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US Aerospace Industry sets record sales for 1999

9 December 1999

According to figures released at the Aerospace Industries Association's
35th Annual Year-End Review, the US aerospace industry posted record sales
of $155 billion during 1999. 

AIA's analysis also showed gains in military aircraft sales, from $34.1
billion in 1998 to $35.8 billion in 1999. DoD's funding for aircraft
procurement, which rose from $14 billion in FY '96 to just under $16
billion in FY '99, along with increased foreign sales of fighters and
military helicopters in 1999, pushed military sales up.

Commercial space generated $7.1 billion in sales in 1999, up by $962
million from last year, despite a 41 per cent drop in exports. Because of
the current system of handling export licensing for commercial satellites
through the State Department's munitions list instead of the Commerce
Department, exports of satellites, spacecraft, and parts is projected to
drop from $670 million in 1998 to $395 million in 1999. 

The industry also posted record profits, $10.8 billion, for the year, the
fourth year in a row the aerospace industry has earned profits in excess of
$7 billion.

In 2000, AIA's statistical report forecasts total aerospace sales declining
$6 billion to $149 billion, primarily a result of decreased sales of
commercial aircraft. However, this decline will be balanced by increased
sales in space, military aircraft and missiles.

AIA predicted that the downturn in commercial aircraft sales should level
off and then rise again in 2001 or 2002, noting that the Asian market is
predicted to strengthen, fuelling demand for new planes, and that new
military programmes entering production in the next few years should boost
the defence sector. Commercial space is also expected to grow continue to
grow.

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