Promising to bring "American air travel into the future, finally", the President called the current system and its reliance on decades-old radar technology "ancient, broken, [and] antiquated".
About 50,000 flights take off and land in the United States every day.
Airlines in the US have campaigned to separate the FAA. and ATC for two decades, but the proposal still has to pass muster with Democrats.
Joined by Transportation Secretary Elaine Chao, Vice President Pence, a group of former transportation secretaries, and a host of airline executives, the president said the new system would help the USA catch up with the technological advances of other countries like Canada.More news: ICC Champions Trophy: India-Pakistan clash bigger than Ashes: Irfan Pathan
The Trump administration unveiled the opening chapter of its much-anticipated infrastructure package with a plan to spin off the nation's air traffic control operations from the Federal Aviation Administration.
2,700 new hire and certified air traffic controllers are training at OKC's Mike Monroney Aeronautical Center each year.
Such efforts gained momentum when the union that represents air traffic controllers agreed to support Shuster's plan, in exchange for guarantees that controllers would retain their benefits, salaries and union representation.
Trump says during a White House announcement that the current system is "stuck painfully in the past".More news: Cristiano Ronaldo: Real Madrid president Florentino Perez refuses to be blackmailed
Thus begins this week with our president, Donald Trump.
On the other hand, this plan (which really is not Trump's idea but rather springs from a 2016 House bill that never got a vote) is supported by the National Air Traffic Controllers Association as a way to have more predictable funding, as opposed to the annual spending fights in Congress that have led to furloughs and shutdowns.
"Seize this opportunity - because if you don't, we're gonna come, and you're not gonna like it", U.S. Rep. Bill Shuster said. The safest airline system in the world. The remaining 5 would be filled by 4 top executives from big airlines and a union executive.
Winning congressional approval would still be an uphill battle for Trump.
Critics of the plan have also questioned the White House's assertion that the plan will make passengers safer, pointing to the airlines' history of computer system failures and the risk that goes along with adopting a complex new satellite system.More news: Man who barricaded self is suspect in triple slaying
Airlines would pay the annual costs of $10 billion per year by contributing fees to the private entity, rather than taxes they now pay the federal government. They argue these problems are proof that private business should not be trusted to do what's right for passengers.
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