A former US Air Force brigadier general, US military representative to NATO and White House director of national security programmes, John Douglas brings a powerful voice to the Aerospace Industries Association of America. Douglas was appointed the AIA's president and chief executive officer in September 1998, making Paris '99 his first major air show in that new role.

Question: The AIA has its 1999 list of top ten issues for the US aerospace industry. Of those, which will you be highlighting during the Paris air show?

Answer: The international issues rise to the top at an international show like Paris. Certainly, export licensing issues are at the top of the list. Industry is increasingly unhappy about what is going on in the US Commerce Department with regard to export licensing and I think other parts of government are also disgusted. The Director General of the French space programme visited me recently to discuss French concerns about their inability to trade with us because of licensing problems. While these issues are unlikely to be resolved at Paris, it gives us all a chance to talk and gnash our teeth.

Q: As the new head of the AIA, do you see the opportunity for more cooperation with your counterparts in European industry associations?

A: Certainly. I intend to meet with David Marshall, head of the Society of British Aerospace Companies, and we plan to hold a joint press conference on Wednesday where we will discuss things we are doing on both sides of the Atlantic. David and I have also reached an agreement that next year, at Farnborough, we will hold an official SBAC and AIA summit to discuss mutual issues. It will be a useful forum to get together.

Q: Are you concerned about the apparently widening gap between the US and Europe on many industry and trade issues?

A: I believe the gap you sense is not so much an industrial thing. It is more of a governmental thing and more the result of fairly rapidly changing markets.

They are changing more rapidly than the government over-sight processes. But certainly there are isolation tendencies in both the US and in Europe. That is another important issue that we need to discuss with the Europeans and also with the Japanese and the Canadians.

Q: Noise and engine emissions have been in the headlines a lot recently. What is your view on this controversial issue?

A: We want to be clear that we are of the same view and that this is an issue that needs to get back to the International Civil Aviation Organisation (ICAO). ICAO is the proper venue and the proper organisation to deal with this. We need to signal to the European Union that we probably won't have the Stage 4 rule in place by next May, but that we are moving in the right direction. The problem is that the EU decided unilaterally to establish a separate standard - Stage 4 - and that is prejudicial to some parts of the industry. It will help, however, for everyone to state their position.

Q: Do you anticipate more industry consolidation?

A: I do see more consolidation occurring. It will occur for several reasons, although the pace of it is difficult to predict. A lot depends on the business environment in the first two years of the next century.

But clearly there are economic reasons for more consolidation on both sides of the Atlantic. There is concern on the US side about whether the government will allow more consolidation at the top levels, but I see no problems with middle- to small-size companies. Europe will move in the same direction. The key is the global economy in the year 2000. If it turns worse, then consolidation activity might speed up.

Q: Is the USA willing, do you think, to allow more international industry consolidation?

A: The US government is not opposed to transAtlantic company mergers, especially where NATO countries are concerned. There might be some foreign acquisitions of US companies that might not work out for political or idealogical reasons, but this administration has been broad minded.

Q: What will be the AIA's main message during the show?

A Chiefly that the American industry is healthy and competitive and interested in sailing on the global economy. We are working hard to help European customers solve US government problems. Individual members will be showcasing US technology of today and the future. We will be telling everyone that we will maintain a very aggressive research and development programme in the USA. All of that resonates well with key members of this administration.

Source: Flight Daily News