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market to all but those who purchase aircraft as business investments. Even replacement parts for older aircraft have become more costly because of the liability issue, ll~e General Aviation ~lanufacturers Association has lobbied unsuccessfully for insurance reform. Insurance companies are also requiring more stringent training standards as a condition for pilots' insurance. As the market shrinks and the fleet ages, rates can be expected to stay high. As an example of the expense, a modestly equipped 1975 Cessna 172M Skyhawk (a used version of a fairly popular plane) could be expected to cost $10,000 to $t5,000 per year to own, operate, and maintain. - Lower National Trends A total of about 1500 general aviation aircraft were manufaCtured and sold in the U.S. in 1986, down from a high of about 20,000 in 1977. First quarter trends for 1987 show a 30 percent decline from last year. Several manufacturers have ceased production of new single engine-piston planes. Recently released Federal Aviation Administration forecasts show less than a one percent growth in annual hours flown and a four percent growth in based aircraft for the period between 1987 and 1998. - Business Use Increasing The general aviation aircraft that are selling tend to be higher performance, well-equipped planes for corporate and business users. In Minnesota, the total number of hours for planes used primarily for business-related general aviation increased by more than 70 percent between 1981~ and 1984 despite an overall slight reduction in total general aviation hours flown. Aircraft used primarily for business and corporate/executive activity account for approximately half of the hours flown, although these same planes are often used for non-business purposes as well. Hours for planes used for primarily personal use dropped by 20 percent. Flight training dropped by over 50 percent, although this category will likely stabilize due to increased training requirements by insurance companies. While single engine activity decreased by 14 percent in that time period, multi-engine and turbo prop and turbo ject activity was up over 40 percent. - Single Engine Aircraft Dominate Fleet While the more sophisticated multiple engine and turbo prop/jet aircraft most clearly cater to the business uses, and are expected to continue to grow, single engine-piston aircraft will continue to be the primary aircraft in the fleet. Part of this is attributable to the large number already in the region, accounting for over 90 percent of the current fleet. Another part is due to the fact that even within business-type uses, single engine aircraft are predominate, with approximately 75 percent of business/corporate activity In summary, it appears that the use of general aviation for business purposes is increasing and that the growth of the general aviation fleet will likely depend on business' ability to invest in aircraft. Personal/recreational use of general aviation appears to be declining due to high costs. The aging of the existing general aviation fleet and the maturing pilot population may eventually cause other changes in the characteristics of general aviation use, although not before the year 2010.