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AIA Calls For Structural Changes to Invigorate U.S. Aerospace Industry WASHINGTON, D.C., December 12 - AIA President and CEO John W. Douglass said converging forces in global politics and national security will make 2002 a pivotal year for aerospace. He called for change in three structural areas of aerospace: R&D funding, DoD procurement, and export licensing, as ways to sustain growth in the industry. Speaking to approximately 300 media, industry, and government representatives at the 37th annual Year-End Review and Forecast Luncheon, Douglass said that the events of September 11 and the war in Afghanistan could act as catalysts to ultimately strengthen aerospace and its role in national security and the economy. He said the coming months will provide a unique opportunity for the administration and the Congress to reshape the aerospace industry and the environment in which it operates. He added that the Commission on the Future of the U.S. Aerospace Industry was primed to provide insight and leadership to strengthen and redirect the industry. Douglass called for increased federal funding of research and development--particularly for FAA and NASA civil aeronautics. He noted that although military R&D funding has set U.S. military technology 10 to 15 years ahead of the rest of the world, there has been insufficient funding to develop and process new, affordable technologies to advance civil aviation systems. "Europe has pulled even with the U.S.," he said adding that we need affordable generic technologies to improve civil aviation safety, security, system capacity, and noise and emissions levels. He also called for increased funding for Defense Department procurement--especially for combat and support aircraft. "Aging U.S. cargo, electronic surveillance and medical evacuation fleets need to be replaced by commercial aircraft, modified for military purposes. DoD can save huge amounts of money by using existing commercial designs," he added, "and there is no better time to begin that than in 2002."
He said the third area, reform of export control licensing, and a major initiative for AIA next year, would be necessary for better national—and international—security as well as increased U.S. competitiveness worldwide. Despite all the recent problems, he said, there was reason for optimism. "This administration, the Commission on the Future of the U.S. Aerospace Industry, and the international coalition fighting terrorism are the right forces converging at the right time to fix aerospace problems presented by September 11, as well as lingering structural problems related to the transition away from the Cold War era." A transcript of Mr. Douglass’ remarks will be posted after 6 p.m. December 12, 2001. P.A. Rel 2001-32 12.12.01 -AIA- Contact: Matt Grimison, AIA |
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