'The Buzz Is Back' According To Gama CEO

AEA president and CEO Paula Derks and GAMA president and CEO Pete Bunce shared the stage Thursday morning for the annual "State of the Industry" address.

"The buzz is back," Bunce (pictured) said. He cited a study commissioned by the industry conducted by Price Waterhouse Coopers that indicate that GA supports 1.1 million jobs and contributes $219 billion in total economic contribution to the U.S. economy. Bunce said that Kansas leads in per capita contributions to GDP, while California, Texas, and Florida lead the country in GA Jobs.

Bunce also recapped the association's year-end billing and shipment report released in February. He said that the fixed-wing piston market has normally been a bellweather, and there has been a good rise in both manufacture and billings, with an emphasis on training airplanes, which begins in fixed-wing pistons.

While the turboprop market is down slightly, Bunce said, that segment of the market is healthy. "I think turboprops are very solid and it is a growth market," Bunce said, adding China will be a growing market in that segment.

"This recovery has not been a typical one in that large-cabin, long range jets have been solid through the economy. In North America, the small and mid-size jets are now coming back," Bunce said. Meanwhile the demand for piston rotorcraft are largely in the training market, and that segment is healthy. And, while turbine rotorcraft billings and shipments were significantly down, "There are a lot of new offerings in development in the OEMs, and that is a time when buyers take a pause and see what will be available," he said.

Derks said that 2014 was the best year for business aviation since 2008. There was a 2% overall increase in flight activity, and an over 23% increase in fractional activity. "That means more airplanes need to be equipped and maintained," Derks said.

Hiring is also on the rise, she said with 78 percent of companies having growth plans in 2015.

Derks said that Congress seems to be interested in listening to what the industry has to say in the coming FAA Reauthorization Bill, but streamlining cerification remains a major issue for GAMA and AEA.

But, she said, the rules need to be evenly applied across the industry. "We're asking for more consistency in interpretation of the regulations," which can vary from state to state and FAA office to FAA office," Derks said.

On the subject of FAA reauthorization, Bunce said that "Both the House and the Senate have come to the GA organizations and get all of the issues that can be resolved and get those done first."

"Sequestration means less dollars for the FAA, less resources for them, and they have to find a better way to do things," Bunce said. "They have to be able to embrace reform to keep commerce moving. When we have to wait longer and longer times for the regulators to get us through this process, that just takes more time for each of us as we try to certify a product."

Congress admits that the Organization Designation Authorization (ODA) system does not work the way it is intended. Bunce said the industry wants to put the burden of proof on FAA to say why they are not honoring ODAs, and has bi-partisan support in Congress.

Congress is also putting pressure on the FAA for the Small Airplane Revitalization Act. The act was supposed to be finalized by the end of this year, and FAA has not even released an NPRM. Bunce said EASA has its equivalent of an NPRM on that issue, which he says will also help pressure the agency.

AEA CEO Derks said the industry is heavily invested in meeting the 2020 Mandate for equippage for ADS-B out. "This is not a one-system mandate. This in an airspace rule. It affects every single user in the airspace system. It is one of our goals to educate the user and make sure the mandate sticks."

Derks said there are fewer than 1150 work days to equip the 100,000-166,000 aircraft which need to be equipped. The majority of them GA and Business aircraft.

Will the mandate stick? Derks said that FAA Deputy Administrator Mike Whittaker says it will stick, both in public and in private. The agency is working hard to be sure that it does not extend, and "I think it is important that it does not extend."

According to GAMA president and CEO Bunce, Airlines are on board to meet the mandate, and operator groups on the GA side of the house are on board. "With the market working, and the price coming down, we've got to go out and educate folks in the marketplace as to why we're doing this."

Benefits of the mandate include expanded ATC Coverage, free weather, traffic, and flight information. Bunce said that weather data will save lives, free through the UAT pipe, and that traffic - ADS-B will be particularly important with UAVs come into the system; important to every civilian and military pilot that is flying today.

Meanwhile the cost of the ADS-B solutions are, as a percentage of the aircraft value, much lower than was paid for a Mode C transponder in 1983, when adjusted for inflation.

Derks said the list of options for ADS-B solutions continues to grow, and is broad in the Part 23 market. "Can the repair stations meet the deadline?" she asked. According to the association, 73% of Part 23 shops indicate they will increase workforce to meet demand. Similar increases are expected in Part 25 shops. "We are asking you (the repair and installation shops) to educate your customers on what they need, because there is a great deal of confusion out there," Derks said.

Finally, Bunce said, the pressure on the FAA for integration of UAVs into the NAS is intense. He called it a "tidal wave" that is coming. but there is also a large opportunity. "We will have technology that is developed for the UAS world that can be adapted to manned aircraft very easily," Bunce said. 30,000 UAVs may be operating in the U.S. Airspace within the next five years, according to government estimates.

Europe is much more focused on the operator than the actual machine its self. What is in our best interest is to draft our comments to the proposed small UAS rule. "Because the draft is an airspace rule, the UAV must be considered an aircraft and must be ADS-B equipped," Bunce said.

Derks said the burgeoning UAV industry represents opportunities for AEA members as well. "At the end of the day, as it relates to ADS-B, it is up to all of us to walk away from this week to be knowledgeable about the products, and knowledgeable about the number of days left."

FMI: www.aea.net, www.gama.aero