FLUG REVUE May 2004: Heli-Expo at Las Vegas sees order boom

HELI-EXPO: US COMPANIES FIGHT BACK

By Karl Schwarz

For years now, the numbers have told a clear story: while Eurocopter sold almost 300 helicopters, primarily to civil customers, in 2003, Bell could only manage sales of 97 helicopters for the commercial market. In the USA alone, the ratio was 74 Eurocopter helicopters to 45 from Bell. High time for some action then, and after a detailed analysis of his company's unfavourable position, Mike Redenbaugh, the Texan company's new boss, who took up his post last May, presented his strategy in Las Vegas in mid-March.

While it includes minor steps such as increasing the take-off weight of the classic Bell 206B3 by 68 kg to 1520 kg, there is also a complete overhaul of the problem case 427 on the agenda. The plan is to boost the disappointing sales of this twin-engine helicopter by developing a version with IFR capability. In addition to a cockpit with two large colour displays from Rogerson Cratos, a three-axis autopilot and a dual hydraulic system, the planned improvements also include a 35 cm increase in cabin length. Changes will also be made to the rotor system and the tail rotor, the main transmission system, which will be designed for a maximum of 820 kW, and the fuel system. Models with luxury interiors and for use as ambulances were presented at Heli-Expo, where Bell took ten advance orders.

The second short-term project is the Bell 210 – a civil version of the UH-1H in which only the fuselage remains unchanged. The rotors, nose assembly, tail boom and hydraulic system come from the 212. The electrical system is to be completely upgraded and the Honeywell T53 engine modified. For $2.95 million, customers will get a real workhorse with an additional 290 kg of useful load and considerably better performance at high altitudes. Above all, however, operating costs will fall from $881 to $511 an hour. The first UH-1H is currently being rebuilt at Bell, which aims to get certification for the 210 within 15 months.

Customers hoping to see genuine new designs from Bell will have to wait considerably longer. The BA 609, a tilt rotor being developed jointly with AgustaWestland, is scheduled for certification at the end of 2007, and the first model from the MAPL family can be expected “towards the end of the decade”. MAPL stands for Modular Affordable Product Line, the aim of which is to develop light and medium single-engine helicopters and a light twin-engine helicopter by using as many of the same parts as possible in the various systems (the avionics, in particular). Initial drawings of the 351 and 382 models show stylishly shaped airframes with a snub nose and a shrouded tail rotor.

Once Bell has got through its programme of investment, with the support of its parent company, Textron, it will again be a company to be reckoned with over the long term. Sikorsky, on the other hand, has already completed its comeback, with 59 firm orders received and 57 options taken out for its S-76C+ since December 2002. The company will be delivering 30 helicopters this year, twice as many as in recent years.

The prospects of the S-92 (whose mock-up, incidentally, was first seen at Heli-Expo in Las Vegas in 1992) are good – at least in the commercial sector. The company has now delivered its first production helicopter to Petroleum Helicopters. 22 firm orders worth a total of $380 million have been placed, and a further 17 options taken out. “The S-92 is enjoying great success in the offshore market,” says marketing boss Jeff Pino, “but we are also very pleased with the level of interest in the VIP segment and from providers of scheduled helicopter services.”

Sikorsky S-92

There is still a dearth of military orders, but an improved S-92 is currently competing with the US101 (EH101) to be the US president's new helicopter (VXX). With “job imports” to the USA now a crucial factor, AgustaWestland has joined forces with Lockheed Martin to act as the main contractor. For the same reason, Kaman was also brought on board during Heli-Expo to manufacture the fuselage sections.

In the civil sector, AgustaWestland has again followed the call to “go west”. At the beginning of March, the foundation stone was laid for a $6.8 million expansion at Agusta Aerospace Corp. in Philadelphia, where the plan is to build around 20 Koalas a year in the future. For the AB139, deliveries of which have just begun, the Bell plant in Amarillo, Texas has been chosen as the second site for final assembly.

These measures bring two benefits: first, they make it easier to sell the aircraft as an “American” product when submitting tenders to the US authorities, and second, a higher proportion of the aircraft's value is added in America, which, in view of the current low value of the Dollar in relation to the Euro, has a positive effect on the balance sheet.

The same considerations apply, of course, at Eurocopter, particularly now that president Fabrice Brégier is focusing firmly on improvements to efficiency and higher profits. To this end, income and expenditure in Dollars are to be brought into line over the next two years. “We buy too much in the Eurozone,” says Brégier. Which is why the company is building a new plant in Columbus, Mississippi.

As far as products are concerned, Eurocopter had nothing new to offer this time. The highlight in Las Vegas was the unveiling of the first EC 145 on the US market for Le County in Florida, where this twin-engine helicopter is used for air ambulance missions. Otherwise, according to Brégier, the emphasis is being placed on making further improvements to customer service, where the company still lags some way behind Bell.

While the big three have every reason to be satisfied, other manufactures had a struggle on their hands in 2003. MD Helicopters, for example, only managed to deliver 15 helicopters. The main problem lay in the production of the comprehensively equipped MD Explorer for the police in Holland and Baden-Württemberg in Germany, whose fifth and last helicopter was on view in Las Vegas. Delivery delays led to cash-flow problems. As a result, MD Helicopters owes money to suppliers such as Kaman. However, things are now looking up and this year is expected to be significantly better, with 30 deliveries.

Enstrom, which is now headed by Jerry Mullins after several changes at the top in 2003, also has high hopes for the future. Following the FAA certification of the 480B turbine model last August and the clarification of financial issues relating to the sale of 18 helicopters to the Indonesian police, there are promising signs of an upturn in the company's fortunes.

Business is also better for Schweizer. With 52 deliveries this year, the company expects to finally return to the comfort zone. After significant recent sales successes, the Schweizer 333 turbine model is expected to play its part in this. Five helicopters were ordered by the Mexican federal police force, and a further four by the Fuerza Aérea Dominicana, where they will be used for training purposes.

Robinson, on the other hand, need not concern itself with figures like that. 422 piston engine-powered R22 and R44 helicopters last year speak for themselves, and business has been even better so far in 2004. The weak dollar has much to do with this, since Robinson exports around three-quarters of its output. It's clearly a good time for the company to invest, and accordingly the plant in Torrance is being expanded, which will also allow the company to again make some of the components that are currently being subcontracted.

Improvements to the details of the current models, such as new rotor blades for the R22, are usual at Robinson. There is also much speculation about a five-seater R55. “We are interested in a new model,” confirms Frank Robinson, “but we haven't yet found the right engine.” The favoured option is apparently a diesel, but the current models are still too heavy. A Lycoming with a turbocharger and a small wave turbine are under consideration. However, Robinson cooled expectations, saying it was still a question of years before certification.

Nevertheless, Robinson is likely to remain the world's largest helicopter manufacturer in terms of numbers sold. The prospects for the civil market overall, though, are on the modest side. Honeywell expects average annual growth of two percent up to 2014, while Rolls-Royce forecasts 5165 civil helicopter deliveries (turbine models) in the next ten years, worth a total of $15.8 billion.

From page 30 of FLUG REVUE 5/2004

Helicopter deliveries in 2003

AgustaWestland: 111 (101 in 2002) – there is currently no information available on how this breaks down.
Bell: 97 (87 in 2002) – 10 x Model 206B-3, 6 x Model 206L-4, 46 x Model 407, 7 x Model 427, 8 x Model 430, 20 x Model 412, plus 54 new military helicopters.
Enstrom: 17 (7 in 2002) – 1 x F28F, 7 x 280FX, 9 x 480B
Eurocopter: 297 (367 in 2002) – 122 x AS 350/550/EC 130, 7 x AS 355/555, 6 x BK 117, 41 x EC 120, 55 x EC 135, 24 x EC 145, 9 x EC 155, 14 x Dauphin/Panther, 19 x Super Puma/Cougar. These figures also include military deliveries.
MD Helicopters: 15 (15 in 2002): 8 x MD Explorer, 1 x MD 600N, 3 x MD 530F, 3 x MD 500E
Robinson: 422 (255 in 2002) – 219 x R44 Raven II, 75 x R44 Raven I, 128 x R22
Schweizer: 37 (31 in 2002) – 20 x 300C, 14 x 300Cbi, 3 x 333)
Sikorsky: 23 (12 in 2002) – 23 x S-76C+, plus military models primarily from the S-70 family

Last updated 15 April 2004

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