CONTENTS LIST OF WITNESSES Page Fenello, Michael J.......... Biographical sketch.......... Questions of Senator Kassebaum and the answers thereto Hawkins, Hon. Paula, U.S. Senator from Florida, statement O'Donnell, J. J., president, Air Line Pilots Association, letter of July 1, 1981.... (III) 245717 NOMINATION-DEPUTY ADMINISTRATOR, WEDNESDAY, JUNE 24, 1981 U.S. SENATE, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Washington, D.C. The committee met at 9:50 a.m., in room 357, of the Russell Senate Office Building; Hon. Nancy Landon Kassebaum, presiding. Senator KASSEBAUM. Good morning. Again, it's a pleasure to welcome you, Mr. Fenello, and certainly Senator Hawkins. I really am very pleased that the President has selected you as Deputy Administrator for the Federal Aviation Administration. I think that the background you bring, Mr. Fenello, and an understanding of commercial aviation combines extremely well with the knowledge that Mr. Helms brings in an understanding of general aviation, and I think that will be a combination that is going to benefit the aviation industry in its entirety. It's a special pleasure to welcome Senator Paula Hawkins, your junior Senator, to make the introduction this morning. STATEMENT OF HON. PAULA HAWKINS, U.S. SENATOR FROM FLORIDA Senator HAWKINS. Thank you so much, Madam Chairman. It's been interesting for me this morning to be out doing, as you are aware, so many different, divergent things, looking for money for Cuban/Haitians for our State and at the same time working out some budget cuts. So we are asking for more money on one side and cutting on the other side. It's a great pleasure to be able to introduce you to Michael Fenello who has been nominated to be the Deputy Administrator of the Federal Aviation Administration. Mr. Fenello is almost a neighbor of mine. He lives in a small town, Eustis, about 40 miles from my home. When I drove past that beautiful Lake Dora the other day I thought it was a great tribute to him and to his wife and his family for being willing to leave that beautiful setting and come to Washington to serve his country rather than spend his time sailing on that beautiful lake. It's not often enough, I believe, that we recognize how many people sacrifice so much to become public servants here in Washington. I'm sure he will make a contribution to the Government. As a former vice president of a major airline, he certainly understands the industry he is going to be called upon to regulate. He comes to Washington at an appropriate time. Since the strike has been averted, we'll give him a moment to catch his breath. I'm sure there will be another emergency around the corner. It's my great pleasure to commend to you the President's nomination of Mr. Fenello to be the Deputy Administrator, and I hope that you will speed his nomination to the Senate floor. Thank you. Senator KASSEBAUM. Thank you. Thank you very much, Senator Hawkins. Mr. Fenello, do you have any opening comments you wish to make? STATEMENT OF MICHAEL J. FENELLO Mr. FENELLO. Well, just that I'd like to say I'm honored to have been considered for this appointment. I am very pleased to be here, and I can't help but be flattered that the two women Senators are both here working on my behalf. I'm ready for any questions that you have. Probably one question that you can anticipate, since it has been foremost in our minds for those of us interested in aviation-and really everyone in the country-and that is the air traffic controllers strike. I believe that all parties concerned are to be congratulated for very strenuous and arduous endeavors to reach an agreement before a strike was called. But saying that, however, there were certainly losses suffered because of the threat of the strike. And just that very thought of an illegal strike caused inconvenience to travelers and a loss of revenue to the airlines. There have been those who have suggested to me, and some of my colleagues, that we should modify existing law by stiffening penalties or other means to make the possibility of a strike in the future even less likely. I realize it is unfair to really ask you if you have formulated any thoughts at this point, but I wondered if you would have any suggestions to make? If you even believe that we should be considering means to make the possibility of an illegal strike less of a threat in the future? Mr. FENELLO. I guess a comment on that now might be inappropriate inasmuch as, with the ratification still out and required, you might say that we're technically still in a negotiating stance as far as the PATCO situation is concerned. I share your belief that we seem to have averted it at this point in time. I think that both sides have learned a lot from this confrontation and that perhaps in our relationship in the future we can do much to preclude such an abrupt problem as faced us here over the weekend. I would rather defer for the present any comments on whether there should be changes in rules that might preclude such an Occurrence. Senator KASSEBAUM. I certainly can appreciate that this would be something that's probably best addressed after the package is signed. I am sure we all hope that the membership in PATCO will agree to the package. I heard on the news this morning there is still some question whether the membership will support the package. I'm assuming you don't have any inside information that would lead you to wish to speculate on that? Mr. FENELLO. No. I'm hopeful and almost confident that the membership will recognize that they have been provided with a fair and, I think, comprehensive package for their consideration, and that certainly they were made aware of the consequences which could befall not only the country but themselves personally, and I'm hopeful that they will ratify, and I feel confident that they will. Senator KASSEBAUM. Well, I certainly join with you in that hope. This is another sensitive issue to a certain extent. The FAA has announced plans for a rather sweeping reorganization in the reduction of regional offices from 11 to 6. Some of my colleagues, of course, are concerned about that reorganization, and particularly they are worried, of course, that their States will be short shrifted in both attention to aviation problems and perhaps funding of aviation projects in their States. Have you had the opportunity to look at the proposals for this reorganization and what might your reaction be to their concern? Mr. FENELLO. I've had limited exposure to it, but I have looked at it to some extent. First of all, I think it should be made a matter of record that there is nothing that comes close to being more important to the agency than the safety issues that we are responsible for. It's foremost and uppermost in all our planning and thinking. That being our first assignment, the safe and efficient use of the air space of this country and the certification of the aircraft and the pilots that use that space being No. 1, we also have an obligation, a follow-on obligation, as has been spelled out by this administration, to reduce the cost of Government, to improve productivity and to reduce regulation. We take that very seriously and this reorganization plan addresses that responsibility. We are convinced that we can pull back to six regions. Not unique. The FAA has been in that posture before. And it was only a move a few years back to attempt to combine all major offices in Federal districts that really put the FAA in the posture of having more than the six that we are proposing now. I am confident that there will be no lessening of our efforts at providing a safe system under it and I'm confident also that the minor reduction of personnel which will take place, minor in one sense, in that the impact on the individuals will be considerably reduced-there are 400 employees involved; 400 jobs will disappear. But having looked at the retirement schedule that we are facing, we are confident that we can offer jobs at other locations to all who wish to transfer. I think by alining ourselves with our lead region concept-for example, New England is our lead region for aircraft engines-that will become a major region. The central region, of course, will focus on general aviation; and our northwest, western, and Pacific region in Seattle will focus on airframes and manufacturing of the larger equipment. In our southwest region, of course, we are increasing our focus on helicopter performance and regulation. And we think that that realinement will be more cost-effective as we continue to play out our role to regulate air transportation in this country. Senator KASSEBAUM. Thank you. One of my very distinguished colleagues is one whose straightforward comments I always enjoy, and his observations on the avi |