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 procedures.

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. 

Derks 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 safety."

Derks 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 regulatory conflicts.

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 institutions.

FMI: www.aea.net