Galt Global Review

QFS 360

May 27, 2004
business digest


Australian Roundup
by Esme Friesen

headlines:
Virgin Blue ventures into aircraft maintenance
With a little help from Austrade
Government invests in independent medical research


Virgin Blue ventures into aircraft maintenance
Virgin Blue Holdings, Australia's second-biggest airline, is set to build an A$24 million base at Brisbane Airport that will be able to service its own and other carriers' aircraft.

Construction will begin in the next four months in order to get the ready by the end of 2005, chief executive Brett Godfrey announced earlier this month. The base will employ 150 people over the next five years.

A success story, Virgin Blue has grabbed 33 per cent of Australia's domestic air market since it started with two planes in 2000, but Godfrey is looking for new business opportunities to fend off competition from Qantas Airways and its budget carrier Jetstar, which began flying this month.

“There are many airlines that fly into Australia that have Qantas as their sole provider because they're the only ones that have been capable of doing that level of maintenance,” Godfrey said. “Anything where Qantas has a monopoly we're going to have a good look at.”

Depending on what contracts are won, Virgin Blue's maintenance facility will be able to service various makes of Boeing and Airbus aircraft, as well as the airline's own fleet of Boeing 737s.

Virgin Blue also opened an A$45 million aviation training centre in Brisbane last month as a joint venture between Virgin Blue and Alteon Training LLC, a subsidiary of Boeing Co.

With a little help from Austrade
Mansfield food processing company, Alice Langton’s, has broken into the world of international business by securing two substantial export deals to South America and the South Pacific.

The company, a producer of chocolate and fruit liqueur sauces and chocolate liqueur body paints, will supply its products to food retailers in Chile and New Zealand. It will now use these deals as a platform to expand its export activities in other markets across the world.

Owner of Alice Langton’s, Doug George, said the company had received crucial assistance from Tradestart Bendigo and Regional Development Victoria, in reaching the agreements.

“Austrade introduced us to a food buyer from Jumbo Supermarkets in Chile in August 2003, and after a series of tastings and negotiations we secured a supply arrangement. The Jumbo supermarket chain has more than 85 outlets across Chile - the deal is a fantastic result for our company,” George said.

“Our exports to New Zealand are the result of a recent business trip to Auckland, where Austrade once again provided invaluable assistance. I would encourage all businesses that believe they are export capable to expand their horizons offshore, and ensure they speak with Austrade in the first instance”, states George.

Alice Langton’s is a participant in Austrade’s New Exporter Development Program (NEDP), which provides Australian businesses with advice and information about getting into exporting.

Government invests in independent medical research
The National Health and Medical Research Council’s CEO Professor Alan Pettigrew welcomed this month’s budget announcement of an extra $200 million over seven years to support infrastructure costs in independent medical research institutes.

"The Government’s injection of funds will assist independent medical research institutes in covering overhead infrastructure costs related to their research funding," said Professor Pettigrew. "This has been an important issue for some time now and we welcome the Government’s response," he added.

The funding is a result of the Investment Review of Health and Medical Research that found the overhead infrastructure costs for these institutes to be considerable.

The independent institutes will now be supported for infrastructure costs related to their NHMRC funding at the same rate as Universities who are funded through the Department of Education Science and Training.

Professor John Shine, Chair of the NHMRC welcomed the Government’s support, saying that the funding will assist these institutes to grow and undertake new work in challenging areas of health research. "The National Health and Medical Research Council looks forward to the release of the report of the Investment Review of Health and Medical Research and to working with the Government to implement the full range of the Review’s recommendations," he said.