. ANNUAL REPORT 1954

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AIRCRAFT INDUSTRIES ASSOCIATION of AMERICA, Inc. The following is the .annual report of Admiral D. C. Ramsey, USN _(Ret.), P-resident of the Aircraft Industries Association. The · report reviews operations of the fiscal year which com­ menced on November 1,195J,and ended on October )1,1954.

AmrnAFT INDUSTRIES AssociATION 610 Shoreham Building Washington 5, D. C. TO THE BOARD OF GOVERNORS: this field as in the field of piloted aircraft. Some types During the last twelve months, the American air­ have already been assigned to combat units in the craft industry has reached the approximate peak of Unit eel States and abroad. its operations called for under the limited emergency. During 1954, the American aircraft industry made Not only has it maintained a level of production of significant strides in the development of turbine-pow­ some 900 aircraft per month, more than 10,500 for the ered transports. One large jet transport was flown and year, but its products have reached an unprecedented has been ordered into production, in one version, as a degree of quality and combat reliability. Thus, the tanker-transport for the Air Force. Other jet and industry today is realizing the fmits of earlier efforts turbo-prop transports are in varying stages of develop­ in research and development-a fact which under­ ment. These answers to aggressive British competition lines the importance of continuing and intensified are being watched carefully by the world's airlines. programs in that vital field of aviation effort. Employment in the aircraft industry was slightly With its facilities and engineering and production more than 800,000 throughout the year-a total which teams in such advanced states of readiness, the in­ is considered the peak under present production sched­ dustry would be able to expand quickly in event of ules. This does not include employment assigned to a major emergency. aircraft among some 50,000 to 60,000 subcontractors As important milestones of military aviation pro­ and suppliers. gress, it is gratifying to note that all combat aircraft Conscious of the fact that growing complexity, new currently in production for the Air Force are jet materials to withstand the stresses and strains of hio-h b powered. Air Force wings are more than 80 per cent performance, and more exacting manufacturing meth- modernized, and all fighter wings are already com­ ods have added greatly to cost, AlA members have ex­ pletely equipped with jet aircraft. More than 60 per erted every effort to keep these costs clown. These ef­ cent of Navy air forces have been modernized. Under forts have embraced all operations and have been in­ current plans, full combat strength will be reached strumental in developing an attitude of cost conscious­ by June, 1957, which elate will mark the beginning of ness on the part of company personnel of all echelons the replacement phase of the program. of responsibility. The last year has been marked by significant ad­ vances made in the introduction and delivery of new NEED FOR NATIONAL AIR POWER POLICY military aircraft of extremely high performance. One As the industry faces lowering production levels, the fighter capable of supersonic speeds in level and need for a national air power policy to empower long­ climbing flight is already being delivered to the Air range procurement planning becomes more pro­ Force in important quantities. Others of such ca­ nounced. Such a policy presumably would provide for pabilities are in advanced test status for both the permanent maintenance of a strong and active research Air Force and Navy. A new supersonic bomber has and development program, an expandable production been ordered into production, while quantity produc­ base and a production "floor" to hold together vital tion is underway on a heavy inter-continental bomber engineering and production teams. It would lay the capable of speeds near the sonic barrier. To date, more essential groundwork for maintaining at all times a than 1,000 six-jet medium bombers have been deliv­ healthy, stable aircraft industry. ered to the Strategic Air Command. Also introduced Strong support for such a policy has been expressed during the year were two revolutionary new types of often in the Executive Department of the Govern­ vertical-takeoff aircraft developed for the Navy. ment, in Congress and by national leaders. It is to be Important progress also has been made in guided hoped that this support may soon find expression in missile development and production. Not only are remedial action. 26 different models in project status in the aircraft industry, but such great emphasis is being placed on AVIATION EDUCATION PROGRAM this type of armament that the Department of Defense Additional momentum was gained during the sec­ is spending as much on research and development in ond year of the AlA-National Aviation Education

1 Council program to advance study of aviation subjects Force in recruiting 200,000 replacements each year for in the schools of the nation. Under this program, the next three years, due to termination of enlistments, which AlA supports, materials of instruction are pre­ both AlA and its member companies have offered such pared, distributed and sold in quantities to the schools help as they may be able to provide to cope with this by the NAEC. This organization is made up chiefly of serious problem of potential personnel shortages. leading educators who appreciate the need for inter­ preting the social and economic effects of aeronautics THE NOISE PROBLEM and for their inclusion in curricula. Noise continues to be one of the most serious pub­ In addition to increasing the sales of classroom ma­ lic relations problems facing the aircraft industry, the terials prepared last year, the project has yielded two military and the airlines. As far as the manufacturers additional booklets, "Helicopters" and "A Day in The are concerned, the problem has developed chiefly in Life of a Jet Test Pilot", this year, with several others their own plant and test communities, and it arises expected to be published within the next two or three over the increase in sound as a necessary result of in­ months. In addition, a monthly fact sheet, "Skylights", creases in power for military aircraft. Many extensive is distributed free to schools. and costly measures have been taken by individual companies to reduce the noise level generated on the SHORTAGE OF ENGINEER5 ground and some degree of success has resulted. The The continuing problem of the shortage of engi­ problem of the reduction of in-flight noise at its source neers has two facets which are of concern to the air­ is much more difficult and no ready solution is in craft industry. One is the fact that the colleges and sight. universities are graduating approximately 20,000 en­ Practically all elements of aviation have concerned gineers per year, while American industry can profit­ themselves with solution of this problem, including ably absorb 30,000. the Noise Control Committee of AlA. Others are the There has been a steady downtrend in recent years. Air Force, National Air Transport Coordinating Com­ Of this 20,000, the aircraft industry attracts a smaller mittee, NACA and the CAA. percentage of the total than might be expected. Part NATIONAL AIR TRANSPORT COORDINATING of the explanation for this lies in the lack of prepara­ COMMITTEE tion of students by the s~condary schools of the coun­ try. The AIA-NAEC Aviation Education Progra~ For the second successive year, AlA shared with Air should be useful, ultimately, in interesting students ~n Transport Association, individual airlines servicing choosing this road that leads to engineering careers m the New York area, and the Port of New York Author­ aviation. ity the cost of operations of the National Air Trans­ The other facet is the growing reluctance on th: port Coordinating Committee. part of Selective Service to grant deferments to engi­ The NATCC was organized at the time of the clos­ neers in this critical industry. AlA recently has made ing of Newark Airport as a result of the three airline representations in this matter. t~ t~e Depart~ent of crashes in nearby Elilabeth, New Jersey. It embarked Defense, Office of Defense Mobxhzatwn, Selective Serv­ on a program. to improve air traffic conditions in th e ice and the National Presidential Appeals Boar~, and metropoI Itan New York area and, through informa- will continue its efforts to bring about a more hber~l tional and educational efforts, to improve public un­ treatment of requests for occupational deferments m derstanding of true conditions. It since became ap par- the aircraft industry. ent that the principal underlying reason for public Meanwhile it is pertinent to mention that Senator resentment around New York's airports was the noise Flanders has drafted a bill (S. 3068) to amend the problem, and m~ch of the corrective and educational Universal Military Training and Service Act by taking work has been dxrected toward solution of that Pro b . cognizance of the n ecessx· ty f or " maxx·mum effect in the lem. fi elds of scientific research and development, and, Support was accorded the NATCC because of th through the process of selection, t~e full~st ~oSGible ~ar-reaching effects that ~ny extreme deterring actio~ litilization of the nation's technologxcal, sCientific and m the New York area mxght have on other air traffic other critical manpower resources." centers about the nation. NATCC has offered the re­ s~lt~ of its findings and its operations to any city with COOPERATION IN AIR FORCE RECRUITING sxmxlar problems. It has given consultation to such PROBLEM cities as Boston, Pittsburgh and Louisville, where hos­ Recognizing the critical problem faced by the Air tile public attitudes have developed.

2 HELIPORT STUDY INDUSTRY USE OF GOVERNMENT TEST FACILITIES Highly satisfactory progress has been made in the last year by the helicopter segment of the industry. Not As the USAF-NACA Unitary Plan wind tunnel test only have the military services increased their orders facilities near completion, increased attention has been for these craft, but it becomes apparent that substan­ directed to developing procedures for their use by in­ dustry. Two areas of especial importance are the tial numbers of rotary wing aircraft will find increas­ scheduling of industry test time and the development ingly useful application in other than the military of methods and procedures for the facilities operations. field. A major step toward solving the scheduling of industry Recently, the Helicopter Council of AlA engaged test time has been taken through the development by in an exhaustive study of heliport requirements. The NACA of a detailed directive allocating time for gov­ Air Transport Association has collaborated with the ernment projects and commercial-type projects. Equal­ AlA in the development of the study. ly encouraging is the recent conclusion of the Depart­ ment of Defense that efforts will be made to develop UTILITY AIRPLANES policies for use of these facilities on a fee basis as soon as sufficient experience is gained. This approach is Important steps have been taken during the year in heartily endorsed by the aircraft industry which has expanding both the markets and the usages of aircraft long advocated the fee system of operation for wind in business, industry and agriculture. Not only are the tunnels of the Unitary Plan. higher estimated figures for aircraft usage attributed largely to an increase in business flying, but the Utility UNIVERSITY COMPETITION Airplane Council anticipates that this trend will con­ tinue. In 1954 there were significant advances in de­ Although incipient in its effects, the tendency toward velopment of aircraft especially suited to business and placement of development and applied research con­ agriculture flying. There are indications that more tracts with universities has been a matter of concern and more businesses and industries are discovering the to AlA. While recognizing that basic research is a efficiencies, conveniences and economies inherent in proper function of the universities, the aircraft indus­ the use of aircraft of this type. try contends that primary contracts in applied research and development awarded to such institutions consti­ PATENT POLICY AND SUPPLEMENTARY tute unfair competition. Not only do tax exempt and SOURCES publicly supported or privately endowed institutions enjoy an unreasonable competitive advantage, but they The Patent Committee reviewed during the year a are thus able to draw away engineers from the in­ proposed revision of Section IX of the Armed Services dustry. Procurement Regulation, prepared by the Depart­ The AlA has made representations of the facts to ment of Defense. The committee has proposed changes the Department of Defense and to the National Sci­ to the Defense Department draft. Several AlA com­ ence Foundation, and will continue to seek a solution pany heads and members of AlA staff also have ex­ of this problem. pressed their views on this subject to Mr. Webster .l and other representatives of the Office of Supply and FEDERAL CATALOGING Logistics. The AlA has requested that the industry be given an opportunity to review the results of the The Federal Cataloging plan implemented by the DOD's latest version of Section IX, ASPR. Department of Defense has been reviewed very care­ Similar representations have been made regarding fully by AlA. As a result, certain revisions for the the subject of "Secondary Sources of Supply", which cataloging of aeronautical products have been recom­ has been under study in the Office of Supply and Log­ mended to the Department of Defense and to the mili­ istics for several months. One of the questions pertain­ tary services. Although most of the AlA recommenda­ ing to that item is the decision as to whether it will be tions have been rejected by the Department of De­ included in ASPR, or dealt with separately as a De­ fense, AlA will continue to urge revision of the cata­ fense Department directive. loging plan as applied to the aircraft industry.

3 COMMITTEE TO ADVISE ON MACHINE TOOL ly scattered. The survey is being conducted by the PROCUREMENT Smithsonian Institution, which is administering the S25,000 survey fund. With the announcement that $100 million would be Recent reports by the Smithsonian management are allocated to the Armed Services for procurement and that the drawings, specifications and recommendations stockpiling of machine tools, AlA has been called upon are nearly complete and will be ready for presentation by the Air Force, which has the largest proportion of to the next Congress. A public law authorizing the the fund, to nominate four members of industry to Museum was passed several years ago, but no money serve on an advisory committee to the Air Materiel has been appropriated. It is expected that Congress Command. Nominations have been submitted and the will now be asked to provide the funds for this im­ action of the AMC is awaited. portant and interesting project.

TITANIUM USE IN AIRCRAFT COOPERATION WITH AMERICAN LEGION MANUFACTURE One of the most fruitful of AlA's cooperative efforts The intense interest of the Government and the in­ with national organizations has been its relationship dustry in the use of titanium in aircraft manufacture with the American Legion. That great patriotic or­ has been reflected in the activities of the AlA. Two ganization has long contended that air power is the rna jor projects in this field were the AlA-conducted keystone of national security, and it consistently re­ symposium on titanium standard parts and a survey flects the belief that a prerequisite of survival is a na­ undertaken at the request of the Defense Department tional air power policy and long-range plan. It was to determine the advantages and disadvantages of the the privilege of AlA to work with the American Le­ use of titanium in aircraft and aircraft engines. This gion in production of a notable report to the Amer­ survey, which took into consideration such elements as ican people, "Air Power in an Age of Peril". The performance, size, weight, payload, and cost, will serve National Commander has announced that this report as a broad guide to the government in balancing the has received wide acclaim from the Congress, news­ cost of the titanium program against the gains in air­ papers and the general public. craft performance resulting from its use. NATO SPARE PARTS REQUIREMENTS SMALL BUSINESS ACTIVITIES One of the more important situations on which the Although the aircraft industry follows the practice Export Committee have made a contribution during of subcontracting large proportions of its business, it 1954, is that of promoting a comprehensive study of is cognizant of the fact that problems may arise in this NATO aircraft spare parts requirements. The Govern­ field as production levels are lowered. During the ment has been anxious that American manufacturers year various small companies engaged in subcontract­ anticipate these requirements by making licensee or ing and other work in connection with the defense other facilities available in Europe and Japan in order program formed an association called the Small De­ to avoid potential critical shortages. fense Industries Association (SDIA). It is understood A part of this activity is the establishment by the that major activities initially will be carried on in the Defense Department of cut-off dates beyond which cer­ Southern California area. The stated purpose of this tain of the older aircraft will no longer be supported group is to give improved service to prime contractors, by the United States Government. to achieve higher efficiency in their company opera­ tions, to reduce costs, and to represent the needs of AIR FORCE-AlA TRAFFIC SERVICE LIAISON small business for a substantial percentage of subcon­ tracting work in order that it may contribute most ef­ Important progress was made by the Traffic Service in development of a cooperative plan with the Air fectively to the strength and flexibility of the overall Materiel Command whereby AMC transportation di­ mobilization base. rectives are discussed and reworked before being pub­ NATIONAL AIR MUSEUM lished. This is making for maximum efficiency and economy in such matters and already has permitted In 1953, AlA and Air Transport Association shared substantial dollar savings for both government and equally in the cost of an architectural survey for a suit­ industry. During the year, the Traffic Service con­ able National Air Museum in Washington to house tinued its watchfulness over the rates and charges for and display the important relics of aviation, now wide- transportation paid by AlA members and their cus-

4 tamers. By filing complaints and formal representa­ Mr. George Chapline, vice-president of Fairchild En­ tions in cases where inequities or discrimination may gine and Airplane Corporation, is serving on a com­ exist, AlA members and the military services have been mittee of the Assistant Secretary of Defense Supply saved enormous sums in transportation charges over and Logistics to study and recommend on the disposal the years. of surplus property.

PUBLIC SERVICE BY AlA MEMBERS ADMINISTRATIVE, FINANCES, MEMBERSHIP

Several high executives of AlA member companies A proposed budget for 1955 is being submitted to have given liberally of their time and effort through the Board of Governors within the limit set by the service on various Commissions, Task Forces, and ad­ Board as the dues target. Continued increases in aero­ visory committees formed during the year. Mr. Mundy nautical sales have made it possible to reduce the dues Peale, President of Republic Aviation Corporation, rate again. currently is a member of a Hoover Task Force on The number of manufacturing members is the same Government Procurement Procedures. Mr. Peale also as a year ago, but the number of other members de­ is serving on a Committee appointed by the Assistant creased by three. Of especial importance was the addi­ Secretary of Defense for Supply and Logistics. Mr. tion of Chance Vought Aircraft, Inc., occasioned by its Robert E. Gross, Chairman of the Board of Lockheed separation from United Aircraft Corporation. Offset­ Aircraft Corporation, headed a subcommittee of the ting this increase was the absorption of Radioplane Cooper Committee, which was appointed by the Secre­ Company by Northrop Aircraft, Inc. tary of Defense, to study the organization of fiscal man­ The Treasurer's report will be submitted to the agement in the Defense Department. This particular Board of Governors as soon as the annual audit of the task has been completed and the committee dissolved. financial records of 1954 has been completed.

Respectfully submitted,

JJt- 941a1 c. f?.....u J7

DEWI'IT c. RAMSEY.

5 AIRCRAFT INDUSTRIES ASSOCIATION OF AMERICA, INC.

Aircraft Manufacturers I Momb·"'hip I Council ~ Logol C'"""' I Board of Governors I . I Legislative Advisor -, Executive Finance Vice President Committee Committee (Western Region Mgr.) Western Region Functions, as required, for the various President Secretary-Treasurer Services and Committees. (General Manager) (Business Manager)

I Services

Helicopter Council I Utility Airplane Council I _I I I _!._ Public Relations Service Technical Service Industry Planning Service I-- Public Relations -- Aircraft Technical Cmte. !ATC) Accounting/ Controllers Committee Advisory Cmte. Airworthiness Reqs. Cmte. (ARC) Industrial Relations Adv. Cmte. Aircraft Res. & Test. Cmte. (ARTC) Industrial Security Committee Engrg. Contract Reqs. Cmte. !ECRCJ Legal Committee Nat'l. Aircraft Stds. Cmte. !NASC) Accessory & Equip. Tech. Cmte. (AETC) Materials Committee Traffic Service Electronic Equipment Cmte. (EEC) Patent Committee Traffic Committee Preservation & Packaging Cmte. r--1 1- Engine Technical Cmte. (ETC) Quality Control Comte. Guided Missile Committee (GMC) Spare Parts Committee • Manufacturing Methods Cmte. !MMC) Noise Control Committee (NCC) Statistics & Reports Comm•ttee Export Service Tax Committee -- 1- Propeller Technical Cmte. (PTC) Export Committee Rocket Technical Cmte. (RTC)

1954 REPORT ON OPERATIONS

For the Fiscal Year Ended October 31, 1954

ORGANIZATION AND FUNCTIONS

The Aircraft Industries Association of America is the na­ The Aircraft Industries Association is made up of IM tional trade association of the manufacturers of aircraft, en­ members, liS of which are voting members and 18 of which gines and accessories, parts and materials used in the con­ are affiliates. The categories of voting membership are com­ struction and operation of aircraft. All major airframe and posed as follows: engine manufacturers, and virtually all major suppliers of aircraft equipment, are members of AlA and participate in MEMBERS its activities. DIVISION A-Manufacturers of air- The Association concerns itself with the industry-wide craft, aircraft engines or engines. SS aspects of aircraft research, development and production. It represents the industry's viewpoints and interests to the DIVISION B-Manufacturers of ac­ Government, the Congress, the Military Services, allied and cessories, parts or materials used in other industries and to the many segments of the public. It aircraft construction or operation. 52 is vigilant of legislation and regulations that might affect the aircraft industry. It attempts to work out cooperatively DIVISION C-This class includes among its members and with cognizant agencies and organ­ miscellaneous persons and firms in­ izations the solutions to problems of common interest. terested in aviation. (New appli­ Policy direction of the Association's activities is vested in cants of this type are only eligible a Board of Governors which is composed of the chief execu­ for "Division of Affiliates" mem­ tive officers of various member companies. Under this bership.) 28 overall policy guidance the AlA activities are carried on by committees and councils representing every phase of aircraft As shown on page 6, the Aircraft Industries Association is production and aircraft industry management. Each com­ organized under a Board of Governors and under regional mittee consists of high level company representatives espe­ (Eastern and Western) Executive Committees of the Air­ cially qualified in the various fields of responsibility. craft Manufacturers Council. Chief executive officer is the Through its seven Services and 27 committees (see organ­ President, who also is General Manager, while a Vice-Presi­ ization chart on opposite page), the Association provides dent performs the duties of general manager of the Western facilities for handling the multitude of technical, financial, Region office at Los Angeles. The seven AlA Services, in­ legal, tax, public and industrial relations, patent, traffic and cluding the Utility Airplane Council and the Helicopter other problems. The helicopter and utility interests of the Council, operate under direction of the President. Association are banded under councils, each of which has Reports of operations of the various Services and Com­ staff service. mittees are continued in the following pages.

7 INDUSTRY PLANNING SERVICE

The Industry Planning Service deals with important This section of the ASPR is now being reviewed by the problems affecting the business and administrative opera­ Department of Defense and the three military services and tions of the aircraft industry. will be entirely revised in the near future. Prior to its pub­ It maintains close liaison with the military services and lication, the AIA expects to have an opportunity to review with other Governmental agencies in connection with the and submit comments on the proposed revision. multitude of laws, regulations, directives and specifications which affect the business activities of the industry. CPFF Contract Clauses The committees served by the Industry Planning Service Industry experience over the past year has been unsatis­ are: Accounting and Controllers, Legal, Materials, Patents, factory with regard to certain of the clauses that are now re­ Preservation and Packaging, Industrial Relations, Indus­ quired by Section VII of the ASPR's for use in cost-reim­ trial Security, Quality Control, Spare Parts, Statistics and bursement-type supply contracts. Some of the clauses that Reports, and Tax. :rre considered to be either inequitable or impractical from The following is a summary of the activities of these com­ mdustry's standpoint are: insurance and liability to third mittees during the past year: parti~s, allowable costs, method of payment, inspection, de­ lays m performance and the clause relating to change ACCOUNTING AND CONTROLLERS orders. The Procurement Regulations Subcommittee is now COMMITTEE preparing a brief setting forth in detail industry's position This committee deals with problems affecting financial on these clauses. The Department of Defense is willing to management within the industry and therefore is primarily r~consider its position on these matters upon the presenta­ concerned with the procurement policies and procedures of tion of new evidence in support of the industry's position. the Department of Defense as set forth in the Armed Serv­ Cost Prinoiples ices Procurement Regulation. During the past year this committee, both directly and through its Procurement Reg­ . The use of the CPFF contract cost principles (ASPR Sec­ ulations Subcommittee, has worked with the Department tiOn ~~ by the military services as a guide during the of Defense and the military services in the development of negotiation of fixed-price contracts has been the cause of directives and regulations that will permit maximum effi­ many industry problems. The Department of Defense has ciency of operation in the industry. Some of the major been endeavoring to revise ASPR Section XV to make the activities have been: cost principles contained therein applicable to fixed-price contracts and all terminated contracts, as well as to CPFF Air Force Maximum Liability Clause contracts. The AlA has been informed that efforts are still Following the adoption by the Air Force of a policy of being made to enlarge the scope of ASPR Section XV to the fixing the "maximum liability of the Government" under extent indicated above, although there is considerable senti­ fixed-price, incentive-type contracts, this committee met ment in the Defense Department to limit any such revision with representatives of the Air Force in an endeavor to have to CPFF contracts. When the final draft of a revision of the clause modified in an equitable manner. As a result of ASPR Section XV has been coordinated within the Depart­ these meetings the clause is no longer required. ment ?f Defense, the AlA has been assured an opportunity to review such draft and submit comments for DOD con­ Contract Termination sideration prior to publication. Accordingly, it is antici­ The Procurement Regulations Subcommittee of this com­ pated that this committee, during the coming year, will de­ mittee has continued to work with the Department of De­ vote a considerable amount of effort to the study of the fense and the three military services in the solution of prob­ proposed revision since there are several types of costs that lems which have arisen in connection with the administra­ are not now properly covered by this section. tion of Section VIII of the Armed Services Procurement Price Escalation Clauses Regulation regarding the settlement of terminated con­ tracts. One of the major changes which has been made in At the request of the Department of Defense, this com­ this regulation was the increased authority given to prime mittee reviewed and submitted comments on a draft of cer­ contractors (from $1,000 to $10,000) in making settlements tain types of proposed price escalation clauses for use in of termination claims of subcontractors, without requiring fixed-price contracts. prior approval of the Contracting Officer. A few of the problems which are currently being discussed with the De­ Letters of Intent partment of Defense and the military services pertain to Following a request from the Department of Defense for the screening and disposition of excess property, plant clear­ review and comment on proposed forms for use in "letter ance, formula settlements, etc. contracts", this committee, through its Procurement Regu-

8 lations Subcommittee, submitted the coordinated comments tual practices and procedures which have caused dissatisfac­ of this industry. This matter is still under consideration in tion and which may affect the willingness of contractors to the Department of Defense. perform research and development work under contract with the military services, detailed comments and recom­ Disputes Clause mendations were forwarded to the Department of Defense Although the situation which grew out of the decision of near the end of the year 1953. Since then, the AlA has been the Supreme Court in the "\

9 tained by staff representatives with the respective Depreci­ Disputes Clause ation Boards of the three services. Of major concern to this Committee was the situation re­ During the past year, however, three changes occurred in sulting from the decision of the United States Supreme connection with the over-all subject of "true depreciation." Court in the Wunderlich case that a departmental decision The first was an amendment to DMO 11, by the Office of regarding a question of fact is final, even though arbitrary, Defense Mobilization, placing the sole responsibility upon capricious, or grossly erroneous. The Legal Committee rec­ the Department of Defense for making determinations of ommended a revision of the Disputes Clause contained in "true depreciation." A second development changed the the Armed Services Procurement Regulation so as to over­ concept of "post-emergency usefulness" of an emergency come the effects of this decision. Subsequently, the standard facility. This change provided that one of the principal Disputes Clause was amended to the satisfaction of the air­ considerations, in making determinations of "true depreci­ craft manufacturing industry. ation," should be the potential use value of the facility to Other industry groups, however, sponsored legislation the particular contractor concerned after the emergency which went considerably beyond what the aircraft manu­ period. This committee had endeavored to have this con­ facturing industry considered necessary, and as a result the cept spelled out in the original Directive. A third develop­ McCarran Bill (S.24) was introduced and passed by the ment was an amendment to the DOD Directive and pro­ Senate. At hearings held by the House Judiciary Commit­ vided that "whenever a major portion of the cost of facili­ tee, a representative of the aircraft manufacturing industry ties in substantial amount is to be reimbursed to a con­ appeared and testified in opposition to S.24 in its then ex­ tractor as an element of product prices during a relatively isting form. Thereafter, a task group of the Legal Commit­ short period, it will be expected in appropriate cases that tee in cooperation with other industry groups, the General consideration will be given in negotiation to protecting, by Accounting Office and the Department of Defense, worked appropriate agreement, the Government's interests in the out a substitute for the language contained in the revision continued availability of the facilities for defense use." Al­ of S.24 as passed by the Senate. This substitute was ac­ though a similar provision had appeared in the original cepted by both the House and the Senate. draft of the Directive, subsequently deleted because of un­ certainty as to its meaning and effect, this provision has Cost-Reimbursement Type Contracts been interpreted by the services as merely expressing in the In cooperation with the Accounting and Controllers Com­ Directive the authority which the military services already mittee, the Legal Committee has participated in discussions have. on unsatisfactory provisions contained in certain clauses prescribed for use in cost-reimbursement type supply con­ Engineering Change Procedures tracts. This Committee prepared a brief for presentation Though partially remedied by the increase from $1,000 to the Department of Defense urging a reappraisal and re­ consideration of certain provisions contained in such to $10,000 in the authorization to a prime contractor for clauses. the settlement of claims of suppliers and the concomitant authority to dispose of excess property, this Committee is Payments to Issuer of Tax Exempt Obligations still concerned with the financial aspects of engineering changes. Accordingly, several meetings have been held with In conjunction with the Accounting and Controllers Committee, this Committee prepared and filed a statement Air Force personnel for the purpose of endeavoring to with the Senate Finance Committee opposing a provision of facilitate the handling of these matters. At the present time, the Internal Revenue Code of 1954, which would have re­ the procedure followed by the Navy in connection with sulted in the non-deductibility of rental payments to any engineering changes is also being reviewed by the Procure­ state or municipality for use of facilities acquired or im­ ment Regulations Subcommittee of this Committee. proved from the proceeds of industrial development reve­ nue bonds. (See Accounting and Controllers Committee Other Problems Report on this matter.) During the past year this committee has considered numerous other problems such as: bailments, war damage California Personal Property Tax insurance, pension and retirement plan costs, engineering In view of the legal aspects and proceedings which have service contracts, retention of contract records, civil defense arisen and will arise with respect to the assessment by cer­ costs, security costs, interest costs, Government-furnished tain counties in the State of California of a tax on personal property and renegotiation. property in the possession of contractors which is incorpo­ rated in articles sold to the Government, this Committee, LEGAL COMMITTEE the Tax Committee, and the Accounting and Controllers Committee, have been active in all matters pertaining to The membership of this Committee consists of the prin­ this problem. (See the Accounting and Controllers Com­ cipal legal officer or counsel of the member companies. mittee Report.)

10 Tax Clauses for Fixed-Price Contracts agencies to provide for adequate titanium production facili­ In conjunction with the Accounting and Controllers Com­ ties. The actions taken indicated that, in view of the many mittee, this Committee also was concerned with the legal uncertainties existing with respect to the use of titanium, a aspects involved in the proposed revision by the Depart­ reasonably adequate program had been set up. As a con­ ment of Defense of the tax clauses for use in fixed-price sequence, the Materials Committee's principal activity with contracts. (See Accounting and Controllers Committee Re­ respect to titanium has been to report estimated require­ port.) ments and to find a practicable method for disposal of scrap. Other Pmblems Aircraft Production Resources Agency In cooperation with the Accounting and Controllers Com­ On 30 March, 1954, the Department of Defense issued a mittee, the Legal Committee has been concerned with prob­ formal charter for this important materials agency. This lems relating to the legal liability of contractors under bail­ action, which assures the continued existence of APRA, fol­ ment agreements, various problems of subcontractors, the lowed a Materials Committee recommendation for the con­ retention and disposition of records, the various aspects of tinuance of such a joint services agency. The committee accelerated amortization (true depreciation) as an item of continues to work closely with APRA, concentrating at this cost in pricing, state personal property taxes, problems aris­ particular time on assessment of M-Day materials require­ ments. ing under the Renegotiation Act of 1951, letter contract problems, flight risk insurance clauses, and problems arising Military Specification for Preparation of Bills of Ma­ under terminated contracts. terial-MIL-B-8659 A ( ASG)

MATERIALS COMMITTEE The Aeronautical Standards Group, representing the USAF and the Navy (BuAer), issued this specification on 29 Availability of materials has presented no particular prob­ April 1954. The newly issued specification incorporates the lems to the Materials Committee during the past year, ex­ Materials Committee's previous recommendations, which cept in "spot" instances where delayed placement of con­ emphasized reporting practices adapted to the materials tracts, having schedules inconsistent with lead times, cre­ procurement and control systems in use by the various mem­ ated unsatisfactory material delivery situations. Since there ber companies. By having one document control the con­ were no major availability problems, the Materials Commit­ tent of all aeronautical Bills of Material, member com­ tee concentrated on the materials aspect of mobilization panies can achieve savings through use of a standardized planning, working with the Department of Defense, the procedure. military services, the Aircraft Production Resources Agency, _ The ~aterials Committee presently has the following ac­ the Office of Defense Mobilization, and the Business and tive proJects: Defense Services Administration, Department of Commerce. I. To obtain further simplification of the Defense Defense Materials System ~aterials System (DMS) by urging wider adoption m DOD and APRA of the "significant item" ap­ On April I, 1954, the Department of Commerce issued proach in alloting controlled materials. DMS Regs. I and 2 which established a revised and simpli­ fied Defense Materials System. The simplified DMS is es­ 2. To bring about amendment of Bills of Material sentially a preparedness measure in that it provides for a Specification MIL-B-8659A (ASG), to eliminate the "framework type of materials control system" which will be Navy requirement that a Consumable Maintenance in operation and constitute the basis for an orderly, rapid List be included in Bills of Material; also, to ac­ complish other minor amendments. expansion of production in the event of a new emergency. Because of the confusion and delays caused by the lack of 3. To help establish accurate data as to the amount of adequate materials control system in both the World War Aircraft Procurement Dollars ultimately going to II and the Korean buildups, the Materials Committee early Small Business. this year recommended to the ODM and the Department of 4. To assist the Department of Defense in the devel­ Commerce that a framework control system be kept in use opment of a specification for Identification Mark­ and suggested simplified procedures to be incorporated. The ing of Materials at the producing mill. new BDSA Reg. I and 2 embody a large portion of these recommendations. Because further simplification is con­ PATENT COMMITTEE sidered desirable and practicable the Committee continues to press for such action through wider application of the This Committee concentrated its activities on the fol­ "significant item" concept. lowing subjects: Titanium Armed Semices Procurement Regulation Section IX The Materials Committee followed closely the actions Early in the year the Patent Committee reviewed a draft taken by private industry and by the cognizant Government of a proposed revision of ASPR Section IX, "Patents and

11 Copyrights." The revision had been prepared by the offices Interchange Agreements Between the United States of General Counsel, DOD, and Assistant Secretary of De­ and Foreign Governments on Technical lnfm·mation fense (Supply and Logistics). Although the Committee sub­ and Patents. mitted a number of detailed recommendations for improve­ A helpful exchange of information on the operation of ment, its principal recommendation was that the draft con­ existing interchange agreements and on the negotiations stituted the best approach which had been made toward for additional agreements was effected by Patent Commit­ providing equitable procurement regulations governing tee members during the past year. patent and copyright matters and showed an understanding The Patent Committee is working on the following ad­ of the interests of both the government and industry. ditional items: In the past six months the DOD and the military services Review of Codification of Military Laws to assess any have reached substantial agreement on a satisfactory revision changes affecting patents, copyrights, and proprietary of Part I, "Patents," and Part 2, "Copyrights," and on a rights; draft of a new Part 3, "Technical Data." How closely the Consideration of action necessary to obtain discontin­ new version follows that previously reviewed by the Com­ uance of use by the Government of contract clauses re­ mittee is not known. Nor is it known what action was taken quiring Contracting Officer's prior approval of Con­ on the Patent Committee's previous recommendations. tractor's payment of royalties; Consequently, it has been urged that industry be given an Study of the question of relationship of Government opportunity for further review and possible comment before Contractor to Patentee; the revised Parts I and 2 of Section IX ASPR become offi­ A follow-up on prospective state legislation on war­ cial. Since the Committee understands that an opportunity ranties against infringement. will be given to review the draft of Part 3, "Technical Data," the review of Parts I and 2 could conveniently take PRESERVATION AND PACKAGING place at the same time. The Preservation and Packaging mailing list continued as Supplementary Sources of Supply the source of industry opinion on this increasingly impor­ In Regulation AF 70-252 the Air Force has stated its tant phase of manufacturing. Because of the emphasis of policy on the establishment of Supplementary Sources of the military services on adequate preservation and packag­ Supply for aircraft and related equipment, but the Depart­ ing and the rapid development of improved methods and procedures, Government specifications involved are subject ment of Defense, the Army, and the Navy do not have to frequent revision. The Association has made contribu­ written policy statements on this important question. The tions to these revisions by transmitting industry views. As AlA has urged that a policy, generally similar to that of the activity in this field increased, it became apparent that the Air Force, be expressed by the Department of Defense so mailing list was not the most effective means of coordinating that similar procurement action by the Army, Navy, and and presenting the industry's opinion; therefore, the Presi­ Air Force will be assured. In view of the close relationship dent of AlA initiated action to form a Preservation and of inventions, patents, technical data, proprietary rights, and Packaging Committee. Nominations of prospective commit­ production by a Second Source, the Patent Committee sug­ tee members were received from twenty-four Aircraft Manu­ gested early this year that the Department of Defense in­ facturers Council members. Eastern and Western Region clude a policy statement on Supplemental Sources of Sup­ organizational Committee meetings were held in October ply in the revised Section IX ASPR, as a Part 4 of the Sec­ 1954, at which a statement of organization, function, and tion. The President of AlA and officials of member com­ operation for the Committee was prepared. A proposed panies, assisted by representatives of the Patent Commit­ membership list and the statement of organization, func­ tee, made several presentations on the subject to policy­ tion, and operation will be submitted to the Board of Gov­ making officials of the Department of Defense. ernors for authorization as a regular AlA Committee under Patent Legislation, 83rd Congress (Second Session) the Industry Planning Service. If the organization of this Committee is approved, the West Coast Specialists' Panel, Public Law 703, Atomic Energy Act of 1954, enacted by which concentrates its activity on problems of preservation the 83rd Congress, contained a highly controversial section and packaging of airframe components and parts, will func­ relating to patents. Because a statement on behalf of AlA tion as an adjunct of the Preservation and Packaging Com­ was already on file, no representations were made by the mittee. Patent Committee at this year's hearings on the bill. Since The more important projects in the Preservation and more member companies are entering the Atomic Energy Packaging field are as follows: field, the Patent Committee plans to review in detail the patent provisions of this law at its next meeting. An indus­ MIL-P-ll6c-Preservation, Methods of. try position will be prepared and made ready for submittal MIL-P-7936 (AER)-Preparation for Delivery of to the Joint Congressional Committee on Atomic Energy of Naval Aeronautical Equipment. the next Congress. MIL-STD-129A-Marking for Shipment and Storage.

12 MIL-D-6054 and 6055-Reusable Metal Containers. program of close cooperation and interchange of technical Proposed Military Specification, Crates: Wood, Open, information among members. Subcommittee procedure, Domestic (for lightweight, bulky airframe items). through which the combined recommendations of several Proposed Military Specification, Packaging of "0" highly trained and experienced specialists are made avail­ Rings. able to all committee members, was used effectively. In this manner improved procedures, which would have been diffi­ INDUSTRIAL RELATIONS ADVISORY cult to develop through individual company action, have COMMITTEE been made available to all member companies. An equally important aspect of the Quality Control Com­ Taft-Hartley Act mittee's activity was the liaison with the inspection and Although the last Congress made no changes in this labor­ quality control divisions of the DOD and the military serv­ management legislation, the Legislative Subcommittee of ices. Throughout the year the Committee reviewed existing IRAC has continued to study the various amendments to or proposed Government specifications and bulletins and the Act in anticipation of activity in this area when Con­ submitted recommendations based on cumulative industry gress reconvenes. experience with specific inspection procedures involved. Fol­ lowing the precedent of the successful joint military serv­ Selective Service ices-industry session at the committee's national meeting last At its national meeting in April 1954, the Committee year, the Committee has planned a similar meeting for No­ authorized the Selective Service Subcommittee to review the vember 1954. The direct exchange of ideas and points of Selective Service problems in the industry and to make ap­ view made possible by the joint meeting gives a mutually propriate recommendations which were approved by the clearer understanding of the inspection problems faced by whole committee. Thereupon, letters were sent by Admiral both Government and industry, and enables the representa­ Ramsey to the Department of Defense, the Office of De­ tives concerned to make better progress toward acceptable fense Mobilization, the National Appeal Board, and the solutions. National Headquarters of Selective Service, setting forth Typical specifications and bulletins on which recommend- the areas in which administrative changes were needed and ations were submitted are listed as follows: making recommendations as to the nature of these changes. MIL-T-5021, Welding Procedure Certification Test; Surveys and Research Activities Identification Marking of Metals (still in process); MIL-C-6021B (ASG), Classification and Inspection of Staff has been increasingly active in conducting surveys Castings (for aeronautical applications); covering wages, fringe benefits, and other company policies Proposed ANA Bulletin for Radiographic Inspection in the industrial relations field. of Aluminum and Magnesium Alloy Aircraft Castings; Non-destructive Inspection of Adhesive Bonds Gointly INDUSTRIAL SECURITY COMMITTEE with ARTC and MMC). The issuance of the President's Executive Order 10501 in The Committee has before it as active projects the fol- December of 1953 made mandatory a number of changes in lowing: the Industrial Security Manual, which is an attachment to Determination of satisfactory minimum acceptance cri­ the Security Agreement signed by all contractors when con­ teria for AN Standard Parts; tracts for classified work are executed. Casting Quality Improvement Program (joint project Several meetings have been held by this Committee with with ARTC); Department of Defense Industrial Security personnel to Development of suitable recommendations to simplify acquaint them with production difficulties and resulting ex­ existing procedures for Government source inspection; pense which could develop unless these security require­ Establishment of adequate inspection criteria to meet ment cl1anges were implemented in an orderly manner. As requirements of Guided Missile development and pro­ a result, some of the suggestions advanced by this Commit­ duction; tee were adopted and others are now under consideration Subcommittee study to increase usefulness of statistical for inclusion in the next revision of the Manual. quality control procedures in aeronautical inspection; As sensitivity in the security field continues to increase, Subcommittee study on development of an inspection numerous changes in regulations, procedures, and forms are specification for large plates, billets, and forgings Goint anticipated indicating that the work of this Committee will project with ARTC). continue to expand. SPARE PARTS COMMITTEE QUALITY CONTROL COMMITTEE This Committee is concerned with spare parts, special In keeping with industry's responsibility for product qual­ tools, test and ground handling equipment; parts catalogs ity, which was re-emphasized in DOD Instruction 4155.6 of and handbooks; Federal cataloging; training aids and train­ 14 April 1954, the Inspection Committee has continued its ing equipment. Committee members represent tl1e entire

18 range of AlA membership-airframe, engines, propellers, ity, highest level of repair, the approximate unit cost, etc. accessories and electronics. The Committee's interests begin After study the Committee submitted its recommendations with the spares programming which precedes issuance of for a few changes in the system. contracts, and extends through planning, spares provision­ ing, production, shipment and related paper work. Purchase of Vendor Spare Parts from Contractors During 1954, forty projects were under study by the Com­ Over the past years the Committee has worked from time mittee. Their status is currently as follows: to time on Air Force-Prime Contractor-Vendor problems Major projects on which action was concluded during involving vendor spare parts and technical data. A panel the year 14 recommended principles and procedures which would im­ prove the handling of these matters to the prime contrac­ Other projects on which action was concluded during tors. the year 5 Major projects on which action has not been con- AMC Proposed Spare Parts Selection Procedure for cluded 16 Support of T.O. Kits

Other projects on which action has not been concluded 5 The Air Materiel Command forwarded for airframe con­ Total___ 40 tractors' review and comment, a copy of a procedure for the procurement of initial support of Technical Order Kits, During the year the Committee concluded action on the made necessary by new funding regulations. The airframe following subjects: companies agreed that the regulation is acceptable although Call Contracts for Spare Parts some minor deviations to meet special situations may be necessary. Various recommendations were made to allow Air Force contractors call contract coverage, contractually and finan­ Mechanical Preparation of Spares Documentation cially, during all twelve months of the fiscal· year. Some of these recommendations were adopted. The industry's recommendation for revision of the Group Assembly Parts Breakdown to permit mechanical prepara­ Contractor Participation in Maintenance of Air Force tion was accepted by the Air Force. Tables of Supply Spare Parts Procedure for R&D Typ·e Contracts Twenty-five member companies are now assisting the Air Force in an effort to improve various tables of supply. Industry members developed and submitted to the Air Force a proposed uniform spare parts procedure for R&D Pricing of Production Lists type contracts.

In answer to an Air Force request for the listing of prices Consolidated Shipment of Low Value "C" Quota Items on spare parts production lists, the Committee resolved that prices would be supplied as soon as possible without de­ The Aviation Supply Office proposed revising delivery laying accomplishment of the original purpose of the pro­ requirements to permit consolidated shipment of low value duction lists, provided that the prices submitted were con­ "C" quota items for airframes. The airframe members of sidered "budgetary" estimates only and not subject to ne­ the Committee unanimously agreed to accept the Navy gotiation by the Administrative Contracting Officer. The proposal. Committee has been advised that the Air Force is now pre­ paring a directive to contracting officers along the lines of Proposed ASO Instruction 5400.10) Airframe Design the Committee resolution. Changes; Procedure for Processing The Aviation Supply Office requested consideration of a Printing and Distribution of Parts Catalogs and Hand­ new streamlined procedure for processing airframe design books changes. The airframe members accepted the proposal with In response to an Air Force inquiry, the Committee de­ recommendations for several minor changes and with the termined that although the matter was basically a military reservation that some individual company requests for de­ responsibility, valuable time could be saved in certain in­ viations might be made. stances by contractor printing of handbooks and catalogs. The following are the major projects on which the Com· Various recommendations for expediting this work were mittee has not concluded action: made to the Air Force and the Navy. BuSandA Questionnaire and Minutes of Navy Spare Proposed Air Force Control System-Program of Dis­ Parts Provisioning Meeting tribution Members of an industry panel are studying the minutes The Air Force asked the Committee to study a proposed of an all-Navy spare parts provisioning meeting which had system for categorizing spare parts to indicate expendabil- been called to standardize and improve spares procedures.

14 Federal Cataloging hers to develop the problem areas in this field which has The Committee reviewed the Federal cataloging plans been expanded as a result of the service tendency of assign­ of the DOD as well as the Services' implementation. For ing responsibility for furnishing handbooks and technical a number of reasons it is believed that some modification of data on vendor items to prime contractors. the general plan for aeronautical products is necessary. Lack of Govemment Furnished Aeronautical Equip­ Questions of cost, delays, reliability and flight safety are ment SpaTes for Field Maintenance of Aircraft of principal concern. The Services and the DOD have re­ Committee studies indicate that the number of airplanes ceived the AlA recommendations and have rejected most out of commission for lack of spare parts is disproportion­ of them. Nevertheless, AlA has been encouraged by its ately high with reference to spare parts for Government membership to continue its efforts to improve the plan. furnished equipment. Although the subject is being given Navy Spare Parts PTovisioning Pmcedure further study, preliminary representations are being made The Committee proposed three major areas of revlSlon to the Air Force. in the Navy Spare Parts Provisioning Document and offered Stocking Gmund Support Equipment at End Article to assist. Prime Depot Provisioning Document foT Special Support Equip­ The Committee has recommended to the Air Force that ment product support would be improved by stocking ground The proposed Air Force provisioning document was support equipment at the depot where the airframe spares studied by the Committee which endorsed the document's are stocked. This could be aided further if procurement, philosophy and intent and recommended some revlSlons. etc. could also be accomplished there. Discussions with the The Navy also is developing a provisioning document for Air Force are continuing. this equipment, but it has not yet been coordinated with AlA Pmposed Revision of AFR 67-86, Supply Support the industry. For Aircmft Test Progmms Centml Authority over Special Ground Support The Committee has made a series of recommendations Equipment to the Air Force for the revision of this document. The In one of its most important areas of effort the Com­ Air Force has replied that the regulation is being rewritten mittee continued to urge the services to centralize procure­ to incorporate all industry suggestions. The Committee ment authority over the various types of equipment coming also is making recommendations that the Air Force develop under this heading. Considerable progress has been made. a contractual document covering aircraft development test program procedures rather than the present intra-Air Force Rating Contractors on Spare Parts Delinquency manual currently issued for this type of information. From time to time the Committee has advised the Air Hi-Valu Items Applications Summary Force that its system of rating contractors (and depots) on the basis of spare parts delinquencies was not accurate The Bureau of the Budget referred this subject to AlA or realistic. The Air Force is working on the industry for comment. The documents involved, namely MIL-H- request for a more equitable system. 8729 (USAF), AMS Form 250, and Amendment 3 to MCP 71-649, are under Committee study. The Committee's first Tardiness in Approval of Change Orders and Pay­ advice to the Bureau of the Budget has been favorable to ments the hi-valu program, but additional time to study the pro­ This is another important item on the Committee's posal has been requested. docket. Both the Navy and the Air Force have recently taken steps to cut down the time needed for approval of STATISTICS AND REPORTS COMMITTEE spare parts exhibits and for contractor's receipt of payment for shipments made. The Navy portion of this item is still During the past year the Statistics and Reports Commit­ under committee study. tee continued its efforts to reduce to the minimum the number of reports required by tl1e Government from the Discontinuance of Provisioning Parts Breakdown after aircraft industry, and in doing so has worked closely with Provisioning the Bureau of the Budget, the Air Force, the Navy, the The Committee recommended that the PPB should not Bureau of Census, the Bureau of Labor Statistics, the Ad­ be required to be kept up to date after spare parts selec­ visory Council on Federal Reports, and with similar com­ tion has been made by the services. This recommendation mittees or groups in other industries. is now under consideration by the services. As a result of the Committee's activities, 22 reporting requirements or proposed requirements were either dis­ Air Force and Navy Pmcedures on Preparation, In­ approved or withdrawn by the sponsoring Government spection and Approval of Handbooks and Parts agency during the first six months of the year. In tile case Catalogs of II reports approved or reapproved during the same peri­ A panel has submitted various questionnaires to mem- od, the majority reflected Committee recommendations.

15 Stemming from a Committee suggestion, the military cidedly favorable. Research work has been initiated for a services prepared and issued during the past year the first new edition to be published at a yet undetermined date. "reporting systems" guide specifically designed for the con­ tractor, i.e., the AMC Guide for Air Force Contractors on "The Aircraft Industry and Its Effect on the National the use of Air Force Industrial Equipment Reports. Efforts Economy" are now being made to have the use of this technique ex­ At the request of the Public Relations Service, the S & R tended into other reporting areas where clarification ap­ staff undertook during the year a survey of the effect of the. pears necessary. aircraft industry on the national economy. Drafts of four chapters have been completed and forwarded to Public Hoover Commission "Task Force on Paperwork Man­ Relations for review and comment. agement" Statistics The Committee is assisting this Task Force in its study of the large volume of paperwork and record keeping re­ In addition to the ninth issue of the "Financial Situation quired of business by federal agencies. Working groups of the Airframe Manufacturing Industry," the S & R staff within the Committee now are studying the "reports con­ continued publication of the series on civil aircraft ship­ trol" and "records retention" areas to develop an industry ments, labor turnover, and average hours and earnings. recommendation. Deadline for submittal of this recom­ During the year, two new series were instituted, viz., "Em­ mendation is January 1, 1955. ployment in the Aircraft and Parts Industry" and "Aircraft Procurement: Obligations, Expenditures by Month." Standard Industrial Classification Manual All Committee recommendations on a suggested revision TAX COMMITTEE of Major Industry Code 372, "Aircraft and Parts," have been accepted by the Advisory Council on Federal Reports The membership of the Committee is composed of com­ save that which establishes a "Guided Missiles and Missiles panies in the Western Region of the United States, the Equipment Systems" industry as Industry Code 3725. A majority of such companies being located in the State of dissent to and appeal of this decision will shortly be for­ California. Accordingly, though concerned with over-all warded to the Bureau of the Budget. tax problems, the principal concern of this Committee is with respect to state and local tax matters. Air Force Facilities Contract Reporting The matter of principal concern during the year 1954 At the request of the Budget Bureau and the Advisory was with respect to the personal property taxes assessed Council on Federal Reports, the Committee has been study­ by certain counties in the State of California with respect ing the extent of, and problems connected with, reporting to property in the possession of contractors for incorpora­ on Air Force Facilities Contracts. Industry representatives tion in an end item sold to the Federal Government. The have recently been appointed to an ACFR panel aimed at members of this Committee consulted with and furnished simplifying and reducing the paperwork in this area. advice to the members of the Accounting and Controllers Committee and the Legal Committee in connection with "Aviation Facts and Figures" the various ramifications involved in this problem. Other The 1953 edition, published last December, brought up matters handled by this Committee were primarily of a to date the material in the 1945 edition, and extended into local nature, as affected by the administration of state and areas not covered at that time. Trade reaction was de- local tax laws and regulations. TECHNICAL SERVICE

Through its various technical committees, the Technical of procurement through a single prime contractor has been Service has served as the channel through which the indus­ largely overcome. The Air Force has issued policy state­ try-wide engineering policies and programs are imple­ ments and implemented these by directives, such as AFR mented and through which collective action has been taken 20-12, whicl1 indicate the important role the equipment on companies' mutual problems of research, design, develop­ manufacturers are to play in the continued development of ment and manufacturing. aeronautical accessories and equipment. Further clarifica­ Of particular note in the Technical Service's program tion and delineation of the Air 1\hteriel Command-Air has been the added emphasis on cooperative activities in Research and Development Command relationships also the accessory and equipment fields. Due to wide diversity of interest it has taken several years to evolve the optimum served to alleviate some of industry's problems. organization, scope and operating procedures to best serve Titanium Use Evaluation the needs of the equipment manufacturers. Further efforts are being made to integrate the various aeronautical in­ At the request of the Defense Department, AlA con­ dustry segments' activities, particularly in the field of gov­ ducted a survey of its members to determine the advantages ernment specifications and standards, to better serve the and disadvantages of the use of titanium in future aircraft military and to provide a stronger industry voice. and engines. Particularly desired was its impact in terms of Of interest has been the recent establishment of a manu­ performance, weight, size, pay load and cost. While the facturers' technical committee in the Air Industries and data and information compiled have a security classification, Transport Association of Canada with a number of the their evaluation by the Air Force revealed how much the same representatives who were charter members of the use of various amounts of titanium in airframe and propul­ AlA's technical committees some years ago. sion systems would increase performance. These survey data Supersonic Circuit of AEDC Propulsion Wind Tunnel will serve as a general guide to the government in weighing cost of the titanium production program against opera­ As a result of inquiries from the Air Force and the Office of the Assistant Secretary of Defense for Research and De­ tional gains arising from better aircraft performance. velopment, a survey was made of the AlA technical com­ Environmental Requirements and Application mittees to determine the extent to which industry's product­ development needs would require a supersonic circuit in With continuing increases in altitude and speed, the en­ the Arnold Engineering Development Center's Propulsion vironmental conditions under which aircraft and missile Wind Tunnel. Following a review by AlA's Board of Gov­ equipment and systems must function have become critical ernors, industry recommended that the Department of De­ problem areas. Extreme variations in vibration, tempera­ fense complete engineering design studies as well as capital ture and humidity, together with rigid weight and size investment and operating cost studies of this particular limitations, have made it essential to develop new environ­ facility. mental design and testing criteria and to integrate these Procedures for Operation of Unitary-Plan Facilities with the requirements for airframes and missiles and their As the NACA and Air Force Unitary Plan test facilities propulsion systems and equipment. Intensive cooperative near completion, greater interest has been focused on the effort among all segments of industry and the military serv­ method of operation and procedures for scheduling indus­ ices is essential to even keep abreast of the mounting chal­ try test time. A detailed directive has been developed by lenges in this field. the NACA based on an allocation of time between govern­ ment projects and commercial-type projects. The industry Government-Industry Relationship Re Civil Type strongly favors a fee-system of operation of all government Certification facilities intended for development use by industry. The Consideration was given to a proposal by the CAA Ad­ Department of Defense's recent conclusion, therefore, that, ministrator that three alternative methods be evaluated as experience is gained with the new major-test facilities, for increasing the manufacturers' responsibilities in the an effort will be made to develop a suitable budget and civil type certification of their products. It was the opinion funding policy based on a dollar-type "operator-user" rela­ of industry that the CAA should exercise, as its respon­ tionship, is encouraging to industry. sibility under the Civil Aeronautics Act, whatever minimum Weapons System Concept surveillance is required to insure that type and airworthi­ The initial concern of the equipment industry over the ness certificates are not issued by the government for prod­ Air Force's announcement of its "weapons system concept" ucts found to be unairworthy.

17 Senate Bill S. 2647-Proposed Civil Aeronautics Act of been disappointing. A concerted Department of Defense 1954 program should be undertaken to accomplish all phases of In testimony requested by the Senate Interstate and For­ Air Force-Navy standardization recommended by the Fed­ eign Commerce Committee regarding legislation proposed eral Aviation Commission in 1935. by the late Senator McCarran, the industry recorded its Conduct of Military Aircraft Flight Demonstrations views as follows: "The aircraft manufacturing industry's interest in this There is an increasing need for manufacturers to have the legislation pertains primarily to its effect upon (I) the option of conducting airplane preliminary and final flight­ development of safety regulations, (2) the administration test demonstrations at the contractor's facility rather than of safety regulations for the purposes of product certifi­ at central test centers such as Muroc and Patuxent. In addi­ cation, and (3) accident investigation. Insofar as this tion to reducing cost and time, testing at the contractor's industry is concerned, the present Civil Aeronautics Ad­ plant (or a nearby location) also would reduce the poten­ ministration and Civil Aeronautics Board organizations, tial risk that exists in ferrying any new type airplane across their relationship to each other, and the division of their country particularly at an early stage of the program. assigned functions and responsibilities provide smooth Other Projects of Current ATC Interest and efficient instrumentalities in these three fields. The member companies of AlA therefore are opposed to any Operation of NACA and AEDC Unitary Plan Test Facil­ major reorganization of the civil aeronautics structure, ities and urge that any improvements found necessary in spe­ Fee vs Non-Fee System of Operation of Government- cific provisions of the present Act be incorporated in it Owned Test Facilities through amendment." Machine Methods for Tabulating Weight Data Legislation re Civil Aeronautics Act Nominations for NACA Committees Symposium on Aircraft Powered Flight Controls This year, as in previous years, the Aircraft, Engine, ACC Policy Report on Civil Aviation Propeller and Rocket Technical Committees submitted nominations of their respective company engineering spe­ AIRWORTHINESS REQUIREMENTS COMMIT­ cialists who are outstandingly qualified and available for TEE (ARC) selection by the NACA to fill vacancies on the latter's tech­ nical committees. The past year has seen an increase in activity applied to military airplane design requirements, including review AIRCRAFT TECHNICAL COMMITTEE (ATC) and recommendations on the following: At its national meeting in May the ATC devoted pri­ MIL-S-5700 (USAF)-Air Force Airplane Structural Cri­ mary attention to a detailed review of the scope and activ­ teria and Strength Test Demonstra­ ities of its various subcommittees to insure efficient and tions. effective service. During the past year the following items MIL-F-8785 (ASG) -Air Force and BuAer Criteria on have been considered: Airplane Flying Qualities. Air Force Aircraft Flight Loads Policy MIL-A-8629 (Aer) -Navy Specification on Airplane Strength and Rigidity. The Air Force has been urged to reconsider its policy MIL-STD-203A -Air Force and BuAer Requirements on flight-loads measurements on all new aircraft designs. on Cockpit Controls. The amount of instrumentation needed and the number The separate areas of aircraft industry interest, namely of flight conditions to be investigated should be negotiated transport, helicopters and utility aircraft, have been dealt with each contractor, taking account of the external con­ with by divisions of ARC as follows: figuration of the airplane and its performance as compared with previous designs. This procedure would result in the ARC TRANSPORT COMMITTEE least cost and disruption of production while still accom­ plishing the purpose of insuring aircraft of satisfactory Turbine TransjJort Regulations structural integrity. The Committee assumed leadership in developing pro­ Air Force-Navy Standardization of Airplane Design posed turbine transport airworthiness regulations which Requirements were discussed at the September 1954 Civil Aeronautics Notable achievement in standardization of utility parts Board's Annual Airworthiness Review attended by airlines, and hardware items has marked the cooperative efforts of airline pilots and manufacturers, as well as all interested the Air Force and Bureau of Aeronautics. In basic airplane government agencies and representatives of several foreign design requirements, however, and particularly in the countries. As a result, the forthcoming revised Civil Air structural strength and flight-test demonstration areas, the Regulation Part 4b will be more suitable for type certifica­ degree of progress towards uniformity of requirements has tion of new turbo-prop and turbo-jet transports.

18 ICAO Airworthiness Annex 8 transport pilot ratings and helicopter operation rules re­ spectively. The helicopter manufacturers' views on these Continued inability (since 1944) of the member countries two parts were transmitted to the Air Transport Association of ICAO to reach agreement on international performance for joint presentation with the airlines' views. requirements for transport aircraft prompted AlA to urge the Air Coordinating Committee to reconsider the U. S. Military Helicopter Design Requirements position on all international airworthiness standards. As a The Air Force-Army-Navy MIL helicopter design re­ result, the United States has abandoned the concept of de­ quirements standardization program, sponsored by the DOD tailed aircraft design rules for ICAO adoption, as now con­ Office of Standardization at the recommendation and with tained in Annex 8, and has adopted a new approach ini­ the support of the ARC, has made progress in the past tially advocated by the AlA committees in 1945, namely to year. The military services have reached agreement on the rely upon nation's domestic standards for airworthiness cer­ following basic helicopter design specifications: tification and to adopt only broad objective rules (in ICAO) Transmission Requirements--MIL-T-5955A to permit freedom of international air navigation. Ground Test Requirements-MIL-T-8679 Additional Projects Flying Qualities--MIL-H-8501 Structural Requirements-MIL-S-8698 The Committee also provided industry opm10ns to the CAA and CAB on the following airworthiness rules: Additional Projects Thermal and Pneumatic Boot Ice Protection Systems Rotor Drive Mechanism and Induction System Anti-Icing Emergency Equipment and Procedures for Air Carrier Requirements Operations Flight Test Procedures for Helicopters Reverse Thrust for Landing Distance Determination RTCA Special Committee 63-Helicopter Air Naviga- Smoke and Fire Detectors tion, Communication Automatic Pilot Systems Flashing Rates of Position Lights for Helicopters Approval Procedure for Anti-skid Devices and Installa- Antenna Installation and Performance tions Recommended Location and Actuation of Controls for Load Circuit Connections to Storage Batteries Helicopters Flight Tests and Test Procedures for T-Category Aircraft Stall Characteristics for Jet Transports ARC PERSONAL AIRCRAFT COMMITTEE Powerplant Installation Subcommittee Under the CAA's Regulation Part 410, manufacturers of This subcommittee, which has been the most active in aircraft of gross weight of 6,000 pounds or less may assume the ARC, has worked on the following projects: full responsibility for determination of compliance of their Turbine Powered Aircraft Fire Prevention Manual aircraft designs with the airworthiness requirements in CAR Structural Criteria for Turbo-Prop Engines Part 3. Companies operating under this delegation-of­ Turbo-Jet Specification Performance Presentation authority have been fully satisfied with the system from the Jet Engines for Missile Application standpoint of reduced government supervision, reduced Turbine Engine Installation Data List costs and time delays. Emergency Fuel Systems Turbine Engine Fuel Controls and Inlet Screens Civil Air Regulation Part 3 Engine Starting Systems The Committee has continued its review of the CAB's ainvorthiness rules to recommend deletion or changes ARC HELICOPTER COMMITTEE wherever the rules do not add significantly to safety. These regulations now have become stabilized and satisfactory Increased airline and military interest in multi-engine administration has been worked out with the CAA. helicopters eligible for commercial certification has speeded the development of airworthiness rules for a transport cate­ Additional Pmjects gory. While single-engine helicopters (below approximately Cockpit Visibility for Non-Transport Aircraft 20,000 lbs. gross weight) would be eligible for limited sched­ Flashing Rates for Position Lights uled passenger operations under contact conditions, all­ Approval of Oxygen Systems weather operation would be restricted to multi-engine Minimum Fuel-Oil Ratio Requirements helicopters having positive performance with one engine Landplane to Seaplane (Conversion) Maneuvering Load inoperative. The industry participated actively in the Factors CAB's Annual Review of Part 6 and continues to assist the CAA in developing the new T-Category rules. AIRCRAFT RESEARCH AND TESTING COM­ MITTEE (ARTC) Helicopter Operation Rules In June 1954, the Civil Aeronautics Board held public Activities of the Committee continued to be directed hearings on proposed Parts 21 and 46 covering helicopter toward reducing duplication of effort, exchanging informa-

19 tion, and representing the airframe manufacturers on mat­ midity and vibration associated with high speed, high alti­ ters of research and testing as applied to structures, sys­ tude and precision flight have not been adequately defined, tems and installations, materials and testing. This program yet the equipment manufacturer must provide reliable, was assisted and advanced largely through ten regional light-weight, high performance designs on a competitive meetings held at members' plants. basis. Further complications stem from the frequent varia­ tion in the implementation of government policies on GFAE Cooperation with Military Services and CFE and the experimental-design demands of numer­ At a meeting with the Air Force plans were completed ous prime contractors for similar but non-interchangeable for a joint program with the military services to discuss components. The AETC is endeavoring through close high-temperature materials, structures and equipment, and collaboration with the military services and with the air­ use of sandwich construction in primary structures. Plans frame, missile and engine manufacturers to establish recog­ were also completed for joint sponsorship with the Air nition of the equipment industry's needs from the procure­ Force of the Sixth Transparent Materials Conference in­ ment as well as the technical standpoint so that solutions volving the government, the aircraft industry and the to these basic problems can be reached. materials-producer industries. Presentation at AETC Meetings ARTC Publications Presentations at AETC meetings by key military and Two reports in the AlA series of technical publications industry representatives on problems affecting the equip­ were issued: ARTC-7, "Aerodynamic Flutter Derivatives of ment industry included: a Flexible Wing with Supersonic Edges," and ARTC-8, "Tentative Requirements for Transparent Plastic Enclosure Weapons System Concept Materials." Another report ARTC-9, "Instruction Manual Equipment Operational and Maintenance Problems for Materials and Processes, Punched Card Subject Index­ Item Description per Federal Catalog Program ing System," was released for printing. National Aircraft Role of the Equipment Industry in Atomic Aircraft Standards, NAS 556, was issued in Specification for Spot Development and Seam Welding of Commercial Pure Titanium." Service and Applications Engineering Development Research on Materials and Processes The Powerplant Control Subcommittee The airframe industry's position was established and rec­ The Powerplant Control Subcommittee, representing all ommendations made on a number of structures, materials, major control-system manufacturers, cooperated with the processes and equipment installation subjects. Recom­ military services, NACA and manufacturers of engines, air­ mendations were made to NACA on flutter research, to frames and missiles in defining and initiating research on SAE on specifications for new materials, to the military current problems in the areas of advanced performance, services on plastic, titanium and lubrication materials, to reliability and maintenance. Other active projects include the services and other industries on forgings and castings, simplification of emergency controls, requirements for sepa­ and to the Department of Defense on future needs for rate power supply for controls, and control cooling. materials and processes. Administrative Engineering Subcommittee Additional Projects An Administrative Engineering Subcommittee was estab­ A large portion of Committee activity was conducted in lished to facilitate equipment manufacturers' cooperation specialists' subcommittee programs, some of them in con­ with the military services and other segments of industry. junction with other AlA committees, such as the Inspection Major effort was directed towards simplification and clarifi­ Committee and the Manufacturing Methods Committee. cation of the engineering-change procedures, Federal Cat­ Included were such subjects as structural fatigue, rain­ aloging program, drawing and data-list requirements and erosion coatings, inspection standards for plates and billets, replacement of van dykes by microfilm. high temperature hydraulic fluids and metal-to-metal ad­ hesives. Recommendations were also made for establish­ Auxiliary Power Subcommittee ment of a subcommittee on flight-test instrumentation. With the continuing increase in the use of auxiliary turbine power sources for alternator drives, compressors, ACCESSORY AND EQUIPMENT TECHNICAL pumps, starters and other functional equipment in aircraft COMMITTEE (AETC) and missiles, the AETC established a special subcommittee The problems of the equipment manufacturer have been in this field. Covering both "air breathing" and "non-air complicated by shifting policies of the government regard­ breathing" units, the subcommittee was organized to assist ing the role and responsibility of the equipment industry the military services in developing suitable MIL specifica­ and its relationship to prime contractors. tions so that procurement no longer need be made by devia­ From the standpoint of technological development, the tion from the basic turbine engine (prime mover) specifi­ extremes of environmental conditions of temperature, hu- cations. 20 Other Product Subcommittees Tube Requirements Primarily concerned with review and comment on gov­ Tube requirements for aircraft, missiles and supporting ground equipment have been defined to assist government ernment standard~ and specifications, the following sub­ committees complete the organization of the AETC: agencies in tube research and development programs. In addition, recommendations have been prepared and sub­ Engine Pad and Drive Subcommittee mitted on inspection instructions for electron tubes. Pump Subcommittee Electrical Equipment Subcommittee Committee Liaison Shock Strut Subcommittee Close liaison has been maintained with 25 government Instrument Subcommittee agencies and industry committees interested in electronics. Hydraulic & Pneumatic Subcommittee An Electrical Connector Symposium was sponsored jointly with Radio-Electronic-Television Manufacturers Associa­ ELECTRONIC EQUIPMENT COMMITTEE tion. (EEC) ENGINEERING CONTRACT REQUIREMENTS The activities of this Committee have kept pace with the COMl\HTTEE (ECRC) tremendous increase in the use of electronic equipment. As an example, the Air Force has stated that about 60% of This new activity, established by A TC, is concerned with the total cost of a modern bomber and 75% of the cost engineering-change negotiation procedures and technical of a missile were for electronic equipment. The activities data requirements applicable to airframe manufacturers' of the EEC, therefore, have been directed toward standard­ military contracts. During this first year of operation, the ization of components, increased simplicity and reliability, Committee's procedures and scope of activities have been improvements in performance and reduction of weight. approved and the following subjects considered: Assistance to Parts Suppliers Drafting Panel The Committee has developed a more precise definition This Panel has been active in reviewing 20 military of the technical requirements for the component parts of specifications and standards for compatibility with indus­ electronic equipment. The utilization accelerated the de­ try's drafting practices. Recommendations are currently velopment of parts capable of reliable performance in being presented to the government. extremes of environment of aircraft and missile operation. Implementation of ANA Bulletin 390 Parts-Approval Procedure Through Committee efforts the Navy's implementation Because specifications have fallen behind development, of the engineering design-change bulletin has been revised over 80% of all electronic parts in complex military equip­ and Record Class II changes deleted, thus preventing delay ment is non-standard. A major Committee effort, therefore, in release for production. has been initiated to simplify the military services' pro­ cedures for approving each application of a non-standard General Specification for Aircraft part and to expedite release of government specifications At the Air Force's request, the Committee is currently for advanced part designs. preparing comments on a new revision of R-1800-E in the MIL series of specifications. Assistance to Military Services Detailed engineering recommendations were submitted Design Data Requirements to the Department of Defense on specifications for elec­ Currently under study is the consolidated listing of all tronic systems installation and test, for electronic equip­ design-data requirements, which are largely responsible for ment design, characteristics of aircraft electrical power, the excessive costs and duplication of engineering data re­ operations handbook, reference designations, symbols, selec­ quested by the services. tion and application of materials and processes, and re­ quirements for numerous components and parts. Aircraft Service Instructions NAS Standards At the request of BuAer, the Committee is reviewing the general requirements for preparation of aircraft service Industrial requirements for electronic equipment com­ instructions and will forward comments for the Navy's ponents not covered by government specifications, were consideration. defined in NAS specifications for miniature capacitors, I5o•c and 20o•c wire, and miniature turret terminals. Manufacturers' Part-Drawing Numbering Systems Final coordination of NAS standards for solenium rectifiers, The Committee has advocated the use of manufacturers' precision variable resistors, radio noise filters, precision part numbering or drawing systems in the military program high temperature resistors, tube sockets and shields and of item identification as opposed to non-significant num­ miniature screws is in process. bering.

21 ENGINE TECHNICAL COMMITTEE (ETC) subcommittees or panels, with the work continuing into next year: Primarily the ETC has been concerned with the military High-speed Hydraulic Pump Drives services' engineering procurement specifications for engines Liquid Cooled Alternator Drives and with civil air regulations affecting the design, develop­ Drawings and Data Lists ment and operation of engines. To carry out its programs effectively, the Committee has maintained close liaison with the military services and with the regulatory agencies of GUIDED MISSILE COMMITTEE (GMC) the Civil Aeronautics Authority. The GMC meetings have been held on or near military During the year the Committee took action on the fol­ guided missile test ranges which permitted spending one lowing subjects either directly or through one of its spe­ day of each meeting with service personnel of the test cialist subcommittees: ranges to discuss their operations and other items of mutual Turbo-Prop Engine Specifications interest. Better understanding of the problems of the guided missile industry and of missile testing at service In a meeting with Air Force and BuAer, the ETC ex­ ranges has resulted from this practice. pressed its concern over certain provisions in the MIL turbo-prop specifications which will make it difficult for Missile Reliability the engine manufacturers to predict firm costs or to sched­ The subject of reliability of guided missiles has received ule delivery dates with any degree of accuracy_ Of special the continuing attention of the Committee. This has been concern were the provisions on responsibility for engine­ aided by dissemination of many published reports, data and propeller compatibility, vendor substantiation of compo­ papers which are being put out by numerous organizations nents, and location and control of facilities for engine and individual5 concerned with this general problem. Ad­ qualification testing. vice on this subject has been presented to the Committee by speakers from such organizations as the offices of Assistant Government-Industry Relationship Re Type Certifi­ Secretary of Defense for R&D and Applications Engineer­ cation ing, and the Sandia Corporation. The recommendation of the Committee that type cer­ Test Range Operation tification procedures and civil approvals remain vested in the Civil Aeronautics Administration was in accord with The Committee has made a study of guided missile test a similar resolution adopted by the aircraft companies. range operations and has prepared a suggested policy for presentation to the Defense Department. I£ accepted and Definitions for Turbine Engines put into effect by the Defense Department, this policy Definitions similar to those included in military specifi­ should result in more uniform and efficient operation at the cations have been recommended and accepted by the Civil missile test ranges. Aeronautics Board for civil use. Climatic Test Instrumentation Performance Data for Turbo-jet and Turbo-Prop At the request of the Air Force, an industry survey of a Engines proposed specification on instrumentation installation for This difficult suqject has received considerable study and climatic tests of pilotless aircraft was made. an industry proposal has been offered to the military serv­ ices as a solution to their problem of uniform method of Visit to United Kingdom presentation of engine performance data. A combined military-industry guided missile team paid a reciprocal visit to the United Kingdom. At the request of Ram-jet Engine Specifications the Air Force, the GMC nominated industry members. A new concept, incorporating all design requirements into a single ram-jet engine specification, was prepared and MANUFACTURING METHODS COMMITTEE submitted to the Department of Defense for consideration (MMC) by all services having an interest in guided-missile propul­ siOn. Membership of this Committee is drawn from 51 plants representing 40 AlA member companies. Included are com­ Reciprocating Engine Specifications panies engaged in design and production of air~lanes, heli­ The Committee recommended that the services not con­ copters, missiles, engines, propellers and maJor systems sider further revisions to these specifications that would equipment. MMC is concerned with fabricating techniques, introduce new requirements into reciprocating engine pro­ machining operations, materials forming, assembly opera­ duction programs that are now stabilized. tions, production tooling, joining methods and equipment to perform these operations. Additional Projects To better serve the wide diversity of interests resulting The following subjects are receiving major attention by from its composite membership, the Committee revised its

22 directive to supplant regional operations by national oper­ NATIONAL AIRCRAFT STANDARDS COMMIT­ ations with panel activity on specific end products. TEE (NASC) The major concern of the Committee was the develop­ ment of policy and guidance for its panels with mobiliza­ Originally limited to airplane manufacturers' problems, tion readiness continuing to be of foremost significance. the activities of this Committee have been expanded to in­ Detailed work was conducted through panels on tooling (26 clude the standardization problems of helicopter and guided members), mad1ine tools (24 members) and conservation missile manufacturers. Typical of Committee activities dur­ (24 members). During the year the Committee and its ing the past year are the following: panels held 16 meetings, most of which were at members' National Symposium on Titanium Standard Parts plants, and made twenty-one industry surveys. Four Na­ tional Aircraft Standards were revised, two new standards The development of titanium and its application to air­ issued and 21 others initiated. More than 75 reports on craft design has grown in significance and recently, under non-proprietary manufacturing developments were ex­ NASC sponsorship, attention was focused on titanium ap­ plication to aircraft fasteners and standard parts. More changed during the year. than 350 engineers heard technical papers presented and Machine Tool Panel participated in discussion of titanium production, fabrica­ The Panel met six times during the year. Three of the tion, aircraft applications, and the government's plans and meetings were with representatives of the machine tool program. building industry and the military services. Aircraft Bearings Major effort was devoted to the establishment of standard specifications for cutting machines including knee and bed NASC has stressed the importance of design data for mills, horizontal boring mills, skin and spar mills and con­ spherical bearings and the need for realistic standards and touring mills and forming machines including presses, and specifications. A review of the problem with the services stretch formers. While this program was initiated to solve and bearing manufacturers has resulted in agreement on a peace-time production problems, the standards developed program to achieve our objectives. Action on a similar will be valuable to the Department of Defense's 100-million problem with helicopter anti-friction bearings has been re­ dollar tool stockpiling program. quested of the services. Other projects included electrical wiring standards for Integral Fuel Tank Sealants machine tools, availability of special machine tools and standardization of spar cap terminology. The problem has been to get material satisfactory for field use in all aircraft. Through service-industry meetings, Tooling Panel specification requirements and testing procedures have been The Panel met three times during the year to handle a developed to assure qualified products. work program consisting of 15 projects and related activi­ High Strength Quick Release Fasteners ties. In addition, two meetings were held with representa­ tives of the drill-bit manufacturing industry. Through NASC, aircraft manufacturers' design require­ The major portion of Panel work was conducted through ~ents were standardized into a specification, which pro­ subcommittees, including establishment of standards for VIded fastener manufacturers with the necessary informa­ drill-bits, publication of a 200-page report on machinery, tion from which to develop the new fasteners needed for assembly tools and parts configuration for honeycomb fab­ stressed panels of high speed aircraft and missiles. rication, initiation of development work on 15 standards Council for Military Aircraft Stanrlm·ds for tooling components and standardization of tool holding fixtures for interchangeability purposes. This program combines NASC efforts with those of the Other projects included revised NAS optical tooling com­ military services (WADC, ARDC, AMC and Hq., USAF, to­ ponents standards, new NAS standards on optical tooling gether with ASO, NAMC and BuAer, as well as ASG) to de­ and terminology for masters, materials formability, forming. velop specifications and standards. Currently there are and straightening methods. about twenty active projects covering such items as stand­ ardization of electro-mechanical actuators, blind rivets, sup­ Conservation Panel port clamps, fuel tank fittings, torque-tension relationship The Panel held four meetings on materials handling and of fasteners, magnetic permeability of standard parts, and utilization problems. These meetings were a valuable means bolt and nut simplification. for exchanging conservation ideas, methods and philoso­ phies. Coordination of Government Specifications A conservation handbook, prepared by the Panel, was During the past year approximately one hundred military published in November 1953. Because of highly favorable specifications and standards were coordinated with industry, reception by both Government and industry, plans were through NASC, and recommendations submitted to the made to keep the Handbook up-to-date through periodic services for consideration prior to specification release. Sub­ supplements. ject matter of these documents included materials, processes,

23 electrical items, fasteners and other hardware, fuel systems, Propeller Airworthiness Regulations hydraulics and servicing connections. The Committee has participated in the CAB's Annual Re­ Defense Standardization Program view of the Civil Air Regulations and is cooperating with The Department of Defense has recently released its the CAA in revising and modernizing the manual pertain­ standards and specifications policy directive which requires ing to propeller airworthiness certification. conversion of all departmental specifications to the military or federal series by 1 July 1955, and the integration of Availability of Turbo Prop Engines for Propeller standards under a planned group. The activities of NASC, Development Testing particularly its program of coordinating government speci­ Through past efforts of the Committee, there has been fications and standards, as well as the CMAS program, will some relief in this field and it is expected that difficulties in be affected by this action. this regard will ease. Aircraft Metals Stock List Noise Reduction Program For the past eight years NASC has maintained a current list of aircraft metals, both alloys and sizes, which are The Committee has continued to study ways and means stocked by warehouses for aircraft use. The stock list was for reducing propeller noise and has coordinated its activ­ again reviewed by aircraft manufacturers together with sup· ity with the Noise Control Committee. pliers and warehouse representatives at NASC meetings and the 1954 issue released. This program has stimulated inter­ Additional Projects est in a similar activity among the engine manufacturers. Representatives of the propeller manufacturers have also It appears possible that some time in the future the two participated in joint subcommittee action with the ETC to lists may be combined into a common stock list for both define industry needs on preferred material gauge sizes, airframe and engine manufacturers. drawings and data lists. National Aircraft Standards More than sixty new standards and revlSlons were re­ ROCKET TECHNICAL COMMITTEE (RTC) leased last year in the National Aircraft Standards series. The new standards included involute serrations, toggle Standardization requirements have been completed for switches and quick-release fasteners. basic series liquid propellant rocket engines and the mili­ tary services have recognized work done by the Committee NOISE CONTROL COMMITTEE (NCC) on the Handbook of Rocket Engine Design and Installation Criteria. Other activities completed or being reviewed for Activities of the Committee centered on the technical aspects of mufflers and cells for ground testing and oper­ current and future action include: ation of jet aircraft and power-plants. Review of Environmental Requirements Exchange of Information With other segments of the aircraft industry the Commit­ Periodic meetings were held to facilitate exchange of in­ tee is participating in a review of governmental require· formation. As mentioned in the last report, it has become ments on environmental testing of components. apparent that the initial problem created by lack of infor­ mation (in 1950 when the Committee was formed) has Preparation of Specifications Covering Rocket Engine eased the situation but that the need to keep up-to-date on Components new problems and developments continues. The R TC Components Panel is workino- on the standard· Noise Measurement and Instrumentation IZatwn• • of components now having only specrabzeb • • d a pplica· A new subcommittee was established for the purpose of tions. providing a standard reference-base for the members' measurement equipment through cross-calibration. The sub­ Handbook of Rocket Engine Design and Installation committee will also keep the Committee informed on mea­ Criteria surement and instrumentation problems. A Handbook of Rocket Engine Design and Installation Criteria, initially prepared by the Committee, has been PROPELLER TECHNICAL COMMITTEE (PTC) adapted to the needs of the military services. It is expected From a policy standpoint the activity of the Propeller that it will soon be published as a MIL document. Technical Committee has continued to be associated closely Miscellaneous Specifications with that of the ETC. This results from the similarity of problems and the trend to consider engine-propeller com­ The R TC has reviewed and commented on rocket specifi· binations as a powerplant package. Specialized fields of ac­ cations covering preliminary flight rating tests, fuel tanks, tivity of PTC include: and preparation for storage.

24 PUBLIC RELATIONS SERVICE

Under programs approved by the Public Relations Ad­ specific elements and objectives of the industry's public re­ visory Committee, the efforts of the Public Relations Service lations program were distributed during the year. were devoted to obtaining a better public understanding of air power and aircraft industry progress, and to illustrate AIA-NAEC Aviation Education Program and explain special problems of the aircraft industry and This program, designed to answer the need for classroom its vital role in our national security. Through its offices in materials on aviation in the schools, is now in its second Washington, Los Angeles and New York, Public Relations year and is progressing very satisfactorily. Some measure of serves as the information center for Aircraft Industries As­ acceptance of the teacher-prepared materials developed sociation, and as the channel through which the industry's through this program is the fact that schools and educators policy, programs, accomplishments and problems are inter­ have purchased more than 38,000 copies of the three book­ preted to the public. It maintains close liaison with the lets-HELICOPTERS, JETS and LOOK TO THE SKY public information sections of the Government, including offered for sale during the last school year. Two additional military services, with national organizations, and with booklets are now being distributed along with a free bul­ press, radio and other media of public information. letin of facts and information and a third booklet is in the Among the subjects which have been given special at­ hands of the printer. The booklets being distributed are: tention during the past year by this Service are: the in­ A DAY IN THE LIFE OF A JET TEST PILOT: The dustry's success in reducing the cost of air power to the story of the high quality and safety engineered into American taxpayer, the need for a long·range military air­ U. S. aircraft as reflected in the activities of the test craft procurement program, the importance of active re­ pilot. search and development programs, American leadership in the world air transportation market, the impact of the in­ AIRCRAFT NUMBER 116: This booklet shows how dustry on the nation's economy, the essential role of the an airplane is built and the skilled manufacturing utility airplane as a business vehicle, the development of team needed to accomplish its production. the helicopter, and the quality of American aeronautical products. Industrial Editors Program Because more than 1,900,000 Americans are directly de­ Public Relations Advisory Committee pendent on the aircraft manufacturing industry payroll, in­ During the year, two meetings of the National Public Re­ creased emphasis was directed toward providing them with lations Advisory Committee and two meetings of the re­ up-to-date information on the problems and accomplish­ gional committees were held to discuss policy, programs, ments of the industry in which they play such a prominent and problems. Subcommittees on Aviation Education, part. Editorial Review, the Aircraft Industry Editors' Workshops, The best source of information for these employees is the National Aircraft Show, and Industry Economics were their company publication, the direct channel of communi­ particularly active. cation between employer and employee. During the past year a new program was begun to provide editors of com­ Publications pany publications with industry-wide information. An Ed­ itors' Workshop was held which featured round table dis­ Eleven issues of PLANES, the Association's official pub­ cussion of editorial techniques and ways and means of bet­ lication, were distributed during fiscal year 1954. The ac­ ter telling the industry story to industry employees. The ceptance of this publication by the press and other impor­ workshop was eminently successful and additional work­ tant segments of the public continued at an extremely high shops are planned for the coming year. level. Staff continued to assist the American Legion's air power program by supplying information for the LEGION Information Service AIR REVIEW, a publication of the National Security Com­ mission, and for a booklet entitled "Air Power in an Age of Requests for information from the press, Government Peril". A new reference book of aviation statistics, facts agencies, the Congress, financial publications and a miscel­ and trends, AVIATION FACTS AND FIGURES, was lany of organizations and individuals, plus dissemination printed and distributed during the year. The AIRCRAFT of topical information, have kept all three offices at a high YEAR BOOK for 1953 was issued in January-the 35th edi­ level of activity throughout the year. These offices have con­ tion of this standard book. on American aviation. Several tinued to increase their efforts to develop specially-prepared other booklets and background memoranda dealing with material for radio-television news commentators. A number

25 of appearances were made before important audiences and and other AlA staff members have appeared to present the on radio by the President and Western Region Vice-Presi­ industry story to major Legion audiences. dent of AlA. Cooperation with Other Services Cooperation with National Organizations The Public Relations Service has worked closely with The Public Relations Service has continued to work with other services of AlA, providing counsel and assistance natiorial organizations interested in aviation and air power. where needed and receiving valuable aid in return. The Especially noteworthy has been the work of the American Association's legislative liaison executive and the Research Legion in its program for adequate air power. AlA has pro­ and Statistical section of Industry Planning Service have vided much information for this program and the President been of especial aid to the public relations program.

26 TRAFFIC SERVICE

The Traffic Service is concerned with traffic and trans­ this step which is certain to result in a serious loss of rev­ portation matters, especially government regulations of enue to their members. freight rates and services. It endeavors to secure and main­ tain the lowest lawful freight charges on aircraft materials; Rates on Airplane Parts compiles and distributes information on methods of billing The complaint instituted by the AlA against freight rates freight to assure that the lowest lawful rate is applied; ad­ on airplane parts resulted in a 20% reduction of rates on vises member companies on traffic matters and coordinates such parts when shipped boxed or crated. This reduction, the effort of individual traffic departments of member com­ which became effective August 20, will apply to the move­ panies whenever industry-wide action is required. Effective ment of all airplane parts in carloads, boxed or crated, mov­ representations of the industry's position on traffic matters ing between points in the United States west of the Rocky have saved both the industry and the government millions Mountains. It will effect a substantial saving to the Govern­ of dollars through reductions in freight rates and through ment on spare parts moving from aircraft plants to Gov­ forestallments of proposed rate increases. Details of the ernment installations, as well as between such installations. traffic service activities during the past year are as follows: Although efforts made at the same time to secure reduced Liaison with the Air Materiel Command rates on uncrated airplane parts moving between airplane plants failed, the high rates on such movements have per­ An important development this year has been the con­ mitted the motor carriers to quote the same or lower rates. summation of a plan for close liaison with Headquarters With their superior service, there has been a substantial di­ Air Material Command at Wright-Patterson Air Force Base. version of this traffic from the rails to highways since the The liaison thus established makes possible immediate bene­ complaint was filed. fits to the Air Force and to the Government. Prior to their publication transportation directives which in so many in­ Mixed Carload Rates stances affect aircraft production, are discussed and re­ In the matter of mixing a variety of commodities in a worked so that maximum economy and efficiency can be single car at carload rates, the transcontinental railroads for achieved. several years have maintained substantially more restrictive Increased Rates on Engines rules than obtained east of the Rocky Mountains. Although Throughout the past fifteen years the railroads have tried interest in this adjustment was general, previous efforts to to increase freight rates on aircraft engines, but, through correct it, including a formal complaint before the Inter­ the Interstate Commerce Commission, these efforts have state Commerce Commission, resulted in failures. As no been defeated by showing that through the use of costly industry on the Pacific Coast uses so many different com­ containers and other expensive protective devices these load­ modities in its processes as the aircraft industry, our mem­ ings have been made safe for transportation. Changes in bers have been especially interested in a more liberal mix­ personnel of the Commission brought changes in theories ing rule; hence, when the Pacific Coast retailers filed a respecting these rates and finally increased rates were pub­ formal complaint, it was promptly supported by the AlA. lished to become effective January 15 of this year. Although The excellent favorable decision which was handed down the Department of Defense and the AlA prepared petitions January 7, 1954. After petitions by defendant carriers for for suspension, the Commission refused to suspend the in­ reconsideration were denied, the railroads published the creases. On that date the Traffic Service advised AMC that new rules effective August 2. A petition for suspension was this increase would raise Government freight charges on filed by the freight forwarders on July 22. This was answer­ these items by approximately 60% and recommended that ed by the AlA on July 27 and the Commission declined to all shipments of engines be diverted to motor carriers where suspend. a saving in freight charges could be made. So quickly was It is impossible to estimate the savings in transportation this accomplished that the railroads suffered substantial loss charges which will be accomplished for our aircraft plants of tonnage. As a result the railroads quickly restored the by these changes. Continuously increased savings will be old rates on approximately 80% of the tonnage moved and realized as facilities for using these mixtures are expanded. enabled the Air Force to save approximately 2Y2 million dollars annually. The saving was made possible by the All-Commodity Rates between California and Wash­ prompt action of the AMC and its close liaison with AlA ington Points members. On April 29, 1953, the railroads published what are Although the motor carriers several months ago proposed known as all-commodity rates between California points on to increase their rates for aircraft engine shipments, final the one hand and Oregon and Washington points on the action has not been taken and it is felt that representations other. These rates were of interest to West Coast members made by the Traffic Service may prevent them from taking because they applied to articles supplied by aircraft and

27 other plants in Southern California, to the Boeing plants carriers subject to Board regulation as they develop a fair in Seattle. volume of business. Competing motor carriers petitioned the Commission to As there is no evidence of abuse, AIA members see no suspend the reductions but the latter declined to do so. need to regulate air freight fonvarders, especially in the The Commission, however, instituted an investigation to field of non profit shipper associations. On the other hand determine the reasonableness of these rates. In the course the commercial fonvarders desire regulation in the belief of this investigation AlA testified for the aircraft industry that it will lessen competition, and will improve their com­ in full support of the railroads in publishing their rates petitive position through possession of a "vested right" to which the Commission found not to be unlawful and auth­ such business. orized their continuance. These rates permit of a heavy Although CAB counsel in presentations to the examiner movement of aircraft parts at substantially lower rates than has opposed any idea of vested rights, he has advanced a those the motor carriers formerly applied on this traffic. theory of regulation for non-profit shippers associations which is unnecessary and burdensome, and is an injection Air FTeight Forwarder Investigation of regulation into private business in a manner opposed to In January of this year, the Civil Aeronautics Board be­ the public good. Testimony to this effect has been placed gan hearings in Air Freight Forwarder Investigation, Docket in the record and a brief in support of this position has No. 5947 et al. Because air freight rates generally are been filed with the Board. The proposed report of the ex­ based on a minimum weight of 100 pounds, organizations aminer has not yet been submitted. have found it profitable to consolidate small shipments and Limitation of Motor CarTier Liability tender them as a single shipment to the air carrier. For example, where the air freight rate is $16 per 100 pounds, The motor carriers, through their Classification Commit­ minimum 100 pounds, ten 10-pound shipments tendered tee, have determined to seek from the Interstate Commerce separately would cost $160 in air freight charges. If all were Commission authority to limit their liability for loss or dam­ tendered as a single shipment, the cost would be but $16. age to articles transported, to $3.00 per pound unless ship­ The CAB, under Section I (2) of the Civil Aeronautics pers are willing to pay additional cl1arges. Representations Act of 1938, has found those organizations engaged in the in opposition to this were made by the Traffic Service along consolidating business (designated as air freight fonvarder) with many other shippers. are subject to regulation as indirect air carriers. By a very In addition to these matters, the Traffic Service has held liberal interpretation, the Board has found that voluntary five regular meetings of its Eastern and '<\!estern Regional nonprofit shipper associations organized to consolidate ship­ Traffic Committees. Technical advice is constantly being ments exclusively for their members, also become common supplied, and 133 bulletins have been issued.

28 EXPORT SERVICE

The Export Committee consists of export officials repre­ Several U. S. manufacturers have established European senting 33 AlA member companies. However, Export Serv­ and Japanese licenses to manufacture aircraft in support of ice memoranda are sent on request to 150 individuals in 65 both military and civil interests abroad and others are being AlA companies. negotiated. The United States government has encouraged The Export Committee holds four meetings each year. such licensing as an effective aid to our allies. Following the executive sessions, officials representing avia­ tion interests in foreign embassies and purchasing missions, Export Finance and United States government officials dealing with foreign Amendments to the Export-Import Bank Act during 1954 aviation activities, are invited into conferences. Such meet­ have extended the authority of the Bank to such a degree ings have proven useful. that there are indications that it now may be able to pro­ Foreign Military and Economic Aid vide all the assistance industry might require at present. As yet, however, export officials of AlA member companies have Through the cooperation of Defense Department officials, not been able to get as much assistance as they consider ap­ including Air Force, Navy, and Army, the Export Commit­ propriate. tee has kept in close touch with the aviation aspects of the Although the World Bank has assisted in the financing of military aid program. In the economic aid field this has several large aircraft sales, such assistance is equally avail­ been accomplished largely through cooperation with officers able to suppliers in other friendly countries. of the Foreign Operations Administration, who have taken over the former Technical Assistance Administration pro­ Disposal of Military Surplus gram. The Export Committee is working closely with a Defense During the year there has been substantial improvement Department committee established to regulate the disposal in the administration of the NATO aid program and there of military surplus in such a way that it will not seriously has been a slight but still unsatisfactory degree of relaxation disturb the sale of comparable new products, and to insure in restrictions on the sale of advanced types of military air­ that such material will not fall into the hands of dealers craft to friendly countries. who might misrepresent what they sell. Because of the No additional technical bi-lateral agreements (only those complaints of foreign purchasers of such misrepresented with Great Britain and Italy remain in effect) have been equipment, such sales have caused embarrassment both to concluded during the year, but better protection abroad has the U. S. embassies and to the foreign offices of the Civil been planned for the proprietary rights of American manu­ Aeronautics Administration. facturers. Government Assistance in Export Trade Promotion Maintenance for NATO Although there has been some improvement in measures Although there has been continuous study of NATO of assistance rendered the industry in this important field, spare parts requirements, needed information on the subject apparently it is the position of the Departments of State is not available. Export representatives of AlA companies and Commerce that funds available to them are not suffi­ are working on the problem in collaboration with the Air cient to provide additional help. Materiel Command and a Paris Office has been established In 1953 the export of U. S. aircraft and parts reached .a to assist in the conduct of the study. money value of $800 million. It is felt that the scope of tlus Off-Shore Procurement operation has been such as to merit substantial government support and promotion with attending benefits to both gov­ The use of American dollars for the purchase of Euro­ ernment and industry. pean-made equipment for NATO military purposes has been given considerable study by the Export Committee, Export Statistics which has been endeavoring to obtain and develop factual Statistics covering the export of aircraft, components and information on this subject. While the support of the parts are analyzed and distributed on a monthly and _annual NATO military program is almost universally endorsed, basis. A compilation of the utility aircraft exports IS re~u­ this particular use of American funds has been subject to larly distributed by the Export Service to the compames question. participating, and a summary made available to the press. A report to the Senate Appropriations Committee, made by its staff investigator, indicated that the use of such funds japan and Germany in England might well operate to subsidize British manu­ Aviation delegations from these countries have visited the facturers in their direct competition with American manu­ United States and have been assisted by the Export Com­ facturers in the civil aircraft field. mittee in their visits to aircraft plants and facilities. AI· 29 though sales and licensing arrangements have progressed mission report was endorsed by a large percent of the AlA further in Japan as a result of her longer autonomous posi­ members, a few were strongly opposed. The Administration tion, the German delegations forecast a substantial increase has endorsed the Commission's recommendations. in German aviation activities. Canadian Reciprocity Reciprocal Trade Agreements Cooperation between the AlA Export Committee and the Following the report of the Randall Commission, legisla­ Air Industries and Transport Association of Canada, is in­ tion was enacted which continued the Reciprocal Trade creasing through interchange of information and participa­ Agreements Act until June, 1955. While the Randall Com- tion in the other's meetings.

30 UTILITY AIRPLANE COUNCIL

The use of aircraft for business, industry and agriculture service test quantities will soon be delivered to the Depart­ has become a substantial part of the civil aviation economy. ment of Defense. The Utility Airplane Council is composed of AlA member companies who are active in the manufacture of utility and Market and Production executive aircraft and their engines for these utilitarian The market for light aircraft continues to be good. The purposes. As in the past, Council members continue to de­ industry delivered 2,302 aircraft in 1951, 3,058 in 1952, and liver the largest percentage of such aircraft and engines, ac­ 3,788 in 1953. Totals for calendar 1954 are expected to be counting for over 90 per cent of today's active general civil approximately 3,000. Though unit deliveries will be less aviation fleet. than in 1953, the dollar volume will be substantially greater To advance the specialized needs of its members the -an estimated $40,000,000 in 1954 compared to $34,458,000 Council draws freely on the various AlA services. It is in 1953 (manufacturers' net billing price). The increase in active in many inter-associational activities. It maintains dollar volume does not reflect greatly increased prices, but close contact with interested government agencies. It con­ results from the fact that larger and heavier aircraft, not­ cerns itself with the common problems of this segment of ably the new twin-engine aircraft first offered in quantity the aircraft industry. It serves as a source of authoritative this year, have been much in demand. information on the role of general aviation in the nation's The light airplane has become an accepted tool of busi­ transport economy, mobilization reserve and civil defense. ness, industry and agriculture. Many others find utility air­ craft a useful means of transportation, yet millions of peo­ Mobilization Planning with the Government ple have still to experience their first flight. In this light, The Utility Airplane Council believes that current and the outlook for general aviation suggests that the industry long-range defense mobilization planning must embrace will have steady growth. general civil aviation. In this regard the availability of ma­ Aircmft Utilization terials in a controlled economy is a matter which is of pri­ mary concern. As demonstrated by the Korean War, an­ The Civil Aeronautics Administration which periodically other major emergency would create an immediate demand surveys the field of aircraft utilization, had not fully an­ for utility aircraft of all types. This demand would be for alyzed its 1953 tabulations of use at the time this report was essential civil uses, and for various military missions where written. However, the CAA advises that from all indica­ such aircraft types have demonstrated great worth. In­ tions an increase will be shown in general aviation activity creased utilization would be required of the existing fleet, in 1953, and that total hours flown will approximate 8,600,- as well as an increase in the requirement for maintenance 000-an increase of about 400,000 hours over 1952. The and replacement parts, and a higher level of new manu­ CAA anticipates that this increase will be found principally facture. in business flying, which in 1952 officially recorded 3,124,000 The Defense Materials System (DMS) replaced the Con­ hours. trolled Materials Program (CMP) when controls were re­ As of January I, 1954, the Civil Aeronautics Administra­ moved in July 1953. Under CMP, the requirements of gen­ tion records indicate that there were 55,505 active civil air· eral aviation were considered, and materials were allocated craft, of which 1,590 were in the nation's airline fleet, with on a basis of demonstrated need and essentiality of use. the balance composing the fleet of general aviation. Of the DMS continues to be available for civil transport aircraft total fleet engaged in various segments of general aviation, manufacture (carrier aviation), but does not now include the CAA estimates that those engaged in business number general civil aviation (non-carrier). Although the availabil­ around 23,000. ity of materials is not now a problem, Utility Airplane The National Business Aircraft Association, a "user" Council members feel that DMS assistance should continue group with whom the UAC maintains relationship, esti­ to be available to the non-carrier industry, as were CMP mates that the cost of maintaining the business aircraft allocations. fleet, including new equipment, fuel used, etc., now amounti to more tl1an $420 million annually, and that these expendi­ Military Production tures will climb to one billion dollars during the next ten The utility aircraft and engine industry devotes major years. The NBAA gives credit to the aviation industry for portions of its facilities to the production of military air­ the assistance it has given to businessmen. craft engines and components, both as prime and sub-con­ From preliminary statistics, it appears tl1at a continuing tractors. The industry is currently delivering both liaison growth of general aviation is in prospect, which will in­ and light trainer types to the military services and it has crease the significance of the following three basic facts: several new types under development. Recently the first 1) The fleet of general aviation is many times larger light jet trainer aircraft was successfully test flown, and than the airline fleet;

31 2) General aviation continues to fly many more hours cil Manager is a member of the Civil Aviation Advisory than do the airlines---8,186,000 as compared to Committee to the Joint USAF-CAA Air Defense Planning 2,132,137 by airlines in 1952, the last year for which Board, and is a member of the Defense Air Transportation there are official government statistics; Administration Manpower Working Group. 3) The active fleet is utilized 80 per cent or more for During the past year the Council supplied observations business, industry, and agriculture-considered "es­ on the aviation policy study conducted by the Air Coordi­ sential" in official government classification-and 20 nating Committee. Increased attention is being devoted to per cent or less for pleasure and sport. the airport problem and to the development of an airport program which will satisfy the needs of general aviation. Advisory Role Another field of great interest to the Council is aviation The Council works closely with other aviation organiza­ education, particularly in incorporation of air age education tions and with many agencies of the Government in connec­ into school curricula. The increasing interest of prominent tion with civil and military use of light aircraft. The Coun- educational leaders in this field is highly encouraging.

32 HELICOPTER COUNCIL

The Helicopter Council made substantial progress in ob­ working group representing the Council and the Aeronau­ taining increased acceptance of the modern helicopter as a tical Training Society to increase facilities for helicopter valuable vehicle for both military and civil purposes. The flight training. Council continued its close liaison with federal, state and Education local aviation officials, as well as the airlines and other interested aviation agencies to assist in the promulgation of Staff continued to prepare and distribute news material regulations appropriate to the flight characteristics of the on helicopters and frequently was called upon to assist helicopter. ·writers in the preparation of specific news features. Pub­ As a major part of its program the Council has stepped lications of all categories-general, business, specialized­ up the tempo of its campaign to secure legal recognition of evidenced great interest in developments in the helicopter the helicopter's performance characteristics. Many local and field. Radio and television outlets also frequently pre­ state laws, written around fixed-wing aircraft operation, sented matter dealing with helicopter achievements. would deny helicopter usefulness to cities and towns, unless Of particular significance during the past year was the d1anged to embrace rotary wing aircraft. increase in the number of inquiries from important groups such as state and municipal planning agencies, banks, trusts, Liaison with National Organizations airport operators and others concerned with requirements for heliport construction and helicopter operation. Special The important role of state aviation authorities in de­ papers and booklets were assembled by Council staff to sup­ termining the future use of the helicopter for civil pur­ ply tl1e heavy demand for information on the helicopter poses has been recognized through the organization of liai­ from press, educational institutions and interested indi­ son committees representing the National Association of viduals. 1'-'fore tl1an 10,000 of these documents were mailed State Aviation Officials and the Council. In this connection, during the past year. Council's legal advisors have prepared a thorough analysis Under the leadership of Council Chairman Charles H. of pertinent laws of every state. In most cases, according to Kaman and Vice-Chairman Stanley Hiller, Jr., members and this analysis, the helicopter is handicapped by being classed staff have carried on an active program of participation in in the "general aircraft" category, without recognition of its meetings and conventions where the helicopter was a sub­ unique operational capabilities. The Council, working with ject of interest and discussion. Such meetings included the NASAO, will seek a remedy for this unsatisfactory situ­ those of the American Road Builders Association, National ation. Security Commission of the American Legion, American As­ Special conference groups representing the Air Transport sociation of Airport Executives, Airport Operators Council, Association and the Council continue meetings to reconcile Annual Airport Development and Operation Conference of various differences on the establishment of heliport require­ the New York State Department of Aviation, Helicopter ments as they relate to multi-engine helicopter operations. Symposium of the Institute of the Aeronautical Sciences, Council conferences on this subject with other interested Indiana Aviation Trades Association as well as the Annual groups have served to awaken and keep in the foreground Forum of the American Helicopter Society. Numerous other the importance of heliport planning. Typical of actions meetings of Governmental agencies, military and civil, in­ underway as a result of such conferences are current studies cluded Council representation. being made not only by ATA, but also by the International Four regular meetings of the Council were held during Air Transport Association, the Port of New York Authority the past fiscal year. In addition, visits of staff to member and the Civil Aeronautics Administration. plants and visits of members to Council headquarters have Arrangements are under way for the establishment of a served to expedite the handling of the program.

33 AlA MEMBERS

MANUFACTURING MEMBERS Hiller Helicopters *Hoffman Laboratories, Inc. Aero Design & Engineering Company Hufford Machine Works, Inc. • Aero Supply Manufacturing Company, Inc. Hughes Aircraft Company Aerodex, Inc. Hydro-Aire, Inc. Aerojet-General Corporation Industrial Sound Control, Inc. Aeronca Manufacturing Corporation Jack & Heintz, Inc. • Aeroprojects Incorporated Kaiser Aluminum & Chemical Corporation Aircooled Motors, Inc. The Kaman Aircraft Corporation AiResearch Manufacturing Company Kollsman Instrument Corporation Division of The Garrett Corporation Allison Division, General Motors Corporation Lear, Inc. Aluminum Company of America Lockheed Aircraft Corporation Arcturus Manufacturing Corporation Longren Aircraft Company Avco Manufacturing Corporation MacWhyte Company *Franklin Balmar Corporation Marquardt Aircraft Company The B. G. Corporation The Glenn L. Martin Company Beech Aircraft Corporation McDonnell Aircraft Corporation Bell Aircraft Corporation Minneapolis-Honeywell Regulator Company Bellanca Aircraft Corporation The New York Air Brake Company Bendix Aviation Corporation North American Aviation, Inc. Blake Rivet Company Northrop Aircraft, Inc. Boeing Airplane Company Pacific Airmotive Corporation *Bridgeport Brass Company The Parker Appliance Company Cessna Aircraft Company Piasecki Helicopter Corporation Champion Spark Plug Company Piper Aircraft Corporation *Chance Vought Aircraft, Inc. Reaction Motors, Inc. *Chase Aircraft Company, Inc. Republic Aviation Corporation The Cleveland Pneumatic Tool Company Reynolds Metals Company The Connecticut Hard Rubber Company *Rheem Manufacturing Company, Aircraft Continental Motors Corporation Division Convair, A Division of General Dynamics Rohr Aircraft Corporation Corporation The Ryan Aeronautical Company Cook Electric Company Simmonds Aerocessories, Inc. Curtiss-Wright Corporation Solar Aircraft Company Douglas Aircraft Company, Inc. Sperry Gyroscope Company, Division of The Dow Chemical Company The Sperry Corporation Dumont Aircraft Fitting Company Sundstrand Aviation Division of Sundstrand Fairchild Engine & Airplane Corporation Machine Tool Company Fletcher Aviation Corporation Taylorcraft, Inc. General Alloys Company Temco Aircraft Corporation General Electric Company, Aircraft Gas Thompson Products, Inc. Turbine Division Tinnerman Products, Inc. General Laboratories Associates, Inc. Transco Products, Inc. The B. F. Goodrich Company United Aircraft Corporation Goodyear Aircraft Corporation . Vickers, Inc., Division of The Sperry Corporation Grumman Aircraft Engineering Corporation Westinghouse Electric Corporation Gyrodyne Company of America, Inc. Wm. R. Whittaker Company, Ltd. H arvey Machine Company, Inc. The Franklin C. Wolfe Company, Inc. *New Members Zenith Plastics Company

34 NON-MANUFACTURING MEMBERS Kettering, C. F. Litchfield, P. W. Aeronautical Digest Publishing Corporation Loening, Albert P. Aviation Age Loening, Grover Aviation Week Loomis, Suffern & Fernald Aviquipo, Inc. Lybrand, Ross Bros. & Montgomery The Babb Company, Inc. MacCracken, Wm. P., Jr. Bellanca, G. M. Manufacturers Aircraft Association Booz, Allen & Hamilton McCarthy, J. F. Brinkerhoff, Wm. W. National Aviation Corporation Brukner, Clayton ]. National Credit Office, Inc. Bush, Charles T . Parker & Company Chambers, Reed M. Rodey, Pearce G. Condon, Cyril Hyde Scholle, Howard A. Connelly, L. A. Sheaffer, D. M. de&versky, A. P. Shell Oil Company Eggert, H. F. Sikorsky, I. I. Eubank, John A. Smith, Kirkpatrick & Company, Inc. Fales, Herbert G. Standard Oil Company of California Findley, Earl N. Steel Products Engineering CompaRy Grand Central Aircraft Company Sullivan, John Dwight Hanks, Col. Stedman Shumway The Texas Company Hotchkiss, Henry G. Tubesales Kahn, Roger Wolfe U. S. Aviation Underwriters, Inc.

35