Federal Aviation Administration Reform Act of 1995

Federal Aviation Administration Reform Act of 1995 - Removes the Federal Aviation Administration (FAA) from the Department of Transportation and re-establishes it as an independent Federal agency. Declares that the Administration shall be administered by an Administrator, who shall be appointed by the President to a seven-year term, by and with the advice and consent of the Senate.

Amends Federal transportation law to revise FAA provisions to reflect the establishment of the new FAA.

Establishes within the FAA the Civil Aeromedical Institute to conduct aeromedical research. Authorizes appropriations.

Transfers to the new FAA all functions of the old FAA of the Department of Transportation and of the Secretary of Transportation which are administered through the old FAA.

Establishes the Federal Aviation Management Advisory Committee to provide advice and counsel to the Administrator on issues which affect or are affected by the FAA operations.

Directs the Administrator to establish a select panel to review and report to the Congress regarding innovative financing mechanisms for ensuring adequate funding for existing and future aviation infrastructure needs.

Authorizes the Administrator to accept transfers of available funds from other Federal agencies to carry out functions transferred by this Act to the Administrator or functions assigned by law to the Administrator on or after enactment of this Act.

Directs the Administrator to conduct pilot programs which utilize a trial: (1) acquisition management system to procure goods and services by the Administration; and (2) personnel management system for the management, compensation, and advancement of its employees. Requires the Administrator, upon the development of such systems, to submit a comprehensive plan describing them to the Congress. Terminates such systems effective October 1, 2002.

Directs the Management Advisory Panel to submit an evaluation and report to the Administrator and to the Congress on the results of the pilot programs in acquisition and personnel reform.