Honeywell’s eleventh Turbine-Powered Civil Helicopter Purchase Outlook projects flat to slightly higher deliveries of new civil use helicopters during the five-year period 2009 – 2013 compared to the 2004 – 2008 period. A lack of financing availability (where 30% of sales are financed), a sharp rise in inventories of used current production models for sale, weak new order intake and an uncertain and unpredictable global economic environment are constraining growth.
Some key findings revealed by the annual survey of civil helicopter operators’ purchase expectations are:
- Estimated civil helicopter deliveries are expected to reach similar levels to 2008 in 2009, supported extensively by current backlogs, which are expected to face mounting pressure by the end of 2011 absent a rapid economic recovery.
- New order intake in 2009 is expected to decline sharply and will not normalize until a sustained global economic recovery begins and additional aircraft financing becomes available. Eurocopter recently announced that they expected near-term order intake to drop 36% while Bell stated publically that they had only sold 3 helicopters in January 2009 compared to 40 in January 2008.
- Production of new helicopters is forecast to decline in 2010, 2011 and possibly 2012.
- The peak-to-trough decline in deliveries could exceed the post 2001 industry cycle in percentage terms suggesting deliveries could dip near 2006-2007 annual rates in the next two years.
“Honeywell Aerospace’s 2009 survey has reaffirmed avionics capabilities, performance and power, along with cabin volume as the top criteria operators consider when selecting new helicopters,” said Mike Cuff, Honeywell Vice President, Helicopters & Surface Systems. “The decision to acquire new helicopters is driven primarily by the age of current aircraft which is usually reflected in an operator’s desire for better technology, more range, more power, cargo or passenger capacity and lower operating costs. This holds true even in the tough economic environment faced by operators around the world,” Cuff said.
For more information about the report, read the release.
