Texas Insider Report: SAN ANTONIO Texas Leaders from the Kelly Aviation Center the Boeing Co. & Port San Antonio which was created from the former Kelly AFB were upbeat in their outlook during a roundtable discussion held in conjunction with a Greater San Antonio Chamber of Commerce luncheon featuring Gov. Rick Perry. Industry expects strong growth as key players move into the commercial marketplace.
Both Kelly Aviation and Boeing are planning to add more work with private commercial firms to offset some of the losses anticipated in their work with the military maintaining and repairing aircraft in San Antonio.
Jim Perschbach a lawyer who chairs the
Greater San Antonio Chambers Aerospace Committee said a mix of factors including the areas work force capabilities and low business costs have created opportunities for the industry that never have existed before.
I hope in 10 years we can say its an industry that has tripled or quadrupled in size" said Perschbac.
But Perschbach said later Tuesday that hes worried about a state tax that could make it difficult for those companies to compete for commercial contracts.
Taxes on business inventories could increase local aerospace bids enough to give companies in other states an advantage Perschbach said.
He is talking with legislative leaders and anyone who will listen" to see if cities like San Antonio that were affected by military base closings could qualify for special zones where those taxes can be eliminated capped or restructured.

The 1995 decision to close Kelly AFB would qualify San Antonio.
Wayne Alexander chairman of the
Port San Antonio board said the port also will push for funds to improve roads drainage and other infrastructure at the facility.
He said with that tax assistance and infrastructure improvements a facility that currently employs about 14000 people could grow to 30000 people within 10 years.
Chuck Artymovich Kelly Aviations general manager said military contracting is not going away. But he saw more growth potential in commercial operations.
Kelly has added a contract to repair an engine used on smaller commercial cargo planes this year and expects to add another commercial engine contract next year.
Boeings local center has been certified to work on the aerospace giants long-anticipated commercial 787 Dreamliner aircraft though the start date for that work is uncertain.
Michael Wright program director for the KC-135 and the KC-10 program at Boeing said that work is likely to add 400 jobs to the more than 1800 people

Boeing employs locally.
He expects the aircraft to complete flight tests and get to San Antonio soon.
We have a great future and were going to be here a long time" Wright said.