Our national security is at risk from sequestration
A strong effort has been put forward to demonstrate our industry’s message by illustrating how political gamesmanship in Washington has reached new levels. It is well past time our leaders come together to address the increasingly troublesome issue of sequestration by doing the job for which they were elected.
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For more information on how sequestration impacts our national security please refer to the following links:
U.S. Department of Defense - Press Briefing by Secretary Panetta and General Dempsey in the Pentagon Briefing Room
Aerospace Industries Association – Sequestration resource center on Second to None
For news stories illustrating the national security implications of sequestration please see the following stories:
Defense News - Panetta Warns of Severe Reductions in Operations if March Sequester Occurs
Politico - Panetta warns of hiring freeze, deep cuts at Pentagon
Washington Post - Defense plans precautionary cutbacks
Help us continue the fight against sequestration by getting active online. Tweet using the hashtag #StopSequestration to let everyone know that you think this bad policy must go.
Our Industry Page
New Report: Sequestration Will Ground Air Travelers, Cargo and the U.S. Economy
Budget cuts would close air traffic control towers, reduce passenger and cargo capacity and cost 132,000 American jobs
Arlington, Va. — A study released today by the Aerospace Industries Association and Econsult Corporation estimates that budget cuts to Federal Aviation Administration operations as a result of sequestration could cost up to 132,000 aviation jobs, sap $80 billion a year from the nation’s gross domestic product and strip almost two billion pounds of freight capacity out of an air cargo system that is already buckling at the seams.
According to the study, annual economic losses could amount to $80 billion annually by 2035, an annual decrease of 37 to 73 million in passenger enplanements and annual reductions of 1 to 2 billion pounds of transported air freight. The forecasted loss in output to the U.S. economy is estimated to reach $9.2 to $18.4 billion, with $2.7 to $5.4 billion lost in wages and salaries.
“If sequestration is not stopped, it will be by far the most devastating budget cut to the FAA in its 54 years,” said former Secretary of Transportation and Congressman Norman Mineta. “The FAA is a critical safety organization that regulates our national air transportation system. Putting it at risk is folly beyond comparison.” Mineta is currently vice chair of public policies at Hill + Knowlton Strategies.
(From left to right: former Secretary of Transportation and Congressman Norman Mineta, AIA President and CEO Marion C. Blakey, Econsult Corp. Vice President and Principal Stephen P. Mullin)
The study was released at a luncheon meeting of aviation leaders in Washington, who warned against the effects of sequestration. According to a letter from Rep. Norm Dicks (D-Wash.), ranking minority member of the House Appropriations Committee, to the Joint Select Committee on Deficit Reduction in October 2011, sequestration could result in the closure of 246 airport control towers, and the loss of 1,500 air traffic controllers, 9,000 security screeners and 1,600 customs officers.
“With proper funding the FAA can be both safe and efficient,” said AIA President and CEO Marion C. Blakey. “Under sequestration, the air traffic control system will be hobbled for decades, leaving travelers, shippers and our economy in the lurch.”
Sequestration – triggered in 141 days unless Congress acts this year to repeal or delay it – would also have a devastating impact on the Next Generation Air Traffic Control System, delaying system implementation by a decade or more. The full implementation of NextGen, now scheduled for 2025, has been forecast to provide more than $281 billion in net benefits, save 27 million hours in flight delays and reduce 216 metric tons of emissions.
“This study reveals the draconian effect of sequestration on the FAA,” said Stephen P. Mullin, vice president and principal of Econsult Corporation and author of the study. “Sequestration would force the FAA to slash operations, bringing gridlock to the skies today, or defund modernization and infrastructure work. The closer we study sequestration the more destructive it turns out to be.”
The report is one of several released by AIA that demonstrate the impact of sequestration on the nation’s economy and the aerospace and defense industry. Most recently, a study by George Mason University’s Dr. Stephen Fuller concluded that 2.14 million jobs across the economy are at risk.
The Econsult study, “Economic Impacts of FAA Budget Sequestration on the U.S. Economy,” is available below.
Others aviation leaders have added their voices to stopping sequestration and its devastating consequences:
Todd Hauptli, Senior Executive Vice President, American Association of Airport Executives: “‘Sequestration’ is a fancy word for ‘abdication’. Congress needs to act to avoid these devastating and indiscriminate cuts. This study confirms that the entire aviation industry should be on high-alert in the weeks and months ahead as this process unfolds.”
Deborah C. McElroy, Executive Vice President of Policy and External Affairs, Airports Council International: “We’ve learned from recent airport economic impact data that runways have replaced Main Street as a key driver of economic growth in our global economy. Sequestration would seriously undermine the ability of airports and air transport facilities to grow and create jobs.”
Peter Dumont, President and CEO, Air Traffic Control Association: “America needs jobs, not policies that handcuff federal agencies and force decisions that undermine safe air travel in this country. Our highly-skilled air traffic controllers keep the system moving 24 hours a day, 7 days a week on behalf of the American people. As the economy continues to recover, new passengers and cargo are going to flood into the system. We need to get ready, not give in to cuts that could leave America flying blind.”
Craig Fuller, President and CEO, Aircraft Owners and Pilots Association: “The likely effects of sequestration on general aviation safety and efficiency are truly frightening. The anticipated loss of thousands of FAA employees, including 600 safety and aircraft certification personnel and more than 1,200 air traffic controllers, the closure of more than 200 contract towers, and drastic cuts in the NextGen air traffic modernization initiative would have devastating and lasting impacts on our national air transportation system and everyone who uses it.”
Captain Lee Moak, President Air Line Pilots Association, International: “The FAA reauthorization act contains a number of provisions for safety enhancements to our aviation system, many of which have aggressive timelines. If those programs and timelines are not fully supported with critical resources, then the success of our efforts to continue improving the safety, efficiency, and economic viability of the system will be in jeopardy.”
Margaret Jenny, President, RTCA: “After years of developing concepts and plans, the aviation community is beginning to work in partnership with the FAA to implement the first phases of this transformational modernization effort. If either of the scenarios become a reality, the momentum and trust that has built up will be lost, leading to long-lasting negative impacts to NextGen and to the United States’ ability to keep pace with air traffic demand and maintain world leadership.”
- Download the full report here
- View the event slides here
- View the event speaker bios here
- View the State-by-State economic numbers here
- View photos of the event here
Northern Virginia Stop Sequestration Rally Hosted by Northrop Grumman
On Monday, July 30, 2012, Northrop Grumman Corporation hosted a rally to help stop the automatic, across the board budget cuts known as sequestration from taking effect in January 2013. Several hundred aerospace and defense industry workers from multiple companies throughout the northern Virginia region attended the rally to make their voices heard. A strong bipartisan lineup of Virginia politicians including Governor Bob McDonnell (R) and Congressmen Gerry Connolly (D-VA), Jim Moran (D-VA), Bobby Scott (D-VA) and Frank Wolf (R-VA) also contributed as speakers during the event.
Other speakers included Wes Bush, Chairman, CEO & President of Northrop Grumman Corp., Darryl Fraser, Vice President, Communications of Northrop Grumman Corp., John Jumper, CEO of SAIC Corp., Brad Antle, Chairman of the Northern VA Technology Council, and President & CEO of Salient Federal Solutions, Inc., and Marion Blakey, President & CEO of Aerospace Industries Association.
Initial coverage of the event can be found below:
Florida Leaders, AAR and Space Coast Business Community Warn Against More Cuts to A&D.
Rep. Bill Posey (R-Fla.), AAR Chairman and CEO David P. Storch, leaders from the Space Coast business community and more than 250 local workers rallied today at the AAR Airlift facility in Melbourne to warn about the threat to U.S. economic and military strength posed by $500 billion in sequestration budget cuts scheduled for January 2013. A study commissioned by AIA last year found that Florida could lose more than 39,000 jobs if Congress does not act to stop these cuts.
“The number one economic challenge we face is jobs and we must create awareness of these impending cuts and their potential effects,” said Storch. “We need to do all we can to ensure an outcome that benefits our country and our communities while fostering productivity and innovation for our industry.”
Photos from the rally may be viewed here.
The full press release may be viewed here.
Florida Rep. Crenshaw Keynote Speaker at Second to None Employee Rally at Kaman Aerostructures in Jacksonville.
Kaman Corporation, in conjunction with the Aerospace Industries Association, hosted an employee rally Monday, May 21 at their Jacksonville Aerostructures facility to raise awareness of the critical contribution which the aerospace and defense industry is making to the U.S. economy and to our national security. Congressman Ander Crenshaw was a keynote speaker at the event, along with Kaman CEO Neal Keating, Textron, Inc. CEO Scott Donnelly, and AIA’s President and CEO Marion Blakey.
The rally highlighted the need for quick action in Congress to undo hundreds of billions of dollars in mechanical “sequestration” cuts that will slash military, space, and commercial aviation funding. Experts predict these cuts will eliminate over one million U.S. jobs, including nearly 40,000 in Florida alone. They will delay the Next Generation Air Transportation System, costing billions in the long run, and stall the U.S. space program, already reeling from the retirement of the space shuttle.
Photos from the rally may be viewed here.
The full press release may be viewed here.
BAE Systems Hosts Second to None Rally
More than 300 local employees gathered at BAE Systems’ facility in York, Pa., November 21 for the first Second to None rally supporting the aerospace and defense industry. In the shadow of the budget supercommittee’s failure to reach an agreement to avoid sequestration cuts, events like these to draw attention to our industry’s contribution to our national and economic security are even more important.
Dignitaries at the event included Rep. Todd Platts (R-Pa.), AIA President and CEO Marion C. Blakey and BAE Systems Senior Vice President for Finance and Chief Financial Officer Robert Murphy.
Watch the recap:
Watch WHP-TV’s coverage of the event:
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U.S. Aerospace & Defense: Second to None
Preserving American Leadership in Aerospace and Defense
American leadership in aerospace and defense is being threatened by forces in Congress and the administration. The security of our troops, our technological future and our economic stability are all at risk. We must preserve jobs across the nation that keep our nation strong. Join us and act now before it is too late.
“Excessive” defense cuts “Devastating” to National Security
Putin pledges to make Russian Aero industry first
WASHINGTON, DC — U.S. Defense Secretary Leon Panetta in a joint appearance with Secretary of State Hillary Clinton warned Tuesday that “excessive” defense budget cuts would have “devastating” effects on the United States’ national security.
The defense chief stated that the defense budget should be one source of potential savings, but everything should be on the table in regards to deficit cuts, including entitlement reform and raising taxes. Panetta detailed that more than two-thirds of the federal budget has yet to be reviewed for savings.
The debt ceiling deal struck between Congress and the administration earlier this month calls for initial cuts of $350 billion to defense over 10 years. The deal requires Congress to agree on an additional $1.2 trillion of deficit reduction to avoid triggering automatic cuts including up to $600 billion to national security spending.
Panetta recently penned a message to all Defense Department personnel, explaining that he will do everything he can “to ensure that further reductions in defense spending are not pursued in a hasty, ill-conceived way that would undermine the military’s ability.”
The following day, Russian Prime Minister Vladimir Putin, while speaking at Moscow’s International Aviation and Space Show, vowed to keep the development of Russia’s national aerospace industry a top priority. The announcement of U.S. defense cuts also comes on the heels of the Chinese government showing off its first operational stealth fighter. With the Russian and Chinese stealth programs in active development, the United States must continue to pursue new technologies to remain Second to None in aerospace and defense.
