Aviation industry growing strongly, report finds

New Zealand's nearly $10 billion aviation industry has grown strongly in recent years, and is set to continue expanding, according to a report released today.

The sector, including more than 1000 aviation-related organisations, generated $9.7 billion in revenue last year, mostly from domestic activities, the New Zealand Trade and Enterprise report says.

However, the industry struggled to attract funding, and smaller businesses were unable to become involved in export ventures because of a lack of a united 'New Zealand Inc' approach.

Better co-ordination between national and regional government funding and developmental strategies, and better marketing would benefit the sector, the report found.

Innovation and new technology in the industry drove significant growth of 9.5 per cent a year over the past five years, producing high-value products and jobs.

"In areas as diverse as training, aircraft design, airport systems and advanced rocket technology we find New Zealand companies exporting successfully into the global market," Associate Economic Development Minister Wayne Mapp said.

"I am confident that the industry can meet the challenge of the marketplace and build on its already impressive growth."

The aviation industry was forecast to grow by 5.3 per cent a year over the next five years, to generate $12.6b a year in revenue.

The Auckland region was the source of about 72 per cent of revenue for the industry, the report found.

In terms of sectors, operators generated 59 per cent of total revenue, followed by 'miscellaneous', mostly fuel revenue.

Aviation organisations included Air New Zealand, aircraft manufacturers such as Pacific Aerospace, airport baggage handling and security developer Glidepath, and Rocket Lab which launched a rocket to the edge of space last year.

The New Horizons report, based on interviews with 64 industry organisations and experts, identified significant export and offshore opportunities, and potential for growth.

Targets included the space industry, overseas helicopter operations, building vintage aircraft, airport design, titanium production, and design and manufacture.

- NZPA