Feb 23, 2021, 2:14 PM ETInterview, Fireside Chat

A Conversation with US Department of Transportation Secretary Elaine Chao

No set timetable exists for the FAA to unground the aircraft; the process is lengthy due to the need to examine and test interdependent, interconnected parts.
Secretary Chao reaffirmed that the MAX will not fly until the FAA deems it safe, prioritizing safety as the department's top priority and foundation.
The recertification involves complex software retesting; minor changes trigger full re-examination of all systems, a process Secretary Chao compared to fixing "ancillary impacts" of a single computer issue.
The administration emphasizes the need for a strong Boeing and stated that Secretary Chao maintains cooperation with the FAA, regulators, and Boeing leadership, including CEO David Calhoun.

Infrastructure was identified as a non-partisan issue, though a bipartisan bill proposed on February 12, 2018, failed to pass due to lack of support.
The Surface Reauthorization Act (FAST Act), which expired on September 30, 2020, has been extended by Congress for one additional year to provide planning certainty.
Over the past three and a half years, the Department of Transportation has spent over $300 billion on ports, roads, bridges, airports, rail, and transit.
The DOT budget increased from approximately $78 billion in 2016/2017 to nearly $87 billion annually, with the CARES Act adding $36 billion, representing a nearly 50% increase over 2016 levels.
Specific funding updates include:
- New York's Portal Bridge project received engineering funds with a potential allocation of $880 million, pending full funding agreements and state milestones.
- $4 billion was allocated to the MTA, though officials noted the transit system requires additional funding to recover ridership.
- $1 billion was provided to Amtrak to assist with financial hardship and coaxing back ridership.
The administration utilizes the Build America Bonds program and the Build America Bureau to leverage private dollars, citing approximately 70 projects across 44 states.

Air travel volume dropped by 96% during the height of the lockdowns, with passenger volumes reaching only 4% of pre-pandemic levels.
A milestone of one million daily TSA passengers was recently reached, the first time since the pandemic lockdowns began in March.
Recovery follows a tiered timeline where vehicle miles traveled rebounded first, followed by air and passenger rail, with the primary barrier now being public trust in the safety of transit systems.
Economic assistance included $25 billion specifically for the transit industry, $10 billion for airports, and $1 billion for Amtrak, alongside the Treasury Department's allocation of up to $50 billion for the airline industry.
Over 100 million face coverings were distributed by the federal government to transportation workers and riders to ensure safe operations.
Secretary Chao noted that consumer confidence is the "greatest constraint" on growth, as the primary barrier to flying is currently a lack of travel purpose rather than safety concerns alone.

The Department is establishing an Emerging Transportation Technology Council to address innovations on an intermodal basis rather than through traditional, siloed regulatory structures.
Current priorities for new technology (drones, autonomous vehicles, commercial space, air taxis) focus on safety, security, and privacy without hampering innovation.
Autonomous vehicles are viewed as having high potential for safety improvements, potentially reducing accidents caused by human error (94% of current accidents).
Commercial space launches have seen a resurgence in the U.S., reclaiming the number one position after 16 years, driven by decreasing costs and reusable launch capsules.
Future travel concepts discussed include:
- Air taxis and drones for passenger and package delivery.
- Point-to-point commercial space travel (e.g., Newark to Sydney in ~30 minutes), though likely decades away.
- Hyperloop projects, including a designated "Center of Excellence" in West Virginia and studies for a Chicago-O'Hare corridor.
- Resurrection of supersonic travel, which requires solving noise pollution issues.
The administration refuses to "anoint" specific technologies, allowing the private market to determine success while ensuring regulations protect public concerns.
Secretary Chao emphasized that consumer acceptance is critical for the growth of new technologies, urging innovators to share confidence and engage with the public and regulators early in development.

While new technologies are expected to generate long-term jobs, Secretary Chao acknowledged the transition may be difficult and that society must support those adversely impacted by shifts in the workforce.
The labor market currently faces a shortage of truck drivers, leading to increased bonuses for hiring.
Innovation is recognized as a driver of economic recovery, with the administration emphasizing a belief in the private sector rather than top-down command and control.