Jens Goennemann

Australian Aerospace has grown strongly in recent years, particularly since Eurocopter was awarded contracts to provide Tiger ARH armed reconnaissance and MRH 90 multi-role troop transport helicopters to the Australian Army, most of which Australian Aerospace is assembling at Brisbane Airport.

But while the Army’s orders for the 22 Tigers and 46 MRH 90s has heralded significant growth for Australian Aerospace, that success has brought its own challenges, particularly for the Tiger program, which last year was running late and the Defence Materiel Organisation (DMO) had stopped making progressive payments.

Then there is the challenge of finding work to sustain Australian Aerospace’s key maintenance support business which currently relies on two key military contracts, Orion and Caribou aircraft heavy maintenance, but the Caribou is approaching retirement from RAAF service and the Orion will follow some time late next decade.

So EADS/Eurocopter sent in one of its bigger guns, the still relatively young but obviously up-and-coming Dr Jens Goennemann, whose last position before coming to Australia was head of the office of the EADS CEO.

In that position he worked under and closely with then EADS CEO Tom Enders, who is now the CEO of EADS’s largest subsidiary and most high profile subsidiary, Airbus. Apart from their German nationality Enders and Goennemann seemingly have a lot in common, from a love of sky-diving to a very strong awareness of the strategic environment they operate in and a no-nonsense, straight-talking approach to their roles.

Late last year, Enders’s EADS executive committee colleague, Lutz Bertling, was appointed president and chief executive of Eurocopter, while also serving as chairman of the Australian Aerospace board.

“Bertling said to me, ‘I am giving you the CEO role of one our largest subsidiaries, one which has a very high profile, with government and civil helicopters and military aircraft, believe me one of the most interesting subsidiaries in EADS,’ Goennemann related. “He said, ‘Just don’t stuff it up’. ” It’s evident Goennemann was sent to Australia with at least four clear objectives – sorting out the Tiger problems, ensuring a smooth delivery of the new MRH 90 helicopters, finding follow-on work and revenues to take over from Orion and Caribou maintenance, and ironing out Australian Aerospace’s own internal systems and processes, which had been under stress from the company’s rapid growth.

“Under the leadership of my predecessor, Australian Aerospace has had a significant record of success,” Goennemann related.

“Australian Aerospace had won major Defence contracts, such as the Tiger ARH and MRH 90, had been successful in the sustainment of fixed wing platforms, and has become, and successfully defends its position, as the market leader in civil helicopters. But having said that, what did I find when I came here? Along with that success, the company had gone through a period of tremendous growth, and with growth comes growing pains. So, I needed to address some immediate external and internal issues. And that’s what we did. ” Certainly, having worked in the office of the EADS CEO, Goennemann has become very familiar with large, complex organisations facing external and internal pressures.

“It was a tremendous chance to observe how the EADS CEO operated. And I am very grateful that I had the opportunity to gain that experience. It was the best preparation for becoming CEO of Australian Aerospace. ” Jens Goennemann began his professional career with Daimler Benz as a doctoral student (he holds a doctorate in politicalscience). From there he moved to Daimler Benz Aerospace, one of the EADS predecessor companies, and worked in HR before switching to the Military Aircraft business unit where he was sent to Greece to head the Eurofighter sales office in that country.

Between the Eurofighter sales role and joining the CEO’s office, Goennemann headed a number of EADS’s army programs.

Prior to coming to Australia Goennemann was also a lieutenant colonel in the German army reserve.

“I have a high appreciation of the expectations from the end user’s side. This is what drives me. And then having worked in my civil functions, I believe I understand the commercial side of the industry as well. ” It was that military experience plus his straight talking nature that likely contributed to the successful outcome of the Tiger contractual negotiations (detailed indepth in the June 2008 edition of Australian Aviation).

“Externally, the greatest issue was the stop payment and what came with it for the ARH Tiger. I am very pleased that together with our customer we tackled that issue in the first few months of my being here. That has been, I think, a great success achieved together with my team and our customer. ” Goennemann has been publicly praised by Brigadier Andrew Dudgeon, the director general of DMO’s Army Aviation Systems, and Major General Tony Fraser, head of the DMO’s Helicopter Systems Division, for his work on resolving the Tiger program issues.

“I think there was trust from day one onwards,” recalled Goennemann. “I think that has enabled us to go ahead. ” In particular, he enjoys a close working relationship with Major General Fraser.

Working with Fraser was, and still is, an “outstanding experience”, the Australian Aerospace CEO said. “Mutual appreciation for each other and a common goal has made things possible. ” With contractual terms for the Tiger program now resolved, the focus is for Australian Aerospace to deliver against the new timetable and performance targets.

“We really are committed to fulfilling the schedule we have agreed upon. And we continue working on that to overcome obstacles and challenges to stick to that plan, and we are making good progress. ” Goennemann is confident too that good progress is being made with the MRH 90 program which is drawing on the Tiger experience.

“We are very keen to learn and to put in place the lessons of the Tiger experience, on the industry side and on the customer side as well. We are very open with each other, it’s constructive. ” So far the MRH 90 program is progressing well, with the Army having now accepted the third helicopter, with the fourth and fifth – the fifth being the first locallyassembled MRH 90 – due to be handed over by the end of the year. However, Goennemann does concede that the flying rate of those five machines is currently lower than anticipated.

“Other early NH90 operator countries are battling with the same challenges of introducing a very high technology helicopter into service but they do have a higher rate of flying hours than Australia.

We are very transparent in respect of what we believe are the root causes and we enjoy a high degree of understanding with our customer which we believe will enable us to overcome these obstacles and achieve a similar rate of flying hours in a very challenging environment. ” A trouble-free MRH 90 program is critical for Australian Aerospace if it is to be successful in securing the key contract to replace the Navy’s Seahawk and the cancelled Seasprite helicopter capabilities with the NFH90, the anti submarine and anti surface warfare variant of the NH90 family (of which the MRH 90 is a member).

“If the Commonwealth intends to streamline the number of helicopter platforms in its inventory, then I think the NFH90 would be a very good aircraft for Navy. ” For now, like rival Sikorsky, Australian Aerospace and Eurocopter are continuing marketing efforts in support of their Seahawk/ Seasprite replacement pitch, but are waiting for clear direction from Defence on the project’s future, expected to be detailed in next year’s Defence White Paper and subsequent Defence Capability Plan.

“We continue to highlight and stress the superiority of an NFH solution, pointing out that it is based on the same platform which is now entering service with Army, in the form of the MRH 90. I don’t believe that after the Seasprite experience that there will be any quick-fix solution to the requirement. And I also believe there is an appreciation of the capabilities of the NFH90, which would take Australian naval aviation to a new level and at the same time rationalise the number of airframe types in the Defence Force’s inventory, which of course is a key goal of Air 9000. ” Naturally enough the Australian Aerospace CEO refutes one of the key perceived benefits of the competing Sikorsky MH-60R, its early availability to meet a pressing RAN need.

“How can it be procured any sooner if the procurement process is determined by the timing of the White Paper and Defence Capability Plan’s publication? Then you need first pass and second pass approvals before finally signing a contract. If you take this process into consideration, we are within the timeframe.

“Secondly, buying through FMS offthe- shelf is good only if you disregard the sustainment of the industrial base.

”“We are very keen to learn and to put in place what we have learnt from the Tiger experience.

”Certainly an NFH90 procurement would also further sustain Australian Aerospace’s Brisbane assembly line, which has essentially completed assembly of the majority of the 22 Tigers and will soon deliver the first of 42 MRH 90s to be assembled locally.

“If selected the NFH90 would be assembled in Australia – we are talking about 27 additional platforms on top of the 42 MRH 90s already being assembled in Brisbane, not to mention the Tiger assembly program. I think that certainly justifies the Australian assembly line. ” “If you have programs such as Tiger with 22 airframes and MRH 90 with 46 platforms it really is mandatory that you assemble most of these in country,” Goennemann said.

Goennemann notes that the final assembly line’s benefits include technology transfer to Australia and training a workforce that will then be used for long term maintenance and support of those helicopters.

As well as the naval helicopter program, Australian Aerospace is also keeping a close eye on another ADF helicopter requirement, the Air 9000 Phase 7 project to acquire training helicopters to replace Army Kiowas and Navy Squirrels.

“For Phase 7 we’re looking at different scenarios. We well understand that Phase 7 is not about platforms but about a training solution. ” Then there is the new Phase 9 of Air 9000, to procure a light utility helicopter for the Army to replace the capability lost by the recently retired Iroquois. With the EC 135 light twin helicopter in service with the German army’s helicopter training school at Bückeburg and the EC 145 entering service with the US Army as a light utility helicopter, Goennemann notes, “I think we are in good starting position. ” He also argues the merits of a common helicopter type for both requirements.

But while new aircraft acquisition programs grab the headlines, long term maintenance and support work for the ADF is just as important to Australian Aerospace, contributing around a third of its revenues.

Understandably then, with the Caribou approaching retirement and the Orion, on current planning, due to be withdrawn late next decade, a key priority for Jens Goennemann and Australian Aerospace is finding new work in this area.

“I would like to sustain the sustainment work,” Goennemann quipped. “Sustainment work is logical follow-on business for a company which has, for example, assembled military aircraft such as the Tiger and MRH. ” The company has identified at least two key opportunities in this area – it is bidding for a RAAF C-130J Hercules maintenance contract, and it has put forward to the DMO an unsolicited proposal to re-wing the RAAF’s Orions to extend the type’s service life.

“When you’re successful in delivering what you have promised, I believe that leaves you well placed to be considered for further work,” Goennemann said.

“For sustaining the C-130J, Australian Aerospace has a very successful, proven track record in maintaining military aircraft, and partnered with the OEM Lockheed Martin and Standard Aero, I find it hard to believe there would be a better choice for the ADF,” Goennemann argued.

But Australian Aerospace and Lockheed Martin face some tough competition for that contract, both from the incumbent Qantas Defence Services and Boeing, which with the looming retirement of the F-111 is looking for work for its Amberley facilities.

Australian Aerospace is also partnered with Lockheed Martin on their joint proposal to re-wing a portion of the RAAF Orion fleet, which they both clearly see as an opportunity, even if their bid was unsolicited.

“The ADF’s AP-3C fleet is one of the youngest in the world in terms of flight hours, and due to the on-going block upgrade program, by 2013 it will have the most sophisticated mission equipment of any Orion flying.

But the current plan is to retire the AP-3C by 2018. So we asked ourselves, does that make sense? Does it make sense to have the AP-3C taken out of service by 2018 to replace it with the P-8, which at that stage will have a less capable mission system than the Orion?“Also, the P-8 and the Global Hawk UAV are supposed to enter service around the same time, so one might ponder the wisdom of having two new systems operating alongside. Surely it is more prudent to have just one new system like the UAV operating in tandem with a tried and true, mature, sophisticated system like an AP‑3C? “We are not saying skip the P-8 but instead we propose the Defence Force could move its acquisition to the right until a time when the P-8 is more mature and incorporates the next step of capabilities. ” Re-winging perhaps a dozen of the 18 strong AP-3C fleet would extend the type’s service life well into the next decade, Goennemann argues, allowing the RAAF to get full value from its considerable investment in the AP-3C, and reduce maintenance costs at the same time.

“Australian Aerospace performed the Kestrel project re-winging of New Zealand’s P-3 fleet, we did it successfully and the sustainment cost of their fleet was significantly reduced.

“I think for the taxpayer, and for the operator, it is the perfect solution. ” Having argued the case, Australian Aerospace and Lockheed Martin are now awaiting a formal debrief on their proposal.

“We perceived a high degree of serious interest because of the strength and logic of our case, but we are still waiting for debriefing on if and how to proceed. ” Goennemann says the re-winging work would likely be done at the Orion’s home base of Edinburgh.

“For me it is logical to focus the C‑130 work in one location and P-3 work elsewhere, although a mixed or combined solution is a possibility – at the moment we have P-3 work allocated in Edinburgh and Richmond. ” Meanwhile, while the military projects take the limelight, Australian Aerospace’s foundation civil helicopter sales and support business quietly ticks along.

“The civil side of our business has captured 70 per cent of the local market for turbine helicopters since 2001. It has been an outstanding success. ” Goennemann admits that since becoming Australian Aerospace CEO the civil helicopter side of the business hasn’t received the attention he would have liked to have given it because of more pressing issues such as the Tiger program. But he says he is now focusing on how to build on the current strong order backlog.

“It’s a comfortable position, but not comfortable enough to just lie back and say, ‘All is good for the next three years’. So, we are thinking about that right now. ” Another focus for Goennemann is recruiting and retaining quality employees.

“When I came here people said the biggest problem was to retain the workforce because we have been losing people from left, right and centre to the mining industry.

So that made me think, why do we lose people to an industry that digs holes in the ground when we can offer careers in the most interesting, fascinating, high technology aerospace programs? “I believe that retaining people should not be, must not be, a problem for Australian Aerospace. I would like to be the preferred employer and I will become the preferred employer. I would like to have the best and brightest feeling it’s an honour to work for Australian Aerospace, just as we who are here now are honoured to do so.

“My ambition is to make Australian Aerospace an iconic company in the Australian landscape. And I believe that Australian Aerospace, with our products, people and management’s game plan for the future, have the potential to do just that. ” It’s a busy, ambitious body of work for a busy individual.

“In every assignment before I have had plans of what would come after, but it always turned out differently. So I have given up on that. I am here, I like being here, and could easily stay here. And I just might. In any case, my surfing skills have not improved to the degree that they match my skydiving prowess, so there’s still a bit of work to be done there before moving on!” But there’s no doubt that a successful stint running Australian Aerospace would position Goennemann well for further promotion within EADS longer term if he can successfully deliver the Tiger and MRH 90 programs, bring in new work to replace the Orion and Caribou maintenance progams, and continue to grow sales of civil helicopters.

If he can achieve all that, clearly Jens Goennemann won’t be short of career options – unless of course the draw of the Australian surf remains too strong! “Australia, as a country, and Australian Aerospace, as a company, and its prospects, will enable me to resist any temptation,” he promises.

“I believe that retaining people should not be, must not be, a problem for Australian Aerospace. I would like to be the preferred employer and I will become the preferred employer. ”