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AIA Testifies On "Severe Crisis" Facing Aerospace Industry

WASHINGTON, D.C., March 12- In testimony today before the House Science Committee, AIA President and CEO John W. Douglass outlined a legislative roadmap for future joint agency cooperation to reform the air traffic management system with state-of-the art communication, surveillance and navigation tools. Douglass also told the committee that force modernization will require strong Congressional support as the Defense Department considers next generation defense upgrades.

The hearing was held to review legislative implementation of recommendations proposed by the Commission on the Future of the U.S. Aerospace Industry-a report issued last November on ways to maintain the vitality and competitiveness of the U.S. aerospace industry in the global economy.

This subject is critical, Douglass said, since the aerospace industry leads the nation in annual net exports and directly and indirectly supports 11 million jobs, generating economic activity equal to nearly 15 percent of the gross domestic output. He also noted that aerospace workforce reductions have experienced an accelerated decline-as of last December, aerospace employment fell to 689,000-the lowest level in 50 years. "The industry is in a severe crisis," he said, "The airline industry is nearly bankrupt, the commercial space market has almost ceased to exist, and the manufacturing base is contracting at an alarming rate-115,000 jobs have been lost since September 11, 2001-a drop of 15 percent."

Douglass said however, that these trends could be turned around with relatively modest investments if the government acted quickly. "We must act to create an environment where our air transportation system is profitable," he said. He asked Congress to consider the following:

• Establish a joint FAA-NASA-NOAA-DoD program office to create an air traffic management network that uses resources from all branches of the federal government. As Chairman Boehlert wrote to the Transportation Department last fall, no agency has taken on the task of integrating federal resources for a follow-on ATM system;
• Approve full funding for the FAA's FY04 $3.9 billion request for National Airspace System safety, homeland security, and air traffic automation programs to advance FAA's Operational Evolution Plan (OEP);
• Fund pre-competitive R&D programs to foster new air transportation and telecommunications technologies;
• Mandate an inter-agency process for improving the math, science and vocational training of U.S. students;
• Develop government-industry resource exchanges to create a stable, technically-skilled labor force and to encourage technology modernization.

Douglass also urged Congress to support the FY04 Air Force and Navy budget requests that dedicate $21.3 billion to seven tactical and mobility aircraft to expand the nation's global force capabilities. "Precision air-power, personnel and cargo transport aircraft enable the U.S. to introduce troops and firepower into a zone of conflict when we lack fewer basing facilities overseas," he said.

P.A. Rel 2003-12

03.12.03

-AIA-

Contact: Matt Grimison, AIA
(703) 358-1076
matt.grimison@aia-aerospace.org