Not Small-Business-Friendly, Says Electronics Group
In testimony Wednesday before the U.S. House of
Representatives Subcommittee on Aviation, Paula Derks, president of
the Aircraft Electronics Association (AEA) gave the FAA a failing
grade for their lack of small business friendly administrative
While challenging the excessive administrative burden the FAA
has placed on small aviation businesses, the Association commended
the FAA for the development and deployment of the Aircraft Defense
Identification Zones around Washington and New York.
defended the ADIZ by stating that "In order for our member's
business to remain profitable, they must be able to receive
aircraft from their customers and return the aircraft to the owners
upon completion. While not ideal, the ADIZ allows these businesses
to remain open during higher security events."
AEA sited a recent U.S. Small Business Administration report,
that in the year 2000 government regulations cost firms with fewer
than 20 employees nearly $7,000 per employee per year. According to
AEA estimates the cost to aviation small businesses is two to three
times that amount.
Arbitrariness and abuse of authority take toll...
Derks noted that "Most of these burdens are not from FAA
regulations but rather arbitrarily placed on aviation businesses by
their local FAA inspector."
The AEA focused on three areas where the administrative burden
is excessive: Repair Station Manuals, the arbitrary use of
"Approved Aircraft Inspection Programs" (AAIP) for modern avionics
systems and the excessive use of the FAA Form 337.
The Association's testimony stated "These are but three of the
hundreds of examples of the extreme administrative burden borne by
aviation small businesses with little or no enhancement to
concluded by requesting that the GAO evaluate and report to
Congress the administrative burden placed on aviation small
businesses directly by the prescriptive approach that individual
FAA employees take to regulate the various businesses and that the
FAA establish a small business ombudsman at the national and
regional level to assist the agency in developing
small-business-friendly regulations and to provide a
non-threatening opportunity for small business mediation to resolve
The Aircraft Electronics Association represents nearly 1,100
aviation businesses, including repair stations that specialize in
maintenance, repair and installation of avionics and electronic
systems in general aviation aircraft. AEA membership also includes
instrument facilities, manufacturers of avionics equipment,
instrument manufacturers, airframe manufacturers,test equipment
manufacturers, major distributors, and educational