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Wednesday, January 27, 2010

Eurocopter: Military Market Up, Civil Down

By Andrew Parker/Rotor & Wing magazine

French helicopter manufacturer Eurocopter has released a snapshot of its 2009 business operations that seems to mirror trends in the wider aviation industry—demand from the military is stable and increasing, while the civil sector has suffered a dramatic drop-off. “While governmental markets remain stable despite budget constraints, a full recovery of the commercial markets in 2010 is not evident,” the company states.

While Eurocopter experienced a “sharp” decline in orders for light helicopters in the civil market, military orders more than made up for the shortfall, leading to the second-highest number of order intakes in company history. The manufacturer’s Support and Services division also gained a number of new contracts over the past year.

“The downturn in the corporate, tourism and EMS markets, which typically acquire smaller helicopters, has been countered by a stable oil and gas market due to new exploration activities, and by a strong military market,” says CEO Lutz Bertling. All of these factors are leading the company to reduce production for commercial helicopters in 2010, while ramping up production of military helicopters.

Eurocopter reports that deliveries remained consistent, with 558 new helicopters in 2009, close to the 2008 total. Orders booked stood at a total of 344 aircraft last year. The breakdown by model type was: 103 AS350/355s and EC130s, 83 helicopters from the Super Puma/EC225/EC725 family, 63 EC145s, 58 EC135s22 NH90s, nine EC155s and eight EC120s.

Under its SHAPE program, Eurocopter’s objectives for 2010 include implementing cost reductions to save cash and reduce inventory; improving productivity by employing faster, more simplified processes; and boosting investments in new projects, such as the X4—a successor to the AS365 Dauphin—the U.S. Army Aerial Armed Scout project with Lockheed Martin, and the Future Transport Helicopter.

Andrew D.  Parker is the managing editor of Rotor & Wing magazine. He has covered the aviation industry for more than five years. He can be reached at aparker@accessintel.com.

www.aviationtoday.com/andrew_parker_bio.html