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General Aviation Manufacturers Association Performance - Research Paper Example

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The paper "General Aviation Manufacturers Association Performance" critically analyzes the performance of a General Aviation Manufacturers Association (GAMA). It is a platform to bring different aviation manufacturers together so that the common interests can be better met in the short and long term…
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General Aviation Manufacturers Association Performance
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General Aviation Manufactures Association (GAMA) The General Aviation Manufactures Association was set up as a platform to bring different aviation manufactures together so that the common interests can be better met in the short and long term. As time passed, the association took various measures that helped it to become one of the biggest contributors to the U.S economy. The association, with a futuristic vision, takes various steps that are meant to overcome the challenges it faces and is likely to face. The present day challenges for the association are the restrictions on export as imposed by the U.S government, the environmental impact of the aviation industry, and the shortage of skilled workforce. However, it seems that with the measures adopted by the association and also with the help of U.S government, the association will be able to overcome these hurdles. Introduction The General Aviation Manufacturers Association is the union of more than 70 manufacturers of various air components ranging from fixed-wing general aviation airplanes, engines, avionics, and components. Almost all the present day flying planes are built by GAMA members. In addition, they engage in aircraft fleet, airport fixed-based operations, pilot training, and maintenance facilities. A look into the history of GAMA will prove that it makes a significant contribution to the U.S economy and also to the economies of other nations. In addition, it acts as a platform for discussion of various issues affecting the aviation industry. Moreover, there are a large number of initiatives from the association that are vital to the society, like the environmental protection measures. What GAMA Does The association, established in 1970, has been engaged in such operations that ensure the general welfare of the aviation industry. The association has its headquarters in Washington, DC, and an additional office in Brussels. It functions as a body that represents the interest of its members to the government agencies throughout the world, which vary from legislation, regulations regarding safety, access to markets, developing aviation infrastructure, and finally security. In addition, the association works in collaboration with the International Civil Association Organization (ICAO) for its members and also works with various other national and international groups for the promotion of the interest of general aviation worldwide. The Organizational Structure of GAMA The GAMA has a chairman, a vice chairman, and a board of directors. The board contains a chief executive or a senior official from each member company. The election is conducted by the board of directors at the fall board meeting every year. Normally, the executive committee holds its meeting before the full board meetings to decide what subjects are to be discussed in the full board. The executive committee is comprised of the chairman, vice chairman, president and CEO, chairmen of standing committees and other board members whose presence seems fit according to the chairman for the smooth functioning of the meeting. The 2011 executive committee of the GAMA has John Rosanvallon as its chairman and Caroline Daniels as the vice chairman. Pete Bunce is acting as the president and CEO while Paul H. Feldman is the vice president (GAMA, 2010). The History of GAMA The GAMA was founded in the year 1970, and the association had its first meeting on 2 January 1970 in Washington DC. In fact, the GAMA had its origin from the Aerospace Industry Association of America’s Utility Aircraft Council. The mission of the association since its inception is ‘to foster and advance the general welfare, safety, interests and activities of general aviation’. A look into the association’s history proves that since its very beginning, the association has tried to ensure adequate funds for aviation infrastructure from various governments. The first chairman of the association was Dwayne L. Wallace and the first president was Joseph T. Geuting. Edward W. Stimpson and Stanley Green were the vice president and the general counsel respectively. The association started its operation with the effort to implement the Airport and Airway Development Act of 1970, and as a result of this effort, the trust fund to develop and expand national aviation system came into existence. After Mr. Geuting, Mr. Edward W. Stimpson was elected as the president of GAMA, and by this time, the association had 18 member companies. The second major campaign from the association came in the year 1972 when it initiated a nationwide campaign to improve aviation safety. As a part of it, the association initiated ‘Safe Pilot Program’ under which direct support was given to the FAA’s national accident prevention program. In addition, it raised the number of pilot education programs through seminars and clinics. In order to promote the program and to increase the number of pilots who take part in the program voluntarily, ‘Safe Pilot Sweepstakes’ were arranged in which the pilots who attended the program became eligible for various prizes and even the non-pilots who attended the program became eligible for $ 1500 worth tuition towards a private pilot rating. The next step was to fight for the inclusion of specific language in the Federal Aviation Administration FY73 appropriations bill to avoid the implementation of administrative user charges till approved by the Congress. Another important landmark in the history of GAMA was the ‘Operation Takeoff’ program that was initiated in August 1976 in order to increase the number of people joining pilot training. The aim of the program was to attract 600,000 new students towards pilot training. The program received great support from the Aircraft Owners and Pilots Association. There were various strategies like mailings and advertisements for the promotion of the campaign. The very next year witnessed the publication of Specification for Pilot Operating Handbooks and the same was accepted by FAA. It was based on this specification that the Pilot Operating Handbooks were prepared by the general aviation community. Within a year, the second publication took birth which was named Specification for Manufacturers Maintenance Data Handbooks. In the year 1978, GAMA launched a new concept for special federal aviation regulation for ten or more passenger airplanes to be used in Part 135 operations which is presently known as computer category airplanes. The year 1979 saw a new program named ‘Safe Pilot 80’ that was intended mainly to improve safety. As a part of this project, pilot received proficiency coupons according to their participation in safety seminars and watching pilot judgment slide shows. The five year period from 1978 and 1983 saw the collaboration of GAMA and National Business Aviation Association to fight against the City of Santa Monica’s airport noise ordinance that banned the use of jet planes. However, as the associations filed an amicus brief against this ordinance, the city’s ordinance was found unconstitutional and later on an agreement was reached. The next major movement was seen in the year 1992 in the name ‘No Plane No Gain’. The campaign was intended to promote the use of business aviation. In order to promote the same, the campaign created an image for business aviation as a cost-effective tool through increased efficiency, productivity and profitability, and the claim was supported by a number of studies. However, the biggest success in the history of the association came in the year 1994 when President Bill Clinton signed the General Aviation Revitalization Act which successfully stopped frivolous lawsuits against aviation manufacturers. This achievement was made when Russ Meyer of the Cessna Aircraft Company was the chairman of the association. The enactment of the law was followed by Cessna’s announcement that it would restart its production of single engine piston powered airplanes. In 1996, Ed Bolen became the president of the association and Edward Stimpson became the vice chairman. Four years later, a program named ‘Be A Pilot’ was initiated and the program was intended to encourage people of all ages to engage in flying. Under the slogan ‘stop dreaming and start flying’, the program got 260,000 new prospective students into introductory flight lessons, and got more than 5 million visitors to its site and had nearly 500 million television advertisements in a period of ten years. In the year 1998, GAMA’s Edward Stimpson got the highest award in the aviation industry named the Wright Brothers Memorial Trophy for the excellent leadership, and later on, in 1999, he was appointed as the U.S ambassador to the International Civil Aviation Organization. The September 11 attack had its impact on the operations of GAMA too. After the attack, the GAMA collaborated with various organizations in order to coordinate the general aviation industry’s response to the national relief effort. An example is the database it created for the companies that wished to provide aircrafts for the relief flights. This database ensured that the availability of aircraft matched the needs of the relief operations. In this period, GAMA engaged in efforts to reopen airspace to general aviation operators in accordance with the demands of national security. By the year 2002, the association declared its decision to allowed membership from other nations too. Another vital step was the development of the Century of Aviation Reauthorization Act that was passed in the year 2003. There were various important provisions in the act ranging from authorization of certification of design organizations, protection from the unauthorized use of type certificates, returning general aviation operations to Ronald Reagan National Airport, and empowering the Transportation Security Administration to check the background of aliens who get flight training. In the year 2005, it was found that the production of GA airplanes has increased three times in the past ten years. In addition was the creation of nearly 25,000 new jobs in the industry. In the year 209, the association again joined with the National Business Aviation Association to re-launch the old ‘No Plane No Gain’ program in an effort to remove the misconceptions about the role of general aviation in the economy. Performance & the Financial Status Admittedly, there has been a gradual decline in the shipments of general aviation airplanes for the past three years. In the year 2010, the number of shipments was 2015 units as against the 2274 units in 2009, experiencing an 11.4 percent decline. However, as a result of the relatively stable deliveries of large-cabin, long-range aircrafts, there was a 1.2 percent rise in the worldwide aviation billings to reach $ 19.7 billion in the same period. This shows a 1.2 percent growth. However, when the airplane shipments from manufacturers in the U.S are taken into account, one can see that there is a considerable fall in total billings. To illustrate, the deliveries of pistons fell from 802 to 746, that of turboprops from 269 to 224, and that of business jets from 514 to 364. In total, there was a fall in the total billings from $ 9.1 billion to $ 7.9 billion showing a 13.3 percent decline. When different sectors are considered independently, it is seen that the business jet sector had a decline for the second consecutive year. Though manufacturers shipped 763 units in 2010, there was a 12.3 percent fall compared to the shipments in 2009. In the case of turboprops, the deliveries in 2010 were 363 with a 17.7 percent fall compared to the previous year. In the case of pistons, the fall was nearly 7.7 percent with a total shipment of 889 units. A look into the global delivery pattern proves that there has been an increasing dependence on markets other than the U.S in the recent years and that the rate is rising. For example, in 2010, 42.1 percent of business jets were delivered to North America, which shows a 7 percent decline in a period of one year. While Europe accounted for nearly 23 percent of the delivery, Latin America, Asia Pacific and Middle East had 14.3, 11.8 and 9 percent respectively. A closer look into the information shows considerable variation in the delivery patterns. For example, until 2007, nearly two-thirds of the total deliveries were to North America. However, by the year 2010, this percentage came to nearly 50 percent. Current Operational State of GAMA The total number of piston engine airplanes in the year 2009, according to statistics, is 157,123. In addition, there are 9,055 turboprop airplanes, 11,268 turbojet airplanes, 9,984 rotorcrafts, and 1,808 gliders. Also, the number of lighter-than-air is 3,672 and that of experimental is 24,419. Lastly, there are 6,547 light sport aircrafts. In addition, it is necessary to look into the total number of pilots and flight instructors according to the 2010 data. According to the information available, the total number of pilots in the U.S is 627,588. 119,119 are students while 220, 008 have private pilot license. 139,100 have commercial pilot license and 145,464 are in airline transport. In addition, one can see an increase in the number of Instrument-Rated Pilots. While the number of active pilots was 570,807 in the year 1983, by 2010, it fell to 504,572. On the other hand, the number of instrument rated pilots rose from 254,271 to 318,001. In the case of Australia, the total number of amateur built aircrafts is 1078 and that of single engine fixed wing aircrafts is 7,230. In the case of multi-engine aircrafts, the number is 1,878 and that of rotorcraft is 1,703. Similarly, in Germany, the number of single engine aircrafts is 6,801 and that of multi-engine aircrafts is 242. Moreover, there are 811 helicopters and 3,081 motor gliders. In South Africa, the number of piston engine powered one engine aircrafts is 2,745 and that of two engine aircrafts is 713. Challenges for GAMA As aviation has become one of the most important contributors to the U.S economy, the nation has been well aware about the needs of the industry. Some important issues as identified by the Congress as affecting the aerospace manufacturing industry are export control policies, environmental concerns and the rising age levels of the workforce. In addition is the dispute regarding the U.S and European attempt to subsidise their domestic companies. Admittedly, the first issue that can inhibit the growth of U.S aviation industry is the governmental controls over export. Though globalization has a positive impact on export of aviation components, the U.S government’s export licensing laws adversely affect the ability of second and third tier suppliers in the international market. In addition, it reduces the chances for outside customers to acquire aerospace products and parts from the U.S. In addition, the U.S control over exports makes many overseas companies to opt to develop such products that do not contain any U.S-made components. The second major issue for the association, admittedly, is environmental concerns. Being a major contribution to the world carbon production, the industry will be forced to reduce carbon emissions. Avoiding a negative attitude towards the situation, the GAMA has declared that it has committed itself to various aggressive measures towards environmental protection. Some such declared targets are carbon-neutral growth by 2020, an average rise of 2 percent in the fuel efficiency of products till 2020, and a 50 percent reduction in carbon dioxide emission by 2050 (GAMA & Ibac, n.d). The third serious issue is the aging workforce that is visible everywhere in the U.S science and technology workforce. The recent trends indicate that the number of qualified workers is not sufficient to meet the requirements in the companies. In addition is the fact that not enough new people are opting for science and engineering careers. For example, between 1986 and 2006, there was an 11 percent drop in the number of students earning an engineering bachelor’s degree. According to statistics (as cited in Platzer, 2009), nearly 60 percent of the U.S aerospace workforce is aged 45 or more. In order to meet this challenge, GAMA has started programs to inspire interest in aerospace careers in youth. To illustrate, the program ‘Look Up’ intends to encourage kids at all education levels to think about a career in the aerospace field. Admittedly, the program was a huge success attracting hundreds of youngsters into aerospace careers (GAMA: Look Up, 2010). The Unique Position of GAMA In order to understand how important the role of GAMA is to the economy, one should look into what it contributed to the U.S Economy in the previous years. According to statistics, the GA had a total direct output of $ 39.8 billion and an indirect output of $ 49.9 billion. In addition is the induced $ 60.6 billion output. In addition to this, the GAMA paid an amount of $ 14.5 billion in the form of direct wages and salaries and nearly $ 21 million through indirect wages and salaries. In addition to all these, the total number direct employment opportunities created by GAMA is 225,000 and the total number of indirect ones is 560,000. However, it is not possible to totally quantify the contributions from GAMA to the U.S economy as its contributions are direct, indirect and induced and very difficult to assess. For example, the direct contributions mainly come from new aircraft sales, operations and maintenance, airport expansion and improvement, catering, value of time savings, and information and periodicals (GAMA, 2006). Conclusion In total, it becomes evident that GAMA has been enormously successful in its operations so far though it has been affected by the economic recession. It effectively manages to meet the interests of the general aviation industry as a whole. However, its future survival will be dependent on how it manages the existing challenges of environmental impact and poor availability of skilled workforce. References GAMA. (2010). General aviation: Statistical databook & industry outlook, 1-76. Retrieved from http://libraryonline.erau.edu/online-full-text/books-online/GamaDatabookOutlook.pdf GAMA & Ibac. (n.d). Business aviation and climate change: Advocating for a global aviation sectoral approach in a post-Kyoto global framework. Retrieved from http://www.gama.aero/files/Bizav_Climate_Change_Statement_Nov_2009.pdf GAMA. (2010). Look up. Retrieved from http://www.gama.aero/advocacy/aviation-education/look GAMA. (May 2006). General aviation’s contribution to the U.S Economy, 1-39. Retrieved from http://www.ok.gov/OAC/documents/General%20Aviation%20Contribution%20to%20the%20US%20Economy%20(GAMA).pdf Platzer, M. D. (03 December, 2009). U. S. Aerospace manufacturing: Industry overview and prospects. Congressional Research Service, 1-10. Retrieved from http://www.fas.org/sgp/crs/misc/R40967.pdf Read More
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