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REMARKS FOR
THE HONORABLE NORMAN Y. MINETA
SECRETARY OF TRANSPORTATION
AEROSPACE INDUSTRIES ASSOCIATION
WILLIAMSBURG, VA
MAY 26, 2005
9:00 AM
Good morning! Thank you, John Douglass, for that kind introduction, and to
all of you for that warm welcome.
It is always a great pleasure to be back among my good friends in the aerospace
industry. I’ve been associated with this industry, in one way or another,
throughout my career. I served 20 years in the Congress, both as a member of the
Committee on Science and Technology and as a member and chair of the Public
Works and Transportation Committee as well as the Aviation Subcommittee; as the
chair of the National Civil Aviation Review Commission in 1997; as an officer at
Lockheed Martin; as the Secretary of Commerce for President Clinton; and now as
President Bush’s Secretary of Transportation.
I can remember a time when the group sitting in this room represented not just
American aerospace, but also the global industry. Today, there are similar
groups meeting across Europe, in Canada, and elsewhere around the world.
We have arrived at a period where the American aerospace industry is being
challenged as never before. And while, by many measures, the United States
remains dominant in aviation and aerospace, our global leadership can no longer
be assumed. America is being challenged in manufacturing, just as we are being
challenged in satellite positioning and navigation services as Europe develops
the Galileo system, an alternative to our own Global Positioning System.
So I appreciate this opportunity to be here with you today to talk about what
needs to be done to maintain America’s leadership in this dynamic and rapidly
changing industry. Because maintaining that leadership is essential not just for
you and your businesses, but for our economy – and for the security – of this
great Nation.
And let me preface my remarks by saying that I have every confidence in the
ability of our industries to compete successfully. But make no mistake, we are
going to have to compete.
During my recent trip to Asia, I had the opportunity to observe first-hand the
ability of our manufacturers to go head-to-head against their European
counterparts, and to come out on top. India made the decision to order 50 new
jets from Boeing because Boeing’s jets offered what India was looking for – more
seats, more cargo space, and better fuel efficiency.
Everything that I saw during my two weeks in Asia left me more convinced than
ever of the vast and growing opportunities for American aviation and aerospace
concerns.
Certainly, the highlight of my trip was the signing of an open skies accord with
India – a truly historic agreement that removes all barriers on air services
between our two countries. The Indian accord – and our open skies pacts in the
last month with Paraguay and the Maldives – are the latest in a series of new,
more open aviation agreements that the Bush Administration has concluded in the
past year with countries including China, Indonesia, Vietnam, and Ethiopia.
In total, we now have open skies relationships with 70 aviation partners,
including 15 in Africa. Together, these agreements bring the benefits of more
available, efficient, and affordable air service to nearly half of the world’s
population.
The liberalization of aviation markets is one of the most significant changes
taking place in today’s global economy. Across Asia and around the world,
countries are coming to appreciate that an efficient aviation network – and the
technology that supports it – is fundamental to economic growth and development.
And as they build their systems, tremendous opportunities are opening up for
your industries.
The Bush Administration is helping to develop these promising future markets
through aviation cooperation partnerships that bring the United States
government and our private sector together to help countries upgrade their civil
aviation systems.
We established the first partnership, with China, last year. It was funded
through a $500,000 grant from the United States Trade and Development Agency.
And I want to applaud AIA for its leadership in this critical initiative.
A second partnership, with India, was announced this spring.
These are two of the largest and most rapidly growing aviation markets in the
world. And the technical assistance, job training, and personnel exchange
programs that we are setting up will increase awareness of American technology,
product standards, and services.
It is equally important for the United States to continue to modernize its own
aviation infrastructure.
With microjets and space tourism no longer distant dreams, and the prospect of
three-fold increases in air traffic, passengers, and cargo within the next 25
years, the Bush Administration has set up the Joint Planning and Development
Office to lead the historic effort to design the Next Generation Air
Transportation System.
We are planning transformational changes that will lead to a modern system with
the capacity to allow travelers to choose how, where, and when they want to
travel – while making their experience as safe, secure, reliable, and hassle
free as possible. Our challenge is to design a system that is flexible enough to
encourage the exploration of new business models while ensuring that whatever is
done is done safely.
If this all sounds familiar, it is because it is very similar to a key
recommendation from the Commission on the Future of the U.S. Aerospace Industry.
We read your report… and we have acted decisively.
The Next Generation initiative is not just a Department of Transportation and
FAA effort, but a broad multi-agency Administration initiative with the
Departments of Defense, Homeland Security, and Commerce, as well as NASA, and
the President’s Office of Science and Technology Policy.
And when the President nominates a new Secretary of the Air Force, you can be
assured that I will personally make sure that he or she is fully briefed and
understands the critical importance of this effort.
But let me also emphasize how essential the private sector is to this
initiative’s ultimate success. That is why we are involving industry in an
innovative way. In partnership with AIA, we created the Next Generation Air
Transportation System Institute. While AIA is the “seat” of the Institute, it is
co-chaired by the presidents of the Air Traffic Control Association and the Air
Transport Association.
I want to pause here to thank John Douglass for setting the example of
partnership and collaboration that has gone into our work so far, and that will
be so essential as we move forward.
The Institute allows industry to get directly involved in the transformation
process. It will ensure that the JPDO can draw on the best minds to meet the
very ambitious goals of the integrated national plan – the blueprint that we
submitted to the Congress in December.
Certainly, the move to a modern, technology-driven aviation system is going to
require sustained, multi-year investments. But there are growing indications
that the aviation trust fund, built largely around an airline ticket tax, is out
of step with aviation’s current course.
Lower fares are great news for travelers, but they have unfortunate implications
for aviation infrastructure because, when travelers pay less for their tickets,
it means a smaller Aviation Trust Fund.
As a result, last year users paid four billion dollars less than it cost the FAA
to carry out its work. And that gap is widening.
The time has come to trade in the 1970s model Aviation Trust Fund for a 21st
Century financing plan for the runways, towers, and equipment that our Nation
needs to keep pace with the growing numbers of passengers that our airports and
airlines are seeing every day.
That is why we have begun the discussion on financing the aviation system of
tomorrow. This is an open dialogue. There are no preconceived ideas about how
the system should be financed.
We need creative ideas, and I am looking forward to hearing yours.
As I told the workers at the GE jet engine plant in Durham, North Carolina, last
Monday, the improvements that we do or do not make have a direct impact on
future orders for aircraft, for engines, and for the supporting technology that
keeps America flying.
So, we will be working closely with all of you in the aerospace industry to make
sure that we create an environment that will nurture all of the possibilities
that the United States, and the world, have to offer.
Thank you for allowing me the opportunity to share these thoughts with you. I
appreciate your taking time out of your busy schedules to be here for your
annual spring Board of Governors and Membership Meeting.
Travel safely. May God bless you all, and may God continue to bless the United
States of America.
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