PETER LA FRANCHI / CANBERRA
National aerospace plan now under development seeks rationalisation to reduce costs
The Australian government is to consider a new national aerospace industry blueprint at the end of the year. As a result, future Royal Australian Air Force (RAAF) aircraft and weapon system acquisitions could be restricted to fewer than five prime contractors.
The national aerospace industry plan, covering civil and military requirements, has been under development since mid-2001.
According to Australian defence minister Robert Hill, the Department of Defence (DoD) is seeking to use the plan to build "long-term alliance relationships with fewer cost-effective primes in a sustainable demand environment".
He adds: "We also want to ensure that these primes and the significant number of subject matter experts that can subcontract to them, provide for those defence needs that are critical for the success of Australian Defence Force operations at the same time as reducing service support costs.
"The first indications are that [the Department of] Defence could have strategic alliances with a handful of prime contractors to support the range of aerospace weapon systems."
Speaking at the RAAF's biannual Aerospace Power conference in Canberra on 28 May, Hill said the sector plan "will benefit the Department of Defence by sustaining critical capabilities in industry, by reducing project risks, and making savings through commonality and rationalisation of platforms. It will benefit industry by allowing continuity of work and a capacity to make long-term investment in infrastructure, skills, training and research and development.
"We expect to go back to Cabinet on the details of the aerospace industry plan late this year."
According to data released by the Australian Department of Industry, Science and Resources, which is jointly preparing the plan with the DoD, the plan will include specific revenue targets for industry in the medium to long term.
The government is also considering setting up a public/private sector risk-sharing arrangement to help Australian aerospace companies participate in large projects.
Source: Flight International