Airbus Helicopters (Booth C305) predicts the rotorcraft market will grow 2 percent to 5 percent over the next few years, even if the oil and gas segment remains uncertain. According to an internal study, the company expects delivery of nearly 22,000 helicopters worth nearly $142 billion in all market segments by 2036.
While 1,350 helicopters were delivered industry-wide last year, “This level is below the 2013 to 2014 period, but the market is quite dynamic,” said David Prevor, head of marketing at the Franco-German helicopter manufacturer. In 2013, the entire industry shipped around 2,100 new helicopters.
Airbus accounted for about a third of the overall helicopter deliveries last year, shipping 356 rotorcraft, down 13 percent from the 409 units it handed over in 2017. Billings at the company fell 6 percent year-over-year, to $6.73 billion, in the same time frame. Despite this, gross orders climbed 18 percent year-over-year, to 413 units. “This increase is a positive signal, which allows us to be confident about the future,” said Prevor.
But a dark cloud still hangs over the oil and gas segment. “In the past, operators bought new helicopters to expand their fleets. Now it’s a replacement market that is facing oversupply, especially in the heavy segment that will take at least two to three years to be absorbed,” he noted.
In fact, most of the company’s orders over the past two years for its Super Puma family came from other markets, such as the military sector. Last year, Airbus Helicopters received orders for only 17 H225s versus 54 in 2017.
Still, some of these replacement orders could benefit its medium-twin models—the H175 and not-yet-certified H160. Mexican oil and gas operator Transportes Aéreos Pegaso has signed for an additional H175, bringing its firm order for the model to four. However, Airbus inked just four orders for this model last year, compared with 19 in 2017. It has a backlog of about 100 H175s remain unchanged from last March.
On a brighter note, the EMS market is much more dynamic for Airbus Helicopters. In the U.S. and Europe, this segment is a replacement market; but in Asia, it is a less mature market that could be a boon for several of the company’s models.
“The light single-engine H125/130 is doing well in the U.S. market for primary EMS missions—patient transport from the accident scene to the hospital,” noted Prevor. Its H135/145 light twins and H160 are better suited for secondary missions, meaning hospital-to-hospital transport of patients. EMS operator Metro Aviation placed an order for 25 H145e helicopters last February for this purpose.
Emerging markets, which includes China and India, also hold great potential for Airbus Helicopters, despite legal or technical restraints in these countries. Much of the airspace has yet to be opened to civil operators in China, where pilot supply and training issues also exist. “It depends on a new aviation ecosystem being built in China,” said Prevor. “But this market is clearly the future of our growth.”
On the military side, 2018 has been “a very good year” for the manufacturer, said Prevor. Airbus Helicopters’ worldwide defense market share outside of the U.S. has more than doubled in recent years, surging from 12 percent to 25 percent. This is partially thanks to the order from Turkey for 16 H225s and 20 H145Ms, the latter with HForce weapon management, as well sales of 51 UH-72A Lakotas, a derivative of the H145, to the U.S. Army. Airbus Helicopters, along with partners Fokker and Leonardo, has also inked deals for the NH90 in Spain (23 units) and Qatar (28 units).