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Maintaining a Strong Federal Aviation Administration

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Maintaining a Strong Federal Aviation Administration Issues of Importance to U.S. Civil Aviation and Civil Aircraft Manufacturers MAINTAINING A STRONG FEDERAL AVIATION ADMINISTRATION THE FAA'S IMPORTANT ROLE IN AIRCRAFT SAFETY AND THE DEVELOPMENT OF U.S. CIVIL AERONAUTICS AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA, INC. A Joint Project of the Aerospace Research Center and the Office of Civil Aviation Consultants Gellman Research Associates, Inc. A Publication of the Aerospace Research Center Virginia C. Lopez, Executive Director AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA, INC. 1250 Eye Street, N.W. Washington, D.C. 20005 September 1989 INTRODUCTION The civil aircraft industry has been a consistent "economic winner" for the United States, contributing positive trade balances year after year. In 1988, the U.S. enjoyed an aerospace trade balance of $ 17.9 billion. Over 70 percent of that surplus can be attributed to the worldwide success of U.S. civil aircraft, eng ines and part s. Aside from its trade contributions, the civil aircraft industry contributes tci the nation through technology spinoff and a wide range of industri al technological capability. It provides jobs for over 330,000 workers - approximately one-quarter of aerospace employment. The commercial transport sector has been the strength of U.S. civil aircraft manufacturing in recent years. A record backlog and strong passenger growth projections indicate that will continue. Increased shipments of pi ston rotorcraft in 1988 and an anticipated 1989 upturn in unit sales of turbine helicopters - plus strong sales of business jets and sing le eng ine pi ston aircraft by general av iati on manufacturers - are other promi sing signs for the civ il sector. This positive pi cture helps offset the less optimisti c prospect for the aerospace defense sector. Until recentl y, U.S. military orders provided the impetus for growth in the industry ' s workload; however, civil orders now drive backlog growth. C ivil aircraft industry prospects are good. But it woul d be a mistake for the United States to assume that the industry's market positi on is indefinitely assured. Foreign competition is strong and growing. Other countries recognize the important role aerospace plays in developing a nati on' s industrial and technological capabilities. Aerospace. includ ing civil aircraft manufacture, contributes enormously to nati onal economic well-being through techno logy spinoffs and a diffusion of techno­ logical capabil ity to other industri al sectors. This awareness - combined with the pressures of financ­ ing new aircraft and engine projects and of competing fo r sales in a growing market that is now largely outside the United States - has fos tered a global industry of many hi ghl y capable pl ayers. C ivi I av iati on trade issues - partic ul arl y fo re ign government support of manu facturers - have received considerabl e attention in recent years. In a number of instances, the fact that civil aircraft manufacturers abroad receive direct government support influences the United States' business position. But matters re lating to U.S. poli cy and its implementati on also have a strong influence on U.S. civil aviati on and U.S. civil aircraft manufac turers. This paper is one in a seri es on civil aviation issues. The seri es is published in an e ffo rt to look beyond present success and assure that a world-class U.S. civil aircraft industry rem ains on the leading edge. 4 MAINTAINING A STRONG FEDERAL AVIATION ADMINISTRATION: THE FAA'S IMPORTANT ROLE IN AIRCRAFT SAFETY AND THE DEVELOPMENT OF U.S. CIVIL AERONAUTICS SUMMARY The Federal Aviation Administration (FAA) is U.S. production often involves either multi-country pro­ one important part of a triad that includes aircraft manu­ duction of U.S.-designed equipment or participation in facturers and the airlines, and is responsible for safe, ef­ multinational consortia with other countries. In such in­ ficient air travel. The FAA's certification system, regu­ stances, key components, subsystems, or even entire latory standards and airworthiness directive approach to products are manufactured overseas. The United States correcting problems have gained worldwide acceptance. has benefitted tremendously from these arrangements - Its roles of ensuring safety and promoting the use of U.S. its civil aircraft exports have grown far more than imports aircraft have been complementary and compatible. of these products from other countries. Joint production arrangements are facilitated by bilateral agreements that Today the FAA faces a different, more dynamic have existed for years between the United States, Canada environment than it did when it was established 30 years and European countries. As air travel increases in the ago. The type and nature of services required from FAA Pacific Rim and countries there develop their own civil continually change, yet the FAA has budget constraints aircraft industries, market access in that area of the globe that often prevent it from responding rapidly. Changes in often depends upon production sharing. However, the the international civil aircraft market in recent years United States may not have up-to-date bilateral certifica­ include the advent of multinational aircraft production, tion agreements with these countries. Developing indus­ strong competition for aircraft markets, and even com­ trial nations may not even have well-developed govern­ peting certification standards as foreign countries' stan­ ment airworthiness authorities. dards have gained credibility and standing worldwide. At the same time, the FAA's reputation as a technical agency Working with the European nations in air­ has suffered where the politics of safety issues have worthiness standards harmonization is also a critical tended to supersede decisions based on technical consid­ FAA activity. The existence of a highly competitive erations. European industry, and the greater economic integration of Europe, has led to elimination of competing European While the FAA and others concur in the need to national standards and the development of Joint Air­ attract and keep the most qualified technical personnel, worthiness Requirements (JARs). The United States is budget pressures make it difficult to provide the neces­ currently working with Europe to achieve common per­ sary financial incentives. An FAA pay increase program formance-based design standards across countries. A has been designed to address this issue for controllers, serious concern is that the United States does not have full safety inspectors and technicians who service and main­ input to the European deliberations on the setting of tain air traffic contro l equipment. It may be a model for standards. Without it, there is a possibility that the JARs incentives for other employees. The Aircraft Certifica­ could supplant the FARs as the internationally-accepted tion Regulatory Program, fo r example, has experienced regulations governing civil aviation, posing market prob­ difficulty in recruiting and training aerospace engineers, lems for U.S. manufacturers. manufacturing inspectors and flight test pilots. The matter of continuing education for certification staff has The agency's technical independence has al­ also been recognized as beneficial but has not yet been ready been eroded by the politicization in the United fully addressed. States of aviation/safety issues. Various administrations, through the Office of the Secretary of Transportation, Important aspects of the FAA's role today in­ have become involved in setting rulemaking priorities, cl ude support in establishing or updating certification all ocating FAA resources and decision-making. Con­ agreements with other countries, and providing technical gress has engaged in aircraft design by making technical assistance for the development of airworthiness capabil­ decisions through the political-legislative process. ity in these countries. T hi s aspect of the FAA' s mandate Manufacturers have absorbed the greater economic ri sks is vital to U .S. manufacturers seeking business. Today, of decisions based on un substantiated arguments. Ulti- 5 mately these costs, which can be out of proportion to the automatically accepted as being rooted in techni­ potential for increased safety, are paid for by the public. cal excellence. Occasionally, FAA standards are The usurpation in some instances ofF AA' s role in setting not being accepted by foreign authorities. The airworthiness requirements means that accountability for agency is no longer seen as the final U.S. author­ air safety has been diffused. This has weakened the ity on aircraft safety. agency's standing in the international aviation commu­ nity. RECOMMENDATIONS CONCLUSIONS Support the FAA' s current plan for incentive pay Current FAA plans for incentive pay programs programs. Such a plan will only be useful where are important steps forward in attracting the best net additional funds are appropriated to pay for it. qualified personnel. Budget constraints and in­ fl exibility should not be permitted to undermine Expand the use of private and company designees the agency's ability to attract top-flight talent and (designated engineering representatives, desig­ to constantly upgrade existing staff. nated engineering organizations, designated manufacturing inspection representatives, and As new markets open up in the Pacific Rim designated airworthiness representatives) to ful­ countries and elsewhere, the FAA will play a key fill FAA services and provide additional re­ role in updating bilateral airworthiness
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