Air Traffic Performance-Based Organization

This executive order establishes the Air Traffic Organization (ATO) within the FAA as a performance-based organization to improve air traffic services. It creates a Chief Operating Officer position with performance agreements and bonuses, mandates a 5-year strategic plan, and requires a 5-year evaluation report on the ATO's effectiveness.

Federal Register Open PDF 65 FR 77493

Impact dates

Date TBD
COO 5-year strategic plan for air traffic control system due
Date TBD
COO annual performance agreement with Administrator due
Dec 7, 2005
Aviation Management Advisory Committee report on ATO operation and effectiveness due

Key directives

Secretary of Transportation shall move to establish ATO within FAA
ATO composed of Air Traffic Services and Research and Acquisition elements with direct connection to day-to-day operational air traffic services
COO shall head ATO, report directly to Administrator, and be subject to Administrator's authority
COO shall enter into annual performance agreement with Administrator with measurable goals and specific targets
COO may receive annual bonus not to exceed 30% of basic pay based on performance evaluation
COO shall develop 5-year strategic plan for air traffic control system with mission and objectives for safety, efficiency, and productivity
COO shall enter into framework agreement with Administrator establishing ATO's relationship with other FAA organizations
ATO shall optimize use of management flexibilities, accelerate modernization, develop agreements with FAA Administrator and users, operate per safety standards, consult with customers and public agencies, establish manager incentives, and recommend necessary changes
Air Traffic Control Subcommittee of Aviation Management Advisory Committee shall provide general oversight to ATO
Aviation Management Advisory Committee shall provide report on ATO operation and effectiveness not later than 5 years after order date

Who is ordered

Timeline

Immediate

Secretary of Transportation directed to move to establish ATO within FAA
COO position established under Air-21 now designated as head of ATO

Near term (90d)

COO to develop 5-year strategic plan for air traffic control system
COO to enter into framework agreement with Administrator
COO to enter into annual performance agreement with Administrator

Long term

5-year evaluation report due on ATO operation and effectiveness
Ongoing implementation of performance-based management reforms

Risks & tensions

Unclear whether 'move to establish' in Section 1(a) creates binding obligation or merely directs preparatory steps; no explicit deadline for ATO establishment
Strategic plan deadline unspecified—'shall develop' without temporal constraint
Annual performance agreement timing undefined—no reference to fiscal or calendar year cycle
Potential tension between ATO operational autonomy and Administrator's retained authority over safety, security, and policymaking
Bonus structure up to 30% may create labor relations dynamics with other FAA employees not eligible for similar incentives
Customer consultation mandate includes diverse stakeholders with potentially competing interests (commercial airlines, general aviation, commercial space, DOD)