The World
Two companies dominate worldwide commercial aircraft production. Australia builds parts but not planes, missing billions in advanced manufacturing opportunities.
When you fly from Sydney to London, the aircraft beneath you was almost certainly made by one of two companies: Boeing in the United States or Airbus in Europe. Together, they control roughly 99 per cent of the global commercial jet market. Australia, despite having skilled engineers and advanced manufacturing capability, plays a minor supporting role in this vast industry. We make components but not complete aircraft, a gap that costs the nation billions in lost economic value, export revenue and high-skilled jobs.
Boeing and Airbus each produce hundreds of aircraft annually, serving airlines across every continent. A single large commercial jet contains tens of thousands of parts and takes several years to assemble. The 737 MAX, Boeing's bestselling narrow-body aircraft, requires components from suppliers in over 40 countries. Airbus's A380, the world's largest passenger jet, is built across multiple European nations, with wings made in the United Kingdom, fuselage sections in France, and final assembly in Germany.
These manufacturers compete intensely on price, fuel efficiency, safety and innovation. They rely on a global supply chain of tier-one and tier-two suppliers, who produce everything from landing gear and engines to avionics and interior systems. Winning a contract to supply parts means decades of stable revenue and the chance to grow alongside the aviation industry.
Australia manufactures aerospace components rather than complete aircraft. Companies here produce structural parts, wiring harnesses, fasteners and machined components for both Boeing and Airbus. We also service and maintain aircraft, which generates skilled employment. However, our role is largely that of a sub-contractor on a global supply chain rather than a system integrator or final assembler.
This reflects decisions made decades ago. Australia had once considered building complete aircraft domestically. The Lockheed L-188 Electra was assembled in Sydney in the 1950s and 1960s. But the economics shifted as aircraft became more complex and global supply chains more efficient. By the 1970s, Australia had exited complete aircraft manufacturing and repositioned itself as a supplier of components and a maintenance hub.
The global aerospace manufacturing industry employs around 700,000 workers worldwide and generates hundreds of billions in annual revenue. Countries that assemble complete aircraft or major subsystems capture far more economic value than those supplying individual components. Building a complete aircraft requires heavy investment in design, engineering, tooling, quality systems and final assembly facilities. It also generates high-wage technical employment and attracts clusters of specialist suppliers.
Australia's aerospace workforce currently numbers around 30,000 to 40,000 people, concentrated in Queensland, New South Wales and Victoria. Most work on component manufacturing or maintenance. A domestic aircraft assembly industry would require significant capital investment and long-term government support. Competitors like Canada, Japan and Brazil have secured larger roles in Boeing and Airbus supply chains by hosting major assembly or system-integration facilities. This gives them leverage, export growth and knowledge spillover to other manufacturing sectors.
Several factors make it unlikely Australia will build complete commercial aircraft in the near term. The global market is dominated by two companies with entrenched supply chains. Entry costs are enormous. Design and certification by aviation authorities take years and billions of dollars. The market is cyclical, meaning sustained demand cannot be guaranteed. Australia's geographic distance from major markets adds logistics costs.
However, Australia's advantages remain real: skilled engineering talent, advanced manufacturing technology, political stability and proximity to growing Asian aviation markets. The domestic aerospace component sector remains competitive globally. Some analysts argue Australia could deepen its role by hosting larger integrated subsystem manufacturing, such as fuselage sections or avionics integration, which would increase local value capture.
Australia's aerospace manufacturing sector underpins thousands of middle-skilled and high-skilled jobs, particularly in regional areas. The industry supports engineering expertise that translates to defence manufacturing, space technology and other advanced sectors. However, the absence of a domestic commercial aircraft industry means Australia captures less economic value from the global aviation boom. As airlines worldwide expand fleets to serve growing passenger traffic in Asia and the Indo-Pacific, opportunities for Australian manufacturers exist, but only as component suppliers.
Government investment in aerospace skill development, supply-chain competitiveness and research partnerships with international manufacturers could strengthen Australia's position. Some economists argue that emerging areas such as electric aircraft, hydrogen propulsion and autonomous systems offer new opportunities for countries willing to invest in development and manufacturing capability.
The commercial aircraft industry is a global monopoly shared by Boeing and Airbus. Australia manufactures high-quality components for both but does not assemble complete aircraft, a gap that limits export growth and wage opportunities in advanced manufacturing. Rebuilding a domestic aircraft manufacturing capability would require enormous investment and is unlikely in the short term. Instead, Australia's path forward depends on securing larger, higher-value roles within global supply chains and preparing for next-generation aircraft technologies where newcomers may find opportunity.
This article was compiled by AI and screened before publishing. See our editorial standards.
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