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Amphibian Aerospace Industries has informed the Northern Territory government that initial manufacturing of the Albatross 2.0 amphibious aircraft will occur in the United States due to regulatory challenges. The Northern Territory government invested $3 million in equity and approved a $7 million loan in 2021, with production originally planned for Darwin by 2025.
thehindubusinessline.comAmphibian Aerospace Industries (AAI) planned to manufacture the Albatross 2.0, a modern amphibious aircraft based on a 1960s design capable of landing on sea and snow, in Australia. Initial plans targeted the New South Wales Central Coast in 2016, but shifted to Darwin, Northern Territory, by 2021.
The project aimed to produce aircraft with surveillance and defense capabilities, eliminating the need for runways.
In 2021, the Northern Territory Labor government under Chief Minister Michael Gunner invested $3 million in equity in AAI and approved a $7 million loan to support the project. The investment was intended to create hundreds of jobs and inject millions into the Northern Territory economy.
AAI planned to obtain Civil Aviation Safety Authority (CASA) certification within 18 months and commence production in Darwin by 2025, with the first aircraft completed by 2026.
In 2022, investor Steve Baxter purchased the first Albatross 2.0 aircraft for US$20 million. AAI used part of the government loan to acquire a hangar at Darwin Airport, but the hangar was later sold, and the loan was repaid in full with interest to the Northern Territory government. The equity investment of $3 million remains in place.
The current Country Liberal Party government in the Northern Territory stated that AAI advised of challenges in obtaining CASA regulatory approvals, leading to a decision to conduct initial manufacturing operations in the United States. A spokesperson for CASA reported that AAI did not formally apply for any regulatory approval and had no contact with the authority since 2023.
“The project is still taking off and AAI looks forward to seeing an Albatross 2.0 land in Darwin Harbour in the future.”
AAI maintains its headquarters in Darwin's central business district and continues to progress the Albatross 2.0 project. The company stated that the Northern Territory's equity share is retained regardless of manufacturing location. The shift affects planned local manufacturing, but AAI described the project as ongoing.
The Albatross 2.0 project originated in 2016 when then-New South Wales Premier Mike Baird announced plans for production on the Central Coast, projecting up to 1,000 jobs and $100 million in investment. Those plans did not proceed, leading to the Northern Territory agreement. Nearly five years after the investment, no aircraft production has occurred in Australia.
The Northern Territory government holds a $3 million equity stake in AAI. Future developments may involve continued U.S. manufacturing, potential return of operations to Darwin, and utilization of the equity investment. Stakeholders include the Northern Territory government, AAI, investors like Steve Baxter, and potential users in surveillance and defense sectors.
Regulatory approvals and production timelines remain key factors.
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