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Transforming the Air Transportation System

A business case for program acceleration


The U.S. Federal Aviation Administration (FAA) and the European Union EUROCONTROL air transportation system (ATS) agencies are in the process of modernizing through the Next Generation ATS (NextGen) and Single European Sky Air Traffic Management Research (SESAR) programs respectively. The transformation of the global ATS from ground-based communications and radar control to satellite based positioning, navigation and timing technology, real time digital data communications, advanced weather sensing and precision navigation technologies are expected to generate significant savings for airlines and passengers.

Deloitte's study “Transforming the Air Transportation System - A Business Case for Program Acceleration” provides additional input to the ongoing dialogue regarding quantification of benefits and costs, funding, scope, timing and potential merits of the transformation programs and economic value of accelerating these modernization initiatives globally, as well as the impact of potential program delays.

Transforming the air transportation system - a business case for program acceleration

The study estimates the net present value of deploying the program globally as scheduled by 2025 for the NextGen, SESAR and other global programs is $897 billion through 2035. Deloitte's research shows that the acceleration of global ATS transformation programs will increase net present value by $100 billion, if completed by 2020. This translates into $20 billion of additional value for NextGen, $51 billion additional value for SESAR and $29 billion additional value for the rest of the world. 

Alternatively, the study found that delaying implementation by five years could decrease the net present value of the programs globally by $148 billion. Conversely, the study also reveals that program acceleration, let alone implementation by 2025, has potential risks in funding, technology standardization, maturity and integration, public policy agreement, Air Traffic Control procedures and training among activities required to make the program successful.

As used in this document, 'Deloitte' means Deloitte LLP [and its subsidiaries]. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.Certain services may not be available to attest clients under the rules and regulations of public accounting.

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