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Fri, Mar 18, 2005

FAA 2005 Forecast Conference: A View from the Bleachers

by ANN Editor-In-Chief Jim Campbell and Correspondent John Ballantyne

The Annual FAA Forecast Conference is underway, right now, in Washington, D.C. All aspects of aviation are stating their case, making complaints, trying out a few predictions, and proffering potential solutions... and (in most cases) preaching to the choir.

Well-attended... this has (so far) been a very interesting meeting with plenty of substance more than its share of confrontation -- and the promise of much more. The Friday meetings should be just as "intriguing."

This is NOT a good time for the airline industry, even while GA and other segments of aviation are enjoying guarded successes that may be in danger if the petro situation continues to kick us in the (expletive deleted).

A few of us in the audience were not experts in air carrier issues-- but all of the speakers were experts in their own field, as well as people who were unusually expert in getting their point across. The range of opinions was quite varied and included many speakers. It ranged from the woes of “legacy” airlines (big, old guys like US Airways and Delta) to startup, European low-cost airlines.

From the lofty landscape of Senator Ted Stevens, (pictured below -- R-AK), a pivotal member of the Senate Commerce Committee and Defense Appropriations Subcommittee, to the nuts-and-bolts needs of the FAA Administrator, Marion C. Blakey (pictured below), many perspectives were presented during this first day at the FAA Aviation Forecast meeting. The conference was hosted at the Washington DC Convention Center and ably produced by ACI-NA and FAA. It was the year’s opportunity to learn of the future of aviation in America (and the world) through 2015.

For those of us attending who were not there with a principal interest in airline issues, we came away with two very clear messages from virtually every presenter: (1.) The airline industry is in a period of tumultuous restructuring, and (2.) the air traffic system is old and in need of major restructuring.

Fixing the airline industry is a complicated process of down-sizing (a little jet in every garage?) without a cohesive organizational solution. Inadequate funds to restructure ATC, which many predicted is about to exceed its capability, is the other problem, and the fix will probably be painful. Stevens, in his key-note luncheon address, likened Social Security and ATC as entities, both, in grave need of modernizing.

The clear message to those of us who fly privately in America was that FAA needs larger or more numerous income streams to support the now-growing demand on the air traffic system. More plainly, they claim that users of the airspace are getting more service than they are paying for -- despite the fact that an objective view of the record seems to contradict this. Yet more plainly (but never spoken out-loud) the concept of User Fees was lurking behind every session.

Indeed, using virtually interchangeable terminology and presentations, FAA Administrator Blakey, SecTrans Mineta (above), and Senator Stevens orchestrated a coordinated plea for news sources of FAA funding as well as an overhaul of the system by which that funding is allocated. It was a well-choreographed presentation with a strong script -- from which no one deviated. While Blakey specifically said she wasn't recommending user fees, by name, the hints surely sounded like the same animal. Note to all; a big battle is coming up and User fees are going to be the turning point of the war. Don't say we didn't warn you.

One of the panel sessions, a bit more GA oriented this time, was presented by former NBAA Boss John Olcott (pictured above) and Air Taxi Entrepreneur Donald Burr, both presentation provided some balance and facts about the benefits and costs of GA in the overall aeronautical scheme. Olcott was particularly forceful about the value of GA and the need for the rest of the industry to recognize same. A question put to the panel by ANN's Jim Campbell noted that GA was taking flak from the airline world seeking to force more of the costs upon them,as well as an attempt to blame them for some of the airline world's shortcoming... Campbell then asked if this was, first, accurate on its face, and whether such a position seemed a bit like "eating our young."

Olcott reiterated the value of GA while side-stepping the more confrontational aspects of the question but Burr's 'two cents' provided the best quote of the day. Burr noted that as a man who has run airlines that he was, at one time, one of those who saw GA as a problem... but had since come to recognize such thinking as a "congenital defect."

An interesting footnote to the Burr (pictured above) presentation was his use of photos of the Eclipse 500 in his powerpoint presentations (and referencing the airplane and the company in his speech -- with no mention of any other aircraft) instead of the Adam A700, for which his POGO Air Taxi is reported to have placed some serious orders -- nearly 100 planes depending on who you talk to. We've heard rumors that the Adam orders were in big trouble, and that Eclipse and/or Cessna were likely to pick up the resulting business. Take from that what you will... but it looks like someone will be adding some more airplane orders shortly. Stay tuned... this is going to get interesting.

On the positive side of things, though, ANN Editor-In-Chief Jim Campbell's dinner meeting with Phil Boyer showed that GA's 600 pound gorilla, AOPA, is tanned, rested, ready and PREPARED to make sure that GA doesn't wind up as the loser in the changes that are coming. Staffers at NBAA also impress us with their ability  and willingness (and reinvigorated leadership), to take on these issues as well... between the two of them, GA is better prepared to do this kind of battle than it has been for decades.

FMI: www.faa.gov, www.aci-na.org, http://stevens.senate.gov/, www.aopa.org, www.nbaa.org

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