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AIA Update : February 2005, Volume 9, No. 5
AIA supports the U.S. Next-Generation Air Transportation System Integrated Plan and will work to see it to fruition, AIA President and CEO John W. Douglass said. The plan, crafted by the Joint Planning and Development Office (JPDO) under the leadership of the Transportation Department and the FAA, documents the looming crisis stemming from limitations of the current air traffic system and provides a path toward dealing with future growth and the congestion and delays that go along with it, Douglass said. “We must move vigorously to build this new system,” the AIA chief executive said. “I’m encouraged by the administration’s willingness to work with industry to make these vital improvements.” In announcing the plan in December, Transportation Secretary Norman Y. Mineta called it “a blueprint that will lead to the transformation of America’s air transportation network.” He said the United States now has a framework in place to help “deliver a system with the capacity to allow travelers to choose how, where, and when they want to travel while making their experience as safe, secure, and hassle free as possible.” The plan envisions a system flexible enough to support new private-sector business models and a more dynamic set of services for air travelers, such as micro-jets, more fractional ownership possibilities, and other on-demand services that could shorten curb-to-curb travel time and allow greater choices in air transportation services. Douglass said AIA, together with industry partners, is working to rally a consensus on how to make the transformation to the new system, including marshalling the needed systems engineering and integration resources. Officials can hold costs to a minimum by using technology developed by the Defense Department and NASA, Douglass said, and it is well worth the investment when taken in context of the impact of aviation on our economy. Only by developing a strong public-private partnership and mobilizing industry resources can the United States avert the pending crisis documented in the plan, Douglass said. The national plan stems from a recommendation of the Commission on the Future of the U.S. Aerospace Industry. It’s a long-term strategic business plan, laying out goals, objectives, and requirements through eight integrated product teams: airport infrastructure development, security, the air traffic system, information technology, safety management, environmental stewardship, weather forecasting, and global collaboration. Another key component is development of innovative public-private partnerships. Six government agencies and representatives from the private sector will work to direct and coordinate research, identify and resolve critical policy issues, and invest in necessary infrastructure and technology. AIA’s Air Transportation Systems Committee is engaged with the JPDO to carry forward the plan. The full plan is available at www.jpdo.aero. AIA Source: Howard Aylesworth, 703-358-1085
Ronald D. Sugar, chairman, chief executive officer, and president of Northrop Grumman Corporation, was elected vice chairman. Also, the board re-elected John W. Douglass as AIA’s president and chief executive officer and Ginette C. Colot as secretary-treasurer. Johnson has been with Honeywell since 1994 and led a number of the company’s Aerospace business units, culminating in 1999 when he was named president and chief executive officer for all of Honeywell Aerospace. Earlier this year, he was named chairman of Aerospace. Before the 1999 merger that created Honeywell International, Johnson was president and chief executive officer of AlliedSignal Aerospace. Prior to joining AlliedSignal in 1994, Johnson was vice president and general manager of manufacturing and services for AAR Corporation, an aviation company headquartered in Chicago. He began his aerospace career at General Electric Aircraft Engines where he spent 12 years in key financial management positions.
A roundup of relief efforts by various AIA companies will appear in the first quarter edition of AIA’s Executive Report magazine. In the photo, Sri Lankan military and other workers unload bags of vegetables from a U.S. Air Force HH-60 Pavehawk helicopter during relief operations. The U.S. military have transported food, medicines, and supplies to the affected people in support of Operation Unified Assistance. The Pavehawk helicopter is manufactured by Sikorsky Aircraft, a unit of AIA member United Technologies Corporation.
By John W. Douglass. AIA President and Chief Executive Officer Program Cuts Merit Great Caution The time I spent on President Reagan’s National Security Council staff taught me important lessons about national security policy — lessons that come to mind after the leak of the administration’s Program Budget Decision (PBD 753) detailing $30 billion in proposed defense cuts. Putting the suggested cuts in the prism of my experience leads me to a quick conclusion: the United States should show great caution when considering whether to deplete needed long-term national security programs to deal with immediate budget challenges. Before I go any further let me state plainly that the aerospace and defense industries recognize the financial challenges facing the federal government. Dealing with the situation will almost certainly require across-the-board sacrifices, and we can and should expect to do our part. But how we go about that exercise must be a decision made with the greatest of caution. In the Reagan Administration we had an intellectual structure for security decision-making consisting of three measures of analysis — the paradigm, the strategy, and the plan. The Cold War was the paradigm, deterrence was the strategy, and Reagan’s plan was strategic modernization. Applying that structure to today’s challenges, the paradigm is the War on Terrorism, the strategy is preemption, and the plan so far has been to modernize our forces and invest in changing the type of military we have to meet shifting needs. During President Bush’s first term there was no mention of letting the costs of Afghanistan and Iraq change this outlook, with funding for those actions coming from supplemental appropriations from a supportive Congress. Now, long-supported programs are in the financial cross-hairs to deal with budget concerns. It’s a risky gambit for the administration for several key reasons: • Political — Millions of Americans voted for the president because of his vows to keep the military strong and capable. Budget cuts don’t square with these promises. • Military — The all-volunteer fighting force quickly senses when politicians begin to walk away from them. Much of the emphasis of future systems — long-term programs spanning the next 20 or 30 years — centers on soldier survivability. • Financial — The more individual items cut from a defense program, the more costly each unit becomes. Many of the savings in PBD 753 are postponements of requirements that will be more expensive to fill in the long run. • Economic — Resurgence of aerospace and defense employment has been a positive economic force over the last year. There will be tangible negative effects to the industry and the economy if billions are cut from the budget. The administration’s strategy is clear — preempt terrorist attacks by fighting where the terrorists live, not where we live. That requires absolute air superiority, air mobility, sea mobility, ground mobility, and long-range strike. It’s hard to see how proposed cuts in air systems, airlift, and shipbuilding fit into this strategy. The administration must take a hard look at its paradigm and strategy as it sharpens the budget knife.
AIA has identified revitalization of the U.S. aerospace workforce as one of its 2005 Top Ten Issues and is working with representatives of industry, government, labor, and academia on an integrated national plan to replace the skills, experience, and intellectual capital contributed by the aging aerospace workforce and to train the next generation of aerospace workers. The association’s white paper on workforce issues can be found at www.aia-aerospace.org. In 2005 the association is implementing a national strategy to identify aerospace workforce needs in states, promote changes to education curricula at the primary, secondary, post-secondary, and professional development levels, and encourage coordinated education and training initiatives. Workforce Revitalization Bill Introduced When the first session of the 109th Congress convened in January, Representative Vernon Ehlers (R-Mich.), a member of the House Science and Education committees, introduced AIA- supported legislation to create a federal government interagency task force on aerospace human capital revitalization. The measure stems from the November 2002 report of the Commission on the Future of the U.S. Aerospace Industry that recommended the creation of a federal task force to work with industry and state governments to expand nationwide math, science, and engineering education at all levels. The commission’s mandate responded to the significant shortage of younger, technically-skilled professionals faced by U.S. aerospace companies. At present, the average age of industry manufacturing and engineering employees exceeds 50, and in 2008, 27 percent of aerospace workers will become eligible for retirement. Representative Ehlers’ bill empanels a task force of representatives from nine agencies, including the Defense Department and NASA, with the mission of strengthening public and private sector training and recruitment programs that affect key aerospace industry occupations. AIA’s legislative team is working with interested members of the Senate to introduce a similar measure or possible alternatives as an amendment to an agency budget authorization bill. AIA Source: Pat McCartan, 703-358-1065 Strategies Address Workforce Challenges At a workshop in December 2004, representatives from AIA, industry, the Defense Department and other government agencies, and the National Defense Industrial Association devised an action-based strategy for addressing critical workforce issues: • Launch a national public awareness media campaign on aerospace careers, possibly using the National Vision for Space Exploration to recreate the excitement generated by the Apollo missions to the moon 40 years ago. • Develop a comprehensive supply and demand tracking capability for science, technology, engineering, mathematics, and critical foreign language workers. • Charter an organization to bring coherence to workforce activities. Another goal — to establish a central agency for all security clearance investigations — has already been met with the signing of the Intelligence Reform and Terrorism Prevention Act of 2004. AIA is also working closely with the Labor Department and other agencies on strategic planning issues. The FAA, for example, has created an aviation consortium to address civil workforce shortages, including coordinating with airline partners and other stakeholders. The association continues to call for action by government and industry to work together to take dramatic steps to address a developing crisis in our national security workforce — a possible severe shortage of qualified workers in aerospace AIA Source: Sandra Carney-Talley, 703-358-1003
By R. Terry Marlow, AIA Vice President, Government Division After a relatively long period of dormant inflationary pressure in the U.S economy, signs of an increase are beginning to surface. With the prospect of a lengthy period of deficit financing ahead and a slackening in productivity increases, it is time for government and the aerospace industry to plan ahead. With the help of the Federal Reserve banking system, the government has succeeded in controlling inflation for many months, but most economists agree there is an increasing inflation risk as the current economic recovery continues. Federal deficit spending at current levels, combined with increased demand that accompanies an economic recovery, will almost certainly result in higher inflation — significantly higher in specific sectors. The question is when will it happen? In the past, early signs of increasing inflation surfaced in the defense industry in the form of uneven but significant increases in the prices of raw materials and other commodities. These increases surfaced months before other inflationary signals were registered. The defense industry is beginning to see early signs of sharp price increases — as much as 80 percent and more in the past year — for some metals, such as titanium sponge, iron ore, and aluminum ingots. Others are likely to follow. It is time to dust off some of the old techniques used in the past to deal with surges in raw material prices and labor to prevent disruptions and funding shortfalls in defense programs — particularly those requiring long-term, fixed-price contracts. Government’s Role The U.S. government must begin to adjust inflation assumptions upward for cost estimates and budgets involving defense procurement. Realistic inflation assumptions will go a long way toward preventing ugly surprises in cost growth on long-term contracts and also help avoid public accusations of poor defense planning. Additionally, cost escalation clauses should be considered for long-term contracts to protect contractors and subcontractors from unanticipated inflation. Contractors should be asking their government customers for these clauses when commodity price spikes appear likely. The government should also begin to contemplate and research the use of strategic stockpiles to even out fluctuations in prices in the event world demand outstrips supply. These actions have been applied successfully in previous similar circumstances, but their use requires thoughtful planning long before implementation is required. The planning should begin now. Industry’s Role Industry must also anticipate inflationary pressure and supply shortages and do its part to help avoid serious program impact. Sources of raw materials and commodities should be researched by corporate purchasing departments and followed closely to identify pending shortages and alternative sources. Establishment of long- term contracts for critical raw materials at fixed prices should be considered. Historically, program cost increases resulting from unanticipated inflation have been tied incorrectly to accusations of fraud, waste, and abuse in the acquisition process, resulting in the loss of critical public support for important defense programs. As the U.S. economy continues to prosper, serious inflation-related problems can be avoided if advance planning and aggressive actions are taken now by both government and industry.
An interview with Lou Kratz about PBL and product support management
1. What is performance-based logistics, and why is it an effective product support management strategy? Performance-based logistics is a unique Defense Department product support program that focuses on the purchase of performance and outcomes in product support instead of the products and services alone. In PBL, a contractor is offered incentives for meeting performance goals established by the contracting agency, thereby ensuring a high level of system readiness for deployed systems. 2. What steps did you take to institute PBL in the department? Was there resistance? We began implementing PBL about six years ago. The fiscal 1998 National Defense Authorization Act tasked us to look at innovative alternatives to product support and from that study we launched 30 pilot programs and published the first DoD PBL guide, “Product Support for the 21st Century.” Pilot program results were reviewed during the 2001 Quadrennial Defense Review. As a result of that review, the secretary of defense directed that we accelerate implementation for all new weapon systems and backfit to all legacy systems supported by a business case. Today, we’re supporting more than 100 major and significant acquisition category programs through PBL implementations, and the Defense Acquisition University has done excellent work updating its PBL curriculum to train the workforce. 3. What was the status of PBL programs going into the wars in Afghanistan and Iraq? Prior to Afghanistan and Iraq, we had a number of PBL programs in place and in the implementation process. We’d made great progress in implementing PBL and were demonstrating PBL’s benefits in peace-time operations, but PBL hadn’t faced the most rigorous test. 4. What was the performance of PBL programs in supporting weapon systems on the battlefield? PBL performance has been outstanding. Overall F/A-18E/F availability has been 85 percent, nearly a 20 percent improvement over the F/A-18C/D. Deploying 18 months early, the F/A-18E/F achieved a 98 percent system launch rate over Afghanistan. Stryker has maintained roughly 98 percent operational readiness and 95 percent full mission capability with 310 vehicles in Iraq. To date, no soldiers in Strykers have been lost to enemy action, nor have any of the Strykers themselves been immobilized or destroyed. In Operation Iraqi Freedom, AWACS had an 80.7 percent mission capable rate and JSTARS had a 100 percent sortie generation rate. TOW-ITAS availability has been near 100 percent in Iraq. I could go on — there are many more success stories. The hard-working military, civilian, government, and industry personnel who have achieved these results through their efforts to implement PBL are to be commended. 5. What are the lessons learned from the battlefield experience? There were a number of important lessons learned beyond demonstrating the success of PBL. The retrograde process was difficult. The flow of vehicle tracks and similar items from the operational theater for maintenance and repair is critical to supporting ongoing operations. The lesson there is that PBL support must be synchronized with the defense transportation system. PBL must also account for actual utilization rates, which in Iraq have been six to eight times higher than expected. 6. How much money has PBL saved DoD? That’s a hard question to answer specifically because much of PBL’s contribution is in improved performance and cost avoidance, which is harder to quantify than cost savings. We’re renovating our reporting systems and metrics to better measure and support PBL. That said, I’ve seen estimates of PBL-related savings of up to $15 billion across the department. 7. What does the future hold for performance-based logistics? The future for PBL is very bright. We are moving forward with the Management Initiative Decision 917 pilots to implement improved financial management and better support PBL. The Strategic Planning Guidance mandates that the services perform PBL business case analyses on all major and significant acquisition category programs by fiscal 2006. The Logistics Transformation Roadmap is being carried forward to create an integrated logistics system that fully exploits PBL in support of focused logistics. PBL is the future.
Two AIA executive staff members have taken on expanded roles in the organization. Michael Romanowski is the new vice president of Civil Aviation and J.P. Stevens is now vice president of Space Systems as well as executive director of the Team America Rocketry Challenge. The changes came after some fine-tuning of AIA to better serve members’ needs, said AIA President and CEO John Douglass .
Romanowski directs AIA policy for all aspects of civil aviation, including air traffic management, federal research and development, and air safety and security regulatory programs. He serves as the staff representative to AIA’s Civil Aviation Council. Before joining the association, Romanowski held leadership positions at Sikorsky Aircraft and Pratt & Whitney, both units of United Technologies Corporation. He is also active in numerous industry councils, committees, and regulatory advisory boards, including the Commercial Aviation Safety Team. He received his doctorate in unsteady aerodynamics and aeroelasticity from Duke University in 1995. Romanowski replaced former Vice President of Civil Aviation Bob Robeson, who is now manager of the FAA’s Systems and Policy Analysis Division.
Stevens held a number of leadership roles in AIA, including director of Space Operations and assistant vice president of Supplier Management. Previously, he was a career officer in the United States Marine Corps, serving in aviation and acquisition positions, and was a congressional advisor to former U.S. Senator John Glenn on defense, military space, and domestic issues. He is a graduate of the Marine Corps Command and Staff College and the Defense Systems Management College.
Aerospace sales, orders, exports, and employment all increased significantly in 2004 as defense-related industry categories showed robust growth, AIA reported in its state-of-the-industry analysis in mid-December. Indicators from AIA’s Aerospace Research Center showed that the good news should continue into 2005, with growth likely to rival that of 2004, AIA President and CEO John W. Douglass said in his year-end address. “These numbers show a healthy industry that continues to show strength and fortitude despite significant challenges in the last several years,” Douglass said, “The industry downturn after the terrorist attacks of 2001 was relatively modest and, thankfully, short-lived.” AIA presented the analysis to about 300 members of the media, industry, and government at the 40th Annual Year-End Review and Forecast Luncheon. The event serves as an opportunity to assess the previous year in aerospace as well as gauge how the industry will fare in the next 12 months. Complied by AIA Research Director David Napier, the statistics show increases in several key indicators after years of decreases. Overall sales in the aerospace industry rose 8 percent in 2004, jumping by $12 billion to a total of $161 billion, the highest level of current-dollar sales in the industry’s history. In contrast, sales decreased by $4.5 billion in 2003. The healthiest gains came in portions of the industry involved in defense contracts. Military aircraft sales increased 15 percent and missile sales jumped 10 percent. Revenues in the civil aircraft sector, including engines and parts, increased modestly to $35 billion.
Aerospace employment increased in 2004, ending a five-year slide. Since hitting a 50-year low last February, industry added 18,900 new jobs, reaching 587,600. The industry also continued its history of carrying a foreign trade surplus, which increased $4.6 billion to reach $32 billion. In 2003, the latest year of comparative data, the U.S. aerospace industry posted the highest trade balance of all industry categories. Douglass said the industry can expect similar trade-balance numbers when the statistics for 2004 arrive. AIA’s forecast for 2005 calls for a 7.5 percent overall growth in sales as DoD aerospace spending increases for the seventh year, and commercial transport sales begin their recovery in earnest. For more, see www.aia-aerospace.org/stats/yr_ender/yr_ender.cfm.
A total of 712 teams from 49 states and the District of Columbia will try their hands at rocketry early this year with the hope of landing an invitation to the finals of the Team America Rocketry Challenge, the largest rocket contest in the world. The number of schools in the preliminary round of the AIA-sponsored event represents an increase of more than 100 teams compared to last year. The challenge for middle and high school students is to design, build, and fly model rockets that carry one or two raw eggs for precisely 60 seconds and then return the eggs to the ground safely. The competition is open to students currently enrolled in grades seven through 12 in a U.S. school. Students from non-profit youth organizations can also form teams and enter the contest. Invitations to the finals will be extended to 100 top teams based on qualifying scores. Finalists will be announced April 14 and launch finals will take place May 21 at The Plains, Virginia. The event is co-sponsored by the National Rocketry Association in partnership with NASA, the American Association of Physics Teachers, and AIA member companies. The member company sponsors include 3M Corporation, AAI Corporation, Aerojet, Alliant Techsystems, Inc., American Pacific Corporation, Analytical Graphics, Inc., Argo-Tech Corporation, Aviall, Inc., BAE SYSTEMS North America, Barnes Aerospace, The Boeing Company, DRS Technologies, Inc., Embraer Aircraft Holding Inc., General Electric Company, GKN Aerospace Services, Goodrich Corporation, and Harris Corporation. Others are Honeywell, ITT Industries, Kaman Aerospace Corporation, Lockheed Martin Corporation, Natel Engineering Co. Inc., National Technical Systems, Northrop Grumman Corporation, Parker Aerospace, The Purdy Corporation, Raytheon Company, Rolls-Royce North America Inc., Smiths Aerospace Actuation Systems, Swales Aerospace, Textron, Inc., Triumph Group, Inc., United Technologies Corporation, and Vought Aircraft Industries, Inc. AIA Source: J.P. Stevens, 703-358-1030
AIA and the Society of British Aerospace Companies (SBAC), working through AIA’s e-Agreement Working Group, have developed the first e-Business Global Trading Partner Agreement (GTPA) template. The template is used to support electronic business trading. The GTPA template will supplement the primary terms and conditions governing the purchase and sale of goods and services between trading partners. The objective of the GTPA template is to establish a common set of terms and conditions governing the electronic exchange of data. Specific clauses defined in the GTPA template address potential issues of risk such as unique regulatory and legal structures, information security, legal and privacy policies. Darcy Smith, of The Boeing Company and co-chair of the e-Agreement Working Group said, “Our goal is to significantly reduce cycle time and complexities associated with development of electronic trading partner agreements. The GTPA template will minimize barriers of size and location when electronically transmitting data.” For further information and to download a model templateof the agreement, visit www.aia-aerospace.org/library/ebusiness/ebusiness.cfm or www.sbac.co.uk. AIA Source: Monika Neil, 703-358-1058
Aerospace industry personnel can sign up for a Defense Acquisition University (DAU) course to learn more about performance-based logistics (PBL), DoD’s preferred product support strategy. The PBL training course is listed in the university’s curriculum guide as LOG235B. The course will enable students to develop concepts, policies, and practices of PBL, identify the relationship between logistics functions and processes, and better understand business case analysis and the role of PBL in the Future Logistics Enterprise environment. DAU welcomes industry participation in its training courses. Registration is available on the DAU Web site at www.dau.mil. Though there are course prerequisites, the majority of defense industry registrants should have no problem attending the course. AIA Source: Rusty Rentsch, 703-358-1054
Also included are government budget estimates for 2004 and 2005 and historical data on aircraft production, missile and space programs, air transportation, research and development, foreign trade, employment, and finance. To order, visit AIA’s Web site: www.aia-aerospace.org/stats/facts_figures/facts_figures.cfm
Each year AIA identifies the aerospace industry’s top ten issues. For complete descriptions of the 2005 Top Ten Issues, see AIA’s Web site at www.aia-aerospace.org. Advocate U.S. Government Policies that Foster a Robust U.S. Civil Aviation Industry Issue: Because the future of the U.S. civil aviation industry is directly tied to its ability to compete both internationally and domestically, the U.S. government should adopt policies that recognize the critical importance of a robust U.S. aviation industry to the nation. Ensure Defense Modernization Is Consistent with National Security Needs Issue: Recently proposed budget reductions for major weapon systems appear to be inconsistent with the president’s expressed defense strategy of pre-emption of terrorism at its source. Promote Sustained National Support for a Next-Generation, Human-rated Space Vehicle and Robotic Space Exploration Program Issue: A concise plan supported by Congress, the administration, and the American public is necessary to reap the economic and technical benefits — as well as the many intrinsic rewards — of space exploration. It is also vital that access to space be available to the commercial sector. Promote and Support U.S. Homeland Defense and Aviation Security Issue: The United States is confronted by serious and long-term threats to homeland defense and aviation security. Inasmuch as national security is an inherent responsibility of the federal government, measures to enhance homeland defense and aviation security should be federally funded through general revenues. Ensure that International Institutions and National Governments Adopt Policies that Do Not Disadvantage U.S. Firms Issue: The U.S. aerospace industry exports about half of its output and is the single largest net exporter among all manufacturing sectors. To maintain the industry's competitiveness, the United States must insist that its trading partners agree to transparent, consistent, and harmonized international trade rules and national policies in areas such as market access, government procurement, government subsidies, standards and certifications, export credits, and offsets. Ensure the Competitiveness of the Aerospace Supply Chain to Meet Industrial Base Challenges Issue: In civil, military, and space businesses, aerospace industry suppliers are given greater responsibility for incorporating innovation, performance, and cost reduction. To be globally competitive and to take advantage of these opportunities, the U.S. aerospace supply chain must increase its capabilities and, in some cases, capacity, become more efficient and productive, and reduce costs. This requires the cooperation and support of the U.S. Congress, government departments and agencies, and customer companies in the supply chain. Implement Planned Comprehensive Aviation System Capability Enhancements Issue: Aviation is a critical component of global transportation. A safe, secure, and efficient air transportation system is essential to U.S. prosperity and competitiveness. In order to support the long-term growth of the world economy, the United States must implement plans to improve the nation's total aviation system capability, including capacity, safety, security, efficiency, and environmental performance. Implement Balanced Defense Industrial Base Policies Issue: The U.S. government must pursue policies that maintain the technological pre-eminence and competitiveness of the American defense industrial base. Reduce U.S. Legislative and Regulatory Trade Impediments to U.S. Companies Competing in the Global Aerospace Marketplace Issue: The aerospace industry must contend with numerous impediments to its ability to compete in the global marketplace as a result of U.S. government policies and processes. Implement a National Plan to Revitalize the U.S. Aerospace Workforce Issue: Aerospace and defense industries are essential to America's security, knowledge base, quality of life, and economic well-being, yet the United States lacks an integrated national plan to replace the skills, experience, and intellectual capital contributed by the aging aerospace workforce and to train the next generation of aerospace workers.
AIA 2005 Top Ten Issue Promote Sustained National Support for a Next-Generation, Human-rated Space Vehicle and Robotic Space Exploration Program The aerospace industry stands ready to work with NASA and other government agencies to pursue the nation’s new space vision that will return America to the vanguard of exploration, pledged AIA President and Chief Executive Officer John W. Douglass following the release of the new U.S. Space Transportation Policy last month. President Bush authorized the new national policy that establishes guidelines and implementation actions for U.S. space transportation programs and activities to ensure access and use of space for civil, scientific, commercial, and homeland security purposes. “The aerospace industry is pleased to see the concrete commitment the administration has toward space transportation and exploration,” Douglass stated. “The updated policy, which includes many details suggested by AIA and other industry leaders, is the strongest and clearest language to date supporting commercial space transportation. “It also shows renewed government support for space transportation by recognizing federal space launch bases and ranges as national assets,” the association president said. “The policy directs the government to capitalize on the exciting entrepreneurial spirit of private companies pursuing public space travel.” In its policy statement, the United States commits to embark on a robust space exploration program to advance U.S. scientific, security, and economic interests. A central component of this program is to extend human presence across the solar system, starting with a human return to the moon by the year 2020, in preparation for human exploration of Mars and other destinations. The space shuttle will be returned to flight as soon as practical, based on the recommendations of the Columbia Accident Investigation Board, and will be used to complete assembly of the International Space Station by the end of this decade and then retired. A new crew exploration vehicle will be developed to provide crew transportation for missions beyond low-Earth orbit, the national policy states. In addition, the policy says that the U.S. government is committed to encouraging and facilitating a viable commercial space transportation industry that supports national space transportation goals, benefits the economy, and is internationally competitive. AIA Source: J.P. Stevens, 703-358-1030
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Robert D. Johnson, chairman of Honeywell Aerospace, has been elected chairman of AIA’s Board of Governors for 2005. Johnson succeeds Alan R. Mulally of The Boeing Company in the association’s top leadership post.
AIA member companies and employees have pledged and contributed tens of millions of dollars in cash, products, and services to relief efforts following the devastating earthquake and tsunami in South Asia.
Among industry leaders participating in a workshop and strategic planning meeting on critical national security workforce issues in December were DoD’s Director of Defense Research and Engineering Ronald Sega (at left) and AIA President and CEO John W. Douglass. “It’s time to act boldly,” Douglass told attendees. “If we don’t head off this (workforce) problem, the results could damage America’s national security and economic prosperity.”
Lou Kratz is assistant deputy undersecretary of defense for logistics, plans, and programs. He received an Outstanding Achievement Award from the AIA Product Support Committee for his leadership in re-engineering DoD logistics since 1998. His efforts to develop a performance-based logistics (PBL) program have brought about a major paradigm shift within the department.
Romanowski joined AIA in 2003 and previously served as assistant vice president of Civil Aviation. Stevens, with AIA since 1999, was vice president of Special Projects.
Stevens is in charge of all space policy for AIA as well as the Team America Rocketry Challenge, an important event aimed at attracting middle school and high school students to aerospace careers. He serves as the staff representative to AIA’s Space Council.
Civil transport revenues were projected to decline 1.1 percent, or about $200 million. That is in contrast to 2003, when the same category saw a decrease of 26 percent, or $7.1 billion. For the first time in two years the number of U.S. commercial jetliners delivered increased, going up four planes to a total of 285. 
A comprehensive statistical yearbook of the U.S. aerospace industry, the 2004/2005 edition of Aerospace Facts and Figures, contains tables and text summarizing aerospace industry activity through 2003. Copyright © 2008 Aerospace Industries Association. All rights reserved. Terms and Conditions Privacy Policy