Honeywell Forecasts Strong Demand for Light Single and Intermediate Multi-engine Helicopters

In briefings conducted this week, Honeywell opines, via its sixth annual Turbine-Powered Civil Helicopter Purchase Outlook, that deliveries of approximately 2,350 new civil use helicopters during the five-year period 2004 - 2008, driven in part by increased demand for light single and intermediate twin-engine models offering newer technology.

Corporate, emergency medical services (EMS) and law enforcement helicopters combined are expected to account for almost two thirds of all new civil rotorcraft sales during the five-year forecast period.

Some highlights revealed by the annual survey of helicopter operators’ purchase expectations are:

• Although helicopter sales in 2003 were flat compared to 2002, they are likely to increase about 8 percent in 2004 compared to 2003.
• Helicopter sales during the five-year period 2004-2008 are predicted to be 6.8 percent greater than in the five-year period 1999-2003.
• Helicopter sales are forecast to enjoy a 2 percent annual compounded growth rate during the 11-year period 2004-2014.

“The results from the 2004 Honeywell Aerospace survey identified engine power, safety/crashworthiness, useful load, aircraft price and direct operating costs as the top five criteria operators consider when selecting new helicopters,” said Lynn Brubaker, Vice President, Honeywell Commercial Aerospace. “Survey data also indicate that the decision to acquire new helicopters is driven primarily by age of current aircraft and an operator’s desire for newer technology, bigger cabins and more payload. Along with new model introductions, these continue to be important factors supporting demand,” Brubaker said. “We are optimistic about the long range prospects for helicopters in this diverse global economy,” she added.

The near-term increase in demand is also driven by continuing strong worldwide demand for corporate, EMS law enforcement and utility helicopters, bonus depreciation in the United States, a strong U.S. economy and booming economic conditions in Asia.

In North America, law enforcement received 30 percent of all mentions this year. It remained the most frequently mentioned helicopter use segment although this represented a decline from almost 40 percent in 2003. One possible reason was that expected funds to purchase new helicopters for increased homeland defense and boarder patrol requirements never materialized.

EMS applications held steady at almost 30 percent of planned new purchases in North America, while planned corporate purchases fell again to 18.4 percent of the total.

FMI: www.honeywell.com