Peter La Franchi is the editor in chief and head of research at LFRG Pty Ltd, a newly established analysis firm focused on the defence, aerospace and remote sensing sectors.
He has specific responsibility for a new international unman- ned systems business journal being launched in mid-2012. This paper is directly based on research undertaken in Australia between 2008 and 2011 as part of a book Mr La Franchi is writing on the business of unmanned air systems.
Mr La Franchi has been published extensively in the international defence and aerospace media and was the first ever unmanned aviation editor of Flight International magazine. He has 20 years of journalistic experience, specializing in the unmanned air systems sector since 2001. Mr La Franchi was first introduced to RPA in his role as a policy advisor and public spokesman for the Australian Minister for Defence for the period August 1990 to May 1993, this period including the First Gulf War of 1991.
ABSTRACT
Since 2000 the Australian Federal Government has awarded contracts worth over A$1 billion for acquisition, sustainment and development of unmanned systems capabilities. The bulk of these outlays have met Defence requirements, but with significant expenditure also seen by a variety of other Federal agencies such as the Australian Customs Service and the Australian Federal Police. Tens of millions have likewise been spent in support of research and development activity by Australian companies and tertiary institutions. This surprising and largely hidden level of Federal spending mirrors the rise of the global market for unmanned systems over the past decade and comes ahead of an anticipated A$1.5 billion dollar spend on new operational RPA capabilities for the Australian Defence Forces between 2011 and 2021.
Based on an extensive analysis of Federal government contracting records since 2000 this paper for the first time details actual Australian unmanned system expenditure for the decade to 2011 by individual systems acquisitions and sustainment outlays; user organization; prime contractors and support suppliers; and underlying research and development expenditures.
Specific cost-breakdown case studies will be given for the Australian army’s Elbit Skylark and AAI Shadow 200B and air force IAI Heron systems. Using historical data as guidance the analysis indicates the overall Australian Federal market for all classes of unmanned systems between 2012 and 2022 will exceed A$3 billion, with RPAS dominating.