Programs for the support of science and engineering education.
Return to Index
Military Spectrum Is Safe for Now
A large portion of radio spectrum used for critical U.S. military applications won’t be reassigned to commercial users anytime in the near future.
Though this was a matter of concern several weeks ago, recent actions by the administration have stalled efforts by the wireless industry to obtain the spectrum.
Resolution of the spectrum assignment issue has been a focus of a task group of AIA’s Space Council.
The National Telecommunications and Information Administration (NTIA), the Federal Communications Commission (FCC), the Defense Department (DoD), and other executive branch agencies have developed a new plan for the assessment of spectrum for advanced mobile wireless services.
The plan is a result of Commerce Secretary Donald Evans and FCC Chairman Michael Powell agreeing that the timeframe for a final decision on spectrum allocation for commercial advanced wireless services should be extended. Further study will ensure that the eventual decision for additional spectrum for advanced wireless services will be "the best one possible."
The current assessment is examining the potential use of the 1710-1770 and 2110-2170 MHz bands for commercial advanced wireless services. The 1770 to 1850 MHz band has been "taken off the table" and is not part of the assessment.
The Space Council spectrum task group has been working with Congress to ensure that the 1755-1850 MHz band remains dedicated to the DoD and supports the decision to not include the 1770-1850 MHz band in the assessment.
If additional spectrum is needed to relocate users from the 1710-1770 MHz band, the assessment will identify relocation spectrum in accordance with the National Defense Authorization Act of 2000 and provide a timeframe for moving the displaced incumbents.
In addition, federal incumbents in the 1710-1770 MHz band will assess their future spectrum needs in the wake of September 11 terrorist attacks and in light of new national security demands.
Federal authorities plan to complete the assessment by next spring. Though the current auction deadline for the 1710-1755 and 2110-2150 MHz bands is September 30, 2002, the administration has proposed legislation to postpone the deadline until September 30, 2004.
AIA Source: David Logsdon, 202-371-8506
Return to Index
AIA Working on Industry Insurance Issues
AIA is seeking legislative help for member companies facing a serious impact in the cost and scope of their liability insurance in the wake of the terrorist attacks of September 11.
The Air Transportation Safety and System Stabilization Act, passed by Congress and signed by President George W. Bush soon after the terrorist hijackings and crashes, provides insurance availability and liability parameters for airlines.
On the other hand, the law doesn’t address some issues critical to aircraft and parts and components manufacturers, such as the availability and reasonable cost of insurance for the equipment makers.
Most AIA companies need and have war-risk riders on many of their insurance policies, provisions that usually cover hijackings and terrorism. Since September 11, several insurance companies have asked for dramatic increases in premiums, reduced provision coverage, cancelled coverage, or given notice that rates will increase substantially when policies are renewed.
Congress and the White House are aware of the need to address the insurance-related problems facing all sectors of the economy, including most manufacturers. The insurance industry itself has provided a legislative proposal establishing a federally administered fund to ensure the availability of certain types of insurance.
AIA is concerned that the insurance industry proposal doesn’t sufficiently address the aerospace community, such as the needs of companies with foreign assets. Nor does it provide aerospace-specific war risk insurance, which manufacturers historically have had.
The White House also has criticized portions of this proposal, pledging to work with Congress to address the broad insurance problem in an expeditious manner.
AIA is working with Congress to improve the insurance industry’s proposal. In addition, the association has provided legislative language that would specifically and independently address aerospace insurance needs.
AIA Source: John Barsa, 202-371-8532
Return to Index
The President's WASHINGTON PIPELINE: Commission Eager to Roll Up Its Sleeves and Begin Work on Aerospace Future
John W. Douglass, President and Chief Executive Officer, AIA
I am extremely proud to be among the six individuals appointed by the president on September 18, 2001, to the Presidential Commission on the Future of the U.S. Aerospace Industry.
The president’s appointees join six congressional appointees announced earlier in the year to examine the political, economic, and technical environment the aerospace industry will face in the coming decades and provide recommendations and advice on government policies necessary to maintain a robust and prosperous industry.
The White House also announced the appointment of former congressman and current chairman and CEO of the Wexler Group, Bob Walker, to chair the commission. A list of all the highly qualified appointees and a brief biography for each appeared in the October AIA UPDATE.
The legislation that established the commission directs that it investigate technologies, global trade and market trends, budget issues, acquisition processes, space launch infrastructure, and technical talent issues involving the aerospace industry.
The most crucial matters for the commission’s focus, I believe, are trade and budget issues and finding sources of capital for financing the aerospace industry.
I expect the commission will also direct a considerable portion of its attention to the issue of aviation security. It will be up to the chair and the commissioners, however, to sort through the input they receive in the next several months and develop the commission’s complete agenda.
The commission met in October to establish administrative procedures. It was the first opportunity for all of us to meet, and I am happy to report that we have a very collegial and eager group of commissioners and an excellent staff.
After the first public meeting scheduled for November 27, we will have a more clearly defined understanding of the direction the commission will take and the procedures it will follow in arriving at its findings and recommendations.
It is my understanding that Congress will extend the life of the commission to accommodate the late start. The final report of the commission, then, would likely be issued near the end of 2002 or the beginning of 2003 — close to the 100th anniversary of the first powered flight of the Wright Brothers. That would be perfect timing for the commission to chart a new course for the next century of flight.
The commission is a rare and vital opportunity for the aerospace industry to show representatives in government and the general public the complex economic and political hurdles facing the industry.
The tragic terrorist attacks that occurred in New York City, Washington, D.C., and Pennsylvania have made it crystal clear just how important the aerospace industry is to the U.S. transportation system, economy, and national defense.
I congratulate Congress and President Bush for establishing and supporting the commission.
Return to Index
Washington Watch: House Rejects Limits on Outsourcing
Spurred by a strong lobbying effort by contractors, the House of Representatives has dropped provisions from the FY 2002 Defense Authorization bill that would have severely burdened on-going Defense Department (DoD) privatization initiatives.
Sponsored by Rep. Neil Abercrombie (D-Hawaii), the measure would have greatly expanded the amount of outsourcing that would have been required to undergo a lengthy and expensive competitive review process outlined in Office of Management and Budget Circular A-76.
The Abercrombie language would have forced the Pentagon to open thousands of contractor jobs to competition from Defense Department workers, including service work that had never before been performed by government employees.
The broad reach of the legislation could have been a serious obstacle to timely support of military operations.
In light of concerns and the need to provide flexibility to DoD to carry out operations in response to the September 11 attacks, the House in late September stripped the Abercrombie language from the bill. It substituted a less burdensome directive that puts a moratorium on 50 percent of new outsourcing until May 1 and requires A-76 cost comparison studies to reflect 10 percent savings for DoD work to be contracted out.
Support for industry’s position was led in the House by Reps. Curt Weldon (R-Pa.), Pete Sessions (R-Tex.), Jim Moran (D-Va.), Tom Davis (R-Va.) and Dan Burton (R-Ind.).
There is no similar language in the Senate version of the Defense Authorization bill that passed in early October.
AIA legislative staff is working with other industry associations to eliminate outsourcing restrictions from the final Defense Authorization bill.
AIA Source: Jonathan Etherton, 202-371-8533
Return to Index
Space Council Addresses National Policies
The Bush Administration has created an interagency group to address national space policy. The Policy Coordinating Committee (PCC) for Space reports to the National Security Council, and its representatives include NASA, DoD, FAA, OSTP, and the Commerce and State departments.
AIA’s Space Council is meeting with PCC members to learn where the PCC is headed and to provide industry views on policies being considered. The first job of the PCC will be to develop a plan to implement national space policies identified in 1994 and 1996.
The Space Council has crystallized goals for the coming year into a "Space Top Ten Issues" list to pursue with the PCC and federal agencies. Below is a digest of the issues:
Increase Space R&D Funding
U.S. space systems have been successful because of a close partnership between government and private sectors. For decades the government has funded advances in research and development (R&D) and science and technology (S&T), and the U.S. space industrial base has translated them into operational systems that provide an unparalleled level of military and economic security.
Government support of space-related R&D/S&T needs to be restored to levels that will support the technological and economic progress America expects and on which our military relies.
Implement Space Transportation Policy
AIA salutes efforts of previous administrations to preserve U.S. leadership in civil, military, and commercial aerospace. In the 1994 space transportation and 1996 national space policies, they set guidelines for progress in global aerospace markets.
Unfortunately, adequate resources were unavailable to accomplish many objectives. The current administration has an opportunity to provide new vision and direction for stimulating growth needed to maintain U.S. worldwide leadership.
Support Missile Defense
Surprisingly, the U.S. homeland is at risk of being attacked by ballistic missiles. Even though we have strong diplomatic ties to countries with the largest ballistic arsenals, other not-so-friendly nations are developing missile capability.
The United States has most of the technology needed to produce an effective missile shield and can develop the rest. What is needed is continued leadership and funding to turn the vision into reality.
Ease Export Controls
U.S. export control policies contributed up to an estimated 40 percent loss in worldwide market share of American commercial communications satellites over the last two years. It has been difficult for U.S. companies to export products, bid on contracts for export of components, import foreign space technology, and work with European insurers of space systems.
The United States must continue to modernize its export control laws and administrative practices.
Upgrade Space Infrastructure
Space transportation infrastructure is a "space highway" system, and the government has a legitimate role in its support, along with airways, waterways, and interstate highways.
Infrastructure for space systems — launch ranges, test facilities, wind tunnels, laboratories, and other NASA facilities — have been woefully under funded for the past decade. Years of neglect must be remedied by maintenance, modernization, and repair.
Encourage Commercial Investment
America’s commercial space industry is increasingly threatened by foreign competitors often funded by their governments. Existing and emerging companies have many new ideas for new commercial space systems.
The government should stimulate new markets and create incentives for the private sector and investors to develop such new systems. Commercial involvement can also enable a broader base of participation in important space projects, such as R&D and infrastructure.
Develop Plan for Commercial Practices
Current laws and national policies provide commercial practices for government procurement of space products and services. But their implementation is subject to wide interpretation.
Use of commercial practices and contracts in government procurements encourages innovation and can make the U.S. industrial base more competitive by increasing profit and lowering costly and burdensome overhead.
Open Public Space Travel
Current policies prohibit public travel on U.S. government spacecraft. Allowance must be made to eventually develop a space tourism market and compete with other spacefaring nations.
A robust public space travel market could provide massive support for U.S. commercial space, which in turn would provide greater service to the U.S. government. Also, space travel would provide increased public awareness of the U.S. space program, resulting in greater public interest and support of space activities.
Encourage Aerospace Workforce
The proportion of U.S. engineers and scientists entering the aerospace field has been dropping precipitously. Fifteen years ago, more than 15 percent of R&D scientists and engineers worked in aerospace. Today fewer than seven percent do.
More incentives are needed in educational facilities, research laboratories, and space programs to reverse this trend. We can’t maintain supremacy in space systems without the best and the brightest of our technical talent.
Fly More Demonstration Flights
Early U.S. space programs were developmental and needed many test flights to certify design and operation. Recently, the U.S. space industry has been characterized as a "mature" industry that should get every system right the first time. That attitude encourages conservative design, stifles innovation, and chills the investment community and regulatory agencies.
A U.S. policy statement is needed that defines test and demonstration requirements in a manner that will assist greater innovation and minimize effort and funding lost to premature program reorientation or cancellation.
AIA Source: Bruce Mahone, 202-371-8462
Return to Index
Space Day Going to Mars
Space Day has launched its yearlong initiative to advance education in science, math, and technology by showcasing the wonders of space.
This year's program — Space Day 2002 … Adventure to Mars! — is designed to capture young people's imagination about the only other planet in our solar system that has the potential for human habitation.
Activities will culminate on May 2, 2002, with celebrations and educational events around the world.
For more information, visit www.spaceday.com.
Return to Index
EU Aircraft Rule Bounced
AIA said it welcomes the September ruling by the Advocate General of the European Court of Justice invalidating the European Commission (EU) restriction on the operation of older aircraft fitted with new engines having a bypass ratio below three.
Association member Omega Air, which retrofits new Stage 3 engines on older Boeing 707s, challenged the EU rule that prevented airlines from registering in the European Union older aircraft whose engines had been modified to meet international Stage 3 noise requirements.
A final court ruling is expected by year end. In most cases, the court accepts the ruling of the advocate general.
Return to Index
Newest Members Conduct Business on the Internet
Two of AIA’s newest members are prominent players in the developing and growing field of electronic aerospace commerce through the Internet marketplace.
Cordiem, LLC
Cordiem provides the aviation industry with end-to-end e-business solutions comprising supply chain management, e-procurement, and engineering services.
Based in Washington, D.C., with offices planned for Europe and Asia, the independent company is the aviation industry’s first B2B exchange and application services provider jointly owned by buyers and sellers.
The company was formed earlier this year on the previous efforts of AirNewco, an airline-led B2B initiative, and MyAircraft, a manufacturer-led exchange. Cordiem’s founding aviation members include Air France, American Airlines, Goodrich Corporation, British Airways, Continental Airlines, Delta Air Lines, Honeywell, Iberia Airlines, SAirGroup, United Airlines, United Parcel Service, and United Technologies.
Cordiem has partnered with i2 Technologies and Ariba, Inc., two B2B technology providers, to deliver its secure, reliable, and scalable solutions.
Exostar, LLC
Exostar is a cooperative effort of several of the world’s leading aerospace and defense companies, including AIA members BAE SYSTEMS, Boeing, Lockheed Martin, Raytheon, and Rolls-Royce.
The company’s services connect manufacturers, suppliers, and customers for trade and collaboration in a secure and open environment. Located in Herndon, Va., near Washington, the firm automates and standardizes processes and communication — from planning, designing, sourcing and procuring through sales, delivery and support — resulting in increased productivity, efficiency, and cost savings.
Through its electronic marketplace, Exostar offers information, services, and tools to standardize systems, increase efficiencies, and reduce costs.
AIA Source: Amanda Matthews, 202-371-8409
Return to Index
