash like TWA 800 would pose a
far greater challenge.”
The Secretary made the announcement while addressing accident investigators at
the National Transportation Safety Board’s (NTSB) Training Facility in Virginia.
Before addressing the examiners, the Secretary, Acting Administrator Sturgell
and NTSB Chairman Mark Rosenker visited the remains of the TWA flight which are
kept at the site as an educational tool for safety investigators.
The rule is published on the FAA and Federal Register’s web sites at:
http://www.faa.gov/regulations_policies/rulemaking/recently_published/
or
http://www.gpoaccess.gov/fr/index.html.
Secretary of Transportation Mary Peters Names Krakowski as FAA Chief
Operating Officer
U.S. Secretary of Transportation Mary E. Peters today announced that Captain
Henry P. (Hank) Krakowski has been selected to serve as Chief Operating Officer
(COO) of the U.S. Department of Transportation’s Federal Aviation
Administration’s (FAA) air traffic organization.
Krakowski will lead the FAA Air Traffic Organization’s 35,000 controllers,
technicians, engineers, and support personnel whose daily efforts keep airplanes
moving. As COO, Krakowski will oversee the operational and financial performance
of the air traffic control system and the FAA’s research and acquisition
programs. Krakowski is scheduled to start his new position on Oct. 1, 2007. His
background includes all aspects of aviation, including flying, labor relations,
air traffic and scheduling.
“Hank is the right person to help implement the next generation of aviation
technology,” said Secretary Peters. “His commitment to safety, outstanding
operational experience, and leadership abilities will advance our efforts to
modernize our nation’s air transportation system.”
“I’m confident that passengers, aviation users, and the FAA will benefit from Hank Krakowski’s extensive aviation expertise,” said Acting FAA Administrator Robert A. Sturgell.
Krakowski joins the FAA following a distinguished, nearly 30-year career with
United Airlines. As vice president of flight operations for United, Krakowski
has been responsible for a worldwide staff of 8,000 employees and a $2 billion
budget for all flight operations, flight training and standards, technology, and
labor relationships. Previously, Krakowski served as vice president of corporate
safety, security and quality assurance.
Krakowski is a Boeing 737 captain. He has flown the Boeing 747, 737 and 727 as
well as the Douglas DC-10 and DC-8. He has held various positions within
United’s operations, including director of flight crew resources, responsible
for pilot manpower planning and scheduling; and director of flight operations
control, where he was responsible for flight dispatch, air traffic, meteorology
and crew scheduling.
Captain Krakowski holds a master's degree in business and management from National-Louis University and a bachelor's degree in aircraft maintenance engineering from St. Louis University.
For the past two years, Krakowski has served as co-chair of the Commercial Aviation Safety Team (CAST), an industry and government partnership that has helped implement safety enhancements to significantly reduce the leading causes of commercial aviation accidents in the United States. He also has served as chairman of the Star Alliance Safety Advisory Group, held numerous positions with the Air Line Pilots Association, and served in management positions at two previous airlines.
BTS Releases Second-Quarter 2007 System Airline Financial Data;
Passenger Airlines Report Most Profitable Quarter Since 2000
A group of 21 selected passenger airlines reported a system operating profit margin of 8.8 percent in the second quarter of 2007, the highest profit margin since 2000 and the first time since 2000 that airlines have had five consecutive profitable quarters, the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation reported today in a release of preliminary data. The 21-carrier group consists of the seven largest network, low-cost and regional carriers based on operating revenue.
BTS, a part of the Research and Innovative Technology Administration, reported that the profit margin in the April-to-June period was the fifth consecutive quarter with a profit margin for the group after a loss margin in the first quarter of 2006. The industry’s largest airlines, the network carriers, were the only group to report a higher profit margin in the second quarter of 2007 than in the same period in 2006. The network group reported an operating profit margin of 9.2 percent, its highest since 2000.
The low-cost carrier group reported a 8.1 percent margin and the regional carriers reported a 5.7 percent profit margin, both down from the second quarter of 2006 (Table 1). Operating margin measures profit or loss as a percentage of the airline’s total operating revenue.
This release consists of domestic plus international, or system, financial reports for the airlines.
The network group’s profit margin of 9.2 percent in the second quarter was a 1.7 percentage point improvement from the 7.5 percent profit margin in the second quarter of 2006 (Table 1). The seven network carriers reported a combined operating profit of $2,406 million in the second quarter for the group’s fifth consecutive quarterly profit margin. In the second quarter of 2006, the seven network carriers’ operating profit was $1,916 million.
The low-cost group’s profit margin of 8.1 percent in the second quarter was a 2.7 percentage point decrease from a 10.8 percent profit margin in the second quarter of 2006. The seven carriers reported a combined $451 million operating profit in the second quarter of 2007 (Table 1).
The regional group’s profit margin of 5.7 percent in the second quarter was a 2.4 percentage point decrease from the 8.1 percent profit margin in the second quarter of 2006. The seven regional carriers reported a $143 million operating profit in the second quarter of 2007 (Table 1).
The top operating profit margins were reported by network carrier US Airways and low-cost carriers Southwest Airlines and AirTran Airways (Tables 2-3). Regional carrier ExpressJet Airlines and low-cost carriers ATA Airlines and America West Airlines reported the largest operating loss margins (Tables 3-4). ExpressJet has added point-to-point service under its own brand in addition to the regional service it provides under contract for network carriers. No other carriers reported operating loss margins in the second quarter.
America West and US Airways report financial data separately because the carriers hold two operating certificates despite the merged business operations. They will begin filing a merged financial report later this year.
Network carriers operate a significant portion of their flights using at least one hub where connections are made for flights on a spoke system. Low-cost carriers are those that the industry recognizes as operating under a low-cost business model, with fewer infrastructure costs and greater expectations of productivity. Regional carriers provide service from small cities, using primarily regional jets to support the network carriers’ hub and spoke systems. The selected groups consist of the seven carriers in each group with the highest reported operating revenue in the most recent 12-month period.
The network carriers, with a gain of 0.4 cents per available seat-mile (ASM) to 14.8 cents per ASM, were the only group to report higher unit revenues in the second quarter of 2007 compared to the second quarter of 2006. The regional carriers continue to report the highest unit revenues but their second quarter revenue of 14.9 cents per ASM was down 0.3 cents per ASM from the second quarter of 2006. The low-cost carriers reported unit revenues of 10.4 cents per ASM (Table 5).
The highest unit revenues were reported by network carrier US Airways and regional carriers Comair and American Eagle Airlines (Tables 6-8). The lowest unit revenues were reported by low-cost carriers ATA, JetBlue Airways and Spirit Airlines (Table 7).
The regional carriers reported the highest unit costs in the second quarter at 14.1 cents per ASM. Network carriers’ unit costs were 13.4 cents per ASM followed by the low-cost carriers at 9.6 cents per ASM. Only the low-cost group carriers reported lower unit costs in the second quarter of 2007 than in the second quarter of 2006, reporting a decrease of 0.1 cents per ASM (Table 9).
The carriers with the highest unit costs were regional airlines Comair and American Eagle (Table 12) and network airline US Airways (Table 10). The carriers with the lowest unit costs were low-cost carriers JetBlue and Spirit and regional carrier Pinnacle Airlines (Tables 11-12).
The regional airlines reported the highest average passenger yield at 18.8 cents per revenue passenger-mile (RPM). The regional carriers and the low-cost group reported lower passenger yields than in the second quarter of 2006 while the network carriers at 12.9 cents per RPM reported year-to-year yield gains (Table 13). Passenger revenue yield measures passenger revenues against total travel by dividing passenger revenues by RPMs.
The top passenger revenue yields were reported by regional carriers American Eagle, Comair and Atlantic Southeast Airlines (Table 16). The lowest passenger revenue yields were reported by low-cost carriers JetBlue, Spirit and America West (Table 15). US Airways reported the highest passenger yield of any network carrier (Table 14).
Airline financial data from the second quarter of 2007 and previous quarters are posted on the BTS website at TranStats, the Intermodal Transportation Database,
http://www.transtats.bts.gov/Fields.asp?Table_ID=295. Data are compiled from quarterly financial and monthly traffic reports filed with BTS by commercial air carriers.Financial and traffic data are preliminary and include data received by BTS as of Sept. 5. Data are subject to revision. BTS will release third quarter financial data on Dec. 17.
Table 1: System* Quarterly Operating profit/loss margin (in percent)
Passenger Airlines by Group
Ranked by 2nd Quarter 2007 Margin
(Operating Profit/Loss as Percent of Total Operating Revenue)
|
2Q 2007 Rank |
Carrier Group |
2nd Quarter 2006 (%) |
3rd Quarter 2006 (%) |
4th Quarter 2006 (%) |
1st Quarter 2007 (%) |
2nd Quarter 2007 (%) |
2nd Quarter Operating Profit/Loss $(Millions) |
|
1 |
Network |
7.5 |
5.4 |
1.7 |
2.5 |
9.2 |
2,406 |
|
2 |
Low-Cost |
10.8 |
3.3 |
2.3 |
2.3 |
8.1 |
451 |
|
3 |
Regional |
8.1 |
8.9 |
10.0 |
6.3 |
5.7 |
143 |
| 21-Carrier Total |
8.1 |
5.4 |
2.5 |
2.7 |
8.8 |
3,000 |
Source: Bureau of Transportation Statistics; Form 41, Schedule P1.2
* System = domestic + international
Table 2: System* Quarterly Operating profit/loss margin (in percent)
Network Carriers
Ranked by 2nd Quarter 2007 Margin
(Operating Profit/Loss as Percent of Total Operating Revenue)
|
2Q 2007 Rank |
Network Carriers |
2nd Quarter 2006 (%) |
3rd Quarter 2006 (%) |
4th Quarter 2006 (%) |
1st Quarter 2007 (%) |
2nd Quarter 2007 (%) |
2nd Quarter Operating Profit/Loss $(Millions) |
|
1 |
US Airways |
12.6 |
5.9 |
7.4 |
4.4 |
13.9 |
319 |
|
2 |
Northwest |
9.2 |
11.1 |
3.7 |
7.2 |
11.3 |
364 |
|
3 |
United |
5.1 |
6.6 |
0.3 |
-2.0 |
10.1 |
526 |
|
4 |
Alaska |
6.3 |
0.5 |
-0.7 |
-2.7 |
9.6 |
76 |
|
5 |
Delta |
8.0 |
3.0 |
-0.1 |
3.5 |
9.3 |
470 |
|
6 |
Continental |
6.8 |
4.9 |
0.2 |
1.5 |
7.0 |
257 |
|
7 |
American |
7.0 |
3.8 |
2.3 |
3.4 |
6.7 |
394 |
| Seven-Carrier Total |
7.5 |
5.4 |
1.7 |
2.5 |
9.2 |
2,406 |
Source: Bureau of Transportation Statistics; Form 41, Schedule P1.2
* System = domestic + international
Table 3: System* Quarterly Operating profit/loss margin (in percent)
Low-Cost Carriers
Ranked by 2nd Quarter 2007 Margin
(Operating Profit/Loss as Percent of Total Operating Revenue
|
2Q 2007 Rank |
Low-Cost Carriers |
2nd Quarter 2006 (%) |
3rd Quarter 2006 (%) |
4th Quarter 2006 (%) |
1st Quarter 2007 (%) |
2nd Quarter 2007 (%) |
2nd Quarter Operating Profit/Loss $(Millions) |
|
1 |
Southwest |
16.4 |
11.2 |
7.6 |
3.8 |
12.7 |
329 |
|
2 |
AirTran |
10.3 |
-0.7 |
0.5 |
2.7 |
11.7 |
72 |
|
3 |
JetBlue |
7.7 |
5.5 |
9.6 |
-2.2 |
10.2 |
75 |
|
4 |
Spirit |
-3.2 |
-20.3 |
-20.1 |
7.0 |
5.5 |
10 |
|
5 |
Frontier |
3.5 |
1.3 |
-6.9 |
-2.1 |
0.5 |
2 |
|
6 |
America West |
5.9 |
-11.2 |
-7.9 |
5.1 |
-2.6 |
-25 |
|
7 |
ATA |
-0.7 |
2.2 |
-6.6 |
-16.9 |
-6.0 |
-11 |
| Seven-Carrier Total |
10.8 |
3.3 |
2.3 |
2.3 |
8.1 |
451 |
Source: Bureau of Transportation Statistics; Form 41, Schedule P1.2
* System = domestic + international
Table 4: System* Quarterly Operating profit/loss margin (in percent)
Regional Carriers
Ranked by 2nd Quarter 2007 Margin
(Operating Profit/Loss as Percent of Total Operating Revenue)
|
2Q 2007 Rank |
Regional Carriers |
2nd Quarter 2006 (%) |
3rd Quarter 2006 (%) |
4th Quarter 2006 (%) |
1st Quarter 2007 (%) |
2nd Quarter 2007 (%) |
2nd Quarter Operating Profit/Loss $(Millions) |
|
1 |
Atlantic Southeast |
13.2 |
12.1 |
13.1 |
12.9 |
11.6 |
40 |
|
2 |
American Eagle |
8.1 |
9.8 |
10.1 |
11.2 |
10.3 |
53 |
|
3 |
Pinnacle |
9.5 |
12.3 |
29.8 |
9.0 |
9.1 |
14 |
|
4 |
Sky West |
10.0 |
9.6 |
7.3 |
7.6 |
9.1 |
48 |
|
5 |
Comair |
2.1 |
6.8 |
4.6 |
2.5 |
7.0 |
20 |
|
6 |
Mesa |
4.1 |
3.7 |
4.3 |
-8.2 |
3.1 |
9 |
|
7 |
Express Jet |
8.5 |
8.4 |
8.3 |
3.8 |
-10.3 |
-40 |
| Seven-Carrier Total |
8.1 |
8.9 |
10.0 |
6.3 |
5.7 |
143 |
Source: Bureau of Transportation Statistics; Form 41, Schedule P1.2
* System = domestic + international
Table 5. System* Airline Unit Revenue (Cents Per Mile)
Passenger Airlines by Group
Ranked by 2nd Quarter 2007 Unit Revenue
(Operating Revenue Per Available Seat Mile)
|
2Q 2007 Rank |
Carrier Group |
2nd Quarter 2006 |
3rd Quarter 2006 |
4th Quarter 2006 |
1st Quarter 2007 |
2nd Quarter 2007 |
2nd Quarter Operating Revenue $(Millions) |
|
1 |
Regional |
15.2 |
15.0 |
15.0 |
14.9 |
14.9 |
2,489 |
|
2 |
Network |
14.4 |
14.1 |
13.5 |
13.5 |
14.8 |
26,096 |
|
3 |
Low-Cost |
10.9 |
10.1 |
9.8 |
9.6 |
10.4 |
5,596 |
| 21-Carrier Total |
13.8 |
13.3 |
12.8 |
12.7 |
13.9 |
34,181 |
Source: Bureau of Transportation Statistics; Form 41, Schedule P1.2. T100; T2 Data
* System = domestic + international
Table 6. System* Airline Unit Revenue (Cents Per Mile)
Network Carriers
Ranked by 2nd Quarter 2007 Unit Revenue
(Operating Revenue Per Available Seat Mile)
|
2Q 2007 Rank |
Network Carriers |
2nd Quarter 2006 |
3rd Quarter 2006 |
4th Quarter 2006 |
1st Quarter 2007 |
2nd Quarter 2007 |
2nd Quarter Operating Revenue $(Millions) |