Professor John Strong explores U.S. Air Traffic Control challenges on Freakonomics Radio

William & Mary’s CSX Professor of Finance and Economics, John Strong, recently appeared on the Freakonomics Radio two-part episode “Is the Air Traffic Control System Broken?” to discuss the economics, politics, and practical realities of managing the Nation’s air traffic. The episode, hosted by Stephen Dubner, explores the U.S. air traffic control (ATC) system and how it is a remarkable achievement: complex, high-stakes, and incredibly safe. At the same time, it faces persistent challenges.

John Strong emphasizes that the system represents a balance between operational excellence, human skill, and evolving technology. He has studied the airline industry for decades and notes that while U.S. aviation remains extremely safe, there is room for improvement, especially in governance, in funding, and in modernization.

One of the system’s greatest strengths is its human element. Controllers like Ken Levin, who recently retired after a long career at Oakland Center, exemplify the rare skill set required to manage dozens of aircraft simultaneously. Levin describes periods in his career where “you are just crushing it…you can see things further out, you can see the way the winds are working, how the planes are moving, and it’s easy to make good calls.” Even so, ATC is an unforgiving profession: failure rates for trainees are high, and success demands peak cognitive performance. Strong notes that incremental modernization funds, such as the recent $12.5 billion allocation, are essential but only address part of the challenge. “This is an important first step, but it only gets us maybe a third of the way there, and it’s probably over a 10-year period,” he said. We also need to continue additional funding to hire more controllers to meet current shortfalls and to manage retirements and attrition.

Funding and governance also shape the system’s effectiveness. Unlike many other countries, U.S. ATC is purely governmental, with the FAA being part of the US Department of Transportation. The FAA budget primarily comes from the Airport and Airway Trust Fund, which is funded by ticket taxes, cargo fees, and aviation fuel taxes. Strong explains that air traffic charges are more directly tied to aircraft operations in other countries, with fees for takeoff, en route, and landing. “The formulas are generally based on size and weight of the plane and the time in the system… What it does is it says that the user of the system is actually the aircraft,” he said. This model ensures that costs reflect actual usage rather than an indirect tax on passengers.

Despite these funding debates, there is broad agreement on the importance of modernization. Strong estimates that controller staffing shortages alone create delay cost of $150 million each year. Ed Bastian, CEO of Delta Airlines, frames it pragmatically: “It’s payback to customers of their time. It’s payback to us in fuel savings. It’s payback to the environment and sustainability.” Levin adds a controller’s perspective: “We always need to evolve. We’ve got facilities that are degrading, equipment that’s degrading, and it needs to be modernized. Is the passenger going to feel it in the delay and not getting home on time? Sure. But they’re going to get home safely.”

Modernization is not just about equipment but also about leadership and management. Polly Trottenberg, former deputy Secretary of Transportation, stresses the need for continuity and expertise. “You need the people in place who know what they’re doing… You need a strong team to manage all the elements of that agency,” she said. This highlights a central challenge: capital alone is insufficient without skilled leadership and a committed workforce.

The podcasts reveal a clear portrait of U.S. aviation: a system in which human skill, institutional knowledge, and technological infrastructure intersect to create an industry handling 45,000 flights and three million passengers daily. The $12.5 billion funding represents a critical step forward, yet, as Strong and others note, it is only the beginning. Incremental reform, careful leadership, and sustained investment will determine whether the system continues to meet the growing demands of air travel while preserving the extraordinary safety record that makes U.S. aviation world-class.

The Freakonomics Radio episode(s) “Is the Air Traffic Control System Broken?” and “An Air Traffic Controller Walks into a Radio Studio” are now available for streaming on Apple, Spotify, and wherever you catch your favorite podcast.