North American buying plans increased for the first time in half a decade, and Latin America posted the highest regional level of five-year fleet replacement and expansion at 34 percent.
Based on survey results, delivery rates of new helicopters over the next three years are expected to reach 1,000 new units each year. Purchase plans for new helicopters for this three-year time frame are 35 percent higher than last year’s survey. The latter part of the five-year outlook is also expected to fill in and achieve similar delivery rates if economic recovery trends are sustained.
“The buyer confidence reflected in this year’s survey is a much needed shot in the arm for the industry,” said Brian Sill, vice president, Honeywell Aftermarket Helicopter Sales. “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.”
Drivers for new purchase expectations were aircraft age and condition, contractual requirements, change in operational requirements, expiring warranties, and regulations requiring twin engines.
The five-year share of demand from the United States and Canada is 27 percent, and combined the Western Hemisphere represents 47 percent of total global demand. Europe’s share of five-year demand closely matches that of North America with 28 percent. Demand in Asia/Oceania accounts for 19 percent over the next five years, and the Africa/Middle East share should tally a little over 6 percent.
Global five-year fleet replacement and expansion plans decreased last year with a dip of 4 points in expectations versus 2011 levels. This year’s stronger survey response indicates that the industry may be returning to a more expansionary environment. Overall five-year buying plans in the 2013 survey recovered 4 points and specific purchase plans for 2013-2015 are very strong.
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.
Higher purchase plans were found across the board in all regions this year. Purchase plans in major U.S and European centers of demand rose this year by 3 and 7 points, respectively. All other regions also improved moderately compared with 2012, and their purchase plans remain above the world average rate. Specific purchase plans just for 2013 remain strong and improved over levels reported in the 2012 survey. The expectation for new aircraft orders in 2013 is up over 30 percent compared with 2012 levels, suggesting the recovery will maintain momentum this year.
Global five-year demand for new turbine-powered helicopters is split almost 50-50 between the Americas and the rest of the world. Latin America and Asia continue to have the highest fleet replacement and expansion expectations among the regions. In terms of projected regional demand for new helicopters, Latin America and Asia remain in close competition to claim the world’s third largest regional market, following North America and Europe.
“Honeywell is well positioned to support the growth the industry expects during the next five years,” Sill said. “Honeywell’s propulsion, safety, mapping and communications technologies and services help helicopter operators control their costs and enhance efficiency and safety. Our turboshaft engines for light- and medium-lift commercial helicopters provide high power, reliability, fuel efficiency and safety for operators at a competitive price. Our safety products, designed to provide a three-dimensional sphere of detection ranging from the working components of the helicopter out to more than 40 nautical miles, enable operators to expand the flight operation of their aircraft to meet the growing demands of their businesses.”
Civilian Turbine Helicopter Survey The 2013 Turbine-Powered Civil Helicopter Purchase Outlook is based on Honeywell’s recently conducted customer expectations survey, an assessment of consensus forecasts, a review of factory delivery rates and analysis of future new helicopter introductions. The 2013 Outlook excludes uniformed military demand for civil helicopters, but resulting civil estimates do include government and security force demand.
The entire helicopter forecast findings, including: trends in five-year purchase plans by region; demand for new turbine helicopters by region; reasons for replacement; operator preferences by helicopter class and type; trends in helicopter usage; and methodology can be found at Honeywell’s Heli-Expo 2013 website.
Thousands of Honeywell Aerospace products and services are found on virtually every commercial, defense and space aircraft worldwide. The Aerospace business unit develops and integrates technologies that span air traffic modernization, flight and runway safety, engines, cockpit and cabin electronics, connectivity, logistics and more that deliver safe, efficient, productive and comfortable transportation-related experiences. For more information, visit http://aerospace.honeywell.com or follow us at @honeywell_aero on Twitter.
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell’s shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.
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This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements.
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