Biggest Bourget Ever for AIA Fielding its largest international presence here at Le Bourget is the Aerospace Industries Association of America, led by president & CEO John W. Douglass. The Washington-based trade association has seen its membership more than double over the last three years to 200 companies even as the industry consolidates. And at Paris it's hosting exhibition space for 20 of them. "We are growing rapidly, mainly with medium-sized companies," he says. They are joining as another step in surviving, rather than succumbing to global consolidation. Also signing up are an increasing number of international companies. British members include GKN, Rolls-Royce, British Aerospace and Smiths Industries (all with substantial U.S. manufacturing operations); Fairchild Dornier has also joined, and Embraer recently applied. "This has brought a predominantly British-American texture to our membership," Douglass explained. "Frankly we are not sure where this is going to lead; our board already has divided views about how much to integrate this. But there remains a bedrock feeling among our members that we represent production here in the U.S." Nevertheless, the diversifying membership has made AIA one of the most important forums for discussing transatlantic issues-and for defusing them before they escalate into trade battles, Douglass says. -- J.M.

Surplus Headed South? A plunge of more than a third in America's aerospace trade surplus since 1998 "is a big concern," AIA president & CEO John W. Douglass told Show News. Record imports-mostly of Airbus airliners-and lower exports-mostly of Boeings-combined in 2000 to slash the surplus to $26.7 billion from a record $41 billion two years before. Imports jumped $2.9 billion to $28 billion, while exports dropped $7.8 billion to $55 billion. "It is not a decline in U.S. competitiveness -- it is Boeing," Douglass says, where the cyclical nature of air transport manufacturing coincided with a surge two years ago in U.S. orders for Airbus. "But Boeing's strong backlog should make the situation self-correcting," he says. Douglass nevertheless called on President George W. Bush to reconsider plans to cut funding for the Ex-Im Bank by 25%. "With imports rising and exports falling, it hardly seems appropriate to reduce the bank's appropriations at this time," he says. Also contributing to the export decline was a collapse in satellite sales following the transfer of export licensing from Commerce to the State Department. Government policy regarding exports should be studied by the ongoing President's Commission on the Future of the U.S. Aerospace Industry. "Before the budget for the Ex-Im bank is cut, the government should be aware that this will adversely affect billions in foreign aerospace sales," Douglass says. "These recent statistics reflect the need for a more focused national plan for the future of the American aerospace industry." -- J.M.