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Chapter V General Aviation

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Chapter V General Aviation CHAPTER V GENERAL AVIATION The term “general aviation” is used to describe a • General aviation directly generated diverse range of aviation activities and includes all $13.7 billion in GDP and 178,000 jobs. segments of the aviation industry except commercial air carriers (including commuter/ • General aviation’s total impact (including regional airlines) and military. Its activities indirect and induced impact) is $40.7 million include training of new pilots and pilots interested in GDP (0.4 percent of total GDP) and in additional ratings or certification, sightseeing, 511,000 jobs. movement of large heavy loads by helicopter, flying for personal or business/corporate reasons, and emergency medical services. Its aircraft range from the one-seat single-engine piston aircraft to the long-range corporate jet, and also include REVIEW OF 2002/2003 gliders and amateur-built aircraft. General aviation is an important part of both the It has been 9 years since the passage of the aviation industry and our national economy. General Aviation Revitalization Act of 1994 It provides on-the-spot efficient and direct (GARA) and all indications are that the Act is aviation services to many medium and small sized accomplishing its purpose. The industry, hurt by communities that commercial aviation cannot or rising product liability costs, had gone from will not provide. In addition, the production and producing a high of almost 18,000 aircraft in 1978 sale of general aviation aircraft, avionics, and down to only 928 aircraft in 1994. The decline in other equipment, along with the provision of production had also resulted in the loss of support services such as maintenance and repair, 100,000 jobs in the industry. The success of flight schools, fixed base operators, finance, and GARA can be measured by resurgence in the insurance, make the general aviation industry an demand of general aviation products and services important contributor to our nation's economy. witnessed since its passage. However, the last 3 years have proved to be According to a study1 published in 2002, general difficult ones for general aviation. The steep rise aviation made the following contributions to the in the price of aviation fuels and the general U.S. economy in 2000: weakness of the U.S. economic recovery have combined to reduce the demand for the general 1 aviation products and services, in particular, the The National Economic Impact of Civil Aviation, July high end business jets. In addition, some the 2002, DRI-WEFA, A Global Insight Company V-1 adverse affects of the events of September According to statistics released by the General 11th also continue to impact the industry, most Aviation Manufacturers Association (GAMA) notably, the restriction of general aviation aircraft shipments of general aviation aircraft are at Washington National Airport. declining for a third consecutive year in 2003. General aviation shipments by U.S. manufacturers However, promise in the future is evidenced by totaled 1,395 units during the first 3 quarters of the general aviation industry's development, the year, a decrease of 8.7 percent over the same production, and introduction of new general period in 2002. Shipments declined for two of aviation products and services. Much of the the three aircraft categories: turboprops, from improved demand for general aviation products 118 to 103 (down 12.7 percent) and business jets, prior to September 11th was for aircraft at the from 379 to 259 (down 31.7 percent). Shipments higher priced end of the general aviation fleet-- of piston aircraft remained level--1,031 in 2002 turbine powered aircraft--and is due, in large part, and 1,033 (up 0.2%) in 2003. The resilience of to the rapid growth experienced by fractional the piston aircraft market provides some hope ownership companies. Dollars spent on research that new aircraft models are generating interest in and development is advancing avionics and the low end of the market for general aviation computer technology. These advances are not aircraft. only expected to improve general aviation safety, but are intended to make it easier to learn how to Sales of general aviation aircraft manufactured fly. Of course, without pilots to fly the planes outside the United States did not fare much better there would be no industry. To stimulate growth in 2003. Foreign manufacturers delivered a total in the pilot population, the industry is heavily of 207 aircraft during the first 9 months of the promoting flying with "learn to fly" programs. year, a decline of 13.4 percent over the same Industry programs also assist teachers in bringing period in 2002. aviation into the classroom with the hope of encouraging students to pursue careers in ANNUAL SHIPMENTS OF U.S. MANUFACTURED aviation. GENERAL AVIATION AIRCRAFT 1992 - 2003 3,000 What follows is a review of the industry’s performance during 2002 and 2003. This period 2,500 began with indicators moving in a negative 2,000 direction, owing in large part to the 2001 U.S. 1,500 economic recession and slow recovery thereafter, 1,000 as well as from the lingering effects of the events UNITS SHIPPED of September 11th. However, general aviation’s 500 performance has not been entirely negative, there 0 are some segments of the industry and/or statistics 92 93 94 95 96 97 98 99 00 01 02 03E that still point to positive results. The hope is that Source: 1992-2001, GAMA; 2002-2003, AIAA those segments experiencing positive results will create a foundation on which the entire general According to GAMA reports, billings for U.S. aviation industry can plan and build on for the manufactured general aviation aircraft totaled foreseeable future. $4.23 billion for the first 9 months of 2003, a decline of 21.6 percent from the corresponding AIRCRAFT SHIPMENTS 2002 figure. Foreign manufacturer’s billings AND BILLINGS totaled $2.2 billion during the same period, a decline of 29.2 percent from 2002. V-2 In its year-end review and forecast2, the continues to promote a number of on-going Aerospace Industries Association (AIA) estimates initiatives aimed at increasing the number of that general aviation aircraft shipments will total student pilots since they are seen as the future of 1,853 for the full year 2003, a decline of general aviation. The industry’s efforts to sustain 15.9 percent from 2002 shipments. In addition, and increase the market for its products and AIA estimates that the value of these aircraft will services will, in large part, depend on how total $5.4 billion, a decline of 27.2 percent from successful its programs are in attracting new 2002. If this prediction holds, this will mark the pilots. An increase in student pilots may not only third consecutive yearly decline in billings. be generated by those seeking private pilot certificates for personal enjoyment, but also for ANNUAL BILLINGS OF U.S. MANUFACTURED those seeking careers in aviation. GENERAL AVIATION AIRCRAFT 1992 - 2003 The number of private pilots totaled $9,000 $8,000 241,045 (down 1.7 percent) in 2003 while the $7,000 number of commercial pilots totaled $6,000 123,990 (down 1.5 percent). The number of $5,000 airline transport pilots (143,504) declined $4,000 0.8 percent in 2003, the first recorded decline in $3,000 $2,000 this pilot category in 46 years. $1,000 FACTORY BILLINGS (MILLIONS) $0 The number of helicopter pilots (those holding 92 93 94 95 96 97 98 99 00 01 02 03E helicopter certificates only) increased 1.9 percent Source: 1992-2001, GAMA; 2002-2003, AIAA in 2003 to 7,916. The number of glider (only) A number of new product offerings could pilots and recreational pilots totaled 20,950 and stimulate the market in future years. Among these 310, respectively, in 2003. is the advent of light sport aircraft. The number of instrument-rated pilots (315,413) decreased 0.6 percent in 2003. Instrument-rated pilots are currently PILOT POPULATION 58.7 percent of total active pilots (excluding student and recreational pilots), up from 58.1 percent in 2002. At the end of 2003, the pilot population totaled 625,011, a decline of almost 8,000 (down 1.2 percent) from 2002. The three strictly general aviation groupings (Student, Private, Commercial) ACTIVITY AT totaled 452,331 (down 1.1 percent) and accounted FAA AIR TRAFFIC FACILITIES for 72.4 percent of all certificated pilots. The number of active student pilots for 2003 is General aviation activity at combined FAA and 87,296, an increase of 1.5 percent over 2002 and contract towered airports declined by 5.3 percent the first recorded increase in this pilot category in fiscal year 2003. This decline was fairly evenly since 1999.3 The general aviation industry distributed between itinerant and local operations. General aviation operations at FAA towers 2 2003 Year-End Review and 2004 Forecast, December eclined 6.3 percent, while operations at contract 2003, Aerospace Industries Association of America towers decreased 4.3 percent. 3 Student Pilot numbers for the years 1999-2001 represent estimates discussed and approved by the Light General In fiscal year 2003, operations at the top Aviation Panel at the 12th FAA/TRB International Workshop on Future Aviation Activities (September 2002). 10 general aviation airports totaled 3.3 million, a V-3 GENERAL AVIATION ACTIVITY ITINERANT AIRCRAFT OPERATIONS LOCAL AIRCRAFT OPERATIONS (FAA AND CONTRACT TOWERS) (FAA AND CONTRACT TOWERS) 20,000 25,000 20,000 16,000 T T H H 12,000 15,000 O O U U S S A A N N D 10,000 D 8,000 S S 5,000 4,000 0 0 93 94 95 96 97 98 99 00 01 02 03 93 94 95 96 97 98 99 00 01 02 03 FISCAL YEAR FISCAL YEAR INSTRUMENT OPERATIONS IFR AIRCRAFT HANDLED AT FAA AIR (FAA AND CONTRACT TOWERS) ROUTE TRAFFIC CONTROL CENTERS 25,000 10,000 20,000 8,000 T T H 15,000 H 6,000 O O U U S S A A N N D 10,000 D 4,000 S S 5,000 2,000 0 0 93 94 95 96 97 98 99 00 01 02 03 93 94 95 96 97 98 99 00 01 02 03 FISCAL YEAR FISCAL YEAR V-4 decline of 4.9 percent from 2002.
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