The National Civil Aviation Review Commission is warning that congestion in the nation's underfunded and outdated air traffic control (ATC) system threatens the economy and aviation safety. Today the commission is expected to release reports proposing major changes in how the Federal Aviation Administration operates -- including a partial privatization of some functions.

The commission forecasts aviation gridlock soon after the turn of the century unless changes are made. Reforms proposed by the 21-member commission include:

• Increased self-regulation by the aviation industry -- instead of relying primarily on federal enforcement and safety rules.

• Replacing the FAA's ATC system with a semi-private, performance-based organization run by a chief operating officer and overseen by a board of directors drawn from the public sector.

• Tying ATC costs to specific services and billing airlines for services under a user-fee system.

• Funding airport development at a minimum $2 billion annually over the next five years.

The panel also recommends that the FAA's safety and security functions be overhauled to give it greater authority and accountability. This is significant because the Clinton administration and some members of Congress have agreed to introduce legislation drafted by the commission.