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Air Traffic Demands Require Urgent Action and Increased Resources By Howard Aylesworth, Director of Air Traffic Systems and Aircraft Noise and Emissions Congress has directed the multi-agency Joint Planning & Development Office (JPDO) to deliver a national plan to transform the nation's air transportation system to accommodate two to three times today's demand. To accomplish this, the JPDO must be empowered through a Presidential Decision Directive to ensure the interagency collaboration and commitment necessary for such a long-term, transformational project. The JPDO includes participants from FAA, NASA, OSTP, and the Transportation, Defense, Homeland Security, and Commerce departments. Along with a Presidential Decision Directive, the U.S. government must provide the necessary resources for the JPDO to successfully implement the next-generation air transportation system as quickly as possible. AIA fully supports FAA's current efforts on modernization embodied in their Operational Evolution Plan and the importance of continuing these efforts, but more is needed:
The initial JPDO report released in December is a good first step. The administration and Congress must move forward quickly with the investment necessary to implement the next-generation air transportation system. Air traffic demand is growing rapidly again, significantly stressing the ability of the current system to provide adequate capacity safely, securely, and efficiently. Without capacity enhancements soon, the pressure to apply demand-limiting schemes on a broad scale will grow, resulting in a negative impact on the economy. AIA's Air Transportation Committee is leading the JPDO effort. Back to the Newsletter topics U.S.-EU Negotiations on Subsidies Falter, Leading to WTO Complaints After negotiations failed to set a timetable for the phase-out of European financial support for aircraft maker Airbus, the U.S. government in October abrogated for cause the 1992 agreement with the European Union (EU) that spelled out mutually acceptable levels, types, and duration of government aid. At the same time the United States filed a complaint with the World Trade Organization (WTO), arguing that EU loans to Airbus are an illegal subsidy according to the WTO subsidies code. The EU responded with its own case against alleged U.S. indirect aid to The Boeing Company. Shortly afterward, Airbus indicated it might ask for $1.2 billion in government financing for developing the planned challenger to the Boeing 7E7, the A-350. If consultations after the case filing do not result in an agreement within 60 days, each party has the right to request that a WTO panel be established to make findings on this matter within nine months. Or, the parties could decide to continue having consultations past the 60-day period. The first U.S.-EU consultations under the WTO took place in early November. AIA supports the U.S. government's actions to level the playing field between the world's two largest aircraft manufacturers. The association said it hopes the two governments can resolve differences soon using established resolution mechanisms. A trade war over the issue could disrupt the large volume of aerospace trade between the United States and the European Union. AIA Source: Remy Nathan, 703-358-1072 Back to the Newsletter topics AEROSPACE FOCUS 
Linda Sadler, director of federal affairs for Rockwell Collins, was presented with AIA's Amelia Earhart Award at the recent Board of Governors meeting for her leadership in support of the association's R&D initiative. With her are, at left, AIA President John W. Douglass, and AIA Board Chairman Alan Mulally of The Boeing Company.
Back to the Newsletter topics Washington Pipeline AIA Sets an Ambitious Action Agenda for 2005 and Beyond By John W. Douglass, AIA President and Chief Executive Officer While the presidential campaign triggered passionate debate, ordinary American's calmly wrote the final chapter of this process by exercising their right to choose in record numbers. Democrats and Republicans alike strengthened the electoral system by recruiting millions of new voters. Their work paid off when almost 60 percent of registered voters went to the polls, the highest level since 1968. AIA congratulates President Bush and congressional winners for their victories on November 2. We look forward to continuing productive relationships with the White House and the aerospace industry's bipartisan legislative allies in the years ahead. Last January, AIA's Executive Committee approved a set of seven election-year policy recommendations that we sent to each of the presidential candidates and their senior advisors To reinforce our political education program, AIA also hosted an October industry symposium with representatives of both President Bush and Senator Kerry. These initiatives similarly form the basis of AIA's agenda in representing the interests of the aerospace industry before the new Congress and administration. AIA's public policy priorities start with government activities that can help the aerospace industry's three core business units - space, national defense, and civil aviation - become more competitive. In the space sector, for example, AIA will continue to urge adequate funding for the nation's new Vision for Space Exploration announced by the president last January. Setting a long-term framework for the return to the moon and deeper analysis of the solar system can preserve our position as the world's leading space power and allow NASA to harvest new technologies that will improve so many aspects of life, including telecommunications and diagnostic health care. To support the evolution of U.S. military capabilities, AIA will work with the Pentagon and Congress to streamline contracting procedures, improve defense trade relationships with allied countries, and champion research and procurement programs for the deployment of flexible forces that can operate anywhere in the world. Because 70 percent of their total product is exported, American civil aviation producers and suppliers need to operate around the world The connection between international sales and the vitality of our air transportation sector requires a sustained commitment by the federal government to the funding of basic aeronautics research to enhance the cost efficiency and environmental performance of U.S. jetliners. AIA's five-year federal research and development plan, issued in February 2004, offers government decision-makers a set of technology and funding recommendations as the president and Congress undertake a fresh assessment of national R&D programs. Finally, prosperity in the civil realm also demands a speedy and equitable resolution of aviation trade disputes between the United States and the European Union. AIA, therefore, has a number of clear objectives in presenting industry positions to both the executive and legislative branches in 2005 and beyond. The road ahead will be challenging but also exciting. It's one that can deepen the aerospace industry's already decisive contributions to our nation's economic and national security. Back to the Newsletter topics WASHINGTON WATCH: President Signs FY2005 National Defense Authorization Act President Bush in October signed into law the Ronald W. Reagan Defense Authorization Act for Fiscal Year 2005. In addition to authorizing funding for defense programs, the law contains provisions that will have an impact on acquisition policy and defense trade.
This year a significant portion of the acquisition policy provisions in the bill was targeted to oversight issues:
Back to the Newsletter topics Douglass Cites Environmental Progress at 35th ICAO Assembly At the recently concluded 35th Assembly of the International Civil Aviation Organization (ICAO), AIA President and CEO John W. Douglass, who is also chairman of the International Coordinating Council of Aerospace Industries Associations (ICCAIA), presented ICCAIA's proposals for updating ICAO policies and practices on environmental protection. All of AIA's objectives were met. In accordance with Assembly Resolution 33-7, the Committee on Aviation Environmental Protection (CAEP) has over the last three years examined a range of market-based measures to reduce carbon dioxide emissions. Many questions remain, however, regarding their application to international aviation, structure, equity, and economic impact. The assembly resolved that appropriate studies be performed to address outstanding issues and urged ICAO member states to refrain from imposing CO2 emissions-related levies and trading schemes on international aviation. Regarding ICAO policies and practices related to communications and navigation surveillance/air traffic management systems, ICCAIA urged ICAO to remain fully engaged in addressing airspace modernization and air traffic operations issues. ICCAIA also supported ICAO Council recommendations to establish a performance-based future system in an environmentally sound manner. These recommendations were accepted. ICCAIA supported expanding the ICAO Universal Safety Oversight Audit Program (USOAP) beyond the current focus on personnel licensing and the airworthiness and operation of aircraft ("core programs") to enable a systems approach. The experience gained from safety audits has shown that all aspects of safety oversight are interdependent and that the ICAO audit program does not evaluate the effectiveness of a member state's safety oversight system as a whole. Expansion of the scope of USOAP audits, while maintaining the focus on core programs, was adopted by the assembly. ICCAIA and AIA are committed to remain active, constructive contributors to further the important work undertaken by ICAO. AIA Source: Howard Aylesworth, 703-358-1085 Back to the Newsletter topics Singapore Sets Sights on AIA's Aerospace Workforce Model Four representatives of the Singapore Workforce Development Agency visited AIA headquarters in October as part of a fact-finding tour of the U.S. aerospace industry. As an Asian hub for many airlines, Singapore is home to substantial aerospace-related commerce. Many large manufacturers, both U.S.-based and international, also have operations in Singapore. Singapore government officials tapped the knowledge of association experts in order to map out strategies to boost aerospace manufacturing in their country. The aerospace industries in both the United States and Singapore share several common workforce challenges, including the collective aging of workers and downward trends in young people coming into the industry. AIA has worked on a national plan to revitalize the aerospace workforce as one of its 10 priorities this year and shared some strategies to combat these challenges, including pushing for scholarship programs in related fields of study and strong partnerships between industry and government. AIA officials also highlighted the annual Team America Rocketry Challenge contest that boosts interest in aerospace among middle school and high school students. The Singapore representatives said they would like to see a stronger aerospace advocacy organization in their country based on the AIA model. AIA Source: Sandra Carney-Talley, 703-358-1003 Back to the Newsletter topics Calendar Set for 2005 AIA Regional Meetings
For information, contact Sandra Carney-Talley at 703-358-1003 or by e-mail at sandra.carney-talley@aia-aerospace.org. Back to the Newsletter topics Microcircuits Tiger Team Tackles Tough Tasks AIA is working with the Defense Department (DoD) to refine defense life-cycle management approaches. The current effort centers on Performance-Based Logistics (PBL), which is now mandated by DoD as the preferred weapons system support strategy. PBL solutions require joint participation by the acquisition and logistics communities over the lifecycle of a weapon system. AIA's Product Support Committee (PSC) has been very active in this area. Since November 2003 the PSC has been conducting an ongoing series of monthly DoD-industry executive PBL "Tiger Team" meetings. These have been held with the assistant deputy undersecretary of defense for logistics, plans, and programs and with senior representatives from each of the military services, the Defense Logistics Agency (DLA), the Defense Acquisition University, and eight AIA member companies. One of the tiger teams is being launched to address performance and logistics issues with microcircuits, a key industry for national security and homeland defense. Due to the nature of microcircuits, this tiger team will include members from AIA's Engineering Management Committee and its appointees. The team will meet with DoD to begin developing a microcircuit management action plan with the goal of assuring lifecycle support for weapons systems. At this meeting government and industry representatives will state their views on microcircuits, hear the findings of a DoD-sponsored industrial planning study, learn about a DLA initiative to support microcircuits, and share information on commercial industry initiatives that support microcircuits. From this, industry and government will summarize opportunities to enhance support of microcircuits, drive effectiveness and efficiencies throughout the product's lifecycle, and, ultimately, optimize the readiness and sustainability of weapons systems. AIA Source: Rusty Rentsch, 703-358-1054 Back to the Newsletter topics Research Tax Credit High on AIA's Post-Election Tax Agenda Members of the AIA Tax Matters Committee met in Washington in November and resolved to pursue simplified research and development tax credit legislation in the 109th session of Congress that convenes in January. The simplified credit would permit aerospace companies to take advantage of increased tax benefits for high-risk product development investments. Two bipartisan bills from the 108th Congress (H.R. 463 and S. 664) established the simplified credit. While the House and Senate failed to pass either bill before the November elections, President Bush signed legislation in October that included an AIA-supported provision extending the basic federal R&D credit through the end of 2005. Several AIA companies have relied on the basic federal credit to sustain research for the improvement of commercial air transportation technologies. AIA's efforts on behalf of the simplified credit will focus initially on members of the House Ways & Means and Senate Finance committees, the two congressional panels with primary jurisdiction over tax legislation. AIA will also continue its active participation in the R&D Tax Credit Coalition, a multi-industry group of aerospace, computer, health care, and telecommunications companies dedicated to educating federal government decisionmakers on the economic benefits of research tax incentives. Seventy-five percent of the revenue claimed under the basic federal R&D credit, for example, goes directly to wages and salaries for highly skilled workers. AIA Source: Pat McCartan, 703-358-1065 Back to the Newsletter topics Government Handling of Proprietary Information Alarms Industry Contractors Despite government assurances that contractor proprietary information will be protected, there are too many procedural risks of inappropriate disclosure or dissemination of sensitive contractor information. Government procedures for handling contractor-sensitive or proprietary information are inadequate for safeguarding information submitted by contractors 1) as part of a contract, 2) as an application for liability protection under the Support Anti-terrorism by Fostering Effective Technologies (SAFETY) Act, or 3) as required by the Critical Infrastructure Protection program. In the December 5, 2003, Federal Register, NASA acknowledged that it "no longer has enough employees to manage and safeguard all of the information (contractor sensitive information) in question." As a consequence, NASA officials recently proposed a change in the NASA Federal Acquisition Regulation Supplement that would eliminate the long-standing requirement for private agreements between the party providing confidential contractor information and the party receiving the information. The change would make it difficult for contractors to sue in court to protect information they provide to NASA. While the SAFETY Act gives a measure of protection by requiring third-party evaluators of anti-terrorism technology proposals to sign non-disclosure agreements with the government, the party submitting the sensitive information to the Department of Homeland Security (DHS) is not part of the agreement and has only limited enforcement rights. Information voluntarily submitted to the DHS by contractors in support of the Critical Infrastructure Protection program can be released without the contractor's permission in certain circumstances. The most egregious circumstance is the department's intent to release such information to foreign governments without the contractor's written consent. AIA Source: Kirsten M. Koepsel, 703-358-1044 Back to the Newsletter topics Jobs Act Will Enhance Aerospace Productivity A House-Senate conference committee reached agreement on the American Jobs Creation Act of 2004. The measure passed both houses. AIA sees the act as a critical step in providing manufacturing tax relief and market access for the nation's export industries. AIA President and CEO John W. Douglass noted that the final version of the bill included two key provisions the aerospace industry urged Congress and the administration to embrace:
AIA Source: Matt Grimison, 703-358-1076 Back to the Newsletter topics Grimison Appointed Manager of Communications for Association Matt Grimison has joined AIA as manager of communications in the association's Office of Communications. AIA President and CEO John W. Douglass said, "Matt's newspaper experience and media savvy add great value to the association in communicating with our external customers." Grimison recently completed a 10-month congressional fellowship for journalists sponsored by the American Political Science Association. He worked for Congressman John Mica of Florida, dealing with a variety of policy issues. Before serving the fellowship, Grimison was a journalist in Florida for nine years, most recently with the Daytona Beach News-Journal. He covered politics and government, including the Florida Legislature and Gov. Jeb Bush. Grimison earned a bachelor's degree in communication with a minor in journalism from Florida State University. He can be reached at 703-358-1076 or by e-mail at grimison@aia-aerospace.org. Back to the Newsletter topics Rentsch Named AIA Lifecycle Management Director James "Rusty" Rentsch has been named to the new Aerospace Industries Association position of lifecycle management director. Rentsch will provide staff support to AIA's Engineering Management Committee and the Product Support Committee, both of which fall under the association's Technical Operations Council. AIA President and Chief Executive Officer John W. Douglass said Rentsch brings a wealth of experience and knowledge to the position. "Rusty is a great addition to our team who will be an asset to our members,'' Douglass said. "His background blends product support and management with technical engineering, providing the insight needed for the job.'' Rentsch has a bachelor's degree in mechanical engineering from the University of Rhode Island and a master's in business administration from George Mason University. In previous aerospace positions he worked in engineering design and product support engineering at Textron Lycoming as well as product support and sales at Messier-Dowty. The new post blends two previous positions overseeing association policy on product support and engineering. Rentsch will advocate industry views on regulations and legislation, respond to government inquiries requiring industry input, and facilitate industry consensus. AIA Source: Matt Grimison, 703-358-1076 Back to the Newsletter topics Industry Trends Positive in 2004 Aerospace business is taking off. According to figures compiled by AIA's Aerospace Research Center, orders, shipments, and employment are on the rise through the third quarter of 2004. In particular, civil orders are poised to end a three-year decline in 2004. Civil orders through September are 25 percent ahead of last year. Defense orders, on the other hand, are looking to end their six-year rise but are likely to close the year with the second highest level in at least 13 years. Industry shipments during the first nine months of 2004 are running 6.5 percent ahead of 2003 with defense up 8.6 percent and civil up 4.6 percent. This year marks a turnaround for civil shipments and a fourth year of growth for defense shipments. Similarly, after reaching a 50-year low, aerospace employment ended its multi-year decline in February by adding 18,900 workers. Aerospace employment totaled 587,600 in September. For more information, see www.aia-aerospace.org/stats/aero_stats/aero_stats.cfm. AIA Source: David Napier, 703-358-1015 Back to the Newsletter topics Special Insert Association Membership: the Top 100-plus AIA membership shot past an historic milestone of 100 members in November when the association's Executive Committee approved the addition of 11 new members to the roster of top aerospace companies, bolstering the country's strongest advocacy group of its kind. John Douglass, AIA president and chief executive officer, said the additions improve the association and will help boost the aerospace industry. "These new companies represent a strengthening of AIA's abilities to ensure aerospace remains healthy and robust in the future,'' Douglass said. "We welcome them and look forward to their participation in our advocacy and outreach programs." The companies represent a wide range of roles within the aerospace industry from rocket launch vehicles to computer systems. Four of the new members upgraded from associate membership on AIA's Supplier Management Council. AIA represents the nation's major manufacturers of commercial, military, and business aircraft, helicopters, aircraft engines, missiles, spacecraft, materiel, and related components and equipment. As this edition of AIA Update went to press, membership totaled 102 regular members and 178 associate members, a category of leading industry supplier companies. The 11 new members are highlighted in this insert. Armor Holdings Aerospace and Defense, Inc. Armor Holdings, Inc., is a diversified manufacturer of branded products for military, law enforcement, and personnel safety markets. The company's Aerospace & Defense Group is a top supplier of human safety and survival systems to all branches of the U.S. military and major aerospace and defense prime contractors. Through its Simula division, the company centers on core markets of aerospace safety, vehicle armor, and personnel safety. Primary customers for Aerospace & Defense Group products are the U.S. Army and Marine Corps, The Boeing Company, and Sikorsky Aircraft. Incorporated in 1996 and headquartered in Jacksonville, Fla., Armor Holdings has been included in FORBES magazine's list of "200 Best Small Companies." www.armorholdings.com Eaton Aerospace Eaton Aerospace represents a diverse family of aerospace products and systems, including fluid power, fluid conveyance, electric distribution and controls, actuation systems, and engineered sensors. Headquartered in Irvine, Calif., Eaton Aerospace maintains business unit manufacturing plants and service centers in various regions of the United States and around the world. Combining the core technologies of each of our product family groups, Eaton Aerospace can technologically address virtually any fluid power, motion control, electro-mechanical actuation, power and load management, cockpit control and display, and fluid system diagnostic product and service requirement. www.aerospace.eaton.com Eclipse Aviation Eclipse Aviation is in the business of designing, certifying, and producing modern, affordable jet aircraft to revolutionize the transportation market. The company is applying innovative propulsion, manufacturing, and electronics systems to produce aircraft that cost less than a third of today's small jet aircraft with the lowest cost of ownership ever achieved in a jet aircraft. Its signature model is named the Eclipse 500. Its goal, the company says, is to bring the word "personal" into aviation, making it possible for commercial air passengers to move directly between cities on a quick, affordable, and convenient basis. It will also allow pilot-owners to enter the world of jet-powered aviation. Eclipse Aviation is located at Sunport International Airport in Albuquerque, N.M. www.eclipseaviation.com FlightSafety International FlightSafety International boasts the world's largest fleet of flight simulators used in training more than 65,000 pilots and maintenance personnel each year for airlines and airplane manufacturers. Overall, the firm has about 220 simulators at 42 training centers in the United States and abroad. Headquartered in Flushing, N.Y., FlightSafety has a staff of 1,200 professional instructors and provides training for corporate, commercial, private, and military pilots. Founded in 1951, the company is dedicated to the principle that aviation safety is best achieved with thorough training. www.flightsafety.com IBM Corporation IBM is the world's top provider of computer hardware systems, software, and technology for the aerospace and defense industries. Some industry-specific areas of focus for the company include program and performance management, integrated production and supply, product lifecycle management, and radio frequency identification. IBM, headquartered in Armonk, N.Y., points to network centric operations as a key to military transformation in the 21st century and new competitive advantages from supply chain management as two of its information technology fields of expertise for aerospace and defense today. www.IBM.com LMI Aerospace LMI Aerospace is a leading supplier of quality components to the aerospace and technology industries. Founded in 1948, the company today has 13 facilities and more than 800 employees who fabricate, machine, finish, and integrate formed, close tolerance, aluminum and specialty alloy components and sheet metal products for use by aerospace, technology, and commercial industries. For aerospace, LMI provides airplane structures, including door frames, cockpit window frame assemblies, wing leading edge skins, flap slats, fuselage skins, and interior components. The firm is headquartered in St. Charles, Mo. www.lmiaerospace.com Pinkerton Government Services Pinkerton Government Services is best known as a specialized security services company for the aerospace industry. For 32 years Pinkerton has provided innovative, cost-effective solutions to ensure the safety and security of the assets of U.S. government contractor organizations worldwide. The company, headquartered in Springfield, Va., says its goal is to "enhance the success of our clients and their operations by providing demonstrably superior security, consulting, and investigation services and products with the highest degree of integrity and responsiveness." www.pgs-usa.com Smiths Aerospace, Customer Services The Customer Services division of Smiths Aerospace provides support for airframe constructors, airline operators, and military forces and is one of the world's leading organizations of it kind. Activities are directed from headquarters at Cheltenham in the United Kingdom with U.S. service centers located at Clearwater, Fla., Wichita, Kan., Grand Rapids, Mich., and Seattle, Wash. Customer Services maintains a leading position in avionic systems support and is capable of meeting the needs of the international aerospace industry. Offerings include actuation products that move landing gear, thrust reversers and flight controls, precision components, including rigid and flexible hose assemblies, and aircraft structures and electronic systems. www.smiths-aerospace.com Space Exploration Technologies Space Exploration Technologies (SpaceX) is developing a family of launch vehicles intended to reduce the cost and increase the reliability of access to space ultimately by a factor of 10. The company, which began operations in June 2002, is located in El Segundo, Calif. The first two SpaceX launch vehicle models, named Falcon I and Falcon V, are mostly reusable rockets capable of placing approximately 650 kg or 4,200 kg, respectively, into low-Earth orbit. Falcon V is also capable of taking spacecraft to geosynchronous transfer orbit and escape velocity and, the company says, it is the only American rocket with true engine out reliability. First launch of Falcon I, carrying a U.S. Defense Department communications satellite, is scheduled for early 2005 from the SpaceX complex at Vandenberg Air Force Base. The maiden flight of Falcon V is scheduled for late 2005, carrying a commercial satellite. www.spacex.com The Titan Corporation The Titan Corporation is a leading provider of comprehensive information and communications products, solutions, and services for national security. Serving the Defense Department, intelligence agencies, and other government customers, Titan was founded in 1981 and is headquartered in San Diego, Calif. Titan's business focuses on homeland security and the War on Terrorism; command, control, communications, computer, intelligence, surveillance, and reconnaissance; transformational programs; and enterprise information technology. Approximately 12,000 Titan Corporation employees work in more than 300 locations in 12 countries. In the United States, the firm has employees in 41 states and 243 cities. www.titan.com Turbine Engine Components Technologies Corporation Turbine Engine Components Technologies (TECT) Corporation is a privately-held, custom manufacturing services supplier of semi-finished and finished engine-ready components, including solid and hollow fan blades, compressor blades and vanes, impellers, diffusers, turbine airfoils, rotor shafts and hubs, disks, oversized and precision forgings, and other hardware. Headquartered in Thomasville, Ga., TECT serves aerospace, power generation, rail, off-highway, automotive and other industries from its operations in Cleveland, Ohio; Newington, Conn.; Santa Fe Springs, Calif.; Thomasville, Ga.; and Utica, N.Y. www.tectcorp.com Back to the Newsletter topics |
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