Report Includes Recommendations in the Areas of Investment, Air
Infrastructure and Export Controls

  • Interim Report #2 – Commission on the Future of the United States Aerospace Industry (full text)

    WASHINGTON-The Commission on the Future of the United States Aerospace
    Industry today issued its second interim report to address issues of
    immediate importance to the industry. The Commission’s report to the
    President and Congress includes recommendations regarding the aerospace
    business environment, export controls and the air transportation system that
    the Commission adopted in its February 12 meeting.

    The Commission believes that the following issues discussed in Interim
    Report #2 could have a significant near-term impact on the aerospace
    industry and, hence, require immediate action:

  • Business Environment: A business environment must be
    created in the United States that encourages the aerospace industry to grow
    and prosper and to be competitive in the global economy.

  • Defense/Dual-Use Exports: Current export controls
    introduce so much uncertainty and delay that foreign customers are often
    reluctant to attempt to purchase U.S. products. We need to reengineer the
    current export control system for the post-Cold War era. We must bring new
    thinking into the control of aerospace technology. It is counterproductive
    that the government, for example, prevents the sale of U.S. aerospace
    technology that is readily available from other sources worldwide. This is
    particularly true when the customer is a valued ally.

  • Air Transportation: Our current air traffic control
    infrastructure is not scalable to meet future air transportation demand and
    is vulnerable to attack. We must begin to
    develop an infrastructure that meets the nation’s future air traffic
    capacity and security needs. If we do not act now, we can expect the
    delays of the past few years to return and worsen, with resultant increases
    in cost and inconvenience for the American people and business. The
    temporary slowdown in air traffic resulting from the events of September 11,
    2001, provide an opportunity to start developing a new air transportation
    system that can readily handle future air system capacity needs while
    improving public safety and homeland security.

    “This second interim report outlines near-term matters that the Commission
    feels should be addressed prior to the issue of our final report,” said
    Chairman Robert S. Walker. “While we feel this action is needed now to
    positively impact the long-term outlook of the industry, the Commission will
    be addressing these issues more comprehensively in the final report.”

    The Commission’s recommendations are outlined in the attached copy of
    Interim Report #2.

    The Commission on the Future of the United States Aerospace Industry is a congressionally mandated commission, as established in Section 1092 of the
    Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001,
    Public Law 106-398. The Commission was formed to study the future of the
    United States aerospace industry in the global economy, particularly in
    relationship to United States national security; and to assess the future
    importance of the domestic aerospace industry for the economic and national
    security of the United States. The next public meeting of the Commission is
    scheduled for May 14, 2002 in the Department of Commerce Auditorium and will
    focus on the issues of space, workforce and industrial base.

  • Interim Report #2 – Commission on the Future of the United States Aerospace Industry (full text)