Project Review: Victoria pushes for local flight training school | ADM Dec 09/Jan 10
Gregor Ferguson | Sydney
The Victorian Department of Innovation, Industry and Regional Development (DIIRD) has put its weight behind a push to bring the ADF's basic flying training program back into the state.
When basic flying training was outsourced in the 1990s, BAE Systems Australia won the contract and conducts both flight screening and basic training for all three services at its extensive facility on Tamworth airport in NSW.
But its contract is due to expire soon and rather than simply extend it while the RAAF introduces an all-new basic and advanced flying training system from 2015 under Project Air 5428, Defence last year called for tenders for a six-year Interim Basic Flying Training (IBFT) contract, to come into effect in January 2012, with one-year renewal options.
Although Defence has emphasised that the IBFT contract is a quite separate activity from the more complex and ambitious Air 5428, there's little doubt the service wants eventually to consolidate its flying training activities, and in particular to place its trainee pilots in a military environment on or close to a military base - that base is East Sale, home of the RAAF's Officer Training School, Central Flying School and Schools of Air Warfare and Air Traffic Control.
There are a couple of issues for both Defence and Industry to resolve, however: one of them is BAE Systems Australia's present incumbency at Tamworth.
Replicating at West Sale (or at Wagga Wagga, for that matter - the NSW government is quietly pressing its own claims for the IBFT) the infrastructure that already exists at Tamworth would require a multi-million dollar investment.
Is this worth it for a six-year IBFT contract?
Possibly not, but it could be the strategic investment required to ensure the contractor has the inside running for Air 5428.
In a business environment constrained by the Strategic Reform Program, Defence may decide IBFT is best kept at Tamworth, and BAE Systems Australia's view of the strengths and benefits of the Tamworth operation is as strong as ever.
The current tender for the IBFT contract will establish the costs and benefits of relocating this activity; if BAE Systems Australia wins, then IBFT remains at Tamworth and Air 5428 will be a wide open contest.
Platform concerns
The other issue is that of aircraft.
BAE Systems Australia's current fleet of CT-4s doesn't comply with the latest FAR 23 crashworthiness requirements-these address design features like crashworthy seats, restraints, fuel tanks, cabin egress, landing gear and so forth.
While the CT-4 is not seriously deficient and has an outstanding safety and reliability record, the ADF's flight risk tolerance following the Nias Island Sea King helicopter tragedy is zero.
A planned review and cost-benefit analysis of upgrading the CT-4, or acquiring a new FAR 23-compliant training platform, may conclude that an all-new platform is the best solution.
But why would you introduce an all-new feet of aircraft for a six-year ‘interim' contract?
Appointing a new IBFT contractor at a new location with a new aircraft will look awfully like selecting the contractor for the basic training element of Air 5428.
Thales Australia acknowledges the strength of BAE Systems Australia's incumbency, but is listening carefully to the customer and has also built a close relationship with DIIRD.
Business development manager Tony Landers declined to comment on the details of its IBFT bid, but told ADM he was "very pleased with the support that the Victorian government has given to Thales and continues to give on this and other Victorian initiatives."
Boeing Australia aims to leverage its rotary wing training experience in its IBFT bid, according to bid leader Shane Fairweather.
It is the incumbent helicopter pilot training contractor at the Army Aviation centre at Oakey and is the biggest employer of Qualified Flying and Helicopter Instructors outside the ADF, he says.
Boeing hasn't disclosed its choice of training aircraft, but notes the FAR 23 crashworthiness provisions, as well as the training requirement which doesn't call for any significant departures from the current proven syllabus.
The company is listening carefully to its customer, says Fairweather: Defence wants to consolidate flying training around East Sale and the Victorian government has been very proactive in supporting this ambition and promoting West Sale as a suitable training base.
As for ownership of the aircraft, it's not clear whether the ADF favours a Public-Private Partnership (PPP - or PFI, Private Finance Initiative) with the aircraft on the civil register, or direct ownership with contractor logistics support and maintenance.
The efficiencies achieved by BAE Systems Australia at Tamworth suggest the ADF would welcome a similar ownership/support arrangement.
Vic. Government Minister keen for IBFT
Victoria's Minister for Industry and Trade, Martin Pakula, has promised Victorian government support to upgrade West Sale airfield to bolster three companies' bids for the ADF's Interim Basic Flying Training (IBFT) contract.
He says securing the IBFT military flying training activities at West Sale would significantly strengthen the case for East Sale to become the permanent home of ADF flight training when Project Air 5428 comes into effect from 2018.
ADM questioned the Minister in early-December.
Q. What is Victoria offering to companies bidding for the Interim Basic Flying Training contract?
A. The Victorian Government is working with the companies to bid for the IBFT contract and to bring ADF basic flying training to the Gippsland region.
The Government is offering the use of the West Sale, Bairnsdale and Yarram aerodromes and to upgrade facilities at these aerodromes.
In particular, the Government is offering use of the very extensive facilities of the East Gippsland TAFE's Fulham Campus, located on the West Sale aerodrome.
These excellent facilities were originally established as a flight training school.
Work has already commenced on the planning for the relocation of the TAFE and for the aerodrome upgrades to ensure IBFT activities can commence by the date required by the ADF.
The State will also ensure that all necessary planning approvals are expedited.
Q. Which companies have expressed an interest in establishing an IBFT school in Victoria?
A. The Victorian Government is working with Boeing Australia, Raytheon Australia and Thales Australia on the IBFT project and will tailor its support to suit the individual requirements of each.
Q. What about capital investment in new buildings, runways and other facilities - will this be worth it for the companies if the IBFT contract runs for less than 10 years?
A. Bidding to relocate basic flying training to Gippsland is certainly more expensive than bidding to retain it at Tamworth where facilities are in place.
We think it is worth it because IBFT itself is a very significant economic activity valued at $20 million per annum and is likely to directly employ more than 100 contractors and ADF personnel.
Bringing 100 new families to Gippsland, training up to 400 students each year and providing support to IBFT would be a major economic boost to the region.
Q. And what synergies would you hope to see other components of the Victorian aerospace and defence industries capturing (aircraft maintenance, training courseware and simulator support, for example)?
A. Melbourne has a rich history in aerospace and aviation training.
Point Cook Airfield is the birthplace of the Royal Australian Air Force and is the oldest continually operating military airfield in the world.
Victoria offers a wealth of opportunities for those looking for high-quality training or exciting career opportunities in the aerospace and aviation sectors.
Victoria is home to more than 20 commercial flying training schools which annually train more than 600 students.
The State Government is also boosting the State's aviation training capabilities to position Victoria as the key provider of licensed aircraft maintenance engineers in the Asia-Pacific region.
Kangan Batman Institute of TAFE (KBIT), near Melbourne airport, is Victoria's leading provider of aircraft engineering training for aircraft maintenance engineers and delivers the full spectrum of aircraft maintenance engineering training.
It is CASA CAR 30 approved and has a partnership with Lufthansa Technik.
KBIT trains more than 300 aircraft maintenance students annually and its training aids include a Boeing 737 aircraft and its program is supported by CASA approvals.
RMIT, Monash and Swinburne Universities, and other specialist providers, offer an extensive range of professional and technical training for the aerospace and aviation sectors.
The Victorian Government is working with the aviation sector to develop a whole of industry training strategy that will enhance the State's leadership position in the Asia Pacific region.
Victoria is the centre of airline simulator training in Australia with Qantas' Flight Operations Training Centre (QFOT) and the Ansett Aviation Training Centre based in Melbourne.
QFOT has B737 devices and plan to install A330/320 and B787 training devices in the near future.
QFOT intend to install helicopter and King Air simulator devices to service the general aviation sector.
QFOT has world-class aircrew and cabin crew ‘ditch' training facilities.
Ansett Aviation Training has simulators to cover B737, B767, Dash 8, BAE 146, SAAB SF340 and Metroliner.
Alteon, Boeing's training company, also operates commercial flight simulator devices in Melbourne.
Flying training organisations work with the simulator centres to offer a ‘full-service' solution for domestic and international airlines.
Emergency procedures training for technical and cabin crew is also provided in state-of the-art facilities in Melbourne.
The Oxford Aviation Academy (OAA) - the largest flying training organisation in the world - has its Asia Pacific training centre in Victoria and is a major provider of flying training to international airlines in South East Asia, the Middle East and China, and plans to graduate 500 pilots annually.
Oxford has purchased General Flying Services which is the largest flying training school in Australia with over 50 aircraft.
The Victorian aviation and aerospace industry sector includes over 270 firms employing more than 20,000 staff.
The next largest concentration of aircraft maintenance/manufacturing/training activities outside Melbourne is in the Gippsland region.
Q. Is there a broader strategy behind the Government's interest in IBFT and Air 5428?
A. Through initiatives such as the $8 million Defence Industry Acceleration Program, that was announced as part of the $244.7m Building Our Industries for the Future strategy, and Securing Jobs for Our Future, the Brumby Government is providing direct assistance and ongoing commitment to the defence industry as a priority sector.
In 2009 Victoria's defence industry sector captured $2 billion in revenue and delivered $236 million in exports.
The sector employed over 9,000 Victorians in the manufacture of equipment and the provision of services.
This success reflects the effectiveness of the Roadmap for Victoria's Defence Industries which has forged a close partnership between government and industry and delivered a range of targeted initiatives that have strengthened and expanded the sector.
We are currently preparing a new strategy for supporting Victoria's defence industries, A Roadmap for Victoria's Defence Industries 2015.
This document will outline a new suite of initiatives developed to help Victorian industry secure a significant share of the Australian Government's biggest military expenditure in new defence equipment since World War II - $100 billion over the next 15 years, as outlined in the Defence White Paper.