Aerospace Industry News

Because many in South East Asia appear to be disillusioned with the US Foreign Military Sales System, there are numerous marketing opportunities. These are rapidly being taken up. Whilst no opportunity will be missed to sell a major piece of equipment or system if this is possible, it is considered that best results for Australian companies may be obtained by concentrating on selling support services, be that maintenance, software support, training, spare components, etc.

But even for these services, there is a need to bolster a proposal with an attractive financial package if an Australian company is to have any real chance of success. The Export Finance Insurance Corporation, administered by Austrade, is able to provide finance packages for exports of both Defence and non-Defence items. The Australian International Development Assistance Bureau makes available a Development Import Finance Facility. This is not available for Defence equipment. This is inconsistent with the intent of the Government to assist/enhance the level of Defence exports so that a viable, internationally competitive Australian Defence industry can be developed.

AAAI will be submitting to the Federal Government that DIFF should be made available for Defence exports.

Paris Air Show

Preparations for the 1989 Paris Air Show continue apace. The AAAI, while providing a national focus for the Australian aerospace industry’s dealings with the Australian Government, also has a significant role to play in assisting in the promotion of the industry in overseas countries.

During the past few years, the Association has built valuable contacts with the aerospace industries’ associations in those countries in which its members are seeking markets. The Chairman (Mr Peter Lister, Hawker de Havilland Ltd) and the Executive Director will be fostering and building on these contacts at Paris. Meetings are to be held with executive members of the Society of British Aerospace Companies, the Aerospace Industries Association of America, the Society of Japanese Aerospace Companies as well as with the Netherlands, Spanish, Canadian, French, German and Italian contacts.

AAAI will be explaining that the Australian Government’s Offsets Policy is fully supported by Australian industry and is ultimately of benefit to those international companies willing to co-operate wholeheartedly in the various programmes.

Australia is a major aerospace customer nation. It has in place a number of programmes designed to foster the maximum amount of local content and/or offsets for its overseas purchases in both the civil and defence fields – within the bounds of internationally competitive pricing. The Association aims to assist both international and Australian companies seeking partners.

Australia has had considerable success in pursuing this strategy in relation to airframe work. For example, over 50% of Hawker de Havilland’s output is exported. Now the challenge is to emulate this success in the other sectors of our industry.

Repair and Overhaul Sub-Committee

AAAI Executive Committeeman John Wren (Australian Airlines) has advised that there is considerable interest amongst members in forming a Repair and Overhaul sub-group to discuss in detail such topics as:

– obtaining FAA approvals

– freight rates to Asia

– Australian Customs policies and procedures

– cross acceptance of certificates, eg CAA and DQA.

John is to call a meeting of interested companies to advise AAAI on what action it should be taking to help members in these and similar areas of possible concern.

Bureau of Statistics Classifications

One of the problems one has in dealing with the Government on matters related to the development of the Australian aerospace industry is the inadequacy of the present statistical categories the Bureau of Statistics uses in collecting information on the Australian industry.

AAAI Associate member company Aymever Pty Ltd has recommended that the AAAI should make a submission to the Bureau suggesting statistical categories which would more adequately describe the aerospace industry’s scope and activities. As any change is likely to heavily impact on the Management Information Systems and Management Reporting Systems (if not also on the Financial Management Systems) of many companies, members (and others likely to be affected) are being encouraged to contact the Association to provide their Viewpoints on this matter.