NAT I ONA L A E ROS PAC E FORE I G N D I REC T I N VE ST M E N T E X PO

LT. GOVERNORS’ CIRCLE BREAKFAST

SPONSORED BY:

Tony VelocciRetired Editor-in-Chief

Aviation Week & Space Technology

STATE OF THE INDUSTRY -THE OUTLOOK

FOR INVESTMENT 

Spot Price of Jet Fuel/Gallon

Source: Airlines4America, Energy Information Administration

Potential Market Disruptors

• Airframe OEMs fail to execute on huge order backlogs.

• Supply chain fails to keep pace.

Foreign currency fluctuations.

• Unforeseen exogenous event.

Business Jet Demand by Region

2014-2024

North

Am

erica

Latin

Am

erica

Euro

pe

Mid

dle

East

& A

frica

Asia P

acifi

c0%

10%

20%

30%

40%

50%

60%

70%

Source: Honeywell Aerospace

Launch-Vehicle Providers2011-2014

Source: Aviation Week Intelligence Network

CIS China U.S. Europe0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

All Others55%

Thales Alenia18%

*CAST10%

ISS Reshetnev6%

Space Systems/Loral

6%

Airbus Defense & Space

5%

Commercial Satellites(Unit Production)

Percentage of Market Share

Total Five-Year Production: 608

*Chinese Academy of Space Technology All percentages rounded.Source: Forecast International

Targets of Opportunity for States

Asia/Pacific

• Indonesia

• Japan

• Malaysia

• South Korea

• Taiwan

Second- and Third-Tier European Suppliers

Creating the right initiatives aligned with your goals requires key actions:

• Determine what is strategic.

• Understand the value chain of aerospace industry sectors.

• Understand the technology cycle.

• Replenish seed corn by fostering investment in research and development in your state.

• Align incentives with areas that matter to business.

• Exploit the role that non-U.S-based companies can play as a partner to American primes and OEMs.

• Use the full range of tools at your disposal.

Who’s Investing In Their Future?*

Apple

Hewle

tt Pa

ckar

dIB

M

Amaz

on

Micr

osof

t

Googl

eIn

tel

Cisco

Oracle

Qualco

mm

0

5

10

15

20

25

R&

D a

s a

% o

f sa

les

Source: Capital Alpha Partners*FY 2014