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"Unfortunately for our industry, the number of heliports and vertiports is decreasing while the number of helicopter owners and operators is increasing."

1. How do you see the position of your company in the market? What is the overriding, long-term aim of you company?
As the world's leading provider of vertical take-off and landing aircraft, Bell Helicopter Textron, Inc. is committed to provide every customer with products and services of the highest value. The long-term aim of our company is to provide a quality of product and a level of service that distinguishes Bell Helicopter as the world's best rotorcraft company. We are determined to provide our civil and military customers helicopters and tiltrotors that meet their needs and exceed their expectations.

2. How would you qualify the business situation of your company in 1999, especially regarding orders/turnover, competitive situation, etc?
Although Bell's performance in 1999 was somewhat behind 1997 and 1998, we expect 2000 to be more successful.

3. Which companies do you see as your main competitors?
We are in competition with all rotorcraft manufacturers, regardless of their annual output. As the helicopter market is relatively small segment of the aviation industry, every sale of a new or used helicopter matters when calculating market share. If you ask me to single out one company in the commercial market I would have to say Eurocopter. On the military side it's Boeing and Sikorsky.

4. How would you assess the general situation in the civil market right now?
Overall I think the civil market is healthy and will experience a slight upturn. This is primarily due to the number of new aircraft models being released by several manufacturers. We are also expecting the corporate market to expand for two reasons. The value of business aviation is becoming a mantra within the corporate community and as a result many companies that have never had a business aircraft are beginning to buy company airplanes and helicopters. Secondly, the congestion within the major urban centers of the world is an obstacle to business travel. The helicopter provides the means to avoid that congestion. Many companies are starting to realize that the tremendous flexibility and responsiveness of the helicopter can help them become more efficient with the use of their time.

5. ... and how do you see the mid-term outlook to 2005 (expansion, new equipment trends, etc.)?
We expect that our tiltrotor products, the V-22 for the military and the BA609 for the commercial market, will generate considerable excitement and sales.

6. How would you assess the general situation in the military market today?
The military market looks promising. There are several major rebuild programs underway or that will start between now and 2005. Additionally, many countries are beginning to purchase new military attack and transport helicopters as older aircraft reach the end of their service life. Finally, the change in warfare away from the historical "state-versus-state" model to the post-Cold War reality of "military operations other than war" calls for the restructuring of many military organizations. The speed, flexibility, versatility and responsiveness of rotorcraft make them ideal for this expanding form of military operations. We will see the value of rotorcraft for military operations grow immensely as the tiltrotor comes into service.

7. ... and how do you see the mid-term military outlook to 2010?
As you know we will be somewhat past the mid-point of the U.S. Governments V-22 program by the year 2010. That particular program will increase our bottom line significantly over the period we are discussing so the outlook for Bell Helicopter Textron is positive. And we see considerable interest in other tiltrotor products such as a C-130-size, four-engine tiltrotor and various types of UAV's. Simultaneously, we are committed to providing the U.S. Marine Corps with the H-1 program for the AH-1Z and the UH-1Y.
I would like to add that another dimension of the military market needs mentioning. The use of Unmanned Aerial Vehicles (UAVs) is expanding. Bell Helicopter is the industry leader with the proven design of the Bell Eagle Eye, which is a tiltrotor UAV capable of taking off and landing like a helicopter and fly with the high speed and range of a traditional fixed wing aircraft. The advantage of the Bell Eagle Eye is that it can be recovered aboard ship in a risk free environment without having to crash into a net like an airplane UAV. Also the Bell Eagle Eye carries more equipment, faster and further than its competitors. The potential for the use of UAVs in traditional military operations and the non-traditional military operations other than war is tremendous. These aircraft can greatly expand the capabilities of a military force. The potential for growth in this segment is strong.

8/9. Which regions of the world will see the fastest growth in helicopter sales in the next five years? Which region will be the most difficult?
This is a difficult question to answer. We look at the world in four regions: US-Canada, Asia Pacific, Latin America and Europe-Middle East-Africa. The helicopter market, and the tiltrotor market, has the potential to expand or grow in all four regions over the next five to ten years. But the helicopter industry is susceptible to many factors that affect sales orders and deliveries. Some of those factors are military necessities, economic stability, expanding business cycles, oil market requirements, etc. I see strong potential in all four.

10. Which class of helicopters will grow fastest in the next five years?
This question requires several answers. Very simply I could say the light twin product class appears to be expanding the fastest. But there are many military forces out there that require new transport aircraft in the medium and heavy classes. We must also consider vertical lift UAVs as a growing market segment within the helicopter industry. Finally we must remember that no one knows the true market potential for the tiltrotor product class. This could prove to be the most successful rotorcraft product in the history of the industry...so again, it would be difficult to give your readers a single answer.

11. What are the main regulatory problems for helicopters today (heliports, insurance, FAA regulations, etc)?
There are two issues that I would like to address. The first is infrastructure and the second is the expansion of air traffic control parameters. The helicopter has the great advantage of being able to land in many locations. Unfortunately for our industry, the number of heliports and vertiports is decreasing while the number of helicopter owners and operators is increasing. The helicopter industry, specifically the prime manufacturers, has a top priority of leading the charge for the construction of new heliports that will serve the dense, urban centers of the world. We know the strengths and limitations of our products better than anyone else does and therefore we need to take an active role in educating the public as to the value of helicopters in public service, transportation as well as contributing to the economic vitality of a region.
I would also like to touch on the expansion of regulations. The current generation of helicopters, regardless of manufacturer, offers safe and reliable transportation. Each model that comes out expands the performance envelope for helicopters. We have the challenge of educating the various regulatory agencies around the world as to the need to expand flight regulations and air traffic control parameters to take into account the performance capabilities of modern helicopters. Such items as integrated avionics, single and dual pilot IFR capabilities and GPS allow for very precise flying in demanding atmospheric conditions in a far safer envelope than simple VFR flying in fair weather of years past. We, the helicopter manufacturers and operators, need to educate the regulatory agencies as to the ever-increasing performance capabilities of our aircraft.

12. What are the determining factors in customer buying decisions today?
I would have to say the top three items are performance weighed against mission requirements, customer support and price. I list them in that order because many customers are willing to pay a little more if the first two items are superior. At Bell Helicopter Textron we pride ourselves on making the best rotorcraft and providing the best customer support. The recently released customer support surveys conducted by Helicopter World and Professional Pilot magazines indicate that Bell Helicopter is the leading manufacturer when it comes customer service.

13. Does your company intend to introduce new models in the next five years? In which sector?
Bell Helicopter Textron is currently developing Product Plan 2010. The result of this effort will be decisions related to what models will be updated and what models need to be replaced during the next ten years. As I have not made these decisions it would be premature to answer your question prior to completing the analysis behind Product Plan 2010.

14. Is there overcapacity in the helicopter industry?
We have witnessed the restructuring at Sikorsky Aircraft, the developing alliance between Agusta and GKN Westland, as well as the recent announcement of a consolidation at Mil with great interest. It appears that some consolidation among the major manufacturers may be necessary to reduce excess production capacity. However we must continue to monitor the merges and acquisitions throughout the defense and aerospace industries. It is apparent that the act of merging and/or acquiring companies is fraught with turmoil and complexities. This is especially true when different nations and sovereign lawmaking bodies are involved. As all the major rotorcraft manufacturers produce products used by the national military forces of the "home" nation it will be very complicated, not unduly so, but complex nonetheless, to combine the helicopter companies as they currently exist.

15. Will there be more mergers/sales/consolidations in the helicopter industry in the near future?
As I previously stated, the industry pundits seem to believe a consolidation of sorts will take place among the Prime 5 manufacturers. Before you believe that projection as ground truth, recall the success of many joint ventures throughout the rotorcraft industry. There are many alternatives to mergers, acquisitions and consolidations.

16. What are the main technological trends in helicopter design in the next decade?
I think the most significant trend is the integration of avionics that will provide a more efficient helicopter and that will better meet the needs of today's pilot. I also feel that we are making tremendous strides in decreasing the noise levels, internal and external, of helicopters to the satisfaction of all interested parties.

17. Will there be a breakthrough for new concepts like tiltrotors? How much market share can they win?
Bell Helicopter Textron certainly believes that the tiltrotor is a breakthrough. Although the concept behind the V-22 and the BA609 are not new, the necessary technology to create these aircraft is current. The breakthrough is that we have successfully proven the concept and we are building tiltrotors that meet or exceed the expectations and requirements of our customers. There are additional designs throughout the rotorcraft industry for other "tiltrotor like" aircraft. Time will tell if these combined aircraft will constitute a breakthrough in the marketplace.

18. What is your vision for the helicopter industry in 2025? Will there be totally new uses, new vertical flight concepts, the helicopter for everyone, city-center tiltrotor shuttle services, etc.
You are asking me to project 25 years into the future which is never a safe thing for a current CEO to do, nevertheless I do have some thoughts on what we may see in the next two and one half decades. I believe the number of helicopters per capita will increase as these aircraft become more capable and become more accepted by the general public. In fact, the public image of the helicopter is changing. As we progress into a new era of vertical flight, the tiltrotor age, people will begin to accept the rotorcraft as a valuable tool for society, whether in the role of general transportation, public service or business aviation. I would like to add that the demographic trends we are witnessing around the world are presenting tremendous challenges for all of us who live, work and play in the congested urban areas of our society. Tiltrotors and helicopters allows us to get above the congestion of daily life and quickly move to the location of our next business meeting; to the end or beginning of our journey; to the site of an accident to provide medical care or law enforcement services; or to report on the conditions of life throughout the urban area. We may very well see the tiltrotor as a regional transportation asset that people use on a daily basis to pursue life's activities.