Exporting excellence with
NZAero
Industry
Aircraft manufacturing
Location
Hamilton
“If everyone in the world operated on the same certification basis, it would be easy.”
“Shipping costs weigh heavily on the on the build of the aircraft, but we believe we’re still competitive and we wish to continue making product here in New Zealand.”
From cloud seeding to fire fighting and emergency evacuations, the efficiency and versatility of turboprop aircraft has meant they remain in strong demand around the world.
Compared with jet engine aircraft, they offer many benefits such as lower operating costs, shorter takeoff and landing distances, and better performance in adverse weather conditions.
Stephen Burrows, CEO of NZAero, New Zealand’s only commercial aircraft manufacturer, recently hosted an EMA and ExportNZ evening for exporters across Waikato in the company’s hangar.
The event was the first of the year for the Waikato export community. The EMA’s Waikato/BOP Area Manager Jo Mackie says she came up with the idea to hold an event at an exporter’s business that would not only showcase their business but provide a dynamic and interesting space for the guests.
“Having been fortunate enough to have a tour of the hangar with Stephen, I knew others would be very keen to see it. I wasn’t wrong!”
During the event, Burrows shared some of his thoughts and insights with EMA Members into NZAero’s export journey as it looks to expand international sales of its turboprop aircraft into the lucrative American market.
The SuperPac 750XL-II is the latest iteration of the Hamilton aircraft manufacturer’s hugely successful airframe. With added power, a quieter propeller and touchscreen glass cockpit flight systems and avionics, it can climb faster and burn less fuel than its previous models.
The SuperPac 750XL-II was launched in November last year and is currently certified in New Zealand, Israel and Papua New Guinea. Australian certification is very close and should be completed early next month and the European Aviation Safety Agency (EASA) process is also well advanced. American Federal Aviation Administration (FAA) certification is progressing, along with Canada and Thailand.
Burrows says having regulations in each region complicates the process of bringing products to market.
Its previous SuperPac model, the 750XL, is certified in 28 countries and there were plenty of certification hoops to dive through.
“Aircraft manufacture is a heavily regulated industry, and you can’t sell the aircraft until you have certification,” says Burrows.
“Getting New Zealand certification was the first step and then each market that you sell into needs to have its own certification.
“If everyone in the world operated on the same certification basis, it would be easy. You just do the certification once and you’d be away. But because each region has its own set of requirements, you then have to certify it multiple times in order to reach all of those markets.
Some countries use the big regulators to predicate their own certification, so that can speed the process up.
“We’ve seen bilateral agreements put in place with numerous countries that accept other countries’ certification, so that’s where governments can help.”
The development of bilateral agreements such as these is one of the aims of the EMA’s Advocacy team and outlined in its 2023 Policy Manifesto.
Head of Advocacy Alan McDonald says the EMA and ExportNZ advocate for the removal of non-tariff barriers to trade, such as the red tape surrounding aircraft certification.
“Resourcing and supporting efforts to remove those barriers is critical to export success.” he says.
While some non-tariff barriers exist for good reasons – such as regulations to promote safety – foreign governments can agree to accept New Zealand’s regulations as equivalent, says McDonald.
“Government-to-government discussions or longer-term free trade agreements can help to facilitate this.”
New Zealand is a signatory to several bilateral and multilateral agreements with other countries that support a commitment to harmonise aviation standards, rules, procedures and processes.
This country has agreements with Australia, including an operational arrangement between the two countries’ civil aviation authorities, which provides for mutual recognition of aviation safety certifications.
This year, a memorandum of understanding was signed between NZ’s Civil Aviation Authority and EASA to provide a high-level framework for the exchange of technical knowledge and safety information, and for the establishment of future technical arrangements.
We also have MOUs with the likes of Saudi Arabia and Singapore.
But it’s a slow, expensive process and this is why you don’t see a flood of new designs in the sector, says Burrows.
For its part, NZAero continues to innovate and develop new products, with the SuperPac and EFIS Flight Deck both recent examples, and other projects include future green energy aircraft.
However, a lot of designs are quite old, and this means that emerging technologies, such as batteries and hydrogen fuel, are built into existing aircraft designs.
“It’s easier to put the new technology on the existing designs and make small step changes,” says Burrows.
“There are aircraft operating in the northern hemisphere with lithium-ion power plants that are on 80-year-old airframes.”
Most of the older airframes have been adapted over time to keep up with requirements and to make them safer, more comfortable, quieter and travel further, faster.
“The 750XL is a 20-year-old design. I mean, if you looked at car manufacturing, that would be a very old design. But in the aviation world, that’s nothing,” says Burrows.
Keeping It Local
Despite most of NZAero’s materials being imported from the United States, there has been no temptation to up sticks and head closer to the big northern hemisphere markets.
“We’re very proud to be a New Zealand-owned manufacturer,” says Burrows.
“We build the aircraft and then ship them back up into the northern hemisphere, so that’s an additional cost when you’re in a competitive market and most of the competitors are in the northern hemisphere.”
Including NZAero, there are only nine turboprop manufacturers in the world, with five in the US and three in Europe.
“Shipping costs weigh heavily on the build of the aircraft, but we believe we’re still competitive and we wish to continue making product here in New Zealand.”
Neil Young and Dee Bond purchased the previous company, Pacific Aerospace, in 2021 to ensure that capability remained in New Zealand, says Burrows.
“It’s been here for 70 years, and we didn’t want to see it disappear. It’s a unique capability and once it’s gone, it’s very hard to rebuild.
“We’ve got to make it work.”
Having this capability in New Zealand opens up some interesting career paths, and Burrows says the industry draws on a number of different skillsets.
“We’ve got machinists, sheet metal workers and registered electricians who started their trade wiring houses and moved into avionics and systems installations.
“There’s a lot of similarity between aviation manufacture and boat building, and we have composite experts and boat builders who have come through the marine industry.
“There’s some very, very talented, skilled people out there that work in those industries.”
NZAero looks at university graduates such as mechanical engineers but also skilled mechanics from the automotive industry.
The company has just started a programme with local school Nga Taiatea Wharekura, through Smart Waikato‘s Secondary School Employer Partnerships, which involves going into classrooms to talk about engineering, manufacturing and the importance of science and maths and how they apply in real life.
“I’ve got two sessions with the school, and then we’re going to bring the students through the facility and actually show them how that applies,” says Burrows.
“We have a core of highly skilled people in our business that aren’t getting any younger; they want to transfer all that knowledge that they’ve got across to the next generation, to make sure that we keep this capability going in New Zealand.”
Helping Hand
Selling the SuperPac 750XL-II in America is a key growth strategy for NZAero, and the company is working with New Zealand Trade and Enterprise (NZTE) to figure out how to better position itself.
The business development agency is working on NZAero’s capability across areas such as sales, marketing, and supply chains.
“More specifically, for the US market, NZTE is able to draw on its deep connections to beachhead experience and advice, connect them into a like-minded peer network, or to make valued connections,” says an NZTE spokesperson.
NZTE is also able to connect companies with the wider NZ government departments and help to resolve roadblocks or understand any export technicalities.
The agency has around 50 offices across the world, with experienced business development managers and trade commissioners with in-market connections and experience for NZ companies to draw on.
“Across the team of 700, we can help customers like NZAero to better understand their target markets, resolve challenges, research and connect and prepare them to drive export sales,” says the NZTE spokesperson.
“Our support services, such as digital coaching and our beachhead network, can help develop capabilities to better reach or target prospective customers.
“By developing a clear and focussed plan together, we are able determine the best way to support the export plans of any business.
“Deep discovery and the development of a close working partnership are the keys to unlocking success – helping companies grow bigger, better and faster.”
To get the most return on investment, NZTE focusses on companies with the ambition, capacity and capability to grow internationally and work towards the Government’s goal to double the value of exports in 10 years.
For exporters looking to expand into new markets, NZTE says the best way forward is to register on myNZTE and request a call with one of the agency’s customer advisors.
“Every exporter’s needs are unique, so chatting through your ambitions and challenges will mean our advisors can point you in the right direction,” says the spokesperson.
