Market opening, expansion in civil aviation attract U.S. aerospace firms to Eastern Europe

Business America, Jan 14, 1991 by Heather S. Jones

Market Opening, Expansion in Civil Aviation Attract U.S. Aerospace Firms to Eastern Europe

Expansion and modernization of Eastern Europe's commercial airline fleets and aircraft manufacturing sectors, and improvements for its airports, air traffic control, and aviation ground support equipment, prompted a group of 17 American aerospace companies to join the U.S. Department of Commerce on a two-week Executive Aerospace Trade Mission to Hungary, Czechoslovakia, and Poland, Nov. 26 to Dec. 7. The trade mission, led by Sally H. Bath, Acting Deputy Assistant Secretary of Commerce for Aerospace, made stops in Budapest, Bratislava, Prague, Krakow, and Warsaw to meet with high-level government and industry officials and discuss business opportunities. The U.S. Federal Aviation Administration also participated in the mission.

Bath noted this is the first time that the U.S. Department of Commerce has sponsored an aerospace trade mission to Eastern Europe. Prior to the rapid political transformation of 1989 in Eastern Europe that led to market-opening measures in these countries, the exportation of aerospace products and services was severely restricted, she said. Currently, the United States is proposing to decontrol for export many high-tech items, including civilian aircraft engines and radars, electronic navigation equipment, and flight instrument systems. An easing of export controls, which requires CoCom approval, would benefit U.S. companies recognized for their state-of-the-art aerospace technology.

The U.S. manufacturers that took part in the mission included Aeroquip and Vickers Corp., Divisions of Trinova Corp.; Beech Aircraft; Columbia Astronautics; General Electric; General Dynamics; Harris Corp.; Hughes Aircraft; Jetway Systems; Litton Industries; Lockheed Corp.; MRC Bearings; Martin Marietta; McDonnell Douglas; Naras Aviation; Raytheon; Teledyne Controls; and United Technologies.

The mission director, John Wolf of the Commerce Department, said, "The principal objective of all our trade missions is to provide one-on-one meetings with the decision-making people in both the government and private sectors."

Ron Smith, International Sales Manager for Jetway Systems, described the mission as "effective for our particular company product line in allowing us to meet government and airport authorities to discuss expansion needs. The overall information and contacts were very valuable."

Dr. Ellen Frost, Corporate Director for International Affairs, United Technologies Corp. (UTC), said, "The contacts I made will be of tangible help to UTC. I hope that such missions will be continued in 1991 and beyond."

Many of the meetings, estimated at more than 500 during the two-week period, focused on exploring joint ventures and technology transfer in addition to direct sales, although the objective of most of the companies was to gain a better understanding of these new emerging markets. Joe Barth, Vice President of Systems Support for the Harris Air Traffic Control Division, commented that his objective in participating in the Commerce-sponsored mission was to gain market exposure, and that the meetings enabled him "to obtain a comprehensive view of the air traffic control capabilities and requirements."

The U.S. company representatives also visited numerous manufacturing plants including Slovair, a Czechoslovakian small commuter passenger aircraft manufacturer; Motorlet, a Czecholovakian aircraft engine manufacturer; and PZL Mielec, a Polish aircraft, engines and components manufacturer. Tours of the airports and air traffic control facilities that serve Budapest, Bratislava, Prague, Krakow, and Warsaw provided an opportunity for the American companies to identify potential areas for mutually beneficial business ventures.

U.S. embassy officials in each country briefed the aerospace delegation, providing an overall economic outlook for the region, as well as market information on the Eastern European aerospace market. These briefings proved to be invaluable to mission members, given the rapid pace of economic change taking place in Poland, Hungary, and Czechoslovakia. As these countries move from a planned economy to a free market, new opportunities will exist for American and Eastern European business to participate in trade, investment, joint ventures, and other forms of cooperation.

Encouraged by the fast-growing aviation sector in Eastern Europe, the U.S. Department of Commerce is confident that this first meeting between government and industry aerospace representatives of Hungary, Czechoslovakia, Poland, and the United States will lead to a strong and lasting relationship based on mutually beneficial cooperation.

Companies interested in receiving further information on opportunities in the East European Market, are urged to contact me--Heather Jones, Office of Aerospace Market Development, U.S. Department of Commerce, (202) 377-2835.