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 AIA UPDATE: September 2007, Volume 12, No. 2
Marion Blakey Named AIA President and CEO  Marion C. Blakey, administrator of the Federal Aviation Administration since 2002, has been named president and chief executive officer of AIA.
Blakey will succeed John W. Douglass later this year. Douglass, who is retiring, has been president and CEO of the association since September 1998 and will remain with AIA through Dec. 31 to provide counsel and ensure a smooth transition. In making the announcement, AIA Board of Governors Chairman William H. Swanson said that Blakey's "exceptional experience in the executive branch of government, as well as her deep expertise in public affairs and government relations, will greatly benefit all the members of AIA as she represents the industry in the years ahead." Swanson, chairman and chief executive officer of Raytheon Company, praised Douglass for "exceptional leadership through an important period in the aerospace and defense industry. "John has provided a steady hand at the controls for almost a decade," Swanson said. "We wish him well in his retirement and thank him for his many years of dedicated service to AIA." As FAA Administrator, Blakey has overseen the safest period for air travel in U.S. history and has been a tireless safety advocate. Under her leadership, the Next Generation Air Transportation System was launched and significant progress made toward its implementation. Before being named FAA administrator, Blakey served as chairman of the National Transportation Safety Board. She held five previous presidential appointments. From 1992 to 1993, Blakey served as administrator of the Transportation Department's National Highway Traffic Safety Administration. Earlier, she held key positions at the departments of Commerce, Education, and Transportation, the National Endowment for the Humanities, and the White House. Blakey earned a bachelor's degree with honors in international studies from Mary Washington College of the University of Virginia. She did graduate work at the Johns Hopkins University School of Advanced International Studies. AIA Maps Workforce Recruitment Events A recruitment video being developed and produced by AIA that highlights interesting careers in aerospace is nearing completion. It features three young engineers from AIA member companies describing their cutting-edge aerospace projects and the lifestyle benefits they enjoy as a result of their careers. The finished video will be distributed to school guidance counselors, streamed on the Labor Department's Web site, and made available for company representatives to show on school visits. The future of America's aerospace workforce will also take center stage in three upcoming AIA events. First, AIA and the Labor Department are jointly producing a roundtable discussion about reinvigorating the aerospace workforce to be held in Washington, D.C., in October. This 100-person roundtable will provide input to the federal Interagency Aerospace Revitalization Task Force, a group charged with developing a government plan for a competitively skilled U.S. workforce. Second, planning has begun for a workforce conference — jointly sponsored by AIA, the American Institute of Aeronautics and Astronautics (AIAA), and others — to address broad approaches to creating a future aerospace workforce, including private-sector and academic efforts. Tentatively scheduled for May 2008, this conference will bring together experts from industry, academia, and government to examine big-picture strategies for motivating students to study technology subjects and choose careers in aerospace. Finally, the sixth annual Team America Rocketry Challenge finals are scheduled for May 17, 2008. Since its inception in 2002, the Challenge has inspired thousands of U.S. students to consider careers in aerospace, aviation, and space technologies. AIA is seeking to hold the AIAA conference the same week as the Challenge finals so that those helping design and build the future of our industry can see firsthand some of the young people who will take it forward. AIA Source: jj.gertler@aia-aerospace.org AIA Space Council Launches Missile Defense Committee
The steering committee jumped into action by completing a position paper supporting MDA and the president's budget request for MDA. Its stance points to the agency's recent successes in testing its systems: the successful, simultaneous engagement and destruction of both a ballistic missile and an AEGIS missile in April and the third successful ground-test firing of the Kinetic Energy Interceptor's powerful Stage 1 rocket motor in June. While pleased that Congress has funded the near-term MDA projects, the Space Council is emphasizing an urgent need to continue financial support for advanced technology development projects — many of them space-based. Engaging Congress on these issues, the steering committee is communicating its concerns and recommendations directly to the Senate Defense Appropriations Subcommittee and preparing an op-ed for publication in September to target additional members of Congress returning from the August recess. AIA Source: anne.ellis@aia-aerospace.org WASHINGTON PIPELINE: Aviation Environmental Improvements Need a Global Reach to Be Effective By John W. Douglass, AIA President and Chief Executive Officer With hybrid electric cars, alternative fuels, and carbon footprints common in the media and daily conversation alike, there is no denying environmental awareness is peaking today. And sky-high oil prices are adding a financial aspect to ecological matters. The aviation industry is no exception to the trend with heightened awareness of air travel's environmental impact and recognition that improvement is needed. The International Civil Aviation Organization (ICAO) is taking up the issue of how to deal with aviation's carbon emissions at its meeting this month, and it can draw on decades of highly effective coordination of global issues as its guide. One fact stands out from those experiences — global problems need unified international solutions rather than piece-meal regional fixes. AIA is leading the delegation representing the International Coordinating Council of Aerospace Industry Associations to the ICAO meeting. Our view is that ICAO should be the forum to present and adopt aviation regulations with global reach, not individual ICAO members. This comes in response to the European Union's call to include aviation in an emissions trading system that applies not only to their domestic aviation industry but also to international carriers. Civil aviation has been a leader in addressing environmental and noise issues for decades under ICAO's guidance. All this work has achieved significant results.
ICAO has once again taken up the challenge, balancing how best to manage noise, eliminate airport congestion and traffic delays, and responsibly employ market-based options. It is considering regulations addressing carbon dioxide emissions from international aviation, including European Union-backed proposals to use carbon credit trading to deal with the issue. Aviation has more incentive than some other industries to meet environmental challenges head on. Environmental constraints are recognized as the single most important factor that will limit growth in the industry. That means improving environmental performance will be an integral part of company business models for the future. We have already seen this at work with the new wave of jet engines that are significantly more efficient than previous models. The stewardship philosophy is also ingrained in the vital modernization of the air traffic control system. The Next Generation Air Transportation System, or NextGen, includes dozens of functions that lead to more efficient operation of aircraft and a substantially reduced impact on the environment. Estimates put the reduction of carbon dioxide emissions at about 12 percent as a direct result of NextGen improvements. While our European friends' intentions are laudable, they cannot assume that they alone have the authority to act for other states or regions. That is a sovereignty issue, and it won't go away. It is clear from past history that working through ICAO's international authority will not only simplify the process but also lead to greater environmental gains. And that's a goal that should garner support around the globe. WASHINGTON WATCH: Tighter Cargo Scanning Bill Signedn President Bush signed legislation in August that requires tighter screening of air and sea cargo, including 100 percent scanning of U.S.-bound maritime shipments within five years and screening of all cargo carried on passenger aircraft within three years. The legislation will have a significant impact on the time-sensitive aerospace industry supply chain, thereby heightening the importance of programs such as the Department of Homeland Security's "Customs-Trade Partnership against Terrorism" (C-TPAT). The 9,000 U.S. importers currently participating in C-TPAT certify that their entire supply chain and foreign partners meet specific U.S. government security criteria. C-TPAT participants benefit from reduced Customs inspections, reduced border delays through so-called "Green Lane Treatment," and potential reciprocal arrangements with international supply chain security schemes, such as the European Union's "Authorized Economic Operator" program that will be launched in January. AIA's C-TPAT Working Group is developing a coordinated aerospace industry approach to ensuring and promoting C-TPAT compliance. The association initiative is scheduled to be introduced at the November Board of Governors meeting in Phoenix. Subsequently, AIA will engage international partner associations to coordinate a global industry approach to C-TPAT and its counterpart overseas programs. AIA Source: joseph.lai@aia.aerospace.org WASHINGTON WATCH: CAST Will Continue Information Sharing As the Commercial Aviation Safety Team (CAST) embarks on its second decade, it continues to explore new ways to improve safety information sharing in order to reduce fatal accidents. CAST recently agreed to move toward an October timeframe for implementation of a continued data-sharing partnership. The Aviation Rulemaking Committee on Voluntary Safety Information Sharing (VSIS) expires in September. VSIS will likely be integrated with the CAST Aviation Safety Information and Analysis Sharing (ASIAS) initiative now being developed to expand the information-sharing partnership among manufacturers, operators, and analysts. ASIAS data collection and analysis processes will be coordinated by the MITRE Corp. More information is available online at www.cast-safety.org. AIA Source: ranee.carr@aia-aerospace.org WASHINGTON WATCH: Defense Export Treaty with UK Signed President Bush and former United Kingdom Prime Minister Tony Blair signed a treaty this summer to remove bureaucratic barriers and export license requirements in several categories of military cooperation, taking a cue from AIA and its partners in the Coalition for Security and Competitiveness. The pact, however, still needs Senate approval. The U.S.-UK Defense Cooperation Treaty will permit the transfer of U.S. defense equipment and services to the British government and to specified British companies without U.S. export licenses or other prior approval, subject to certain exceptions. It also would continue Britain's policy of not requiring a license for the export of UK defense equipment and services to the United States. In addition, the United Kingdom has agreed to make U.S. Munitions List items exported under the treaty subject to the UK Official Secrets Act, which should prevent re-export and re-transfer outside of the treaty regime without U.S. approval. The treaty is expected to encourage closer collaboration between the United States and the United Kingdom, one of America's most significant allies, while simultaneously reducing the cost of trans-Atlantic defense projects. Currently, the U.S. government requires licenses for defense-related equipment and services exported to the United Kingdom. In the past two years, the State Department processed 14,000 export license requests for the United Kingdom, and all but 18 were approved. AIA Source: cord.sterling@aia-aerospace.org AIA Testifies on Export Controls Modernization AIA President and CEO John W. Douglass testified in late July before the House Foreign Affairs Terrorism, Non-Proliferation, and Trade Subcommittee on the urgent need for the federal government to streamline and modernize the nation's export licensing system. Subcommittee Chairman Brad Sherman (D-Calif.) and Ranking Republican Ed Royce (R-Calif.) invited witness perspectives on whether the current export licensing process protected sensitive defense technologies from access by U.S. adversaries. The committee also wanted to explore benefits in allowing the aerospace industry to cultivate global commercial technology markets among friendly nations and to strengthen America's network of defense alliances. Douglass told the panel that today's export control system "lacks the three basic qualities" of efficiency, predictability, and transparency. These shortcomings, he continued, "hamper the ability of U.S. industry to leverage global innovation to deliver the best equipment to our warfighters at the best value to the U.S. taxpayer." He also reminded the subcommittee that the State Department's severe export license application backlog undermined the aerospace industry's international competitiveness, a critical factor because AIA member companies collectively export about 40 percent of their total output every year. "We must recognize," Douglass noted, "the importance of trade and international collaboration for sustaining economic growth, innovation, and skilled employment in U.S. industry." Citing challenges unique to small aerospace businesses, he explained that they bear the "costs of compliance with a Byzantine system and risk missing out on business opportunities because they cannot turn around an export license in an overloaded system fast enough." Douglass participated in the hearing as both a representative of AIA and the Coalition for Security and Competitiveness (CSC), an eighteen-member organization of industry and trade associations committed to working with the federal government to develop a more modern export control system. He summarized a variety of export licensing caseload management, personnel, processing, and technology reforms crafted by the CSC earlier this year that the Bush Administration could implement swiftly under existing legislation. Douglass' full testimony is posted on AIA's Web site at www.aia-aerospace.org under "News and Events." Click on www.securityandcompetitiveness.org for more on the Coalition. AIA Source: patrick.mccartan@aia-aerospace.org Cost Estimating Forum Slated for November AIA will conduct a Cost Estimating Forum in conjunction with its Board of Governors meeting in Phoenix on November 16. The culmination of an 18-month effort by AIA's Space Council, key senior government officials, and AIA member company executives will come together to discuss how industry and government can collaborate to improve cost estimating in space acquisitions. Extensive discussion, research, and debate among industry cost estimating experts and their counterparts at the Defense Department, Air Force, National Reconnaissance Office, Office of the Director of National Intelligence, Space and Missile Systems Center, and NASA have yielded a set of recommendations and steps needed for implementation that will be presented to AIA's Board of Governors for approval. The invitation-only forum will be followed by a public roll-out of the approved recommendations. Although the forum isn't until November, members of the cost estimating community are already reaping benefits from this effort. A key concern among government and industry has been the lack of communication and understanding about the other's cost estimating processes. In preparing for the forum, AIA made the cost estimating issue clearer among stakeholders and facilitated a dialogue that will result in a permanent joint government-industry council. AIA Source: anne.ellis@aia-aerospace.org Pension Protection Act Impacting Cash Flow Many AIA members will face a sharp increase in the cost of financing defined benefit pension plans as early as January 2008 as a result of the Pension Protection Act (PPA) signed by President Bush in August 2006. The PPA reduces interest rate assumptions in computing present value of benefits, shortens periods for amortizing unfunded liabilities, and establishes a funding target of 100 percent of liabilities. The changes are effective January 1, 2008, for all but a limited number of eligible contractors who were granted exemptions until 201l. In addition, contractors required to comply with the government's Cost Accounting Standards (CAS) will face a cash flow burden that other U.S. companies will not. The aggressive pension funding required by the PPA will create a major cash flow imbalance due to a gap between when contractors must begin increased pension contributions and when the contributions can be recognized as pension costs under the current CAS regulations. The increased funding associated with meeting the PPA requirements won't be recognized immediately as costs under government contracts because the current CAS mandates higher interest rate assumptions and longer amortization periods. Initial estimates conclude that the difference between current CAS and PPA pension measurements for all government contractors will be measured in billions of dollars of increased net contractor cash outflow. With the PPA, Congress attempted to address the cash flow problem by requiring the harmonization of CAS 412 and 413, the pension standards, with the minimum funding requirements of PPA. The target date for harmonization, however, is January 2010, two years after the date most contractors must begin meeting the PPA funding requirements. Options for correcting the cash flow inequity before harmonization are limited. One is to request that DoD and GSA ask the CAS Board to grant a temporary waiver to CAS 412 to allow contractors to include in their forward pricing rates a factor for the estimated impact of the differences in the PPA and CAS requirements. The amount included in contract prices could be identified precisely and be subjected to adjustment after the actual impact to contract prices is known. The other option is to request the congressional sponsors of the PPA to amend the act to delay the date for compliance with the funding requirement for all government contractors until January 1, 2011, consistent with the date that the CAS Board must complete harmonization of the PPA and CAS. A decision on the best approach was expected in early September. AIA Source: dick.powers@aia-aerospace.org Pauling Joins AIA Technical Operations David Pauling has joined AIA as senior director of technical operations. He will coordinate the activities of the Technical Operations Council, which is responsible for technical program management, operations, and industrial base issues that affect the development and production of aerospace systems. The council also develops policy, requirements, and standards relating to technical and operations issues. Most recently, Pauling served as the assistant deputy undersecretary of defense for materiel readiness and maintenance policy. Before that, he spent several years at the Naval Air Systems Command. Pauling earned a master's degree in aerospace engineering from Penn State University and a bachelor's degree in mathematics from Indiana University of Pennsylvania. He can be contacted at david.pauling@aia-aerospace.org. AIA Source: rusty.rentsch@aia-aerospace.org@aia-aerospace.org Two Veteran Companies Join Association Two veteran aerospace companies with more than 120 years of industry leadership between them have joined AIA, bringing regular member to 103 while associate membership stands at 179. Hawker Beechcraft Corporation, which produced its classic Beechcraft "Staggerwing" in the mid-1930s, has been one of the world's leading business, special-mission, and trainer aircraft manufacturers. The company designs, markets, and supports aviation products and services for businesses, governments, and individuals worldwide. Hawker Beechcraft's headquarters and major facilities are located in Wichita, Kan., with operations in Salina, Kan., Little Rock, Ark., and Chester, England. The firm leads the industry with a global network of more than 100 factory-owned and authorized service centers. Learn more at www.hawkerbeechcraft.com. Pall Aeropower Corporation, in aerospace for some 50 years, manufactures and sells filtration equipment for use in the aerospace and defense industries and for general industrial applications. The company's products are used in aircraft cabin air filtration, fixed-wing and rotary-wing aircraft, marine vessels, military land vehicles, and space vehicles. Its Portable Fluid Purifier automatically removes water, gases, solvents, and particulate matter from coolants, hydraulic and lubrication fluids, and other liquids. Visit www.pall.com to learn more. Team America Registration Underway Registration for the next Team America Rocketry Challenge, the world's largest rocket contest, has begun. Open to all U.S. middle schools, high schools, and non-profit youth organizations, the Challenge was created in 2002 to encourage students to study math and science and to pursue careers in aerospace. Registration deadline is Nov. 30. This year's requirement is for teams to design, build, and fly a one-stage model rocket carrying two raw eggs to an altitude of 750 feet, keep it aloft for 45 seconds, and return it safely to the ground with the eggs unbroken. The 2008 national finals for the top 100 teams are scheduled for May 17 in The Plains, Va. The contest is sponsored by AIA and the National Association of Rocketry in partnership with the American Association of Physics Teachers, the Defense Department, and NASA. More information and on-line registration for the Challenge is available at www.rocketcontest.org. AIA Source: audrey.koehler@aia-aerospace.org Airline and Defense Industries Agree to Harmonize International Technical Publication Data The AeroSpace and Defence Industries Association of Europe (ASD), AIA, and the Air Transport Association of America (ATA) have agreed to align international technical publication data in the aerospace and defense and commercial aviation industries. In an accord reached in August, the three associations agreed to further advance the development and maintenance of the S1000D specification for technical publications. By harmonizing commercial and military aviation technical documentation standards, S1000D will ease the cost burden on supply chains, which currently support different standards for each industry. The main objective for this collaboration is to promote common, interoperable, international technical publication data in the aerospace manufacturing, commercial, and defense aviation industries. This approach will harmonize how technical data are conveyed between the original equipment manufacturer and user community for both commercial aviation and military defense systems. "This collaboration agreement is one more step to facilitate improved business agility, reduce costs, and increase the speed of doing business — all while maintaining the highest level of safety," said ATA President and CEO James C. May. "We look forward to working closely with our ASD and AIA partners to further the adoption and usability of S1000D in our industry." ASD Secretary General Francois Gayet said, "The co-operation on S1000D is further proof that our industries can only profit from cross-Atlantic developments where both sides have equal value in the co-operation. From the manufacturers' point of view, all solutions that simplify through standardization are welcome." "Streamlining these technical documents will serve members of the aerospace and aviation industries on both sides of the Atlantic," AIA President and CEO John W. Douglass said. S1000D, based on international documentation standards such as SGML, XML, and CGM, is dynamic and enables continual revision and the incorporation of new technologies. It also defines a methodology that allows for publication compilation and permits users to easily access specific information by standardizing data shared across different software platforms. ASD represents the aeronautics, space, and defense industries in Europe. It has 31 member associations in 20 European countries and represents more than 2,000 companies with 80,000 suppliers. AIA Source: matt.williams@aia-aerospace.org Nominations Sought for UTC Lyman Award Presented by AIA AIA is seeking nominations for the 2007 United Technologies Corp. Lyman Award. The award honors distinguished, career-long achievements in aviation journalism or public relations. It will be presented at the association's Year-End Review and Forecast luncheon on Dec. 5. In 1972, the former Aviation/Space Writers Association established this prestigious award in honor of Deac Lyman. A distinguished aviation writer for the New York Times and later a public relations executive for United Aircraft, predecessor of today's UTC, Lyman was widely known for championing high public relations standards and excellence in writing. Past Lyman recipients include: Dave North (2006), Walter Boyne (2005), Pierre Sparaco (2002), Jim Holahan (2000), Carole Shifrin (1999),William Schoneberger (1998), Arthur Reed (1996), Jim Woolsey (1994), Philip Geddes (1993), Joseph Murphy (1992), Edward Kolcum (1991), John Taylor (1990), Philip Klass (1989), Robert Serling (1988), Howard Benedict (1987), Kenneth Weaver (1986), Dick Witkin (1985), C.V. Glines (1984), and Leighton Collins (1982). Submit nominations, including a biography with a short explanation of why the candidate should be considered, to Alexis Allen at alexis.allen@aia-aerospace.org. September AIA Regional Meeting Hosted by Pratt & Whitney AIA regional meetings offer members an opportunity to learn more about top issues affecting the aerospace and defense industry. The agenda generally consists of two informative general meetings, supply chain sessions, networking opportunities, guest speakers, and plant tours of host facilities. AIA Northeast Regional Meeting, Sept. 20-21, 2007, East Hartford, Conn., hosted by United Technologies Pratt & Whitney AIA's French counterpart, GIFAS, will participate in the upcoming AIA regional meeting. The host will be Steve Finger, president of Pratt & Whitney and an AIA Executive Committee member. GIFAS is expected to make a presentation on integrating the international supply chain and is inviting selected French suppliers to participate in the meeting. We also expect discussions on how events in Washington are affecting today's business conditions and on what AIA is doing to influence the 2008 presidential election process. If you have questions or are interested in attending the meeting, contact Trish Ward at 703-358-1061 or e-mail trish.ward@aia-aerospace.org. An AIA Perspective: R&D Essential to Environmental Progress This is the third in a five-part series highlighting AIA's commitment to environmental excellence in collaboration with airlines, airports, air traffic system providers, manufacturers, and government agencies worldwide. Installments will examine issues that affect the air in which we travel: increased fuel efficiency, alternative fuels, emerging technologies, and advances in research and development. Environmental issues are the key factor limiting aviation growth. These challenges are being addressed through advanced airframe and engine technologies, fleet modernization, infrastructure transformation, and operational gains. Improving the environmental performance of aircraft is a fundamental part of aviation's future business plan. Eliminating airport congestion and air traffic delay are crucial to reducing aviation emissions. Although manufacturers are making continued progress at reducing noise and emissions, further gains are becoming increasingly harder to achieve and at higher costs. Accepting industry's share of responsibility for the environmental performance of aircraft, AIA member companies have developed an aggressive three-point program to accelerate the integration of new technologies into the existing fleet: 1) establish global standards to benchmark environmental performance, 2) establish recommended practices to evaluate the potential of nascent technologies, and 3) review processes through the United Nations International Civil Aviation Organization (ICAO). The program has already begun to be implemented. For far too many years, reduction of the environmental "footprint" of aviation was limited to regulation of aircraft noise and engine emissions. This approach has proven to be insufficient in meeting aviation's environmental obligations. AIA's plan will ensure continuous technology infusion into both in-production and new products while looking to airports and air traffic service providers to shoulder a fair burden as well. The AIA program sets long-term goals for fundamental research and mid-term goals for maturation of these nascent technologies to demonstrate their potential for application in product development. With significant further development of first-stage technologies and their application to new airframes and engines, the final product is certified to be airworthy for entry into the fleet. ICAO nitrogen oxide and noise stringency standards are periodically re-set to benchmark the advancements in environmental technologies after they have been applied to a sufficient number of new products and been proven in service. The third part of the AIA program would apply, where possible, these technology advancements to in-production airframes and engines that don't meet the new standard. In this manner, the overall performance — including the environmental performance — of in-service aircraft and engines is constantly improved. Research and systems development is the heart and soul of aviation. While fundamental research is inherently a governmental function, applied research, system development, and flight qualification are relegated to the private sector. Because of its high-risk/high-payoff, component and system prototype research and development is a shared responsibility. Traditionally, fundamental and prototype research and development is conducted under the NASA aeronautics program. Over the past decade, funding for prototype research has been drastically reduced until now it has been eliminated altogether. In Congress, the Senate and the House have introduced legislation allowing FAA and NASA to enter into a consortium-based cooperative agreement to mature the energy, emissions, and noise reduction technologies developed under NASA programs. The focus is intended to be primarily on new designs. AIA wholeheartedly supports this vital initiative. To be viable, however, the program must set a firewall between FAA regulatory responsibilities and its participation under this program. It must further protect competitively sensitive intellectual property, conduct technology development projects using experienced NASA aeronautics personnel, and minimize agency pass-through costs. Delays in enactment or funding shortfalls could prevent or stall AIA's three-point program. Cutting the center out of the technology pipeline would compromise U.S. technology and environmental leadership and is unacceptable AIA Source: howard.aylesworth@aia-aerospace.org |
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