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HELICOPTER INDUSTRY FACES UNCERTAIN OUTLOOK

When Roy Resavage, President of the Helicopter Association International, (HAI), looks at each area in which helicopters are being deployed, he finds that the picture is anything but uniform. "We are not growing as fast as the entire (US) economy," he claimed at the beginning of the Heli-Expo '99 in Dallas.

"Logging firms for instance are working at a loss at the moment, because the Asian and Japanese (wood) markets have collapsed. However, we had a good season for deployments during fire fighting. I am afraid that this is not beneficial for the environment. Unfortunately you cannot rely on these contracts. There is still growth for rescue helicopters and EMS, Emergency Medical Services, but here (in the USA) new ideas about funding are coming in, which are most disconcerting. The number of police helicopters has risen rapidly over the last five to six years. However, this trend is also slowing down considerably. The same applies for ENG, (Electronic News Gathering, i.e. helicopters used for TV stations). Luckily the VIP-/Business Travel Market is growing by two per cent per annum," Resavage concludes.

The market segment occupied in supporting the oil industry also causes a lot of concern. With oil prices historically low, cuts are currently made as far as the exploration and extraction are concerned. "We must expect a reduction of ten per cent," concedes Resavage.

Resavage is also worried about hostility towards the helicopter, which is even apparent in the USA. "It is difficult to keep landing strips open and secure air-space. Environmentalists have already caused marked restrictions of sightseeing flights above national parks."

All these difficulties are having a negative effect on production forecasts. Allison, which after the take over in 1995, trades under the name Rolls-Royce, foresees a slight but steady slipping of the annual delivery numbers of civilian helicopters with turbine engines from 590 to scarcely 500 units. Of the 5,410 helicopters, which are predicted for the next decade, 56 per cent will be fitted with single engines, 20 per cent with light twin engines, 19 per cent will come from the medium sector and five per cent from the heavy category.

Allison forecasts sales prospects for 3,535 helicopters from 1999 to 2008 for defence purposes. These aircraft will generate far greater turnover because of the higher average coststructure.

When compared with last year, one has become a lot more careful, since modernisation programs delay new acquisitions more and more.

Yet, the helicopter industry will not be defeated that easily. All the important manufacturers and suppliers were at the trade fair in Dallas, to present their products to the approx. 11,700 expert visitors, (five per cent less than in previous year), from all over the world.

MD Helicopters

MD Helicopters was an eagerly expected newcomer. The company, which is part of the Dutch RDM Technology Holding has bought up Boeing's civilian helicopter programs. The deal, about which no one in the involved parties is giving anything away, was finally struck on 19 February.

As RDM Chairman Joep van Nieuwenhuyzen and MD-Managing Director Henk Schaeken told FLUG REVUE in Dallas, both are confident to make a profit in the first year. Their "recipe" for success: Sell more helicopters and lower the costs.

At least the amortisation and considerable overheads from Boeing are no longer a burden to the firm. One is currently in negotiation with new suppliers and price reductions, for instance for the fuselage of the 902 Explorer. This opponent of the Eurocopter EC 135 will therefore only cost $2.95million instead of $3.5 million.

After 36 deliveries in 1998, there are supposed to be be 60 this year. Some "whitetail" Explorers are immediately available. In order to achieve this aim, MD Helicopter will equip new service centres and improve its customer services division. This should give MD credibility in the market place. Among other things the Boeing dealer Heli-Fly was bought in Belgium.

The models 500, 520, 600 and Explorer are still being produced in Mesa. It is planned to move to new premises near Falcon Field or thereabout in about twelve months.

Agusta

Agusta was also very optimistic. "We are able to grow faster than the market," the Italians claimed. They were especially hopeful of their new A119 Koala. The single engine version of the A109 Family was first shown at the Heli-Expo in Dallas. The big cabin measuring 4.96 m3, a decent cruise speed of 260 km/h and a favourable introduction price of $1.83million give this model very good sales prospects. Italian certification is expected by May and deliveries will start in the second half of this year. About 20 orders have so far been placed.

Bell

Bell's Model 427 was also shown for the first time at the Heli-Expo (and could be taken for a test flight). FAA Certification is scheduled not before May due to weight gain and change of the engines. The 427 will now be fitted with engines by Pratt & Whitney Canada, PW207D, with an output of 410 kW. Despite the delay the aircraft is selling well. 87 orders have been placed, and production of the $2.2 million helicopter will be frantic for the next three years.

In the meantime the management in Fort Worth are deciding how the product range could be modernised further. One is obviously thinking of a "412 Plus" with a much better performance. The JetRanger might also be replaced one day. "That will be a difficult decision, because this helicopter is competitively priced and still a sales hit," explains Bell-President Terry Stinson. Bell as well as Augusta did not give anything away about the AB139. A big presentation is planned for Le Bourget.

Sikorsky

Sokorsky's lips were also sealed when it came to spilling the beans for the S-92, which has been tested since the beginning of last year. She has now spent about 10 hours in the air. The decision about series production is overdue, but not expected in short time. As far as the S-76 is concerned, there are attempts to kick start sales by taking over the Associated Aircraft Group (AAG) and the instalment of a Fractional Ownership-Program. One is, however, uncertain in the industry whether this measure, which is so successful in the area of business aircraft, will also help the helicopter market to prosper.

Eurocopter

As the world's leading helicopter manufacturer Eurocopter took the biggest stand in Dallas. However, there was nothing new to show off. One is currently trying to increase the production of EC 120 and EC 135. A further improvement of customer services is planned. Not much was given away about the EC 145, (new BK-117-Model with parts from the EC 135). An experimental model will probably be flying this summer.

Exotic Aircraft

As well as the top firms, unknown companies always make an appearance at the Heli-Expo. One of the surprises was Brantley, who have started producing the B-2B again after 32 years. Twelve of the small two-seaters have already been built in Vernon, Texas, and are yours at a price of $150,000.

The "Whisper Jet", the Sikorsky S-55 also seems to come from a different era. Thanks to a five leaf rotor and an extremely muffled Garrett-TSE331-turbine it only creates 78 dB in flight. The aircraft, which is put together from second hand helicopters, is used for sight seeing trips. To this purpose it is fitted with full glass doors and a window in the cabin floor. Papillon Helicopters have allegedly put a lot of money into its development.

Although the Russian manufacturer Kamow was not represented at the show, it still had some good news. On February 22nd the Ka-32A-11BC received certification in Canada. Kamow and VIH Logging had to work six years at their breakthrough to the west.

Even if the mood in Dallas was not to euphoric because of uncertain prospects for the helicopter industry: A visit at the Heli-Expo is always worthwhile.

From page 32 of FLUG REVUE 4/99