Collective Promise

“This was a surprise to many, as a decade ago the rate of growth was around seven per cent,” Crook said, adding: “A conservative guess would see 3,000 helicopters on the register in maybe four years. ”

Vertical climb

Fifteen years ago the number stood at 649 and just less than 1,500 in 2008 and 1,964 in 2012. The addition of another 56 helicopters between the end of 2012 and the end of February this year certainly reflects an industry in dynamic growth.

“Our industry is somewhat unique in its structure due to activities in rural areas. There are 1,280 single-engine piston machines, 537 turbine single- engine helicopters and 216 multi-engine helicopters in Australia,” Crook explained.

CASA’s aircraft register shows that in 2012 helicopters made up 13. 5 per cent of the more than 15,000 aircraft on the register. “A decade ago it was less than nine per cent. Despite the GFC, helicopter numbers have increased in Australia by 56 per cent over six years. ” Tony Jones, chief operating officer – Asia for Hawker Pacific, the distributor of Bell helicopters in Australia, puts the growth down to the specialist capabilities that simply cannot be provided as flexibly by any other type of aircraft, and especially so with heightened activity in the resources sector.

“Helicopters are an important element in the development of Australia, particularly in the resources, special mission and the very important aeromedical sectors, and there is always going to be a need and demand for these services, no matter what state the economy is in. That’s why the helicopter industry has, and continues to, exceed the growth rate of all other sectors of Australian aviation. ” Eurocopter’s EC225 continues to be in strong demand. andy mcwatters

per cent of the more than 15,000 aircraft on the register. “A decade ago it was less than nine per cent. Despite the GFC, helicopter numbers have increased in Australia by 56 per cent over six years. ” Tony Jones, chief operating officer – Asia for Hawker Pacific, the distributor of Bell helicopters in Australia, puts the growth down to the specialist capabilities that simply cannot be provided as flexibly by any other type of aircraft, and especially so with heightened activity in the resources sector.

“Helicopters are an important element in the development of Australia, particularly in the resources, special mission and the very important aeromedical sectors, and there is always going to be a need and demand for these services, no matter what state the economy is in. That’s why the helicopter industry has, and continues to, exceed the growth rate of all other sectors of Australian aviation. ”

Sales

Jones expects the trend to continue, bringing with it promising sales prospects for Bell.

“The outlook is bright for helicopters in Australia, bolstered particularly by the ongoing strength of the resources and utility market, and we also anticipate a full recovery in the private sector. We are working on a number of significant fleet replacement projects over the next few years,” he said.

…the helicopter industry has, and continues to, exceed the the growth rate of all other sectors in Australian aviation. TONY JONES – HAWKER PACIFIC

“We’re expecting sales to remain solid, mainly due to demand from Asia for Australia’s energy and mineral resources. We also expect to see strong demand for general transport, aeromedical transport and special mission operations. While the private sector was the most affected by the GFC, we’re seeing a rather large increase in enquiries, as well as a cycle of fleet replacements. ” Jones explained that approximately 25 per cent of new helicopters sold in the last five years have been new turbine models.

“This demonstrates the industry is healthy but more importantly that the industry is investing in modern equipment. ” For Bell, improvements to existing models and additions to their product range have recently included updates on the Bell 525 Relentless and Bell 412EPi. The upgrade of the 412EPi has improved on the 412EP with a BasiX Pro fully-integrated glass flightdeck, providing greater situational awareness and safety, and also incorporates Pratt & Whitney’s PT6T-9 Twin Pac engines, which improve hot and high performance by as much as 640kg of payload capacity.

“We have also recently previewed a new model 429 that will have retractable wheels. While we’re waiting for further news, this is an exciting development particularly for corporates, VIPs and utility operators that frequently fly into and out of airports and have to endure a lot of taxiing. The retractable wheels really broaden the appeal of the 429,” Jones said.

Eurocopter agrees with the continuing growth scenario. The company told Australian Aviation its local subsidiary Australian Aerospace is seeing a continued return to pre-Global Financial Crisis growth in the global market.

“Specifically within Australia, overall growth has remained constant on the back of EMS, utility and offshore oil and gas demand. The EC130T2 and EC145T2 are experiencing strong demand in the region, as is the EC225. The EC145T2 is due to arrive in the region in 2014 and is expected to bring with it strong interest. ” Eurocopter is coming off a strong 2012, when it posted record turnover of E6. 3 billion (A$8. 9bn) – a 15 per cent increase over the previous year. The company delivered 475 helicopters last year alongside milestones that included the delivery of its 500th EC145, its first AS350 B3e and EC130 T2 uprated versions of the Ecureuil. Eurocopter received orders for 469 aircraft with a value of approximately E5. 4 billion (A$7. 6bn).

Locally, in a year that has been fraught with the MRH 90 project remaining on Defence’s Projects of Concern list, but which has since stabilised following agreement with the Defence Materiel Organisation, Eurocopter and Australian Aerospace see the oil and gas industry in the North West Shelf continuing to fuel strong demand in the coming years.

The rapid increase in activity has seen Australian Aerospace establish its Perth Support Centre to provide local expertise and service to the growing operation of its helicopters in the region. One of the key strategic drivers for the company locally is an increased focus on safety and training within the industry in recent years, a direction Australian Aerospace supports and for which it is offering training packages.

In addition to oil and gas-related operations and sales opportunities, the company said: “Several EMS providers are looking to upgrade their ageing fleets. This fleet renewal provides a bright prospect within the industry. ” One company disappointed by the recent decision not to be included in the tender for the National Aerial Firefighting Centre’s inventory for the coming summer season is Russian Helicopters. Its Ka-32 was certified by CASA in late 2012 and proudly showed off at this year’s Avalon airshow as a well-proven and capable asset for fighting bushfires, and building and industrial blazes.

Widely used in Europe and the CIS, Russian Helicopters’ local agent Mary Jardine Clarke told Australian Aviation the Ka-32 remains a potent machine for both firefighting and EMS and search and rescue in Australia, and is hopeful its capabilities will be recognised in this market just as it has been overseas.

“We are independently marketing the aircraft’s capability for heavy lift capacity to the mining companies, defence transport, and EMS/SAR operators such as the mining sector, RFDS and the state government FESA in WA, which is looking to add to its single RAC-sponsored EMS helicopter. For a state the size WA, all this leaves a lot to think about. In terms of marketing we will keep going, but we also need to focus on identifying a suitable operator who can take on the regional service and training part of the business,” Clarke explained.

Global trends

In its 15th ‘Turbine-powered Civil Helicopter Purchase Outlook’ report, Honeywell projected global sales would increase to between 4,900 and 5,600 through to 2017.

The report said based on survey results, “delivery rates of new helicopters over the next three years are expected to reach 1,000 new units each year. ” This equates to a 35 per cent increase in purchases of new helicopters.

Brian Sill, vice president of Honeywell’s aftermarket helicopter sales office, said: “The buyer confidence reflected in this year’s survey is a much-needed shot in the arm for the industry.

“Supporting the growth numbers is the fact that helicopter usage for corporate, oil and gas, utility, and training missions is improving, which shows that helicopters are value-add aircraft in today’s business environment. ”

The US and Canada account for 27 per cent of sales, while combined the western hemisphere represents 47 per cent of total global demand, the report said. Europe’s share of five-year demand is expected to be 28 per cent, while Asia/Oceania accounts for 19 per cent over the next five years and Africa/Middle East share likely to add around six per cent.

Honeywell said relatively lower levels of planned purchases were concentrated in 2016, leading to the expectation that these plans could strengthen materially over the next few years should political and general economic conditions improve as projected.

Further, a study into the helicopter industry in the US by Bureau AWEX shows that regional differences will play a big role in the makeup of the future global helicopter industry.

“Demand in the global helicopter market will continue to be driven by regional differences. For example, single-engine helicopter dominates the North American market, while the European market will tend to see more demand for multi-engine aircraft.

“Oil and gas exploration is the key driver of demand in North America, Africa, the Middle East, Russia, and Latin and South America.

“Civil and government sectors are primarily driving helicopter demand in the Asia Pacific region. ” Australian Aerospace said of global trends: “Competition within the industry is increasing. Existing players and new market entrants are offering revised and new products. Eurocopter remains the world’s leading helicopter manufacturer, and a steady supply of existing, as well as new and innovative machines places the company in good stead to maintain their position. ” Hawker Pacific’s Tony Jones explained the relatively small size of the global helicopter industry means trends that emerge “tend to be quite widespread throughout the industry and across the globe. A key driver is always going to be the prevailing economic conditions. Investment in natural resources and exploration also has significant impact on the global market. ” Certainly a number of big orders attest to the close link between the buoyancy of the resources sector as much as special missions.

Machines that offer increased speed and comfort in a versatile platform will continue to enter the market.EUROCOPTER

In March Sikorsky announced a raft of large orders, including one for 23 S-92 and seven S-76D helicopters to helicopter leasing company Milestone Aviation Group. The agreement also included options to buy up to an additional 14 S-92 and 10 S-76D aircraft.

On announcing the sale, Sikorsky said: “The global appetite for oil continues to drive significant growth in demand for offshore oil helicopters and operators. ” Further demonstrating the value of oil and gas operations to helicopter sales globally, Sikorsky also announced in March an order by Bristow Group for 10 S-76D helicopters.

Manufacturers, however, are also eyeing opportunities in North Asia, where the potential for helicopter sales reflects that of the commercial airliner sector, where rapid growth in air travel over the coming decades is fuelling opportunity. Airbus projects the need for 7,000 widebody aircraft over the coming two decades and business aircraft sales are seeing a similar increase as economic growth and rising affluence in the middle classes in key markets rises dramatically in the region.

As Australian Aerospace said: “New markets may offer opportunities for the existing helicopter industry. Markets in Asia that have remained closed are poised to open in the coming years. Australia’s relative geographic proximity provides strong prospects. ” The view supports that of the AHIA, whose recent statistics show comparatively very few commercial helicopters in operation in North Asia.

“China has only 170, Thailand and Malaysia total less than 100, and Papua New Guinea about 200. India has only one third of NZ’s total, say less than 300,” the AHIA said.

Threats and opportunities

“The most obvious new technology having the potential to be a major threat to our commercial activities is the proliferation of unmanned aerial vehicles in all their forms, both civilian and military,” the AHIA’s secretary Rob Rich said in March.

“I believe the AHIA will need to consider whether they should expand their field of interest to include many of the new devices which have the potential to replace helicopters or their pilots. ” Rich said small devices could, for example, conduct surveillance operations along powerlines, surf beaches, for coastal surveillance and support police operations – missions typical among piloted operations today.

The AHIA is among a chorus of industry voices concerned about skilled labour to support the growth of the national fleet of helicopters.

“Due to the ongoing expansion of the helicopter fleet, engineer shortages are getting worse,” Rich said, noting the Association’s attendance at this years’ Avalon Airshow saw interest in helicopter LAME training. “In fact, more so than flying training. The provision of this service is confused and the varying state government subsidies Eurocopter’s X3 concept. eurocopter

The buyer confidence reflected in this year’s survey is a much-needed shot in the arm for the industry. HONEYWELL

are little understood. More work is needed here,” Rich said.

On the commercial side, Eurocopter and Australian Aerospace see one emerging trend that presents opportunity over the coming years “is the desire for operators to streamline their operations by means such as using a single-source service provider for the majority of their support requirements and taking advantage of ‘power-by-the-hour’- type arrangements where the cost of helicopter ownership and maintenance can be confidently calculated into the future. ” Hawker Pacific’s view is similar. Jones said evolving demands from customers and tailoring solutions to their needs presents significant opportunity.

“There are many factors influencing the industry right now, including increasingly sophisticated aircraft, improved operating regimes and strategic fleet planning.

“We have always worked closely with industry to support operators and to provide services to address their specific challenges. Specifically we provide an ‘end-to-end’ solution for aircraft acquisition. An increasing number of our clients are looking for, and expecting, the full package with their helicopter purchases. Operators who are busy with their day-to-day activities work with us because of the solutions we are able to provide, from sourcing, importing, purchasing, arranging logistics, servicing and more. We are currently working closely with a number of operators across the country to source aircraft that fit their specific requirements,” Jones explained.

Meanwhile, on the military front three tenderers have been selected to move to the second phase of the Helicopter Aircrew Training System (HATS) competition. Teams led by Australian Aerospace (with the EC135), Boeing Defence Australia (EC135) and Raytheon Australia (Bell 429) will go forward to submit final proposals under AIR 9000 Phase 7 to meet the future rotary-wing training needs of the Australian Defence Force. The government is expected to select the successful HATS contractor team by mid-2014.

Looking forward

As for the next generation, Eurocopter’s X3 points to the future potential in the helicopter industry, the company explained.

“Machines that offer increased speed and comfort in a versatile platform will continue to enter the market. In some instances, these machines may even replace light aircraft due to their ability to land on helipads (rather than require runways) and yet still cover considerable distances at speed. ” Bell, meanwhile, is anxiously awaiting its 525 Relentless helicopter here in Australia. The helicopter, which was unveiled at the 2012 Heli-Expo in Dallas, is preparing for its first flight in 2014.

“This aircraft is literally the world’s first ‘super medium helicopter’ and an incredible technological feat. Bell has absolutely pushed the boundaries with this aircraft, in terms of energy and design, and they are still making significant advances and improvements to its avionics systems,” Jones explained.

“This aircraft was the culmination of serious research and development efforts, consultation with customers, making significant investment in new technologies and working with industry-leading product developers to come up with the right product at the right time. This is the future, and Bell Helicopter is leading the way. ”