Aerospace Industry News

In 1985, over $2 billion was spent by Australia on imports of aerospace products. It was agreed that economic realities Could not allow this to continue. Either Australia would have to cut back drastically on its requirements for aerospace products the consequent problems in safety, level of service and defence preparedness being accepted or find some way of minimising the impact of our aerospace imports on Australia’s balance of payments.

It was agreed that demand for imports was likely to remain high and therefore opportunities to increase exports needed to be vigorously pursued if the impact was to be minimised.

The major opportunities available to Australia appeared to be in increasing exports of aerospace products by investing in international aerospace collaborative projects for the development of new airliners and helicopters, by using Australia’s Purchasing clout to force more offset work into Australia and by making Australia’s R&D effort (which is mainly in the public sector more commercially effective so that we could supply at least a few indigenously developed products to the world. Potentially large export dollars are available to the Australian industry it sufficient investment funds can be obtained for major aircraft collaborative projects, aerospace development projects are typified by large up-front investment requirements, often greater than the net worth of any one company and long lead times, often 14 to 20 years from launch point.

Of necessity now that Government investment support will not be available to the industry, any investment in these projects will have to be borne by the private sector alone. It therefore cannot be as large as originally intended and this will impact on the ex-Port earnings for the industry over the next ten to fifteen years.

Sjac Seminar

In conjunction with Asian Aerospace 88, the Society of Japanese Aerospace Companies, under the guidance of the Japanese Ministry of International Trade and Industry (MITI) and assisted by the Japan External Trade Organisation (JETRO) conducted a one day seminar for Japanese industry representatives aimed at offering an opportunity to those participating to be brought up to date in their knowledge of the aerospace industries of the Asian/Pacific region. The Executive Director of AAAI attended and gave a presentation.

The morning was devoted to welcoming speeches and key note addresses on the aircraft, engines, airborne equipment, avionics and airline industries in Japan – the afternoon to presentations on the aerospace industries of Singapore, Australia, Indonesia, Malaysia and Thailand.

The seminar was well attended by representatives from companies who have become household names in Australia because of their activities in other fields but whose involvement in aerospace is quite significant.

Shanghai Air & Airport Show ‘88

This show is to be held in Shanghai, 5-10 December 1988. During 1986, the latest year for which figures are available civil aviation services in East China under the Shanghai Regional Administration of CAAC have handled 1. 96 million passengers. This year the Shanghai Regional Administration will import and purchase seven planes. As well it will renovate and build 11 airports in the next few years. The list of equipment to purchase is almost endless, including military and commercial aircraft, aircraft production systems, avionics, airport facilities and equipment, and ATC. It is crucial to China, with an outdated aviation industry, to take an active role in importing new technology and manufacturing techniques.

Meanwhile, the Shanghai’s Hongqiao Airport, which is one of China’s largest airports, is to be upgraded. It is to be made ready to serve military and civilian use with 38 domestic air routes and eight international air routes linking the city with worldwide airports. In addition, an investment of US$180 million will be allocated for the construction of a new international airport in the nearby Anhui province. China has also decided to cooperate with foreign companies to have an additional 200 aircraft each with 100 seats in service by the end of this century.