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Sat, Dec 19, 2009

AIA Seeks TARP Funds To Spur Aerospace Employment

Asks For $6.4 Billion From Stimulus Funds

The Aerospace Industry Association (AIA) is calling on the Obama administration to release some of the unspent TARP (Troubled Asset Relief Fund) money to create jobs in the Aerospace industry. Association CEO Marion Blakey said if the money originally set aside for bailing out financial institutions was going to be used for infrastructure projects, then aerospace should go to the front of the line.

Blakely's appeal came at the Reuters Aerospace and Defense Summit held this week in Washington, DC. Reuters reports that Blakey said tapping $6.4 billion in TARP funds for aerospace could create as many as 150,000 jobs in the industry, but that it would not be a "bailout." "This industry doesn't have its hand out and we're not asking for a bailout," Blakey said, but "If they are going to start tapping TARP funds for jobs, we believe very strongly that aviation infrastructure should be right at the front of the line."

Blakey also said spending TARP funds on aerospace projects could help the overall economy by improving the aging air traffic control system.

Marion Blakey

Gene Sperling, a senior U.S. Treasure councilor, said in response to a question about Blakely's suggestion that the distribution of TARP funds was ultimately up to the congress.

Blakey also cited a stimulus package pushed through the French legislature by French President Nicolas Sarkozy as an example for President Obama to follow.

AIA and other industry organization reported back in August that in the current economic climate, the aerospace industry could shed as much as 4.5 percent of its workforce. Blakey also told the conference that U.S. Aerospace exports are off 17 percent over a year ago. There could be a slight increase in 2010, she said, but then expects another shallow dip could follow in 2011.

FMI: www.aia-aerospace.org

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The Aerospace Industry Association (AIA) is calling on the Obama administration to release some of the unspent TARP (Troubled Asset Relief Fund) money to create jobs in the Aerospace industry.

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