Business plan 2015

ISO/TC 20 Aircraft and space vehicles

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ISO/TC 20, Aircraft and space vehicles

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ISO/TC 20

Executive summary • The principal markets utilizing ISO/TC 20 standards are aircraft and space

systems manufacturers and operators. With expanding international participation and cooperation in aerospace design and manufacturing, it is important for the industry sector, governments, users, public interest groups, suppliers, etc., to adopt international standards to facilitate this global market.

• The international demand for cooperation in outer space exploration and research with the development of telecommunication capacity, weather prediction, navigations, etc., is fostering an expanding commercial space market place resulting in an international customer base for aerospace products. The customer base for aerospace products is international. Products must be capable of being certified, operated and maintained in all nations that a buyer (commercial airline, space launch provider, etc.) intends to operate.

• To serve this market manufacturers of aerospace products from across the globe have found it necessary to work together under partnerships, consortia and buyer/supplier relationships for design, development, manufacture, operation and maintenance. Safety, reliability and interoperability are fundamental to all aspects of this market. This requires that a systematic approach be taken with respect to all aspects of aerospace products. This also means that all aerospace products are the subject of rigorous requirements established by national and international regulatory agencies.

• Some of the qualitative benefits are: improvement of product quality, reduction in the variety of standards called for a specific product, reduction in the number of different standards to be managed in aeronautics by operating customers such as airlines, maintenance and support facilities, common terminology to allow for communication of complicated design requirements, common test methods, and systems definitions, facilitation of product and system certification, and coordination of aerospace standards activities.

• The main objectives of ISO/TC 20 are: 1. To set a clear target for the standardization work of TC 20. 2. To make a specific priority list of standardization work of TC 20 for public review

and comment. 3. To address the impact of emerging technology that may lead to potential

standardization work in the aerospace arena. To attract more participation from interested parties in these subjects.

4. To ensure that internationally accepted standards exist for the design, construction, test and evaluation, operation, air traffic management, maintenance, and disposal of components, equipment and systems of aircraft and space vehicles, including issues related to safety, reliability and the environment. And as required, produce, maintain and assure these standards are produced cost effectively and correspond to users’ and market needs and to support the technical projects of the sector.

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INTRODUCTION ………………………………………………………………………………………………………………………………………………………………………….. v 1 BUSINESS ENVIRONMENT OF THE ISO/TC ……………………………………………………………………………………………..1

1.1 Description of the Business Environment ……………………………………………………………………………………. 1 1.2 Quantitative Indicators of the Business Environment ………………………………………………………….. 1

1.2.1 Description of the market structure and the major market players ………….2 1.2.2 Particularities of the Industry ………………………………………………………………………………………….. 2 1.2.3 Structure of the market: Suppliers/Manufacturers …………………………………………….. 3 1.2.4 Structure of the market: Customers/Buyers (descriptive

and quantitative) ……………………………………………………………………………………………………………………… 4 1.2.5 Major factors related to suppliers, manufacturers, and customers ……………8 1.2.6 Outside Environment Issues ……………………………………………………………………………………………… 9 1.2.7 Other relevant international, regional or national standards or

voluntary initiatives ……………………………………………………………………………………………………………..10 1.2.8 Recognition and Utilisation of ISO/TC 20 Standards ……………………………………….12

2 BENEFITS EXPECTED FROM THE WORK OF THE ISO/TC ………………………………………………………… 13 2.1 Present context relating to Standardization in Aeronautics, Space and Defence .13

2.1.1 Aeronautics ………………………………………………………………………………………………………………………………..13 2.1.2 Space ……………………………………………………………………………………………………………………………………………..14 2.1.3 Aeronautics and Space ………………………………………………………………………………………………………..15 2.1.4 Defence …………………………………………………………………………………………………………………………………………16

2.2 Qualitative benefits ………………………………………………………………………………………………………………………………….16 2.3 Quantitative benefits ……………………………………………………………………………………………………………………………….17 2.4 Main priorities in the work of the TC 20 committee ……………………………………………………………17

3 REPRESENTATION AND PARTICIPATION IN THE ISO/TC …………………………………………………………. 18 3.1 Countries/ISO members bodies that are P and O members of the

ISO committee …………………………………………………………………………………………………………………………………………….18 3.2 Analysis of the participation ………………………………………………………………………………………………………………19

3.2.1 Organizations in liaison with ISO/TC 20 ………………………………………………………………….20 4 OBJECTIVES OF ISO/TC AND STRATEGIES FOR THEIR ACHIEVEMENT …………………………. 22

4.1 Defined objectives of ISO/TC 20 ………………………………………………………………………………………………………22 4.2 Identified strategies to achieve the ISO/TC’s defined objectives …………………………………22 4.3 Standard Operating Procedures ……………………………………………………………………………………………………….23

5 FACTORS AFFECTING COMPLETION AND IMPLEMENTATION OF THE ISO/TC WORK PROGRAMME …………………………………………………………………………………………………………………………………………… 24 5.1 Industry Issues ……………………………………………………………………………………………………………………………………………24 5.2 ISO Process Issues …………………………………………………………………………………………………………………………………….25 5.3 Use of Livelink for ISO/TC 20 and all of the TC 20 Sub Committees ………………………….25

6 STRUCTURE, CURRENT PROJECTS AND PUBLICATIONS OF THE ISO/TC …………………….. 25 6.1 Structure of the ISO committee ……………………………………………………………………………………………………….25 6.2 Current projects of the ISO technical committee and its subcommittees ………………25 6.3 Publications of the ISO technical committee and its subcommittees ……………………….26

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Contents Page

INTRODUCTION

0.1 ISO Technical committees and business planning

The extension of formal business planning to ISO Technical Committees (ISO/TCs) is an important measure which forms part of regular reviews. The aim is:

• To align the ISO work programme with expressed business environment needs and trends

• To allow ISO/TCs to prioritize among different projects

• To identify the benefits expected from the availability of International Standards

• To ensure adequate resources for projects throughout their development.

0.2 International standardization and the role of ISO

a) The foremost aim of international standardization is to facilitate the exchange of goods and services through the elimination of technical barriers to trade.

b) Three bodies are responsible for the planning, development and adoption of International Standards: ISO (International Organization for Standardization) is responsible for all sectors excluding Electrotechnical, which is the responsibility of IEC (International Electrotechnical Committee), and most of the Telecommunications Technologies, which are largely the responsibility of ITU (International Telecommunication Union).

c) ISO is a legal association, the members of which are the National Standards Bodies (NSBs) of some 140 countries (organizations representing social and economic interests at the international level), supported by a Central Secretariat based in Geneva, Switzerland.

d) The principal deliverable of ISO is the International Standard.

e) An International Standard embodies the essential principles of global openness and transparency, consensus and technical coherence. These are safeguarded through its development in an ISO Technical Committee (ISO/TC), representative of all interested parties, supported by a public comment phase (the ISO Technical Enquiry). ISO and its Technical Committees are also able to offer the ISO Technical Specification (ISO/TS), the ISO Public Available Specification (ISO/PAS) and the ISO Technical Report (ISO/TR) as solutions to market needs. These ISO products represent lower levels of consensus and have therefore not the same status as an International Standard.

f) ISO offers also the International Workshop Agreement (IWA) as a deliverable which aims to bridge the gap between the activities of consortia and the formal process of standardization represented by ISO and its national members. An important distinction is that the IWA is developed by ISO workshops and fora, comprising only participants with direct interest, and so it is not accorded the status of an International Standard.

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1 BUSINESS ENVIRONMENT OF THE ISO/TC

1.1 Description of the Business Environment a) The following political, economic, technical, regulatory, legal and social dynamics

describe the business environment of the industry sector, products, materials, disciplines or practices related to the scope of this ISO/TC, and they may significantly influence how the relevant standards development processes are conducted and the content of the resulting standards:

b) The market covered by the scope of this committee includes the entire spectrum of aerospace industry for the design, manufacture, test and evaluation, operation and maintenance of components, equipment and subsystems for general aviation, commercial aircraft and space systems. It also serves the military aerospace market to the extent that military aerospace products can utilize commercial aerospace standards.

1.2 Quantitative Indicators of the Business Environment The following list of quantitative indicators describes the business environment in order to provide adequate information to support actions of the ISO/TC:

The global aerospace and defence (A&D) sector, valued at US$920.6 billion (2009), grew at 8.7 percent CAGR for the period spanning 2005 to 2009. Defence is the largest segment accounting for around 71.8 percent (US$660.8 billion) of the sector’s total value, with the rest (US$259.8 billion) comprising the civil aviation sector. The United States is the largest market, accounting for 59 percent of the global aerospace and defence sector value, followed by Europe with 22 percent share and Asia-Pacific with 19 percent share. Boeing (USA) is the leading market player with 7.4 percent share of the sector’s value followed by EADS (Netherlands) with 6.5 percent share, Lockheed Martin Corporation (USA) with 4.9 percent share and BAE Systems Plc (UK) with 3.8 percent share.

The aerospace industry is hopeful about the future as the sector is expected to grow at a 5-year CAGR of 5.3 percent between 2009 and 2014. The market is predicted to be valued at US$1,190.5 billion by end of 2014. This positive outlook can be attributed to a positive GDP growth outlook, rising incomes, improving health of airlines, and the large order backlogs with air-framers (Boeing, EADS). Demand for air travel is pegged to economic growth. In the second half of 2009 the world’s economy began to recover from the sharp economic downturn. On a geographical basis, GDP is expected to grow at an average 2.7 percent in North America and 1.9 percent in Europe but as fast as 7.4 percent in China for the next 20 years. With the growth of North American and European economies expected below the global 20-year average of 3.2 percent, airline passenger and fleet growth rates in Europe are anticipated to be proportionately slower in comparison to emerging.

Source: http://www.imap.com/imap/media/resources/Aerospace_8_1FED752787A1E. pdf (accessed 7/18/2014)

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1.2.1 Description of the market structure and the major market players a) Maturity of domestic markets has driven companies to pursue international

expansion more aggressively. The information technology revolution, the rise of newly industrializing countries, and the growing confluence of cultural tastes have all contributed to unprecedented global business opportunities. Aircraft and space vehicle manufacturers and operators with global presence maintain headquarters in the USA, Europe, and Asia. The USA and Europe hold most of the market share in the aerospace industry, but demands for aerospace standardization work will grow to meet the expanding world-wide market for aerospace applications, especially in maturing technologies and new designs. The increasingly global nature of the aerospace industry has also increased the demand for International Standards, which can be used to facilitate co-production efforts, reduce costs, and eliminate differing regulatory standards that have become a major trade barrier.

b) The balance between the key elements in national industries will vary in accordance with domestic strengths and priorities such as technological capability, the relative importance of civil and military applications and the imperatives of import and export.

1.2.2 Particularities of the Industry To understand the competitiveness of the aerospace industry one needs to know the particularities of this unique industry. The following eight points depict the peculiarities of the aerospace industry. These strongly influence the structure and evolution of the production organisation, the localisation of activities and – last but not least – the relationship between the stakeholders:

a) High technological level;

b) Technological complexity;

c) High and increasing development costs;

d) Long break even periods and small markets;

e) Heavy upfront investments and exceptionally long cycle time;

f) Programme lives;

g) High interdependencies between civil and defence markets;

h) Strategic industry.

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1.2.3 Structure of the market: Suppliers/Manufacturers

1.2.3.1 Major product categories and their relative market shares Aircraft and Aircraft Parts 51.7 %

Engines and Engine Parts 15.6 %

MRO 19.6 %

Space Launches and MFG 12.4 %

Training 0.7 %

1.2.3.2 Growth sectors in the market The growth sectors in the market are mainly:

• Aircraft structural parts and engine components

• Missile systems

• Launch vehicles

• Spacecraft

• Ground Infrastructure

1.2.3.3 Major technologies used in the production and use of major products The major technologies used in the production and use of major products are:

• Metallic and non-metallic materials (composites)

• Computer and communication technologies

• Gas turbine technology

• Rocket propulsion technology

1.2.3.4 Resources for aerospace work Resources for aerospace work will be increasing to meet the growing global markets for aerospace applications, especially for maturing technologies and new designs, which will affect standardization activities.

1.2.3.4.1 Civil aircraft sales

Civil aircraft sales increased slightly from 2009 through 2010, $98.5Bn, about 10% improvement noted in 2011 and continued on an upward trend in 2012. Sales in 2013 are estimated to rise approximately 11%.

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1.2.3.4.2 Space sales

The following are dependent on National Defence Policies:

1.2.3.4.3 Military aircraft sales

Sales of military aircraft, engines, and parts have decreased. Reduced exports were largely responsible for the military aircraft sector’s sales decline during the year. Fewer foreign deliveries of fighters and military transports pulled military aircraft exports down. The military aircraft sector is fundamentally driven by the US and EU Defence funding for aircraft procurement.

1.2.3.4.4 Missile sales

US DoD’s funding of missile research and development, with its emphasis on missile defense, has aided industry in maintaining its technological prowess during this period of declining production.

1.2.4 Structure of the market: Customers/Buyers (descriptive and quantitative) The near-future market outlook for the global demand for aircraft and space vehicles is uncertain. From 2003 through 2012, the market experienced spectacular growth. However, the growth cycle appears to be maturing and trending toward more modest increases.

1.2.4.1 North America a) United States

In the United States (U.S.), aerospace industry sales are expected to reach $218 billion in 2012, up 4.9 percent from 2011. This year marked the third consecutive year of growth for the U.S. aerospace industry. U.S. aerospace orders were stable since 2010, at around $242B. Aerospace backlog, has been increasing since 2009 after a sharp decrease in 2008. The U.S. aerospace industry is vitally important to the domestic economy. It is the leading net exporter in the country and provides employment for more than 630,000 workers. Its products and services are the backbone of many other industries that are dependent on air transportation and worldwide communications. Despite the challenging current market conditions, the aerospace industry is an integral component

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of modern society and business. Consequently, when the overall economy improves, the aerospace industry will rebound accordingly.

Although Japan is the largest single country export market for the United States aerospace industry, combined U.S. aerospace exports to France, the United Kingdom, and Germany, the EU‘s three largest aerospace markets, illustrate the importance of the region for both the U.S. and EU aerospace markets. European aerospace companies supply the full range of aerospace products and services, from large civil aircraft, to satellites, to subassemblies and components. Consequently, European firms are both important partners and competitors for U.S. firms.

b) Canada

According to the Aerospace Industries Association Canada, Canada’s aerospace sector generates more than $22 billion and exports 80% of its output. Aircraft and Engine sale make up over 68 percent of this revenue. Investments of over $2 Billion make the aerospace industry the second largest R&D investor in Canada. Aerospace is responsible for the employment of 160,000 Canadians.

c) Mexico

The Mexican Federation of Aerospace Industries, A.C. (FEMIA®), a nonprofit association which integrates the majority of the of the aerospace companies in Mexico reports that the country’s Aerospace industrial sector has more than 31,000 workers in 260 companies, in the manufacturing, services, and design engineering areas, and MRO. The industry has expanded rapidly in recent years, with aerospace exports increasing 279 percent since 2005 to more than $4.5 billion in 2011. Aerospace parts manufactured in Mexico include turbine fuselage and landing gear components, harnesses and cables, audio and video systems, and heat exchangers.

1.2.4.2 Europe Europe is one of the most important markets for commercial aerospace products and space co-operation, and is also an important source for components of worldwide aerospace products. Aerospace industry sales Turnover: 171.5 Billion € .Aerospace R&D expenditure: 16.3 billion €. Aerospace Employment: 479,600, in accordance with “Facts and Figures 2011” published by ASD, (http://www.asd-europe.org/fileadmin/ user_upload/Client_documents/Attachments/Facts___Figures/ASD_Facts_and_ Figures_2011.pdf)

Europe’s civil aviation sector has performed relatively well recently, despite the challenging and uncertain economic environment. Growth continues in the large civil aircraft, regional aviation, and helicopter sectors. However, the general and business aviation sector has been hurt by the worldwide downturn. Aerospace industry sales improved by nearly 23.4 percent from 2008 to 2011, reaching 171.5 billion€. From 2008 to 2011, European aerospace employment averaged 47,000.

The German air and space industry experienced growth of the overall industry 4.1% of total revenue reached 25.7 billion Euros (Previous year: EUR 24.7 billion). The number of employees increased 2.1%, from 95,400 to 97,400. Expenditures on research and development in 2011, was around 16.8% of industry sales at a similar level as in previous years.

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According to ADS, the UK aerospace industry turnover for 2011 was £24.2 Bn; of which 92% was Aircraft and Rotary Wing sales.

1.2.4.3 Asia China, India, Indonesia, Japan, Kazakhstan, Korea, Russian and the Ukraine account for the bulk of aerospace manufacturing activity in the Asia-Pacific region. As measured by sales, Japan has the sixth-largest aerospace industry worldwide.

Japan’s aerospace production sales mostly come from the production of primary components and parts for foreign commercial and domestic military aircraft for defense and rescue.

In addition to supplying manufactured aerospace products to many airframers including Boeing and Airbus, Japan also manufactures aircraft engines. In 2010, total aerospace sales slipped 11 percent from a recent high of $11.5 billion, in part due to delays in the Boeing 787 program. Exports increased nearly 20 percent, reaching $6.4 billion in 2012, while imports rose more than 55 percent to $11.2 billion. Exports rose primarily because of several international joint projects, including the Boeing 777 and 787 aircrafts, and the V2500 and CF34 engines.

The future for China’s general aviation and helicopter sector appears promising, as China is investing heavily in its civil aircraft industry and because of the tremendous growth potential of the country’s domestic air travel industry. The Commercial Aircraft Corporation of China (COMAC) oversees the development of China’s $7.1 billion indigenous 150-seat jet airliner program that will compete directly with Boeing and Airbus. China hopes to have its new 150-seater airliner in service by 2020 and is aiming at a potential domestic market of 2,200 narrow-b