Mergers Would Further Strain a Heavily Loaded FAA

WASHINGTON — A likely wave of airline mergers would place new strains on the Federal Aviation Administration, already burdened by a heavy workload and operating with no permanent budget or leader.

Delta Air Lines Inc. is in talks with Northwest Airlines Corp. about a possible merger. UAL Corp., parent of United Airlines, reportedly is discussing a merger with Continental Airlines Corp.

The FAA would be responsible for ensuring that a merged carrier could operate safely enough to earn a new operating certificate. "We have to approve everything," spokeswoman Alison Duquette said.

The timing could scarcely be worse for the agency.

The FAA already is facing intense political pressure from Congress and consumers to do something quickly about flight delays, cancellations and runway incursions.

And it must deal with many complex, long-term problems, such as modernizing the air traffic control system, relieving airport congestion, replacing an aging workforce and overseeing more foreign maintenance outsourcing.

Some merger critics say throwing big airline restructurings and recertifications into the mix could stretch the beleaguered agency too thin.

"This no doubt would be a difficult time," said Jim Berard, spokesman for House Transportation Chairman James Oberstar, D-Minn., a staunch opponent of mergers. At the FAA, "they already have plenty to do. And they don't have a permanent administrator; they don't have their budget. They are sort of in limbo."

Even its defenders concede the agency would have to strain to take on more tasks.

"It is a lot of work," said Marion Blakey, who headed the FAA until her five-year term ended in September. "Any time you have major recertifications ... you are going to have a lot of work at the FAA."

Blakey, now president of the Aerospace Industries Association, a manufacturers trade group, said FAA inspectors have overseen mergers in the past, "and they will again." But she said a merger wave this year could force the agency to delay other priorities.

"It certainly may cause other things, in the balance, to move more slowly unless more resources come into play" such as new funds for inspectors, she said. "That is something I would expect Congress to take into account" as it considers increasing the FAA budget, she said.

But the FAA's relationship with Congress has been particularly difficult in recent months.

Last year, as the law authorizing the FAA neared its Sept. 30 expiration, the Bush administration saw an opportunity to change the existing formula of aviation fees and taxes. New revenues are needed for airport infrastructure and the Next Generation Air Transportation System, a high-tech air traffic control upgrade.

The administration argued that the aviation system relies too heavily on tax revenues from commercial airlines. It wanted Congress to redistribute the burden by imposing user fees on corporate jets and other private aircraft. The FAA estimates that more than 6,000 "microjets" serving business customers will take to the skies by 2020.

The Senate Commerce Committee last year passed a bipartisan bill reflecting the administration's position. But the House voted instead to bolster the FAA budget by raising fuel taxes.

Facing a stalemate, Congress has continued the FAA's old budget until June 30, leaving the FAA uncertain about the budget's long-term size and structure.

At the same time, the Senate has not approved President Bush's appointee, Robert Sturgell, to head the FAA. Sturgell has been the FAA's acting administrator since Blakey stepped down.

"If they don't like him, vote him down, but at least give a vote as soon as possible," Bush said recently.

Two New Jersey Democratic senators, Frank Lautenberg and Bob Menendez, have placed a "hold," a procedural device that prevents a confirmation vote of Sturgell, who had been deputy administrator since 2003.

"Sturgell helped create the policies that left our air traffic controllers overworked and understaffed, our runways in dangerous condition, more air noise on our communities and the worst flight delays in our history," Lautenberg said.

Their hold suggests the FAA may not get a permanent administrator with a full five-year term until 2009, when the next president takes office and a new Congress convenes.

"This has got to be somewhat demoralizing for the FAA. How can it not be?" asked Robert Poole, director of transportation studies at the Reason Foundation, a research group.

Critics say the FAA is doing too little to relieve delays and congestion, is turning a blind eye to quality and security issues at overseas aircraft maintenance facilities, and is failing to build a pipeline of qualified staffers to replace baby boomers who soon will retire.

But supporters say that despite its current turbulence, the FAA is still keeping the skies safe. "They are doing a good job. We have had a record low accident rate" in recent years, Poole said. "I'm not afraid of flying."