The Oklahoma Aeronautics Commission was established in 1963 as the successor to the Oklahoma Aviation Commission. It operated as an independent agency until 1976 when it became a division within the Oklahoma Department of Transportation. However, in July 2002, the Commission separated from ODOT, once again regaining its independent status.
Aviation has a rich legacy in Oklahoma that has resulted in it being one of the pillars of our economy today. The Sooner State has yielded more astronauts per capita than any other state. Two of the first commercial airlines, Braniff and Southwest Air Fast Express, were formed here. Those companies became part of American Airways which later became American Airlines. Wiley Post twice set the record for flying around the world and discovered the jet stream. Business aviation (business using non-commercial, general aviation aircraft for transportation) originated here with oilmen such as Frank Phillips, Earl Halliburton, and William Bill Skelly. Oklahoma\'s strong military aviation presence can be traced all the way back to the early 1900s when the United States conducted experiments at Fort Sill to develop artillery fire from the air. Douglas Aircraft built plants in Tulsa and Oklahoma City in support of World War II aviation needs. The plant in OKC became Tinker Air Force Base.
With the exception of the retail industry, the aviation and aerospace industry is the largest employer in Oklahoma today. It provides 150,000 direct and indirect jobs and a payroll of $5 billion. Total output for the industry is $12.5 billion, accounting for just over 10 percent of Oklahoma\'s industry output. The average salary of an employee in the aerospace industry is $54,700; the salary of an average Oklahoman is $29,000.
There are over 400 companies that comprise the aerospace industry in Oklahoma. Around 80 to 90 percent of those companies are engaged in the maintenance, repair, overhaul or modification of aircraft. The American Airlines\' Tulsa Engineering and Maintenance Center is the largest commercial aircraft maintenance facility in the world. Likewise, Tinker is the largest military aircraft maintenance facility in the world. It is also the state\'s largest single-site employer, providing over 26,000 jobs. The FAA Mike Monroney Aeronautical Center in OKC, the nationwide, if not worldwide, nerve center for aviation training, safety and information, employs over 5,500 Oklahomans. Oklahoma is recognized as one of the seven centers in the world for the maintenance, repair and overhaul of aircraft.
Oklahoma has 114 public airports; 111 of those public airports are General Aviation (GA) airports and 49 of those 114 are also Regional Business airports (RBs, 46 of which are GA airports). Currently, 41 of the RBs have jet-capable (5,000 feet or longer) runways. Three of the RBs are scheduled airline airports — OKC Will Rogers, Tulsa International and Lawton-Ft. Sill Municipal. Will Rogers now offers 29 nonstop flights to 26 cities across the country, while Tulsa offers 29 nonstop flights to 23 cities. 93 percent of Oklahoma\'s population is within 25 miles of an airport with a jet-capable runway. The superior mobility and access afforded by our state\'s air transportation system is a huge state asset and competitive advantage for Oklahoma. Making consistent and significant improvements to our air transportation system must be a top priority.
The OAC determines the airport projects that will be funded with state and federal funds through its capital planning and programming process and its Capital Improvement Program. The vast majority of funding for airport projects comes from the federal government through the FAA Airport Improvement Program. During the last several years, the OAC has programmed an average of $10 million in federal funds for airport projects in Oklahoma. This does not include the more than $12 million a year in federal funds (through individual $150,000 grants) that is going directly to the 100 Oklahoma GA airports that are in the federal system.
The OAC does not receive general appropriation funds. Rather, it is funded with aviation-generated (aircraft excise tax, aircraft registration fees and aviation fuel tax), statutorily directed revenues. In FY07, OAC received $3,280,752 from these sources. The average from these sources over the past four fiscal years, including FY07, was $2,587,496. In FY07, the OAC expended $2,373,804 on airport projects, nearly $300,000 to promote the aerospace industry, and $1,495,053 on operations.
The OAC was instrumental in the formation of the Governor\'s Aerospace Task Force in 2003. The OAC Director also served as a member of the Governor\'s EDGE Aerospace Committee. The Task Force\'s charge was to examine the aerospace industry and make recommendations to assure its viability and foster its growth. OAC has either led (HB 1577, eliminating sales tax on aircraft repairs and modifications) or been instrumental (HB 2819, enhancing bid assistance to OK companies competing for aerospace defense contracts so we can keep more than 10% of the $5 billion Tinker outsources annually, and addressing the research and technology needs of the industry) in the implementation of these recommendations.
As noted, the OAC is providing $100,000 to fund the bid assistance effort of HB 2819, CASQ, as legislative funding has not been secured since the bill\'s passage in the 2006 session. The OAC assisted the Department of Commerce in the preparation of the 2007 report on Oklahoma\'s aerospace industry workforce, prepared for the Governor\'s Council for Workforce and Economic Development, of which the OAC Director is a member. This critical report points out that much like the rest of the national aerospace industry, which enjoyed a $52 billion surplus in 2006, the Oklahoma aerospace industry is enjoying dramatic growth at this time, but that growth and viability will not be sustainable unless the industry has the necessary workforce. In addition, the report states that the industry is facing some critical workforce shortages now and in the future insofar as this requirement, and makes several recommendations to address these shortages. The Governor\'s Council has asked the OAC to lead the implementation of these recommendations.
During the 2007 session, the OAC led the fight to pass HB 2085, also known as the Engineer Workforce Bill, which encourages young people to pursue engineering and remain in or come to Oklahoma to work as an engineer for an Oklahoma aerospace company.
Responding to industry needs, the OAC formed the Aerospace Industry Advisory Council comprised of industry leaders. Through the OAC the Council provides input to state government regarding industry needs.
As we reflect on Oklahoma\'s aviation legacy and look forward to what is in store for the next 100 years, the Oklahoma Aeronautics Commission is committed to making sure that aviation continues to play a key role in propelling Oklahoma\'s economy well into the 21st century. The Commission continues to promote Oklahoma\'s brand of Airvangelism statewide and around the country because we strongly believe aviation-related jobs present our best opportunity to keep our children here, living and working in Oklahoma.
