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Aerospace Resource Guide: Austria

 

Austria Statistics

Summary
Market Entry

Current Market Trends

Current Demand

Barriers
Trade Events/Associations

CS Contact

Capital: Vienna
Population:
8.4 Million
GDP USD
: USD 399.6 billion Currency: Euro
Language
: German

Summary

The Austrian market for civil aviation aircraft amounted to USD 897 million in 2012 and is expected to grow by 15% in 2013. Austrian aircraft and parts imports in 2012 amounted to USD 1.6 million. With domestic-based manufacturing limited to one company, Diamond Airborne Sensing GmbH, the vast majority of the market is served by imports.

The major aircraft suppliers to Austria in 2012 were the United States with 26.7%, Canada with 20.2%, Germany with 14.6% and France with 7.0%.

The Austrian general aviation market is characterized by imports. Diamond Airborne Sensing GmbH is the sole Austrian manufacturer, and it produces only small craft. The Federal Statistical Office gives only import/export figures for civil aircraft and related parts and equipment. No official aircraft production figures are available. The Austrian market for civil aviation aircraft amounted to USD 897 million in 2012 and is expected to grow. Market demand estimates are based on sales figures obtained from the Civil Aviation Office and Diamond Airborne Sensing.

Diamond Airborne, Sensing in Wiener Neustadt, produced out 59 single-engine and twin-engine two-seater and four-seater propeller-driven avgas aircraft in 2012. Approximately 95% of Diamond’s production is exported worldwide. In 2013, the firm increased its production in volume by almost 50% compared to the previous year. Diamond uses diesel engines from the Austrian firms Austro Engines and Rotax. Suppliers for avionics are the U.S. firm Bendix King and Garmin.

We project an average annual growth rate of 15% for the Austrian civil aircraft market. It should be noted that the accuracy of estimated growth rates are problematic because of the possibility of large one-time orders that greatly skew the statistics.

Aircraft leasing companies have become major factors in the industry as aircraft development and production costs escalate. For the airlines, leased aircraft offer the advantages of low capital investment and greater flexibility in adjusting to changing market conditions.

The Austrian Airlines Group (AAG) has a fleet of 7 Airbus 319, 16 Airbus 320, 6 Airbus 321, 6 Boeing 767-300 ER, 5 Boeing 777-200 ER, 14 Bombardier Q 400, 15 Fokker 100 and 6 Fokker 70. AAG is a 100% subsidiary of Deutsche Lufthansa AG.

Niki Luftfahrt GmbH, a member of Air Berlin has a fleet of 4 Airbus A321, 12 Airbus A320 and 7 Embraer 120 Brasilia.

InterSky based in Bregenz has a fleet of 2 ATR 72-600, 3 Bombardier Dash 8Q 300 and 1 Embraer E190.

Austria imported 7 single-engine aircraft up to two tons, 10 twin-engine aircraft over 20 tons and 5 helicopters in 2013.

The principal end-users of civil aviation aircraft, parts and equipment are in the Austrian Airlines Group, as well as other charter airlines. Emergency medical services and the police use civilian helicopters. The market for corporate fleets and business charter operators appears saturated because of the low prices for flights available commercially. However, industry experts forecast a growth for this sector in 2014.

In the very important category of single aircraft up to 2 tons, U.S. aircraft are dominant. The largest share of this market is held by Piper, Cessna and Beech Aircraft. A strong competitor is Diamond. In 2013, 660 light aircraft (up to 2 tons), 148 aircraft up to 5.7 tons, 114 twin-engine aircraft over 5.7 tons, 212 twin-engine aircraft over 20 tons and 156 helicopters were registered in Austria. The segment over 20 tons had the highest import increase. Private Austrian pilots register their aircraft for business use to gain tax advantages. Other end-users are air taxi and charter services.

Market Entry

Austrians are generally well disposed toward Americans. Following a few general rules of Austrian etiquette will help maintain this positive feeling. Appointments should be made either by telephone or in writing well in advance, and prospective buyers or distributors should be given the option of determining the date and place of the meeting. Prompt response to letters and emails is very important. Some local firms have reported negative experiences in trying to contact U.S. firms, having to go through too many organizational layers and sometimes never getting a response at all. The exporter who can communicate in German will be much rewarded, even though most Austrians speak English. Austrians tend to place more emphasis on quality than price, especially for larger purchases. The quality of a product should therefore be its main selling point. Austrians are generally looking for long-term business relationships rather than immediate sales and profit. Hard selling is generally counterproductive.

Current Market Trends

There is a trend to invest in smaller more fuel efficient jet aircraft like the Embraer, Falcon, Cessna Citation and the Gulfstream to achieve operational efficiency and to meet market demand.

Current Demand

Demand for additional new passenger aircraft is slightly declining due to the economic downturn, with the exception of replacements. Both the Austrian Airlines Group and the general aviation operators will be replacing some aircraft in the next few years. While the occupancy rate is still high, the yield is bad due to the high fuel costs and landing fees. However, demand for CARGO aircraft is increasing. There is also a high demand for aircraft parts, avionics and engine parts.

Barriers

There are no barriers in this market with the exception of high fees charged by Austro Control.

Trade Events/Associations

There are no major aerospace trade shows in Austria.

Austro Control: www.austrocontrol.com

Federal Economic Chamber – Aviation Department: www.luftfahrt.or.at

Civil Aviation Authority, Federal Ministry of Transportation, Innovation and Technology: www.bmvit.gv.at


U.S. Commercial Service Contact Information:


Dr. Doug Hartley
Commercial Specialist
Doug.Hartley@trade.gov

+61-2-6195-5005


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