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"The customer is very knowledgeable and balances cost, performance, reliability and supportability against the specific requirements. The easiest way to fail is in Customer Support."

1. How do you see the position of your company in the market?
I see Sikorsky as the dominant force in rotorcraft technology, providing unmatched quality in vertical lift air vehicles through innovative design, marketing, manufacturing and aftermarket services.

2. How would you qualify the business position of your company in 1999, especially regarding orders/turnover, competitive situation, etc.?
The year1999 - when I had the privilege of assuming the leadership of our company -- was a year of change for Sikorsky. We have started deliveries of our newest derivative of the venerable H-60 product line, the CH-60 for U.S. Navy. This is the beginning of a series of new production and/or modification programs that will be introduced over the next several years, including the SH-60R, UH-60L+ and S-92. These programs will ensure that Sikorsky remains a prominent player in the rotorcraft marketplace. The year 1999 saw Sikorsky's intensify its effort to drive down costs in order to deliver cost-effective products to its customers, while returning acceptable profits to its shareholders. We are accomplishing this through aggressive productivity improvement initiatives, plant consolidation and rightsizing our workforce. We are committed to the idea that a lean and agile workforce is vital to our continued competitiveness.

3. Which companies do you see as your main competitors?
In the international marketplace, Eurocopter's Super Puma competes with our S-70 Hawk family. Westland/Agusta's EH101 will compete with the S-92 when it enters production. Also the Russian companies are selling their medium weight helicopters at relatively low prices compared to western products. In the civil marketplace, Bell and Eurocopter have products that compete with our S-76. In the U.S. Military, there is less direct competition of products, but there is competition for funding between Bell, Boeing and Sikorsky's products.

4. How would you assess the general situation in the civil market right now?
Sales continue to be flat, but there are signs of an upturn, particularly in offshore oil, now that the price of oil has gone back up. We are also exploring the fractional helicopter market in the New York area, with the potential of expanding the market. There is significant interest in the S-92, both by offshore oil operators and by prospective airline operators.

5. ... and how do you see the mid-term outlook to 2005 (expansion, new equipment trends, etc.)?
The S-92 will be delivered to the first customer in April 2002. We think it represents a significant improvement in medium helicopter transport capability with its stand-up cabin, standout performance and low operating cost. S-61 operators are very fond of their helicopters, but after close to 40 years and more than 44,000 hours, some of these aircraft are due for replacement.
We are working on improvements to be introduced in the S-76 and the S-92 that will increase the dependability of the helicopter in scheduled service. Precision hands-off approaches to a hover using Differential GPS have been demonstrated. Hardware to aid in avoidance of Controlled Flight Into Terrain is in process. Deicing will become a standard option. All of these will result in a certainty of service equal to or better than scheduled airlines.

6. How would you assess the general situation in the military market today?
The military market is poised for growth, both in the U.S. and internationally. In the U.S., the decline in spending over the past decade is at an end and renewed growth will occur. Except for the V-22 and the Comanche, this growth will be driven by upgrades of current models. Sikorsky is in a favorable position for these upgrades with its sizable H-60 and H-53E fleets. Growth will occur also in the international marketplace, as countries that have not yet modernized their fleets will strive to do so to realize the value that helicopters can add to an increasingly mobile battlefield.

7. ... and how do you see the mid-term military outlook in 2010?
The military marketplace 10 years from now presents exciting possibilities. High speed/long range capabilities, further improvements in propulsion systems, unmanned applications and digitization are evolving technologies that will shape the future VTOL marketplace.

8. Which region(s) of the world will see the fastest growth in helicopter sales in the next five years?
In general, the Asian region will experience new growth as it emerges from its economic crises with significant helicopter requirements. Europe will also see renewed growth as its national programs like NH90 and Tiger enter into rate production. China and India are clearly under served by helicopters and represent large growth potential. However, relative to their per capita income and population, many other countries like Thailand, Taiwan, Japan, Italy, Belgium and the Netherlands have below average size civil helicopter fleets and, therefore, the potential for greater helicopter sales.

9. ... and which region will be most difficult?
In the civil marketplace, North and South America will probably have relatively low growth although growth in South America may result if economic conditions improve.

10. Which class helicopters will grow fastest in the next five years?
I expect to see growth across the board with replacement likely to be the most significant reason due to the relatively low production rates since the early eighties.

11. What are the main regulatory problems for helicopters today (heliports, insurance, FAA regulations, etc)?
Heliports are clearly the constraint. This situation needs to be addressed by joint government/ operator/OEM action if growth is not to be stifled in North America.

12. What are the determining factors in customer buying decisions today?
There is no single determining factor. The customer is very knowledgeable and balances cost, performance, reliability and supportability against the specific requirements. The easiest way to fail is in Customer Support, and that is why we launched ourselves into e-commerce, bought Helicopter Services Incorporated for its civil aftermarket capability, started a 24 hour a day, seven-day-a-week Help Desk Access Center and partnered with Flight Safety International on helicopter simulator training.

13. Does your company intend to introduce new models in the next five years? In which sector?
Yes - The medium weight class S-92 will be introduced in 2002 to the international utility and civil marketplaces. The Boeing/ Sikorsky Comanche scout/ attack helicopter is scheduled for pre-production deliveries to the US Army beginning in 2004.

14. Is there overcapacity in the helicopter industry?
Yes, there is current overcapacity that has been caused by the downturns we have experienced in the marketplace over the last 10 years. Some of this overcapacity will be re-absorbed as the marketplace rebounds and production capacity is increased. Other overcapacity is being addressed through individual companies' restructuring initiatives, such as our plant consolidation activities.

15. Will these be more mergers/sales/consolidations in the helicopter industry in the near future?
Each company continually assesses potential merger or acquisition possibilities as a means of improving its strategic or financial position.

16. What are the main technological trends in helicopter design in the next decade?
Increased dependability, lower operating cost and greater usability.

17. Will there be a breakthrough for new concepts like tiltrotors? How much market share can they win?
The tiltrotor will apply to certain applications and increase the overall market. It will replace some helicopters and some airplanes, but the bulk of its sales will come from applications where neither the helicopter nor the airplane is a satisfactory solution.

18. What is your vision for the helicopter industry in 2025? Will these be totally new uses, new vertical flight concepts, the helicopter for everyone, city-center tilt rotor shuttle services, etc.?
That may be too far out to see. But if I look back 25 years to 1975, what we have done since then is perfect the helicopter by introducing the S-70, S-76 and now the S-92 and Comanche. Now we are perfecting the infrastructure, transmissions/rotors, ice protection and avionics so that it is a practical, all-weather transportation system at a lower direct operating cost. Since there will be increasing ground congestion and airport limitations on airplane operations, there will be more helicopter airline operations and use of helicopters for executive transportation.