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 AIA UPDATE: August 2008, Volume 13, No. 1
Farnborough Talks Gain Results on Export Controls, Ethics, Environment A dialogue between chief executives of AIA and the AeroSpace and Defence Industries Association of Europe member companies at the Farnborough International Airshow in July yielded a number of positive policy steps. Leaders of U.S. and European aerospace companies 1) agreed to exchange ethical business best practices, 2) scheduled additional discussions on improving export controls and 3) reiterated their commitment to improve industry's excellent record of environmental stewardship. On business ethics, the two sides agreed to use the separate regimes in place in the United States and Europe as a starting point for efforts to exchange good practices internationally and to hold an annual international forum on business conduct to mark progress and plan strategy. In addition, attendees decided to organize an environmental summit focusing on research and development in Paris this fall to coincide with an annual European industry conference. The executives also discussed export controls and technology sharing among allies. They praised steps taken earlier this year to modernize the U.S. export control system and agreed to work together to push further with the next U.S. administration. The group also reviewed an EU initiative to simplify and accelerate the transfer of defense equipment, subsystems and components among the 27 EU member states and potential ramifications for U.S. companies. The inter-association dialogue was led by Ake Svensson of Saab for the European delegation and Clay Jones of Rockwell Collins for the U.S. group. Other participants were Allan Cook of Cobham, Denis Ranque of Thales, Robert Stevens of Lockheed Martin and William Swanson of Raytheon. A host of other activities kept the AIA Farnborough team busy. AIA President and CEO Marion Blakey participated in a conference on Sustainable Aviation sponsored by the Society of British Aerospace Companies. A focus of the discussion was opposition to recent EU passage of an emissions trading system. In addition, AIA again coordinated with the Defense Department on the display of U.S. military aircraft and hosted the congressional delegation, led by Alabama Senator Richard Shelby. AIA Source: remy.nathan@aia-aerospace.org AEROSPACE FOCUS  AIA Marks 50 Years of America in Space with New Web Feature To mark the 50th anniversary in 2008 of American space flight and NASA, AIA has placed on its Web site a timeline of U.S. space history featuring 50 selected milestones. Visit www.aia-aerospace.org/space50. The site includes accomplishments of NASA, the Defense Department and national security agencies, commercial ventures, treaties and an array of space facts. Some examples are:
AIA Source: andrew.barber@aia-aerospace.org VIEWPOINT: Good Business Conduct Going Global By Marion C. Blakey, AIA President and CEO Those of us in aerospace know that this industry is among the most globalized in the world. This makes sense — our products make the world a smaller and safer place through international air travel and defense cooperation. Many AIA member companies, from the biggest systems integrators to some of the smallest suppliers, do business with foreign companies. Those that don't probably aspire to. With this free flow of business relationships today, it's more important than ever to make sure that our industry maintains the trust of our customers and operates on a fair and equal footing when it comes to ethical business conduct. AIA is at the forefront of efforts to spread ethical business practices worldwide. At the Farnborough International Airshow in July, our chairman — Clay Jones of Rockwell Collins — led a dialogue among U.S. and European CEOs that included discussion of international ethics. The talks were very productive. Both sets of CEOs agreed that AIA and our European counterpart, the European AeroSpace and Defence Industries Association, will organize regular forums on international business conduct. The forums, the first of which is tentatively scheduled in early 2009, will provide a regular exchange of ideas concentrating on best practices. They will bring everyone together to talk about what works and why. One of the reasons this central marketplace in which to share ideas is so important is that approaches to ethics and business conduct vary widely around the world. Some of the reasons are based on history, some on culture. But the forums will help ensure that the business practices of one or another country don't cross the line to issues that skew the market. As we know, the U.S. aerospace industry has been operating under a strong code of ethics for more than two decades. In 1986, 32 major companies adopted the Defense Industry Initiative on Business Ethics and Conduct, known as DII. The initiative's purpose is to promote a culture of good ethics and right conduct in all business practices. Our European partners are in the process of instituting their own set of business conduct guidelines known as Common Industry Standards. These standards are in a much earlier stage of development than DII, and there are differences between the two. Together, both sets of rules are a good starting point toward identifying common features and objectives. The cornerstone of the international effort is to eliminate corruption in defense contracting. But that isn't the sole thrust. It will also identify corporate social responsibilities and other common, positive practices. We anticipate dramatic progress in the confidence the marketplace has with our industry's international business conduct. And we look forward to the initiative spreading to friends and allies all over the world. WASHINGTON WATCH: AIA Supporting Engineering Data Interoperability Because industry is facing challenges in achieving efficient, accurate and reliable exchange of engineering data, AIA is providing strategic and tactical guidance in adopting common standards to enable interoperability of definition data throughout product life cycles and across the supply network. Meeting the requirement for integration and collaboration has traditionally been costly and time-consuming, given the disparate applications and methods typically employed. Tools and processes range from manual capture in 2-dimensional drawings to sophisticated 3-D models tightly integrated with other enterprise systems. The Engineering Data Interoperability Group under AIA's Technical Operation Council and the Engineering Management Committee determined through an industry survey that there is a high level of interest in a standards-based data exchange capability. The group recommended that AIA member companies and suppliers adopt a standards-based interoperability solution utilizing Product Life Cycle Support (PLCS), part of the internationally accepted ISO Standard for the Exchange of Product model data (ISO 10303-239). A summary of the group's recommendations and activities is available on AIA's Web site at www.aia-aerospace.org. The group is continuing to develop further guidance for the aerospace industry and scenarios for exploiting the benefits of standards-based data exchange. AIA Source: rusty.rentsch@aia-aerospace.org WASHINGTON WATCH: U.S. and Europe Sign Long-awaited Aviation Safety Agreement The long-anticipated bilateral aviation safety agreement between the United States and the European Union was signed June 30 during the 2008 Transatlantic Aviation Issues Conference in Brussels. The agreement, signed by FAA Acting Administrator Robert Sturgell and European Commissioner for Transport Antonio Tajani, is aimed at increasing safety and improving efficiencies between FAA and the European Aviation Safety Agency. It allows for mutual acceptance of aircraft certification and product tests. Coverage extends to all EU members and permits joint participation in civil aviation inspections, cooperation and assistance in investigations and the exchange of safety data, including information on accidents and incidents. Signing was delayed last year due to U.S. industry concerns over the controversial EASA fees and charges regulation implemented in June. Under the new fee system, U.S. manufacturers are subject to significant increases in costs for validation by the European agency of FAA certification of a U.S. product. The agreement stipulates, however, that fees must be reasonable and commensurate with the services provided. Ratification is expected to occur after an exchange of diplomatic notes and after arrangements have been initiated regarding EASA's fee system. AIA Source: ranee.carr@aia-aerospace.org WASHINGTON WATCH: AIA, ARWG Members Conclude Annual Legislative Review AIA is wrapping up its annual response to federal acquisition procedures contained in fiscal 2009 defense authorization bills pending before Congress. Each year, AIA's Legislative and Acquisition Policy staffs, along with the industrywide Acquisition Reform Working Group, comb through House and Senate bills to identify proposed provisions that could have an impact on the defense industry. The provisions are then assigned to AIA and member company staff for detailed analyses and drafting of proposed industry responses. Drafts are reviewed and coordinated among industry members with an interest and expertise in the topics under consideration. Thus far, the working group has prepared responses to more than 50 proposals contained in House or Senate versions of defense authorization bills. The broad-ranging subjects cover such areas as industrial base competitiveness and organizational and personal conflicts of interest. Draft papers supporting aerospace and defense were expected to be sent to committees in time to influence the House and Senate conference process. Final drafts sent to Congress will be available on AIA's Web site for member access. AIA Source: elaine.guth@aia-aerospace.org AIA at Forefront of Aviation Climate Change Policy Development and New 2009 Global Protocol A new global protocol for reducing greenhouse gas emissions is expected to be established at the United Nations' Framework Convention on Climate Change in Copenhagan December 2009. It's likely that the International Civil Aviation Organization (ICAO) will again be made responsible for aviation's role in the new set of rules as it is now under the Kyoto Protocol that expires in 2012. AIA is working with government, industry, non-governmental organizations and the United Nations to establish a global policy that will meet the challenge of near-term reductions in aviation emissions and ultimately lead to carbon-neutral growth. AIA views ICAO as the optimal worldwide forum for achieving these goals. The ICAO Group on International Aviation and Climate Change (GIACC) is developing an aggressive action plan to reduce the atmospheric effects of aviation without losing sight of the need to reduce aircraft noise and engine emissions that affect local air quality. It is a high-level body made up of aviation, environmental and diplomatic representatives from 15 nations. Meeting in Montreal in July, the group discussed emission reduction goals, market-based measures to cut aviation greenhouse gas emissions and implementation and verification. Three working groups established in these areas will develop proposals for discussion at a February 2009 meeting. Industry has been invited to participate in the working groups. AIA believes policies recommended by GIACC that address international aviation greenhouse gas emissions must 1) recognize that, while alternate fuel research continues, aviation still has no commercially viable substitute for fossil fuels and 2) be global, consensus-based, fuel efficiency goals — not regional or unilateral regulatory measures. Toward that end, ICAO must develop a global framework to reduce greenhouse gas emissions that is based on fuel-efficiency goals adopted on a global scale. AIA Source: howard.aylesworth@aia-aerospace.org Expensive Fuel: While Causing Some Industry Woes, It's Creating New Aircraft Opportunities Commercial aviation manufacturers were flying high in 2007 as orders and backlogs streaked into record territory. Boeing's net orders for commercial airplanes totaled 1,413 — the third consecutive record year. Its commercial airplane backlog grew 46 percent to more than 3,600 airplanes worth $255 billion. Airbus enjoyed similar success with net orders of 1,341 aircraft and an end-of-year backlog reaching 3,421. However, the slumping economy and oil's rapid increase in price earlier this year tempered the exuberance that was driving orders to record levels, leading some to question whether the industry's spectacular sales success in recent years is sustainable. Some industry analysts believe orders from undercapitalized startup airlines in Asia and Europe might have been based on overly optimistic growth plans, and, if market conditions continue to deteriorate, 25 to 30 percent of the backlog of commercial aircraft could be deferred or cancelled. Boeing has said in response to these predictions that it has not had any order cancellations and only a minor number of deferrals. Boeing also notes that when orders are deferred, other customers are quick to grab openings in the production schedule because they are eager to get new airplanes into their fleets. Boeing's total commercial airplane backlog continues to grow (it stood at $275 billion at the end of June) and remains very diverse in terms of model mix, customer and region. For example, as the industry entered the post-9/11 downturn, more than half of Boeing's backlog at the time consisted of airplanes ordered by U.S. carriers. In 2008, U.S. carriers account for less than 11 percent of total backlog. In its latest 20-year market outlook, Boeing forecasts an even greater demand for commercial airplanes than it expected last year due to increased customer desire to accelerate the replacement of older aircraft with new, more fuel-efficient, environmentally friendly aircraft. Just as the skyrocketing cost of fuel is causing some industry woes, it also is creating opportunities. Consequently, manufacturers remain optimistic that they will continue to sell and deliver airplanes at a healthy pace. AIA Source: william.chadwick@aia-aerospace.org Six Aerospace Firms Join Association An array of aerospace products, technologies and services is represented among the six aerospace companies that are the newest members of the association. They bring AIA's regular membership to 105 in addition to 187 associate members.
AAR is a leading provider of products and services to the worldwide aerospace and defense industry, serving aviation and defense customers through four operating segments — aviation supply chain; maintenance, repair and overhaul; structures and systems; and aircraft sales and leasing. Headquartered in Wood Dale, Ill., a Chicago suburb, AAR employs more than 5,000 people at more than 60 worldwide locations. www.aarcorp.com Best Foam Fabricators Inc. Located in Chicago, Best Foam Fabricators Inc. designs, manufactures and fabricates foam and plastic for packaging, acoustical and aerospace filtration products. Major processes include computer numerical control routing, thermoforming and die cutting. Best Foam offers auto computer aided design, reverse engineering and the ability to build prototypes. www.bff.com CAE USA CAE is a world leader in providing simulation and modeling technologies and integrated training solutions for civil aviation and defense forces around the globe. The firm employs some 7,000 people at more than 75 sites and training locations in 20 countries and has the largest installed base of civil and military full-flight simulators and training devices. CAE was founded in 1947 and is headquartered in Canada. www.cae.com FTG Circuits A manufacturer of high-technology and high-reliability printed circuit boards, FTG Circuit customers include companies in aviation, defense and high-technology industries. The firm has operations in Toronto and Chatsworth, Calif. FTG Circuits is an operating unit of Firan Technology Group, a North American-based supplier of aerospace and defense electronics products and subsystems. www.ftgcorp.com SM&A Established more than 25 years ago in the aerospace and defense industry, SM&A now serves multiple markets with proposal and project management consulting services. The company is headquartered in Newport Beach, Calif. Representative clients include Boeing, Raytheon, Lockheed Martin and Northrop Grumman. Programs that SM&A has partnered in include the Space-Based Infrared System, the Joint Strike Fighter, Future Combat Systems and the Armed Reconnaissance Helicopter. www.smawins.com Wipro Technologies Wipro Technologies, a division of Wipro Limited, is one of the largest product engineering and support service providers worldwide. Headquartered in Bangalore, India, Wipro provides comprehensive research and development services and IT solutions and services, including systems integration, information systems outsourcing, package implementation, software application development and maintenance services. www.wipro.com Brits Win First Trans-Atlantic Rocketry Joust A student rocket team from England edged a squad from North Carolina to win the Trans-Atlantic Trophy in the inaugural contest between champions from the United States and United Kingdom. The fly-off took place during the Farnborough International Airshow in July. In an extremely close competition, students from Horsforth Secondary School in Yorkshire, England, prevailed over their counterparts from Enloe High School, who traveled from Raleigh, N.C., for the event. The margin of victory was a razor-thin 7.41 points in a scoring system where the teams are penalized for every second or foot away from the launch goals, and the low score wins. Horsforth ended with a score of 8.91, while Enloe had 16.32 — both very good scores. The competition pitted the winners of the Team America Rocketry Challenge against the champions of the UK Aerospace Youth Rocketry Challenge, known as UKAYRoC. TARC is sponsored by the Aerospace Industries Association and the National Association of Rocketry, along with about three dozen AIA member companies. UKAYRoC is organized by Tri Polus Ltd. and the UK Rocketry Association. AIA President and CEO Marion Blakey said both teams showed great ability and should be very proud of their achievements. "With kids this talented, there are nothing but winners here today," Blakey said. "All of these students excelled, and I expect we will see many of them as colleagues in the aerospace industry in a few years." Both contests feature teams of middle and high school-aged students designing and building model rockets to meet specific launch criteria. The goal during the Trans-Atlantic Trophy challenge was to fly to 750 feet in altitude and stay aloft for 45 seconds, while returning a payload of two raw eggs unbroken. TARC, in its sixth year, is geared toward attracting young people to careers in the aerospace industry. There is a potential workforce crisis looming in aerospace because current employees are becoming eligible to retire, and fewer students are studying math, science and engineering. The trip to England was part of the Enloe team's first prize and was sponsored by AIA member Raytheon Company, which also sponsored the Farnborough event and provided prizes for both teams. AIA Source: audrey.koehler@aia-aerospace.org FAA Reauthorization Might Wait until 2009 Congress is unlikely to pass a reauthorization bill for FAA before the current extension of the agency's authorities expires on Sept. 30. While industry would prefer to see passage before the expiration, it is growing unlikely with the priorities faced by Congress that reauthorization will make it over the goal line in time. Industry observers now anticipate a long-term extension into 2009, enough time for the next administration and the 111th Congress to get settled in. While the length of an extension remains in question, May and September have been floated as targets. The current extension of FAA authorities was agreed to when the Senate failed to reach cloture on the Senate authorization measure earlier this spring. Meanwhile, the House reauthorization bill, agreed to in September 2007, still awaits consideration. AIA Source: brian.elson@aia-aerospace.org AIA Election 2008 Issues Keeping America Strong: Advance U.S. Global Leadership in Aerospace and Defense The Aerospace Industries Association encourages the 2008 candidates to endorse 10 issues that relate to each major sector of the aerospace industry — civil aviation, national security and space — and, as a group, will ensure that the nation's security and economy remain strong.
Downey Becomes AIA VP of National Security  Fred Downey, a former U.S. Army strategist and longtime defense and international affairs expert on Capitol Hill, has joined AIA as vice president of national security.
Downey comes to AIA from the office of Connecticut Senator Joe Lieberman, where he served as senior counselor and legislative aide for defense and foreign affairs. Downey had been Lieberman's key staff person on these issues for 12 years. AIA President and CEO Marion Blakey said Downey is an excellent addition to the association's team. "Fred has a great track record and impeccable reputation as someone who is knowledgeable and, more importantly, can get things done," Blakey said. "He will be a great asset to AIA and all our member companies." Downey was Lieberman's designated representative to the Senate Armed Services Committee and staffed the senator in his role as chairman of the Airland Subcommittee. He worked directly on Army and Air Force policy and budget issues and the annual defense authorization bill among many other assignments. Before joining Lieberman's office, Downey was in the private sector, working on defense program analytical services for TASC Inc. That came after a 24-year career in the U.S. Army, including Pentagon postings as assistant to the director of net assessments and strategy team chief for the Strategic Plans and Policy Directorate. Downey's Army career included a variety of infantry and armor troop and staff positions in the United States, Europe, the Middle East and Vietnam. Downey replaces former National Security Vice President Mark Esper. Elwell Is Named Vice President of Civil Aviation  Daniel Elwell has joined AIA as vice president of civil aviation.
He came to the association in July from FAA where he was assistant administrator for aviation policy, planning and environment and directed the agency's annual forecast conference. Before joining FAA, Elwell was with American Airlines as managing director of international and government affairs. He was the corporate representative and consultant to the Transportation and State departments on bilateral and multilateral aviation negotiations, international dispute resolution and international alliances. Earlier in his career with American, he was a captain with aeronautical ratings in DC-10, MD-80 and B-767 aircraft. Elwell also served as legislative assistant to Senator Ted Stevens (R-Alaska) where he was responsible for Alaskan aviation issues and defense spending accounts as a Senate Defense Appropriations Subcommittee staff representative. A graduate of the U.S. Air Force Academy, Elwell flew active duty for the Air Force for seven years and retired from the Air Force Reserve in 2004. He is also a graduate of the Georgetown Government Affairs Institute Congressional Fellowship Program. AIA President and CEO Marion Blakey said Elwell's experience in aviation will bring significant expertise to the association. "Dan is extremely knowledgeable about our business," Blakey said. "His experience in government, both at the FAA and on Capitol Hill, his international expertise and his background in the airline business will be major assets as AIA moves forward with the many issues on our plate." Association Supporting Actions to Help Define Unmanned Aircraft AIA's Unmanned Aircraft Systems Subcommittee has submitted comments to the National Transportation Safety Board in response to its proposal to define reporting criteria for unmanned aircraft accidents. The proposed rule would amend sections of existing regulations on aircraft accidents to include unmanned aircraft and reporting criteria. The AIA subcommittee is encouraging the board to recognize the unique characteristics and functions of unmanned aircraft. In that regard, FAA recently established a rulemaking committee to help define the characteristics of such aircraft. AIA wants to ensure that unmanned aircraft operations become an integral part of the NextGen air transportation system. AIA Source: ranee.carr@aia-aerospace.org |
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