New Zealand: Optimism and Opportunity

Trade negotiations are creating greater knowledge of New Zealand and its capabilities, including aviation, and building on the efforts of the commercial sector. New Zealand has bilateral trade agreements with Australia, China, Singapore and Chile, and several regional agreements. The country’s diplomats are negotiating or preparing to negotiate free trade agreements with the six Member States of the Gulf Cooperation Council, Hong Kong, India, and Korea. New Zealand and Malaysia have just concluded a free trade agreement.
The New Zealand Civil Aviation Authority has agreements in place with regulators in countries including the US, Canada, Australia and the Pacific Islands, and a good working relationship with EASA. Increasingly, these relationships, and new relationships possible under Open Skies Agreements and Bilateral Aviation Safety Agreements, are helping New Zealand’s commercial sector develop markets overseas.

Environment for growth

While New Zealand has 721 certificated aviation organisations and over 4,390 registered aircraft, including a high number of helicopters, significant new and sustainable growth is only possible internationally for a country with a total population of 4.3 million.
Some good indicators support the basis for this international growth. High quality standards and rising productivity
levels, coupled with intellectual property acquired over many years, and moderate OECD-level costs, mean New Zealand’s general aviation manufacturers are internationally competitive.

In September 2009, the 1,000th aircraft manufactured in New Zealand rolled off the Pacific Aerospace Ltd (PAL) production line. These aircraft have been manufactured predominantly by six companies and represent nine models: five models manufactured by PAL - the P-750 Extreme Short Take-Off and Landing (XSTOL) high-performance utility, the CT-4 military trainer, the Cresco and Fletcher agricultural workhorses, and the Air Tourer; Alpha Aviation’s Alpha 160A Trainer; Micro Aviation’s Bantam B22 Microlight; Autoflight’s Dominator Gyrocopter; and Falcomposite’s Furio kitset sports aircraft.

PAL has over 50 years of experience designing and manufacturing rugged and reliable aircraft, with a particular focus on the equatorial regions of the world. The P-750 XSTOL is already operating in countries such as Indonesia, Papua New Guinea, South Africa, Nepal, the US, Australia, Switzerland, the Czech Republic and the UK. There are currently five P-750 XSTOL aircraft delivering aid in Chad and Sudan, under contract to the United Nations World Food Programme.

PAL is one of many aviation companies to have embarked on a Lean Manufacturing program to further improve productivity. Since starting these programs, companies have removed up to 30 per cent of the time to manufacture/produce major components.
Air New Zealand has been an aviation leader in finding ways to minimise its environmental impact, examining all aspects of flight operations to reduce carbon emissions to save fuel. Initiatives over the last 12 months include ASPIRE 1 operating under optimum flight-planning conditions, the installation of dryers to cut aircraft emissions, testing biofuels, a Tailored
Arrival demonstration and fitting new blended winglets to the B767 fleet.

Developing international credibility

In 2006, the industry exported products and services worth NZ$800 million, and has a goal of achieving $2.0 billion by 2020. Aviation New Zealand chief executive John Nicholson says that the sector’s vision is to be “a specialised, globally connected, high-value, growing and sustainable service and manufacturing industry based on 21st-century technologies”.

“Some of our companies are achieving considerable international success and helping build the credibility of the industry as a whole,” Nicholson said.

In 2003, and again in 2008, Airways New Zealand was rated the top Air Navigation Services provider in the world, for outstanding performance in customer satisfaction, cost efficiency and continuous improvement, by the International Air Transport Association.
Airways New Zealand has secured a contract to implement its Flight-Yield automated aviation billing system for the Civil Aviation Administration of China. Developed by, and in operational use with, Airways New Zealand, the Flight-Yield system is able to automatically retrieve details of all flights from an air traffic management system, apply the appropriate charging policy for each air traffic control service provided to each flight, and, based on that information, calculate the correct fee for every flight by each airline operator and produce an invoice.

ASPEQ Limited has over 15 years of experience in the development and delivery of safety-based assessments for regulatory authorities in the Asia Pacific region. This company operates in a number of countries and regions throughout the Asia Pacific and the UK and has extensive expertise in developing assessments which meet ICAO and JAA requirements for international
aviation authorities.

Post 9/11, aviation regulations require airports to implement enhanced access control systems. Gallagher Security Management Systems (GSMS) provides premium integrated security solutions to a wide range of customers globally, including airports. The company developed, and manufactures, Cardax integrated access control and intruder alarm systems, and PowerFence perimeter security systems. Cardax FT has been installed at Guangzhou Baiyun International Airport – one of the major gateways to China.

Gaining third-party certifications

In a highly regulated industry, it is automatically assumed that companies will have the necessary approvals in place from their civil aviation authority. But as regulatory complexity increases and the ability to deliver to very tightly controlled specifications becomes more important, third-party certifications become a critical success factor.

Altitude Aerospace Interiors gained EASA Design Organisation Authorisation (DOA) earlier this year. This AS9100 company designs and manages the fit-out of Boeing and Airbus VIP aircraft as well as commercial airline interiors. Altitude draws on a range of supply chain partners including Nordam Group, ANZES and specialised local providers – Advanced Aerospace and Flight Interiors. Altitude is a Boeing BFE vendor.

The increasing popularity of fuel-efficient turbo-prop aircraft and the upgrading and modernisation of well-proven military aircraft are providing a growing market for Safe Air, another AS9100 company. This Air NZ subsidiary, which specialises in MRO for Lockheed C-130 and P3 Orion aircraft and the T56 engine that powers them, is also the Southern Hemisphere’s largest propeller maintainer with facilities on both sides of the Tasman. Safe Air is a key supplier of essential repair and overhaul services to both the Royal New Zealand Air Force and the Royal Australian Air Force.

Metal Tech has existed for many years but now holds AS9100 certification for its entire plant, which supplies high-quality machined components to the aerospace and defence industries. Its associated company, Metrology Calibration Services, holds IANZ Laboratory Accreditation for its calibration and inspection services. The company services customers in Australia, the US and Germany, and has recently secured aviation work in the EU.

AS9100 certification in August 2009 is helping AEL Engineering Services build credibility in the aviation industry in New Zealand, and is opening up new opportunities for the company in Australia.

Superstructure Group has developed the Aviation Safety and Risk Management software AQD. This software covers all functions from accident/incident reporting, risk management, compliance, analysis and investigation through to auditing and corrective action tracking. The Superstructure Group is now an IATA Strategic Partner and STEADS Preferred Partner. The AQD system is sold to 90 customers including many of the leading international airlines.

Cessna chose Spidertracks from New Zealand, after an exhaustive testing process, as the aircraft tracking solution they would distribute internationally through their parts and service centres. Spidertracks now sells into over 30 countries to small and global organisations, including contractors to the UN, working in the aviation market. Spidertracks has just launched Spiderwatch, a system which switches on as an aircraft accelerates through 40kts on take off and actively tracks all phases of flight until the aircraft lands. If the system loses track of the aircraft, immediate notification is sent to those nominated by the pilot or training school, and then, if necessary, to the rescue coordination centre with details of the last known position.

Innovative solutions

Many companies provide goods and services but the ability to provide solutions is an increasingly important differentiator. New Zealand companies are offering solutions to help customers lower their business costs, improve their service levels and enhance the safety of their operations.

Departure delays caused by missing checked-in passengers present real problems for airlines. Similarly, unexpected demands for some terminal services can mean that terminal service operators face difficulties in ensuring the right people are in the right place at the right time. Paxflow has developed Personal Passenger Assist, an electronic wireless-based system which allows an airline to track and prompt passengers after check in. It also allows terminal operators to track and prompt or reallocate staff when some services come under pressure. Paxflow brings considerable economies to airlines and terminal operators, and is also expected to aid future terminal design.

Painted graphics on aircraft can mean increased weight and increased fuel costs, and are difficult and expensive to change. However, printed graphics weigh less, are easy to apply and remove, and any damaged panels can be quickly reapplied.  Admark Visual Imaging, working with a 3M product, has developed an aircraft graphics
solution which has been approved by Boeing, the New Zealand Civil Aviation Authority and the US Federal Aviation Authority.

TracPlus Global developed TracWatch to complement traditional Emergency Locator Transmitters (ELTs). TracWatch, the company’s active monitoring service, tracks aircraft and personnel, and identifies where users were when things went wrong.

Prolonging the life of some metal components and reducing their weight while improving performance has real appeal to airlines and aircraft manufacturers. Titanox Development in Tauranga has created a process for the manufacture of titanium-based powders which can be converted into coatings and formed objects. This is ideally suited to the aviation component industry.

Expert training opportunities

New Zealand offers a range of training services that cover the spectrum, from pilot and crew training to maintenance engineer training. The industry is active in continuous training and is generating new courses to meet increased market demand.
UK-based provider CTC Aviation Training (CTC) has an expanding operation in New Zealand and relationships with both Air New Zealand and the Nelson Marlborough Institute of Technology (NMIT). CTC offers multicrew licensing internationally and is able to train for the New Zealand pilot market through its NMIT relationship.

There are over 20 flying schools in New Zealand. NMIT, with more than 300 pilots training at 12 different locations, is the largest. Air New Zealand Airline Training (ANZAT) has been running training services for its parent airline, Air New Zealand, and third parties for more than 60 years. ANZAT has amassed a wealth of knowledge, technical staff and training resources, enabling the in-house training of pilots, maintenance engineers, flight attendants and other airline staff.

Airways New Zealand has a training centre in Christchurch which regularly hosts groups of international air traffic controllers and has completed a major training program for the FAA. Airways is used as a technological and risk management benchmark by many overseas air traffic management organisations and regulators.

Massey University also provides degree and certificate-based aviation education courses covering majors in aircraft operation, aviation management and air transport. The university collaborates with Airways New Zealand to enable budding air traffic controllers to combine a degree with specialist air traffic control training.

The Aviation Medicine Unit at the University of Otago’s Wellington School of Medicine is a world leader in aviation medicine training and professional development for the aviation medicine industry. It is the only aviation medicine program in the world to offer distance education training and is supported by academic staff with strong links to the aviation industry.

New Zealand-based firm Rishworth Aviation is a leading provider of temporary pilots, maintenance engineers, cabin and ground crew for aviation companies, particularly in the Asia Pacific region.

Building on regional strengths

In recent years, the degree of cooperation and integration between companies located in New Zealand and Australia has increased to the point that some companies are identified as trans-Tasman. These companies leverage off one another,
especially for work in third markets.

Airwork began operating in Wellington in 1936 and has evolved to the point that the Airwork Group now offers a full complement of fixed-wing and helicopter operations and engineering services on an international scale. The company has maintenance bases in New Zealand, Australia and Papua New Guinea, and provides maintenance support in Africa, Asia and the Pacific.  It is one of only six Honeywell approved service centres in the world and it is a Eurocopter approved service centre for dynamic components including gearboxes.

Raytheon Australia, bidding with Airwork in July 2009, secured the Royal Australian Navy contract to provide In Service Support to its fleet of AS350BA lead-in training helicopters.

Hawker Pacific New Zealand is an essential part of the Hawker Pacific Group. The New Zealand operation sells and maintains a range of fixed- and rotary-wing aircraft. Hawker Pacific has operations in Australia, the Middle East and the Pacific Rim.

Tasman Aviation Enterprises (TAE) is the Australian subsidiary of Air New Zealand Engineering Services (ANZES) – a leading Australasian MRO service provider. TAE offers a highly specialised range of engineering services focused on metal machining, electroplating and industrial engineering activities. It works closely with the New Zealand parent and is an Authorised Engineering Organisation (AEO) for the Australian Defence Force.

Vincent Aviation provides solutions to customers looking to source services for international aid response through to transporting people and equipment to remote locations for work or recreation. The company operates a range of aircraft types from its bases in Wellington and Darwin.

Fieldair Engineering has more than 50 years of freight and MRO experience in New Zealand. Recently, it has started sending service teams to customers in the Pacific so that equipment can be serviced quickly and efficiently.

Centres of excellence

The Aviation Industry Cluster (previously Waikato Aviation Cluster) is the centre for General Aviation based on the presence of Pacific Aerospace, CTC, component manufacturers, aviation designers and a number of aviation entrepreneurs. The cluster is developing new capabilities, integrating with supply chains, and driving the creation of a state-of-the-art specialist aviation painting facility with a southeast Asian and Australasian reach.

The Nelson Aviation Cluster is looking to develop a reputation as a one-stop shop for aviation repair and maintenance. The Air Nelson Engineering facility is to double its size to service the Q300 and Q400 fleets.

New Zealand has considerable expertise in the replica and restoration industries with concentrations of companies in Ardmore, Dunedin, Mandeville, Masterton, Omaka, and Wellington. Capabilities ranging from parts to complete aircraft include antique aircraft, classic aircraft, World War 1 fighters, and warbirds.

MRO collaboration

Members of the MRO industry got together in June 2009 to explore options for growth in a workshop convened by Aviation New Zealand, and supported by New Zealand Trade and Enterprise (NZTE). The workshop concluded that new MRO business and facility investment was possible, subject to an aggregated knowledge of work sent overseas and a desire for some of it to be undertaken in New Zealand. Work to explore how this could be achieved is now underway.

Members of the MRO industry agreed that they needed to learn more about specialist capabilities either existing or being developed in New Zealand. This knowledge is now being shared around the MROs through the Aviation NZ website. More networking opportunities will be created for the MRO group. The goal of this collaborative approach is greater specialisation, and less duplication, of capabilities; or, as several MROs put it, “each of us should be doing more of less”.

Aviation New Zealand gains traction

Aviation New Zealand was set up as a subsidiary of the Aviation Industry Association with support from NZTE, and became fully operational in February 2008. It champions the international development of the aviation sector, encourages collaboration to achieve the scale required by most international opportunities, and acts as a one-stop shop for international companies wanting to do aviation business with New Zealand.

CEO John Nicholson reports that while it is still early days for the collaborative approach, Aviation New Zealand has identified some interesting opportunities in international markets and worked with companies to achieve the type of response required. Before the collaborative model was implemented, these opportunities would have been too big for individual companies. It also means that New Zealand is bidding to provide total project solutions. A real benefit is that members of the industry in New Zealand are engaging with others in a way not previously thought possible.

Aviation New Zealand is organising a business mission to India in November, the New Zealand stand at the Singapore Airshow in February 2010, and displays associated with the AAAE Conference in Queenstown, also in February 2010.