I'm cautious to say this is a good idea, but I'm also optimistic the private sector would be more efficient than the public sector.
What you're referring to is a research project, not a deployable one.
I agree it's worth researching. Common industrial research grants with a mixture of government and private funding can perform the research and develop it.
And those improvements may be deployed to the sector whether it's private or not. There's no need to pre-emptively privatize the industry to perform R & D.
In all likelihood this will result in a small price decrease coupled with degraded service.
> The plan drew immediate support from most airlines
> the White House said the 13-member board of directors for the new corporation should be made up of appointees from industry stakeholder groups