Brumby Signs with Chinese Aviation Giant

[Motif]

Sydney, July 31st, 2014

 

Light Sport Aircraft manufacturer, Brumby Aircraft Australia based in the Central West town of Cowra in N.S.W., signed a joint venture agreement with the giant Chinese civilian and military aircraft manufacturer AVIC (Aviation Industry Corporation of China) for the purpose of manufacturing and sale of Brumby designed aircraft in China.

 

AVIC are a little know entity outside China however, with annual revenue in excess of AU$27 billion, they are ranked number 330 on the international Fortune 500 companies index.

 

AVIC also manufactures components for such well-known names as Boeing, Airbus, General Electric, Honeywell, Bombardier, Pratt & Whitney and Rolls-Royce.

 

Forbs magazine in an article in 2011, described AVIC as: “China’s 800-pound gorilla of all things commercial aviation, from manufacturing and R&D to procurement and investment.”

 

The president of Boeing, Jim Albaugh, summed up AVIC’s importance in the global aviation supply chain saying that “There is not a plane we build that doesn’t have parts from China in it.”

 

The CEO of Brumby Aircraft, Paul Goard said “I am thrilled that this massive Chinese aviation corporation with such strong links to the world’s commercial and military aircraft industry has chosen Brumby Aircraft to partner with them in their first venture into the realm of Light Sport Aircraft manufacture”.

 

Ross McRae, Director of Marketing for Brumby Aircraft said: “It’s a testament to the design qualities and inherent strength of Brumby aircraft that a company who builds military attack helicopters, fighter jets and large passenger carrying commercial aircraft would so enthusiastically enter into such a commercially significant joint venture agreement with a small Australian regional aircraft builder like Brumby.”

 

Ultimately, AVIC will produce finished aircraft for the Chinese market and build airframes only for shipment to Brumby’s Cowra factory. Instruments and engines will be installed by local Cowra staff. It is expected the Brumby factory in Cowra will double in size with a commensurate increase in its staffing levels and stockpile of finished product.

 

Brumby Cowra will initially supply aircraft for the Australian and New Zealand markets but will later extend its reach to the US and European markets.

 

Another project to be brought to the fore by this agreement is the final development of Brumby’s AirCruiser, a FAR23 certified, four place, general aviation aircraft to which Brumby Aircraft owns the intellectual property.

 

A brand new research and development department will be established in Cowra to modify the basic design of the AirCruiser in order to equip the aircraft with three different engine configurations:- a lower powered piston engine for use in the flight training area, a high powered piston engine for higher speed cross-country operations, and a gas turbine prop-jet configuration.

 

AVIC selected Brumby Aircraft after having scoured the world for a product with sufficiently high aerodynamic and build quality to conform to AVIC’s standard of excellence.

 

In sum, this agreement will put Brumby Aircraft on the world map in terms of leading edge aircraft design.

 

Examples of AVIC designed and manufactured aircraft photos below:

 

 

 

 

 

 

[fly_tornado]

Should be interesting few years ahead

 

 

[bexrbetter]

Should be interesting few years ahead

 

Welcome Paul Goard to a world of pain you didn't know existed.

 

 

[johnm]

what could possibly go wrong bexrbetter .................. is it the Chinese way of doing things ?

 

 

[AVOCET]

"They don't call it Chinese torture for nuthen"!

 

 

[AVOCET]

Remember the old Chinese curse :

 

"May you live in interesting times ."

 

 

[Brumby Aircraft]

Welcome Paul Goard to a world of pain you didn't know existed.

Welcome Paul Goard to a world of pain you didn't know existed.

[bexrbetter]

Oh, Brumby's landed, still taxiing by the looks, have to wait and see how the flight was ....

 

 

[turboplanner]

So do you have an engine ready to sell them?

 

 

[mAgNeToDrOp]

I hope the quality of the build won't suffer as a result of the new "Made in China" sticker. Obviously China/AVIC is capable of manufacturing a quality product if they want to. I've always associated Brumby aircraft as "built like a brick outhouse" in as far as LSA's go, now I'm not so sure.. proof will be in the pudding.

 

 

[old man emu]

My heartiest congratulations to Brumby Aircraft for securing this International partnership. Not only will this catapult the Australian aviation industry onto the world stage, but will have many positive benefits for the economy of Central West New South Wales as indicated in this article in the Cowra Guardian, http://www.cowraguardian.com.au/story/2455999/brumby-lands-40-year-deal-with-china/?cs=593

 

I'm going to put a job application together over the weekend so I can submit it on Monday. I'm quite prepared to be a FIFO to be part of this exciting opportunity.

 

Old Man Emu

 

 

[PA.]

I'm quite prepared to be a FIFO to be part of this exciting opportunity.Old Man Emu

A FIFO, you're a bloody Emu!

 

 

[bexrbetter]

.................. is it the Chinese way of doing things ?

Firstly let me explain my first post, when I read FT's comment "should be a few interesting years ahead" I was remembering my first years of struggle here and those of every, and I mean every Westerner or Western Company that does business with Chinese, that's what I was laughing hard at ...

 

Then my second line was actually with a sigh and a bit of a headshake referring to Brumby's world of pain coming - so please don't construe it as me laughing at Brumby, the opposite, I am worried for them .. but anyway, I'm sure they have full confidence and years of business behind them, so coming from some faceless person on the internet the point is probably moot, I'm sure all will be well. Umm, no it won't actually.

 

To answer your question; Yes it's the way Chinese do things, i.e. their way and only their way.

 

You go along to all the meetings and all the agreements and approvals are all put in place and they just do it their way anyway. This unfortunately is all the way down the line from the top Chairman to the woman sweeping the floor, at every level. Oh you get some of their acts together but they have this bizzare thing that they drift off in another direction and start doing that, it's like painting the Sydney Harbour Bridge, get one end done and by the time you get it all completed you got to start all over again.

 

Unless of course you are the Boss and if Brumby don't have it's own Western "hands on factory floor managers" that understand Chinese culture they are dead in the water. Someone fresh from Australia will get walked all over and they won't even know it until the crap starts filtering through and then the meetings all over again to start the same cycle all over again.

 

That's just barely touching on the production side of things, the business side is another ball game.

 

 

[poteroo]

Now that all the wheeling & dealing has been transacted - Brumby needs to accelerate it's production - or it's going to lose it's future markets in Australia to the competitors. And no, I won't be applying to instruct at their new flying school. My Mandarin isn't up to KRudd standard. happy days,

 

 

[AVOCET]

Firstly let me explain my first post, when I read FT's comment "should be a few interesting years ahead" I was remembering my first years of struggle here and those of every, and I mean every Westerner or Western Company that does business with Chinese, that's what I was laughing hard at ... Then my second line was actually with a sigh and a bit of a headshake referring to Brumby's world of pain coming - so please don't construe it as me laughing at Brumby, the opposite, I am worried for them .. but anyway, I'm sure they have full confidence and years of business behind them, so coming from some faceless person on the internet the point is probably moot, I'm sure all will be well. Umm, no it won't actually.

 

To answer your question; Yes it's the way Chinese do things, i.e. their way and only their way.

 

You go along to all the meetings and all the agreements and approvals are all put in place and they just do it their way anyway. This unfortunately is all the way down the line from the top Chairman to the woman sweeping the floor, at every level. Oh you get some of their acts together but they have this bizzare thing that they drift off in another direction and start doing that, it's like painting the Sydney Harbour Bridge, get one end done and by the time you get it all completed you got to start all over again.

 

Unless of course you are the Boss and if Brumby don't have it's own Western "hands on factory floor managers" that understand Chinese culture they are dead in the water. Someone fresh from Australia will get walked all over and they won't even know it until the crap starts filtering through and then the meetings all over again to start the same cycle all over again.

 

That's just barely touching on the production side of things, the business side is another ball game.

Old man emu 's got his cv ready .

 

Looks like emu chow min !

 

 

[Ultralights]

why is there a runway number on an aircraft carrier runway? , awesome news for Brumby and the guys at cowra.

 

 

[motzartmerv]

Great news..

 

 

[AVOCET]

why is there a runway number on an aircraft carrier runway? , awesome news for Brumby and the guys at cowra.

I thought that to , conclusion , it ain't an aircraft carrier ,or it's been tied up in dock for a while !

 

 

[AVOCET]

Who says you carn't make a buck in aviation ?

 

As long as they keep the brumby name and don't start calling it a YAC

 

 

[PA.]

why is there a runway number on an aircraft carrier runway? , awesome news for Brumby and the guys at cowra.

Ship me drunk, it's the vessel number.

 

 

 

[Brumby Aircraft]

Thanks for your advice However I have been dealing with the Chinese for many years now importing Chinese military aircraft also importing many products in another business I am very comfortable with the Chinese thanks for your concern though

 

Now that all the wheeling & dealing has been transacted - Brumby needs to accelerate it's production - or it's going to lose it's future markets in Australia to the competitors. And no, I won't be applying to instruct at their new flying school. My Mandarin isn't up to KRudd standard. happy days,

Thanks Ralph. Paul

 

 

[Motif]

In reply to Bexrbetter's comments above.

 

Thank you for your concern but I don't think you are entitled to assume that every Western company having a business relationship with the Chinese is going to end in tragedy. That's simply a prejudiced and biased attitude.

 

There are two key reasons for thinking that this arrangement will be a success. The first is that this agreement did not arise out of thin air. Brumby staff have been involved with the AVIC people for almost two years now. Many lengthy trips to China were undertaken by Brumby staff and many trips to Australia were undertaken by AVIC staff. The technical agreement has been hammered out over a lengthy period in minute detail. It has been checked over by some top Sydney legal minds and ditto on the Chinese side. The contract is sound and equitable to both parties.

 

But possibly more importantly than even the formal contract, is that during the last two years a number of members of the Brumby team and the AVIC team have developed close personal relationships to the extent that invitations have been mutually extended to stay at each others houses or apartments when visiting each others country. Gifts are exchanged and emails exchanged on topics that bear no relation to work matters. These are personal friendships at the highest levels of both organisations that go way beyond purely a business acquaintanceship.

 

The CFO and AVIC board member remarked to me while driving to the airport one day that had AVIC staff not bonded as well as they did with Brumby staff, AVIC would never had entered into this arrangement. This personal friendship aspect was even mentioned in a Prime TV interview where the project leader referred to the importance of the genuine friendship that had developed between the two groups.

 

Sure all the cynics out there will decry all this mushy stuff and say that personal friendships can go South really easily. In which case you drag the contract out of the bottom draw, blow the dust off and see how you agreed to fix the problem in the first place.

 

But, I have spent a life time in large corporations and small to medium business and can testify to the value of a friendship in which you can both sit down in a spirit of goodwill and friendly cooperation to rationally discuss and solve a problem. And that method cannot be beaten as a solution.

 

This is a big deal for Brumby Aircraft, and the little town of Cowra. Phil and Paul Goard have worked their backsides off to make this deal happen.

 

So to all the members of this forum, how's about wishing them well instead of labeling them with all the gloom and doom you can think of even before the inks dry on the contract.

 

Ross

 

 

[old man emu]

Geez you blokes! Why are you so bloody negative? Brumby's deal has so many positives for Australia, New South Wales and Cowra (especially). Stop cutting down tall poppies.

 

I'm willing to travel to Cowra to work in aviation. Who else is willing to take the chance with me?

 

OME

 

 

[AVOCET]

I

 

Geez you blokes! Why are you so bloody negative? Brumby's deal has so many positives for Australia, New South Wales and Cowra (especially). Stop cutting down tall poppies.I'm willing to travel to Cowra to work in aviation. Who else is willing to take the chance with me?

 

OME

It's all in good fun OME , no offence intended , the good old ozzy dig is just another way getting brumby to respond with great posts . Better than a hand full of posts saying good luck . After all there's a light side to this forum , bit of relief really , instead of all the death , prangs , and the ongoing war of personal engine preferences and the like .

Any way Brumby , God speed , and all the best .

 

Mike .

 

 

[bexrbetter]

Thanks for your advice However I have been dealing with the Chinese for many years now importing Chinese military aircraft also importing many products in another business I am very comfortable with the Chinese thanks for your concern though

And it is genuine concern for a fellow Australian regardless of how I might come across.

 

I am very happy about prospects for any Australian country town, they need every bit they can get.

 

Good luck.