For further information on the Aircraft and Parts industries in Australia, please contact Commercial Specialist Phil Keeling, U.S. Commercial Service Sydney on Tel: (+61-2) 9373-9209, Fax: (+61-2) 9221-0573, Email: phil.keeling@N0SPAM.mail.doc.gov

Overview

The current world economic crisis will have adverse effects on the Australian aerospace and aviation industry. Additionally, the weakening Australian dollar will impact this industry’s 2009 performance.

The Australian aerospace and aviation industry is comprised of three broad sectors: commercial, defense, and general aviation. It is a significant market for U.S. exporters and is intrinsically connected with U.S. standards, supply lines, parts, and finished aircraft. U.S. manufactured aircraft represents 66% of the 13,400 registered aircraft in Australia, ensuring a steady market for spares, accessories, and service. Other registered aircraft are manufactured in Australia (13.6%), Germany (5.4%), the U.K. (4.3%), and France (2.2%). The Australian Civil Aviation Authority’s acceptance of FAA certification standards will further improve the relationship between American aircraft and parts exporters with their Australian counterparts.

The Australian aerospace and aviation industry is a mix of small and medium enterprise (SME) subsidiaries and approximately 300 of the SME’s supply parts, engineering services, and expertise. Local firms specialize in repair and maintenance, airframe component manufacturing, airport systems, infrastructure, avionics, aero engine, and engine component manufacturing. A select group of specialists carry out commercial aircraft maintenance.

Australia is a major distribution point for the Asia Pacific region, offering opportunities for suppliers of quality aerospace products and services. As a primary market in the Asia Pacific region, Australia could see growth through the medium-term.

Best Prospects

The commercial airline market sources major equipment directly from manufacturers and prefers to obtain OEM spares from approved suppliers. In Australia, Qantas leads the field in commercial aviation, followed by Virgin Blue, which will add Australia-U.S. flights in early 2009. In October 2006, Qantas contracted UK Company Aero Inventory PLC to supply expendable and recoverable spares for a ten year period.

The U.S. DoD is a major supplier to the Australian military through the Foreign Military Sales (FMS) program. In Australia, most of the major U.S. defense aerospace companies’ offices subsidiary operations. Prominent American-made aircraft in the Australian fleet include: F/A-18s, UH-60 Blackhawks, SH-60 Seahawks, CH-47 Chinooks, P-3Cs, C-130s, UH-1s, C-17 transporters, and Boeing 737 AEW&C aircraft. European firms are making significant ground with contracts for refueling aircraft, reconnaissance helicopters, and medium-lift helicopters.

Opportunities in the general aviation market include a range of products from avionics to ground support equipment. The majority of the aircraft on the Australian Aircraft Register are small airplanes, with Cessna and Piper accounting for approximately 45% of total registrants. With some exceptions, the Australian avionics industry is limited to the supply and installation of components rather than the design and development of high technology products. A significant sub-sector is aerial agriculture, which uses over 300 special purpose aircraft, vehicles, equipment, and aircraft maintenance facilities.

Opportunities

Best prospects remain in the areas of parts and components supplies for aircraft maintenance, repair, and overhaul of U.S.-manufactured airplanes. The Australian industry is eager to participate in global supply chains. Moreover, there are opportunities in advanced avionics, display, communication, control, and navigational instruments. There is an increasing interest in unmanned aerial vehicles and systems for military use, fire spotting, and natural-resource mapping. Amateur-built aircraft is another growing sub-sector.

Trade Events

Upcoming Conferences with Associated Exhibitions

Australian Air Show and Aerospace & Defense Expo
Exhibition (U.S. Pavilion)
Avalon (Melbourne)
March 10-15, 2009
www.airshow.com.au

Airport & Aviation Security
Exhibition - Australian Air Show & Expo
Melbourne
March 11-12, 2009
www.informa.com.au/aviaitonsecurity

Unmanned Airborne Vehicles and Integrated Systems Symposium
Exhibition - Australian Air Show & Expo
Avalon (Melbourne)
March 10-11, 2009
http://www.airshow.net.au/avalon2009/conferences/uav-symposium.html

ID & Access 2009 Management Summit
Exhibition
Sydney
March 10-11, 2009
www.acevents.com.au/idm2009

National Security Australia 2009
Exhibition
Sydney
March 23-24, 2009
www.nationalsecurityaus.com.au

Border Security Conference 2009
Exhibition
Melbourne
May 25-26, 2009
www.iir.com.au/bordersecurity

Airport Development 2009
Exhibition
Sydney
June 23-24, 2009
www.informa.com.au/airportdevelopment