AIRCRAFT AND PARTS
Australia
Overview
DATA TABLE (Millions US$)
| x | 2004 | 2005 | 2006 |
| Total Market Size | 3018 | 2929 | 3165 |
| Total Local Production | 635 | 650 | 745 |
| Total Exports | 442 | 435 | 485 |
| Total Imports | 2825 | 2744 | 2905 |
| Imports from the U.S. | 1367 | 1180 | 1495 |
Exchange rates:
2004 0.74
2005 0.76
2006 0.76
* Includes re-exports
Australian Bureau of Statistics and unofficial estimates
U.S. Exports - ($ millions) – HS Code 88
| Year | 2001 | 2002 | 2003 | 2004 | 2005 | Yrly Ave |
| World | 44,705 | 43,901 | 36,670 | 42,122 | 49,823 | 44,044 |
| Australia | 989 | 3,151 | 2,229 | 1,377 | 1,178 | 1,785 |
| Australia-% World | 2.2% | 7.1% | 5.6% | 3.3% | 2.4% | 4.1% |
Australia has traditionally been a significant market for U.S. exporters of aviation and aerospace products and equipment. The Australian Civil Aviation Authority’s acceptance of FAA certification standards has underscored a longstanding and close relationship between American exporters and their Australian agents and distributors.
A large proportion of Australia’s commercial aircraft fleet, general aviation registrations, and defense air assets are U.S. manufactured, ensuring a steady market for spares and accessories. As a primary market in the Asia Pacific region, it is experiencing the above-average growth in aviation taking place in this area of the world, and is looking forward to two coming decades of burgeoning air travel. Australia is a major distribution point for the region, including the Pacific Islands, New Zealand and Papua New Guinea, offering broad opportunities for suppliers of quality aerospace products. Its commitment to the Joint Strike Fighter project may result in Australia’s largest ever defense procurement of up to 100 of these aircraft.
The Australian aerospace industry is robust, growing, lucrative, and intrinsically connected with U.S. standards, supply lines, parts and finished aircraft. There are over 12,000 aircraft registered in Australia, utilizing over 150 licensed airports. U.S.-manufactured aircraft represent 66% of the total registrations. After this comes Australia with 13.6%, followed by Germany with 5.4%, the U.K. with 4.3% and France with 2.2%.
The industry is comprised of three broad sectors - commercial, defense and general aviation. With little aircraft manufacturing taking place in Australia, local firms specialize in repair and maintenance; airframe component manufacturing; airport systems and infrastructure; and avionics, aero engine and engine component manufacture. Best prospects are in the areas of parts and component supply for aircraft maintenance, repair and overhaul. Australia already has numerous, qualified, maintenance, repair and overhaul facilities.
The industry is characterized by a mix of subsidiaries of the major global aerospace companies and around 300 small to medium local enterprises supplying parts, engineering services, and expertise. Commercial aircraft maintenance is carried out by a select group of specialists, including Qantas, the largest commercial fleet owner.
Best Products/Services
Defense – the U.S. DOD is a major supplier to the Australian military through the FMS program. For its part, Australian industry is keen to participate in global supply chains, such as the Joint Strike Fighter program, in which Australia has become a partner. This in itself may offer longer-term opportunities for American manufacturers, when Australia’s scheduled procurement of up to 100 of this aircraft is finalized in 2012. Most major U.S. defense aerospace companies are either represented or have subsidiary operations in Australia. Prominent American-made aircraft in the Australian fleet include F/A-18s, Blackhawks, Seahawks, Chinooks, P-3Cs, C-130s, UH-1s, and recently C-17 transporters and soon, Boeing 737 AEW&C aircraft.
General Aviation - opportunities in the general aviation market include a range of products from avionics to ground support equipment. With some exceptions, the Australian avionics industry, although diverse, is limited to the supply and installation of components rather than the design and development of high technology products. A large sub sector is aerial agriculture, which uses over 300 special purpose aircraft, vehicles and equipment, and aircraft maintenance facilities. The majority of the 12,000 aircraft on the Australian Aircraft Register are small aircraft, with Cessna and Piper in strong positions, jointly accounting for around 45% of total registrations.
Commercial Aviation - the commercial airline market sources major equipment direct from manufacturers, and prefers to obtain OEM spares from approved suppliers. Qantas leads the field in commercial aviation in Australia, followed by Virgin Blue. In October 2006 Qantas contracted UK company Aero Inventory Plc as its supplier of expendable and recoverable spares for a ten-year period.
Regional commuter carriers operate throughout Australia, providing regular public air transport services, and serving around 9-10% of the market.
Opportunities
Best sales prospects, are in the supply of parts and components for aircraft maintenance, repair and overhaul. Opportunities can be found in advanced avionics, display, communication, and control and navigational instruments. There is growth in the composites industry in Australia, with raw materials and components sourced from U.S. companies.
Resources
Trade Events:
Australia International Air Show & Defense Exposition
Biennial Air Show and Expo (March 2009)
530 Exhibitors, 40,000 trade visitors
Avalon Airport, Victoria
Australian Maritime & Defense Foundation
Resources:
Aircraft Owners and Pilots Association: http://www.aopa.com.au/
Airservices Australia: http://www.airservices.gov.au/
Australian aerospace industry contacts page: http://www.aerospace-technology.com/industry/australia.html
Australian International Air Show: http://www.airshow.net.au
Civil Aviation Safety Authority: http://www.casa.gov.au
Department of Defense, Defense Materiel Organization: http://www.defence.gov.au/dmo
Directory of defense suppliers: http://www.yaffa.com.au/defencesuppliers
U.S. companies seeking information on the Australian Aircraft and Parts industry are encouraged to contact Phil Keeling at the U.S. Commercial Service in Sydney
(email: phil.keeling@mail.doc.gov ).