The 2013 Dubai Airshow Generated More Than $200 Billion Worth Of
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The 2013 Dubai Airshow generated more than $200 billion ExecutiveA Quarterly Digest from the Aerospace IndustriesReport Association 4th Quarter 2013 worth of orders for U.S. companies President’s 2013 OFFICERS Wes Bush, Chairman Michael T. Strianese, Vice Chairman Marion C. Blakey, President & Chief Executive Officer Ginette C. Colot, Secretary Treasurer EXECUTIVE COMMITTEE Robert T. Brady Targeting Growth Opportunities Executive Chairman Moog, Inc. in the Middle East and Asia Wes Bush Chairman, Chief Executive Officer & President Northrop Grumman Corporation t AIA’s 49th annual Year-End Review and Forecast luncheon we announced a record Scott C. Donnelly Chairman & Chief Executive Officer MeA for aerospace and defense exports.s Spurredsage by nearly $100 billion in civil aircraft and Textron Inc. David P. Hess space exports, overall aerospace exports grew from $96 billion in 2012 to $112 billion, President Pratt & Whitney, United Technologies Corporation resulting in a net surplus of $73.5 billion, the best for any American trade category. Raanan Horowitz Key drivers of export growth were sales to Middle Eastern and Asia-Pacific countries, President & Chief Executive Officer Elbit Systems of America about 75 percent of our industry’s export market. Middle Eastern opportunities were on Linda P. Hudson President & Chief Executive Officer display at the Dubai Air Show in November, held for the first time at the new Al Maktoum BAE Systems, Inc. International Airport in Jebel Ali. The show generated more than $200 billion worth of orders David L. Joyce President & Chief Executive Officer for U.S. companies, including over $100 billion worth of orders for the Boeing Company, GE Aviation Neal J. Keating which announced the launch of its new 777x on the show’s first day. GE Aviation, through Chairman, President & Chief Executive Officer Kaman Aerospace Corporation its joint venture CFM International, also captured $40 billion worth of orders. John S. Langford AIA was very involved in supporting our members in Dubai, where we helped organize Chairman & Chief Executive Officer Aurora Flight Sciences DOD’s corral featuring the F/A-18 Super Hornet, F-15E Strike Eagle, MV-22 Osprey, E-2C Tim O. Mahoney President & Chief Executive Officer Hawkeye, C130J Hercules, AH-1Z Cobra, UH-1Y Huey and, making its international trade Honeywell Aerospace show debut, the P-8 Poseidon. Also in Dubai, AIA assisted the industry reception on Thomas S. Marotta Chairman & Chief Executive Officer the aircraft carrier USS Harry S. Truman (CVN-75) and hosted a luncheon featuring Vice Marotta Controls, Inc. Dennis A. Muilenburg Admiral Joseph Rixey, the Defense Security Cooperation Agency’s new director, and Heidi President & Chief Executive Officer Boeing Defense, Space, and Security Grant, Deputy Assistant Secretary of the Air Force for International Affairs. The Boeing Company Next month, AIA will support American activities at the Singapore Air Show, Asia’s Phebe Novakovic Chairman & Chief Executive Officer largest. And in April we’ll have a strong presence at the Global Aerospace Summit in General Dynamics Corporation Robert J. Stevens Abu Dhabi, an event featuring 14 high level panels focusing on broad collaboration in Executive Chairman Lockheed Martin Corporation aviation, space and defense matters. Michael T. Strianese These commitments underscore AIA’s increasing focus on helping industry capitalize Chairman, President & Chief Executive Officer L-3 Communications on cooperation and growth opportunities in these regions. Consider, for example, what William H. Swanson Chairman & Chief Executive Officer the expansion of middle class populations in countries like China and India will mean Raytheon Company Jeffrey L. Turner to air transportation. To promote the ability of U.S. companies to assist the development Member of the Board Spirit AeroSystems of China’s and India’s air transportation systems, I participated this fall in the U.S.-China Robert White Vice President & Division Manager Millitech, Inc. About the Cover: The United Arab Emirates air force display team, Al Fursan, performs an aerial demonstration pictured behind a U.S. Air Force C-130J Hercules on display in the U.S. corral during the 2013 Dubai Airshow at the Al Maktoum International Airport in Jebel Ali, United Arab Emirates, Nov. 20, 2013. (U.S. Air Force photo/Senior Airman Bahja J. Jones) Aviation Symposium in Beijing and the U.S.-India Aviation Summit in Washington, D.C. At both events I spoke about how important I thought it was as FAA Administrator to have started Aviation Cooperation Programs between our respective countries, and about the significant progress both countries have made in managing the growth of their air space utilization. In the space sector, the United States and Japan are strong partners on the International Space Station project, and in various space science endeavors, including the upcoming launch of AIA President and CEO Marion C. Blakey moderating a panel discussion on air traffic management the important Global Precipitation at the US-China Aviation Symposium in Beijing. Measurement satellite. As the U.S. entry into the Joint Strike Fighter supported $37.4 billion of U.S. exports begins to focus again on human circle and the near completion of and 205,000 American jobs. As the exploration beyond low Earth orbit, I’m South Korea’s fighter competition are defense and domestic budgets shrink, certain we’ll be very engaged with our very positive developments. Looking export opportunities for aerospace Japanese partners. India has made forward, we’ll work with the government manufacturers, especially small and remarkable strides in space as well, to identify other defense trade priority medium-sized companies become and building on the highly successful partners and programs in line with our all the more critical. We believe that it Chandrayaan-1 lunar mission, it’s national security strategy. would be absurd to pull the plug on gratifying that NASA and the Indian To build on 2013’s export momentum, export credits that promote U.S. jobs Space Research Organisation have AIA will aggressively support policies and result in savings to the treasury, agreed to explore potential future Earth to facilitate aerospace and defense while our foreign competitors continue and planetary science missions. export markets. We’ll continue to work to enjoy heavy financial backing from Clearly, defense cooperation is critical with the U.S. government to speed the their governments. to our industry’s ability to prosper in the transition of aerospace and defense In these and many other ways, Middle East and Asia-Pacific. Without items to the Commerce Control List I expect 2014 to be a big year for peace and stability, provided by an even as we ask for further action aerospace and defense trade. In the expanding web of defense partnerships addressing technologies remaining coming months you can be assured with friendly nations, we wouldn’t be on the U.S. Munitions List. We’ll also that AIA will be working full throttle to able to focus on the growth potential be pushing hard for congressional help maximize our industry’s export of civil aviation and space exports. reauthorization of the Export Import potential. AIA has emphasized the need for a Bank of the United States before its National Defense Export Strategy that authorization expires on September 30. will bolster DOD’s strategic pivot to Last year U.S. manufacturers benefited Marion C. Blakey these vital regions. Accordingly, Japan’s from Ex-Im Bank financing that President & Chief Executive Officer EXECUTIVE REPORT 3 With Michael H. Carriker – Chief Pilot for Q&A New Airplane Product Development at Boeing You may not know Michael Carriker’s name, but every time you fly in a Boeing 737, 777 or 787 Dreamliner you can thank his outstanding test-piloting skills for helping to make these aircraft fly so smoothly and safely. Carriker, who began his career as a U.S. Navy pilot flying A-7Es and F-18s, has been with Boeing for 23 years. The promise of NextGen Air Transportation System technologies is a subject close to Carriker’s heart, as he expressed in a recent interview with the Executive Report. Michael H. Carriker Chief Pilot – New Airplane Product Development Boeing Test & Evaluation AIA: What does NextGen mean to you? Carriker: As an engineering test pilot for Boeing I have been involved with NextGen research for almost 20 years. Not only is it the logical next step for air traffic control, it is the necessary next step. A large portion of my job as a test pilot is working to create ever more efficient and safe aircraft. The Boeing Company dedicates tremendous resources to delivering the efficiency that our customers require of their airplanes. Take a step back from the airplane, the carriers and the fleet, and look at the system they operate in - should we not pursue every avenue possible to make flying as safe and efficient as possible? The answer is “yes” and the NextGen Air Transportation System provides an opportunity to obtain safety and efficiency increases that would represent a significant step forward in the primary goals of my work. AIA: Once NextGen is a fully integrated system, what will that mean to the flying public? Carriker: The flying public will benefit in the two areas that I believe are of great concern to them: safety and on-time performance. A NextGen system using GPS satellite signals will give both air traffic controllers and pilots more accurate information. That means the most informed and best decisions about routing and weather-dependent navigation are being made both by pilots and air traffic controllers. For passengers that translates into safe and on-time arrivals. Simply put, making better use of our airspace means less congestion and fewer constraints on commercial aircraft to get to and from their destination. Two other very significant benefits are that less jet fuel is used during a direct flight path and reduced fuel burn means fewer emissions.