The return of GippsAero to local aircraft production is expected to generate jobs in the Latrobe Valley, marking a significant milestone in Australian aviation.
GippsAero has announced the launch of its new GA8 Airvan, a move anticipated to bolster job opportunities in Victoria's Latrobe Valley.
This development follows the founding family’s reacquisition of the company from foreign ownership.
Established in 1984 by George Morgan and Peter Furlong, GippsAero originally modified existing crop-dusting airplanes to meet client specifications.
The company has since designed, manufactured, and distributed more than 300 aircraft globally.
On Thursday, a keel-laying ceremony was held to commemorate the initiation of local production of the new GA8 Airvan, which is set to take its inaugural flight in 2026. The aircraft is designated for various applications, including tourism, skydiving, surveillance, humanitarian missions, and freight transport.
George Morgan, the CEO of GippsAero, expressed his sentiment regarding the relaunch, stating that it was emotionally significant after years of effort to restore the company following the impacts of the global financial crisis and the
COVID-19 pandemic.
The GippsAero company has a history with the GA8 Airvan model, which began its design in 1993 and received certification in 2000. Currently, over 260 GA8 Airvans are operational across 43 countries, while the company’s GA200 model is flown in Australia, New Zealand, and China.
At its peak, GippsAero employed approximately 180 local workers to produce one GA8 Airvan biweekly.
Latrobe City councillor Darren Howe highlighted the importance of the new jobs, stating that the local community is optimistic about the shift from a coal-dependent economy to a more diversified industrial base.
He noted that the arrival of new industries could enhance the region's attractiveness to potential new residents.
GippsAero faced significant challenges throughout its history.
The global financial crisis of 2008 led to a cancellation of all forward orders in 2009 and resulted in the sale of the company to Indian multinational Mahindra Aerospace.
Co-founder Peter Furlong later exited the business due to health concerns and passed away in 2017. Under Mahindra, the company's name was changed from Gippsland Aeronautics to GippsAero, which eventually saw the launch of the GA10 airvan in 2012. However, production was halted in 2020, reducing the company’s operations primarily to parts supply.
The purchase of GippsAero back from Mahindra in November 2023 marked a pivotal change for the company.
Morgan noted the public interest in the company's future and the necessity to return to production.
Speaking at the recent launch, he emphasized the commitment and planning that helped recalibrate the company, which now operates with a significantly reduced original employee count.
Currently, GippsAero has employed 43 full-time staff and seven apprentices.
While production of the new GA8 Airvans is projected to commence next year, Morgan indicated that the workforce must be expanded to meet production goals.
He expressed confidence in the job creation potential, underscoring that this initiative would signify 'jobs, jobs, jobs' for the community.