This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Australia is a major buyer of US aircraft parts (HS8803, USD463 million, third largest); powered aircraft (HS8802, USD666 million, second largest); helicopters > 2000kg (HS880212, USD269 million, third largest) and overall for aircraft, spacecraft and parts thereof (HS88, USD2536 million, 15th largest). In 2016, Australia was the largest importer of US helicopters worldwide. Aircraft manufacturing and repair services in Australia generate revenue of USD3 billion – including exports of USD1.5 billion. Boeing Australia has the leading local market share at 38.1% with revenue of approx. USD1.15 billion (AUD1.5 billion), and Boeing maintains its largest presence outside of the United States in Australia.

The United States is the leading source for all of the above categories of imported aircraft and parts into Australia, supplying nearly all of Australia’s military requirements and 60% of Australia’s civilian needs - thereby linking Australia closely to US standards, suppliers, parts, and finished aircraft. US-manufactured aircraft represent a sizeable proportion of the registered aircraft in Australia, ensuring a market for spares, accessories, and service. Other registered aircraft are manufactured in Australia, Germany, the U.K., and France. Australia’s Civil Aviation Safety Authority’s (CASA) acceptance of FAA certification standards strengthens the relationship between Australian and US aircraft and parts exporters.

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

There are 15,512 aircraft on Australia’s civil aviation register of which 11,551 are powered aircraft; 2259 are helicopters; 996 are gliders; and 423 lighter than air.  Leading brands are Cessna (3622), Piper (1839), amateur built (1588), Robinson Helicopter (1160), Beech  (634), Bell Helicopter (286), Kavanagh Balloons (284), Boeing (257) and De Havilland (237) and Schempp-Hirth Flugzeugbau GmbH (187). There are over 700 design, maintenance, maintenance training, parts manufacturing and parts distribution organizations. Australia is a key market in, and a major distribution point for, the Asia Pacific.
 
 2015201620172018 (Estimated)
Total Local Production2800284030003100
Total Exports1354147714881155
Total Imports3185326532743350
Imports from the US
 		2889236025362800
Total Market Size4631462847864900
Exchange Rates.75.74.77.77
(total market size = (total local production + imports) - exports)
Unit: USD Thousands
Data Sources: Global Trade Atlas, IBISWorld Australia, Australian aviation industry estimates and analysis as well as tariff and trade data from the US Department of Commerce and the US International Trade Commission. Data retrieved as of 2 July 2018.

Leading Sub-Sectors

Defense contracts – all categories
QANTAS fleet upgrade
Parts, repairs and maintenance
Business jets
Helicopters
Aerial agriculture
Unmanned Aerial Vehicles (UAVs)

Australia has a large civil helicopter fleet (2259), ranking fifth worldwide. Helicopters are well suited to supporting remote oil, gas and mining projects as well as island tourist resorts, aeromedical and rescue services, and large agricultural properties. Australia was the largest buyer of US helicopters in 2016.

Opportunities

Over the next ten years, the Australian carrier Qantas has committed to about USD12.6 billion (AUD17 billion) for more fuel efficient, next generation aircraft such as the Airbus 380 and the Boeing 787 Dreamliner. Tigerair Australia, the low-cost subsidiary of Virgin Australia, is also transitioning to become an all Boeing 737 operator by 2020 as part of fleet simplification efforts at the Virgin group of airlines. That entails replacing 12 Airbus A320s over three years.

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 Australia. Opportunities in the aviation market include a range of products from avionics to ground support equipment. Best prospects remain in parts and components supplies for aircraft maintenance, repair, and overhaul of US-manufactured airplanes.

Australia announced in March 2016 a 10-year, USD146 billion defense equipment investment program. This includes a heavy focus on various fixed wing, helicopter and UAV aircraft. Australia is a major importer of defense systems – third in 2015, ninth in 2016 – and a leading customer of the US –third in 2015 and 2016.

Australia is also the second largest business jet market in the Asia Pacific – 184 aircraft – and growing rapidly.
Australia is a major helicopter market; operates over 2200 helicopters; offers substantial opportunities in both the civilian and defense sectors; and has a fast-growing trade show called Rotortech dedicated to the helicopter industry.

Web Resources

Rotortech 2018
https://www.rotortech.com.au/Index.asp
May 24–26, 2018, Sunshine Coast, Queensland
Largest helicopter event in Southern Hemisphere and recently taken over by AMDSFA, organisers of the Avalon Airshow and various other major defense trade shows (Land Forces, Pacific and CivSec). As the specialist rotor event for the largest rotor industry in the Asia Pacific, AMDSFA has high hopes to grow this event significantly – and fast. Held every second year.  Next event is scheduled for May 2020.

Australian Airports Association National Conference and Exhibition
https://airportsconference.asn.au/
November 13 – 16, 2018, Brisbane, Queensland
Leading airports and aviation conference/exhibition in Asia Pacific. Held annually. Prime venue for meeting representatives of Australia’s large airports community in one location.  Conference program is augmented by a trade expo.

Australian International Airshow
https://www.airshow.com.au/airshow2019/index.asp
February 26 - March  3, 2019, Geelong, Victoria
The Austrlian International Airshow is the largest air show in the Southern Hemisphere and largest in Asia every second year. Known widely as the Avalon Airshow [its permanent venue is Avalon Airport], Avalon alternates with the Singapore Air Show every second year in the same way that Farnborough alternates with the Paris Air Show.  While clearly smaller than that pairing, Avalon/Singapore is the next biggest option and they pitch to the world’s fastest growing and largest aviation market – East Asia Pacific.

There is a large US Pavilion and total US exhibitor numbers across the whole event is projected to exceed 100 for the first time in 2019.  US States are a prominent feature of this presence, hosting booths and SMEs from their respective regions and – for the first time – Avalon 2019 will also feature a US Investment Pitchfest at which key US States and regions will be able to promote themselves to Australian and indeed Asia Pacific business audiences as key locations for planned expansion into the United States’ aerospace and defense market.
 
Hyperlinks to key Australian aerospace associations and businesses follow.

Aerial Agricultural Association of Australia
Aircraft Owners and Pilots Association of Australia
Airservices Australia
Australian Airports Association
Australian Helicopter Industry Association
Aviation/Aerospace Australia
Aviation Maintenance Repair and Overhaul
Civil Aviation Safety Authority
QANTAS
Recreational Aviation Australia
Regional Aviation Association of Australia
Space Industry Association of Australia
 

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