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GippsAero restructures, reduces workforce by 40

written by australianaviation.com.au | May 15, 2013

The GA10 turboprop.

GippsAero has announced it will restructure its business in a move that includes furloughing 40 personnel.

In a curiously-worded news release from the Mahindra Aerospace-owned company, GippsAero said it was taking the decision to reduce the number of employees to “take full advantage of the exciting opportunities which face the general aviation industry.”

Meanwhile the company said it will “sharpen its focus on sales and support of its core product, the GA8 Airvan, while also preparing to launch the GA10 turboprop”. It will also continue to evaluate the GA18.

“This restructuring will continue to emphasise strong brand values and the growth of an international sales network, but will add a new focus on right sizing production capacity and strengthening product support and delivery of aircraft to international markets

The restructuring plan will involve cost reductions through the consolidation of working groups and will create a stronger unified organisation.”

GippsAero said it has offered affected employees voluntary retirement “to reduce overall redundancies and will follow a strict process of identifying the correct manpower required going forward.”

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Comments (12)

  • garyc


    What a piece of twat. Who rights such crap when people are being made redundant. Would expect better from a politician. Shows very little respect for the people affected.

  • RegS


    The wording is what you would expect to receive by email from the sub-continent.
    ” It will also continue to evaluate the GA18.” – Evaluate?! Sounds like the Nomad’s about to ‘get the chop’ again!

  • Dane


    This is always the way with Australian companies. They get bought out by overseas companies and then they reduce the local workforce until there is no one left because it’s “no longer viable.” I feel sorry for the workers who are about to lose their jobs and the uncertainty they face.

  • Tony W


    I like the remark that they reduce employees to “take full advantage of the exciting opportunities which face the general aviation industry.” Can somebody explain to me how a reduction of employees and “exciting opportunities” can co-exist, at the very same time, within the same industry? Has someone been smoking that funny stuff again?

    I am sick and tired of foreign owned corporations coming in, buying some of our most creative enterprises, and then proceed to dismantle them piece by piece and ship all the good bits home to their country of origin. So much for us being able to protect our own jobs, livelihoods, technology and our wealth!

    What a kick in the pants to those who built Gippsland Aerospace!

  • BH


    Can anyone see GippsAero aircraft being built in India in the near future because its cheaper…? Just a thought…

  • ak


    seems that they can afford to employ more and more engineers and managers but less of the workers that actually build the planes our local shire has spent millions on building hangars for them and they repay us by hiring lots of indian engineers and make our local blokes redundant

  • Aussie


    The official Mahindra slogan is ‘RISE’. I think it should now be ‘FALL’

  • Raymond


    I live in Gippsland, work about 15 mins away from the GA factory, and learnt to fly at LTV.

    As ‘ak’ says, I believe this to be correct… I have been told the same thing… GA has been given very nice grants from Latrobe City Council – now the local employees are being made ‘redundant’, to be replaced by an Indian import instead just with a different job title.

  • Raymond


    ‘Curiously-worded’ indeed! That’s the polite way of saying it…

    RegS – yes, ‘continue to evaluate’ does sound like the whole future of the GA18 is under review.

    Tony W – exactly, spot on! Especially after having free money thrown at them… but that’s what happens when you sell out to a foreign company. Nothing new.

    BH – yep, I can!

  • ak


    yes and after speaking with some of the workers they say they have been left in the dark withe the HR manager not available on fri and the CEO not even on site so much for looking after the workers
    rumours are that they will shut down production and get rid of all the LAMES and then when they want to start production again they will claim they dont have people with the correct skills so it will be straight off to India for production

  • Gerard Flood


    Australian government has been, despite its ritual claims, been anti-manufacturing for many years. It’s pointless for us to blame foreigners when, by own own weakness, we permit our own governments to destroy our industrial capacities, expertise and high-quality employment. Martin Feil and Patrick Byrne still raise the problems intelligently.

  • ross


    There has been enough government and other people’s money poured into Gippsland Aeronautics. This cry that “it is all the guvment’s fault ” is really a bit worn

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