Aviall Closes Bankstown

[Knoxie]

Have been told that Aviall Shut the Sydney office yesterday.

Anyone know any more, ? Did it happen ?

[mcoates]

call them and ask....

[golow]

With the Bankstown shop closed now all parts have to be sent from Melbourne. 24 hours to get a part sent and if they send the wrong part or you need another part another 24 hours.This means your aircraft is grounded till the part arrives into Sydney, the largest city in Australia.The maintenance company now has to hold an increased stock of parts which I am told will increase maintenance cost and as well you now need to pay for freight cost to get the parts from Melbourne.This is just another example of how bad the state of GA is in NSW. Bankstown airport is in the worst state I have seen in 40 years and how to fix it I do not know.

[Sunfish]

How to fix it? You need to increase aviation activity across the whole GA and recreational segment. That requires investment. Investment in people becoming new pilots, investment in training, investment in aircraft, investment in aviation infrastructure. Investment generates jobs and is self fulfilling - investment generates more investment.

To invest requires a return that is commensurate with the risk associated. I won’t bore you with the capital asset pricing model.

The risk is categorised as business risk - which is risk associated with free market competition, plus sovereign (government related) risk.

It is the sovereign risk that is the problem. That is composed of regulatory risk, which is huge in Australia (CASA, AsA, local councils and State and Federal Governments all of whom hate aviation) then there is a personal risk component for operators - the use of the criminal code in what is essentially an administrative area.

Overall the return on investment in GA or recreational aviation is too low compared to other investment opportunities- eg. property development if you are an investor or buying a boat or caravan for recreation.

The solution? Change the Act(s) and regulation to reduce sovereign risk. That means for example adopting FAA regulations, changing the Act to remove the deliberate uncertainties, reorganisation of the regulator again to reduce uncertainty, dumping the criminal code enforcement, getting state governments to stop destroying aviation infrastructure, increasing infrastructure spending and availability, etc., etc.

‘’It’s not rocket science. When people can see there is money to be made and fun to be had with some level of certainty, they will invest their time, energy and money in the sector.

.....and not before.

[Vag277]

All of the above assumes that there is actually a market similar to what existed 40 or 50 years ago!

[Clare Prop]

You have to wait 24 hours for parts? Luxury!

Probably a simple case of supply and demand and the sky high rents that are charged at these airports since privatisation.

We still have Aviall here but it doesn't really need to be on site.

[Sunfish]

Build it and they will come........

[Old Akro]

With the Bankstown shop closed now all parts have to be sent from Melbourne. 24 hours to get a part sent and if they send the wrong part or you need another part another 24 hours.

This is easy to read as a negative sign, especially since GA feels besieged by companies (mainly CASA & AsA) making life harder / slower. But the truth is that this sort of parts supply consolidation happened to car parts years ago. There are lots of basic parts (eg brake discs) from major companies (eg Toyota) that you will wait a day for now. We just had a car stuck on a hoist for 1 day waiting to get an oil seal from Mazda. The oil seal was in stock in the National warehouse in Sth Melbourne. We are an hours drive away. There was no possible method for us to get it quicker than overnight.

Blame Australia's real estate prices, high cost of unskilled labour or distribution oligopoly. But its not an attack on GA.

If you want a scandal, ask how come Moorabbin airport forced Aviall offsite into a nearby Industrial area.