FAA
The FAA regulates all aspects of civil aviation in the United States, from aircraft certification to air traffic control to pilot licensing. With oversight of the world's largest aviation market (45,000+ flights daily, 1 billion passengers annually), FAA decisions set global standards.
The Boeing 737 MAX crisis exposed fundamental tensions in FAA's 'delegated authority' model, where manufacturers certify their own aircraft under FAA oversight—a system that trades thoroughness for speed.
Boeing's 737 MAX was largely certified by Boeing employees under FAA's 'Organization Designation Authorization' (ODA) program—FAA engineers reviewed ~5% of certification documents. Post-MAX, FAA still lacks staff to review all delegated decisions. FAA's air traffic control system runs on 1960s-era technology in many facilities—NextGen modernization has cost $36B+ over 20 years with delays ongoing. Unlike other agencies, FAA Administrator position frequently vacant (2-3 years without confirmed leader common)—management by acting officials. FAA has regulated SpaceX launches but commercial space oversight still developing.
Key Facts
Power Dynamics
Sole authority to certify aircraft, license pilots, manage airspace; can ground entire fleets
Constrained by industry dependence (delegated authority model), congressional pressure (both parties support aviation), budget limitations (can't hire enough engineers to review all Boeing submissions). Grounding is nuclear option rarely used
- Congressional aviation committees (protect industry)
- Boeing's economic importance (150K employees)
- Global aviation coordination (EASA, other authorities)
- Delegated authority model limits oversight
- Boeing (largest US aircraft manufacturer)
- Airlines (regulated entities with political power)
- EASA (European counterpart)
- DOT (parent department)
- NTSB (investigates crashes)
Revenue Structure
FAA Revenue Sources
- Airport & Airway Trust Fund (ticket taxes) 70%
- Congressional appropriations 25%
- User fees 5% →
Pandemic showed vulnerability—travel collapse cut Trust Fund revenue 90%+ temporarily. Budget not sufficient to rebuild engineering staff post-MAX
Unlike FCC (100% industry funded) or FDA (45% user fees), FAA primarily funded through travel taxes—creates alignment with aviation growth
Decision Dynamics at FAA
Post-crash 737 MAX grounding: 3 days after Ethiopia crash (but other countries grounded first)
737 MAX return to service: 20 months of review. NextGen ATC modernization: 20+ years, still incomplete
Delegated authority means reliance on manufacturer data; engineering staff insufficient to review independently; international coordination required
Failure Modes of FAA
- 737 MAX (2018-19): 346 killed; FAA delegated certification of MCAS to Boeing
- ValuJet 592 (1996): led to reforms but fundamental model unchanged
- DC-10 (1970s): multiple crashes exposed certification gaps
- Delegated authority means trusting those you regulate
- 5% review rate for certification documents
- Staff insufficient to rebuild independent capacity
- Revolving door with industry
- Political pressure to keep planes flying
If another MAX-like failure occurs with different manufacturer, delegated authority model faces existential threat. If FAA had to directly certify all aircraft, industry would face years-long delays and massive cost increases
Biological Parallel
FAA is immune system that delegates threat assessment to the organisms it's supposed to monitor. Boeing certifies Boeing aircraft, with FAA reviewing ~5% of work. Like immune system that asks viruses 'are you dangerous?' and trusts the answer. Works when actors are honest (aviation safety record generally excellent), catastrophically fails when actors have incentive to minimize problems (737 MAX). The evolutionary pressure toward delegation (speed, cost) directly conflicts with safety function.
Key Agencies
Certifies aircraft designs; delegated much authority to manufacturers (ODA)
Operates air traffic control for 45,000+ daily flights
Pilot certification, airline operations oversight