When Boeing Australia officially launches Phantom Works Australia next month it will mark a significant stage in the aerospace manufacturer's development in the country.
With almost 4,000 employees in Australia at over 28 sites and seven different business activities, Australia is Boeing's largest presence outside the USA and is almost a microcosm of Boeing USA. Indeed, the Australian operation is considered a role model for the globalisation of Boeing, according to Craig Saddler, president Boeing Australia and South Pacific.
Boeing's latest Australian venture sees it establishing a branch of the Phantom Works advanced research and development unit in Melbourne and Brisbane. It will be the focus for the manufacturer's R&D in the country and collaboration with local organisations.
Boeing first set up a base in Sydney, Australia in 1959 to support the airframer's first export sale, to Qantas, of the 707. For many years the Sydney operation was restricted to sales and support of airline customers, but in 1996 Boeing acquired Rockwell, including Rockwell Australia's defence business, which had previously acquired Aerospace Technologies of Australia, formerly the Government Aircraft Factory. Boeing Australia acquired Hawker de Havilland in 2000 and acquisitions over the years resulted in the local operations of Alteon, Aviall, Carmen Systems, Jeppesen and Preston Aviation Solutions being folded into the Boeing Australia group.
Product development
Australia has always been a strong market for Boeing products and services, says Saddler. Qantas' payload and range requirements have long been a driver of commercial product development. More recently, following the merger with McDonnell Douglas, Australia has become an increasingly significant defence market.
Qantas currently has up to 115 787s on order, while 737 operator Virgin Blue will become the first Australian 777 operator when long-haul carrier V Australia starts operations next year. On the defence side, Boeing has delivered the first of four C-17 Globemaster III airlifters to the Royal Australian Air Force it provides upgrades, engineering support and maintenance for the RAAF's F-111 fleet is leading the RAAF's F/A-18 Hornet upgrade programme provides maintenance support for the army's Bell 206B-1 Kiowa fleet and has orders for F/A-18F Super Hornets and the I-View 250A Tactical UAV.
Boeing Australia is currently undertaking the most complex aerospace modification project ever performed in Australia in the 737 airborne early warning and control Project Wedgetail. Hawker de Havilland, meanwhile, has the largest aerospace programme in Australian history with the design and manufacture of trailing edge control surfaces for the 787.
While Boeing has done well from Australia, the country's gross domestic product has also benefitted significantly. A recently produced Boeing-commissioned report by local consulting firm ACIL Tasman says that Boeing directly contributed A$362 million ($328 million) to Australian GDP in 2006 and through its interaction with other Australian businesses it is estimated the company indirectly contributed a further A$174.4 million. As well as the 3,803 people Boeing employs in Australia, the report estimates it indirectly contributed to a further 1,400 Australian jobs.
Saddler believes Australia holds many opportunities for Boeing in the future. "We are always looking to grow our business in Australia," he says, declining to comment on potential merger and acquisition activity.
"We would very much like to exploit the experience and capability generated by the Amberley Wedgetail conversion programme and we believe that the Hawker de Havilland 787 programme is enhancing the company's reputation as a world centre of composite excellence," he adds.
In addition, Boeing Australia's through-life support business is a well-matured capability that Saddler would like to see expand, while its UAV capability puts it in a good position to secure further contracts, he believes.
A cloud on the horizon in the country could, however, involve Australia's order for 24 F/A-18F Super Hornets which is currently being reviewed by the recently elected Labor government as part of a wide defence procurement review. But Saddler is upbeat: "We believe that the Super Hornet purchase, while delivering increased capability to the RAAF, also allows Australia time to buy the Joint Strike Fighter on its own timetable. The Super Hornet is the most capable multi-role strike aircraft available to Australia today."
Source: Flight International
