29 May 2007

New Zealand’s commercial aerospace industry is capable, professional and entrepreneurial. Its broad international customer base and recognition, approvals and certifications from Original Equipment Manufacturers and aviation regulators demonstrate the quality and value of its work.

“An attractive aerospace partner, New Zealand is entrepreneurial, innovative, regionally integrated, outstandingly regulated and competitively expert,” says Guy Tapley, Investment New Zealand Investment Manager – Aerospace.

Combine these advantages with the country’s low country risk, and you have the drivers behind increasing investment levels in aerospace.

Capabilities include: interior modifications of sophisticated aircraft; complete design and build of small military and general aircraft; metal and composite component manufacturing; air traffic control and navigation systems; and training for pilots and aircraft engineers.

Taking to the skies out of necessity, New Zealand has a generous 9% of the world’s airspace for which it has established globally recognised industry standards in extreme environments ideal for training and conducting flight test engineering trials.

New Zealand’s Civil Aviation Authority is viewed as outstanding amongst its international peers. Its close relationships with other regulators, including the FAA (Federal Aviation Authority) and EASA (European Aviation Safety Agency), and working relationships with local industry shorten times for aircraft-related design to reach certification. Reducing development costs, this also allows new or enhanced designs to get into the marketplace ahead of competitors.

“New Zealand’s aviation skills develop in parallel with global aviation advances. The sector works dynamically to produce cost-competitive solutions offering real commercial advantages. Companies here develop solutions and test them in our tougher, smaller market,” says Tapley.

“We’re seeing the creative application of software and design that allows the successful adoption of new advances. Such resourceful use of cutting-edge technology is taking international projects from design to manufacture and large-scale assembly at a lower cost without compromising on standards.

“High standards and engineering skills, extending from excellence in manufacturing of light aircraft and aerospace components for Boeing and Airbus to developing customised engineering solutions, have produced the forward-thinking and highly capable workforce we have today.”

Companies working in the New Zealand aerospace sector offer project support, from detailed engineering design to manufacturing, assembly, certification and management control.

“This allows international businesses to capitalise on New Zealand’s high skills base, consistent standards and relatively competitive wage levels. For example, Hamilton-based Pacific Aerospace has produced around 600 quality utility, training and agricultural aircraft, of which 90% have been exported to more than 25 countries,” says Tapley.

“New Zealand-based Alpha Aviation has FAA certification for its Alpha 160A and worldwide rights to manufacture and market the training aircraft (formerly called Robin R2160 and Robin R2120). The company marries French technology with Australian and New Zealand business and engineering skills.

“Amongst other advances, Air New Zealand Engineering Services (ANZES) is developing complex composite structures for aircraft interiors that are lightweight, cost-effective alternatives to standard products.

“Providing engine overhaul and repair services for all Pratt & Whitney JT8D, Rolls-Royce Dart and International Aero Engines (IAE) V2500 engines, the Christchurch Engine Centre is a highly successful joint venture between Pratt & Whitney and ANZES that demonstrates the potential for international partnership.

“Taking advantage of the diverse physical environment, quiet airspace and challenging weather gives an unrivalled pilot training environment and produces well rounded, qualified individuals. This and competitive cost structures led to European-owned CTC Aviation investing near Hamilton to offer aviation training for airline customers around the world,” explains Tapley.

“New Zealand’s terrain has led to one of the highest helicopter populations per capita. This has resulted in a strong helicopter skills base – Airwork NZ is one of only three companies worldwide approved to overhaul Eurocopter gearboxes.”

Tapley concludes, “New Zealand’s aerospace sector is an attractive investment proposition – the excellent business and physical environment is complemented by strong support from both local and national government, which is focused on high-tech development. Clusters of aerospace specialisation and activity are developing to form a synergistic skills-based network.

“There is considerable scope for expanding the industry, and the sector can only fly higher – we are looking for international companies to invest in and partner with the industry here on the back of these advantages.”

For more information, please contact:

guy.tapley@investmentnz.govt.nz

+64 4 910 4655