Kiwi aviation industry poised for lift-off

And no-one could have been more thrilled by the statistics than US entrepreneur, venture capital investor and New Zealand aviation champion Jim McCoy who was here presenting a series of seminars on industry growth and investment.

NZTE’s New Horizons Aviation Report, says the total $9.7 billion revenues includes $3.8 billion in export receipts compared with an estimated $800 million five years ago but pointed out the initial study might not have considered all sectors within the industry.

The report says that although commercial passenger and cargo operators such as Air New Zealand with $5.7 billion or 59 percent of total revenue and fuel companies with $1.4 billion dominate the sector, more than 1000 businesses and organisations employing 23,500 workers are involved in New Zealand aviation.

They include aircraft design and manufacture, parts and avionics suppliers, airport infrastructure, flight training and maintenance, repair and overhaul (MRO).

Auckland with $7 billion, Christchurch $1.28 billion and Wellington $592.5 million are the highest revenue generators due in part to traffic and activity at their international airports while the Waikato with its large manufacturing and training base leads the regions on $297.6 million.

Areas with significant potential

The New Horizons report identifies several areas as having significant growth potential. These include utilisation of spare capacity for more MRO activity, particularly as several Asia-Pacific airlines are increasing their fleet sizes, which could provide more regional work for New Zealand businesses.

Growing helicopter use worldwide in oil and gas support and New Zealand’s reputation for expertise and skill with rotary-wing aircraft present more opportunities. While local company Rocket Lab provides inexpensive and reliable access to space, which has significant growth potential in the US and other countries.

The report says New Zealand expertise and capabilities could be used to develop and produce more technology-based designs. For example, a new aircraft for the top-dressing industry is expected to meet domestic demand and create export opportunities. 

New Zealand also has the capability to exploit the growing worldwide light sport aircraft market, the ability to produce titanium powders targeted for specific niche applications, and innovative airport design and automated ground handling equipment, which is in demand offshore.