Mr. DAVIS. You may not want me to read the statement but I did want to point out several things that we in the Department consider' important in connection with the CAA's program. The CAA, of course, is the largest aviation activity within the Department of Commerce. There are two other agencies, bureaus within the Department, the Coast and Geodetic Survey and the Weather Bu reau Mr. ROONEY. Mr. Davis, we understand all these things and have understood them for quite some time. If you have some new information that might help the committee this year we shall be glad to hear it. Mr. DAVIS. I want to point out also that in the consideration of the CAA's budget in the Department, that we attempted to and have given evaluation to the entire group of aviation programs within the Department and the CAA's program has been developed with that concept in view. In other words we are attempting within the framework of the Department of Commerce to coordinate all the related activities and to make them all come into focus on a common objective insofar as they are related. Mr. ROONEY. Very well. Mr. DAVIS. We are particularly concerned with our CAA program. We feel its contribution to all-weather flying is highly important and that before air transportation can maintain that degree of regularity which is essential to its economic well being that there must be a system of navigation aids and airports which will enable them to fly in all types of weather. GENERAL STATEMENT CONCERNING BUDGET REQUEST Mr. ROONEY. Do you have a statement that relates to the budget, Mr. Rentzel? Mr. RENTZEL. Yes, sir. I have a statement which I would like to submit for the record, which details in broad break-downs the highlights of the program and points up to the committee the areas in which primary interest is being placed by the Administration. I would like to submit that for the record. Mr. ROONEY. At this point we shall insert in the record the prepared general statement of Mr. Rentzel. (The statement referred to is as follows:) GENERAL STATEMENT BY MR. DELOS W. RENTZEL, ADMINISTRATOR OF CIVIL AERONAUTICS The estimates before you for the Civil Aeronautics Administration represent, we believe, the minimum requirements for carrying on the activities of the agency during the fiscal year 1951. In arriving at these estimates, careful consideration has been given to the concern of the committee with regard to the rising costs of aviation programs. The total estimate, including amounts requested for continuation of regular operations, capital investments, and liquidation of prior year contractual authorization, is $282,716,500. Stated in another way, the estimate consists of $117,080,000 for regular operating programs, $85,051,500 for capital investments, and $80,585,000 for liquidation of contractual authorizations previously granted by the Congress. Total cash requirements are $212,550,000, of which $115,965,000 is requested for regular operation and $96,590,000 for capital investments. A statement of the funds requested for the fiscal year 1951 compared with those provided for 1950 follows: The increases in the appropriation request are due to: A. Funds requirements to liquidate obligations incurred under existing contractual authority. B. Increase in cash requirements for continuation of program for establishment of air navigation facilities C. Requirements for operating activities under the 1. Cost in 1951 of operating airway facilities 2. New airway facilities and services requested 4. Statutory pay raises.. 5. Miscellaneous improvements in airway facilities. 6. Activities completed in 1950....... $4, 861, 000 1, 793, 000 1, 624, 000 6, 011, 500 1,393, 500 500,000 -777,297 7, 127, 703 2,861, 500 52,400.000 56, 666, 203 $55, 285, 000 3, 350, 000 728, 000 800, 000 D. Acceleration of the Air Navigation Development program toward objectives outlined by the Radio Technical Commission for Aeronautics. E. Improvement at Washington National Airport. F. Increase in the technical development program. G. Decrease in cash requirements for carrying out the Federal Airport Act.. 3, 000, 000 1, 474, 000 8, 000 -477,000 The significant program aspects of the budget for 1951 are outlined in the following paragraphs. The major activities of the agency are discussed briefly with an indication of accomplishments during the fiscal year 1949, and objectives for fiscal years 1950 and 1951. As I indicated to you last year, I had studies made by (1) committees composed of representative CAA officials, and (2) an over-all management survey by a firm of industrial management engineers. On the basis of their recommendations, a realinement of the organization structure has been evolved and placed in effect. This realinement was necessary to define more clearly the lines of administrative direction and control required for effective administration. The organization, as now constituted, represents what is believed to be the best structure possible for implementing the diverse programs of the Administration and no change of a major character is foreseen or anticipated during the fiscal year 1951. As a part of the general realinement process, there was established, effective July 1, 1949, an international region with headquarters in Wahington, D. C. This new region is responsible for administering all Civil Aeronautics Administration programs outside the continental and territorial limits of the United States, following the same general concept as has previously been defined for domestic regions. A primary advantage of this organization is that it will assure uniformity of treatment for international air carriers, which was difficult to achieve under a system where more than one geographical organizational unit had responsibility for safety functions in connection with the same air line. In addition, the new organization will provide on-the-spot consultative assistance to the aviation organizations of governments abroad, in the interest of United States air carriers, and assure continuation of United States leadership in international aviation. The establishment of this new region does not increase appreciably the total cost of CAA operation during the fiscal year 1950 or 1951. examination of the detail budget indicates an apparent increase of approximately $108,000 in 1951. This increase is required primarily to permit the rotation of personnel on overseas assignments and would be required whether or not the region had been established. An One of the most important results of the organization survey was the establishment of the program planning staff in the Washington office to provide special staff assistance in the over-all planning of Civil Aeronautics Administration programs. This new organization is designed to coordinate agency long-range planning and to evaluate the economic effect of such programs. The establishment of this office was accomplished through savings in other parts of the Civil Aeronautics Administration. At the regional level, Planning and Evaluation Divisions have been established, whose responsibilities should not be confused with those of the program planning staff in the Washington office. These divisions provide special staff assistance to the office of the regional administrators in the review, correlation, evaluation, and implementation of regional operating plans. In line with the recommendations of the management survey referred to above, the Washington office of business management has been abolished. Those offices concerned with providing special staff assistance in formulating and executing policies and programs with respect to budget, personnel, and organization and methods have been established as special staff offices, each reporting directly to the Office of the Administrator. This was essential so that the head of the agency could have immediately available the management staff he required for the proper control and effective administration of the agency. The Offices of the General Counsel and of Aviation Information have been retained at the immediate special staff level. The remaining functions of the former Office of Business Management have been consolidated into an Office of General Services. The estimate for establishment of air navigation facilities includes $40,000,000 for the establishment of new and additional facilities, $25,000,000 of which is requested for continuation of the program recommended by the Radio Technical Commission for Aeronautics in its Special Committee 31 report. This program visualizes completion of the "common transition system" by January 1953. Implementation of the plan will proceed in an orderly manner and as rapidly as possible. In an effort to expedite the installation of these facilities and to reduce costs, plans are being made to have electronic equipment fabricated and installed by the manufacturer. This process will, in addition to averting a large temporary increase in Federal employment, eliminate many delays which might otherwise be encountered. The installation of very high frequency radio ranges is proceeding satisfactorily. Plans are being made to start discontinuing low frequency aids in 1952. Meanwhile, it will be necessary from time to time to modify or move individual low frequency facilities in order to meet urgent safety requirements. In line with the established policy, funds in the amount of $1,235,000 are requested for equipping 10 additional airport traffic control towers at high priority locations. This will bring the total number proposed for operation to 191. Of the 10 new towers, it is estimated that 3 will be in operation for an average of 6 months during fiscal year 1951. The cost of operating these additional towers during the fiscal year 1951 is $87,780. 1 In addition, the establishment program includes $4,895,892 to continue the previously authorized program in Alaska. Because of the unreliability of lowand medium-frequency radio communications under the peculiar atmospheric conditions existing in the Arctic, every possible effort should be made to expedite the installation of the very high frequency point-to-point communications circuits in the Territory. Of this total, $3,131,520 is requested for completion of the Fairbanks-Nome and Homer-Naknek airways. The problem of relieving traffic density at major terminals and expediting the flow of traffic on the Federal airways continues to be one of major concern. Studies are being made to devise some means of relieving this situation, either through the rearrangement of existing facilities or by use of new methods and equipment. It should be noted that work-load formulas and unit cost standards used in developing the estimate for the operation of the Federal airways system have not been increased over those of last year. Although some evidence has been presented to justify increases, particularly in work-load formulas for air-route traffic-control centers and aeronautical communications stations, no increases are reflected in this estimate pending completion of a thorough review of all factors. It is our plan to completely eliminate the furnishing, without charge, of communications services for company traffic to air carriers operating between the United States and overseas points. This action is in accord with our domestic policy regarding the furnishing of such services to air carriers. As to the first step in this direction, regulations were issued effective January 1 which required [carriers to provide their own connecting facilities with CAA installations. those cases where this service could not be obtained by the carriers from commercial sources, it is provided by the CAA and the carrier billed for its share of the cost. In During the fiscal year 1949, particular emphasis in the aviation safety program was placed on activities associated with the air-carrier industry. Certain sched'uled air carriers have a performance standard of sufficiently high level to warrant a further delegation of responsibility for inspecting and certificating major segments of their maintenance and operational activities. During the calendar year 1949, the safety record of the domestic scheduled air carriers was 1.3 fatalities per 100,000,000 passenger-miles flown. In the history of civil aviation this is one of the best safety records achieved. In the irregular air-carrier field, the safety record continues to be below standard. This is true despite the fact that several of the companies have discontinued operation and the performance standards of those remaining reflect improvement over last year. Steps are now being taken to improve the safety record of all air carriers and particularly the irregular carriers. There is included in the request an item of $80,000 for the rental of a flight simulator. This equipment is needed to train and familiarize aviation safety agents in operating procedures of four-engine aircraft. By the use of this trainer, in conjunction with actual flight training in a particular type aircraft, agents can be trained to a high degree of proficiency at a minimum cost. Production of new types of aircraft reflects a downward trend. The new aircraft being produced, however, are of complex types. This complexity adds substantially to the work load of agents engaged in the examination of the design, air frames, engines, and major components. The problem areas include new and larger types of aircraft; reversible pitch propellers; and helicopters. Top priority is being placed on the adaptation of aircraft to better serve the agricultural interests of the nation. In that portion of the safety program dealing with airmen, the number of certificates issued during 1950 and 1951 is expected to be below the level established in the period 1946 to 1949. Since the Administration must serve every area of the country, it is not practical to reduce substantially the number of agents. It is planned that the activities of agents will emphasize improvement in the quality of examinations given by designees and the carrying on of a positive aviation safety program. The budget for the Office of Aviation Development for the fiscal year 1950 is $259,132. For the fiscal year 1951, the sum of $275,100 is requested." This Office was established to concentrate in one place the responsibility for fostering and encouraging (1) private flying: (2) air-route marking; (3) aviation education in school systems; and (4) the development and use of improved aircraft, equipment, and related products. The CAA, working through State Departments of Education, has been able to encourage the adoption of aviation education programs by all States, the District of Columbia, and Alaska. In 1950 and 1951, assistance will be given in implementing these programs. Ways and means for encouraging personal and industrial flying are being devised and assistance is being given in the development of an agricultural type aircraft. Surveys will be conducted and methods sought to assist the fixed-base operator and to increase the utility of personal aircraft. The estimate for operation of aircraft provides for a continuation of the level of operation established in 1950, plus an increase in flight-hours for checking new airways facilities and for proficiency flight time in proportion to the man-year increase requested under aviation safety. With regard to aircraft, it is proposed to substitute three DC-3's for three of the present twin-engine Beechcraft; operations having proven that the Beechcraft is inadequate for use in checking certain airways facilities. For the first time, funds are being requested for rental time in heavy aircraft, such as the Boeing 377, the Convair 240, and the Constellation. It is considered essential that proficiency flying be provided for agents responsible for the inspection of operations in these types of aircraft. The estimate contemplates the allocation of approximately 100 flight-hours to 10 agents who are engaged in this work. One other significant increase requested is for 1,000-hour checks which will be necessary in fiscal year 1951. The Air Navigation Development Board, through its technical staff, has developed specific project plans within the framework of the basic research program outlined by the Radio Technical Commission for Aeronautics. Civilian needs and military requirements, as expressed by the Research and Development Board and the Secretary of National Defense, stress the importance of this research program. In the 8-year program, 1951 is a peak year in that it is the year in which most of the prototype contracts are to be made. In light of these considerations, the request for 1951 provides for a program level of $10,000,000. The requested program level for technical development and evaluation is approximately the same as for the fiscal year 1950 and is considered necessary for the effective discharge of the responsibilities of the Administration in the fields of service testing and evaluation. In accordance with the President's policy with respect to the Federal-aid airport program, the same program level is proposed for the fiscal year 1951 as was established for the fiscal year 1950. Although the Federal Airport Act authorized the appropriation of $520,000,000 during a 7-year period ending June 30, 1953, with a limit of $100,000,000 in any 1 year, only $157,000,000 has been appropriated or authorized for obligation through the fiscal year 1950. The appropriation requested for the fiscal year 1951 will bring this total to $197,000,000. In view of this fact it may be necessary to recommend extension of the provisions of the act of May 13, 1946, to permit completion of the program. Through December 31, 1949, grant agreements had been executed for 1,007 projects at 736 airports. During fiscal years 1950 and 1951, top priority will be given to the construction and improvement of class IV and larger airports consistent with the objectives of the RTCA program. Ample provision has been made for the construction of the smaller classes of airports. The appropriation request for the Washington National Airport provides for a small increase for maintenance and operation activities at the airport which result from the enlargement of the terminal building. The program represents an effort to keep facilities at the airport in line with increased activity. It is estimated that the receipts at the airport for the fiscal year 1951 will total approximately $1,564,200, which amount is expected to more than meet the out-of-pocket operating costs. Under the appropriation heading "Construction, Washington National Airport", provision is made for construction of an overpass connecting the airport with United States Highway No. 1 which is required in the interest of providing an adequate means of access to the airport property and for the public safety. This project is supported by the Public Roads Administration and the Department of Interior. REVIEW OF PRINCIPAL ITEMS Mr. ROONEY. Now, develop in your own words what you consider to be the principal items contained in this statement. Mr. RENTZEL. I would like to do that, Mr. Chairman, if I may. I will try to make it very brief. |