“We’re not there yet.”
That was the sober assessment of the state of affairs at MD Helicopters (MDH) given Monday by company CEO Brad Pedersen at Heli-Expo 2024. While Pedersen lauded the progress made over the last year in terms of bolstering its supply chain, he said the work is not done and it could be another six to 12 months before “we get our whole supply chain healthy.”
MDH COO Harvey Ticlo said the Mesa, Arizona company was “experiencing significant increases in lead times” in supplier parts and was working closely with them to provide better long-term demand forecasting. But even with these measures, due to inflation and other pressures, prices of some parts have tripled, while other suppliers simply have dropped out and replacements need to be found and qualified.
Despite these challenges, MDH grew its aftermarket sales by 62 percent and built nine and delivered 10 helicopters in 2023. It plans to increase deliveries to 16 helicopters this year toward an eventual ramp-up to a production rate of 30 per year. During 2023, it secured orders for 30 helicopters: 25 military variants and five civil. Pedersen said the MDH actually has the tooling to make 50 per year.
The company is continuing its post-bankruptcy strategy of focusing on, supporting, and adding to its installed fleet of 1,700 MD500-series helicopters while preparing to jettison its Model 902 twin and possibly its Model 600 single. Pedersen admitted that MDH “does not have the time or the capital” to resurrect the 902 and is actively seeking a buyer to take over product support and possibly restart production. MDH could have a related announcement in the next few months. With regard to the MD600, MDH is supporting it when it can, but it is clearly not a top-line priority.
To emphasize its focus on the 500 series, MDH has launched a “fielded fleet upgrades” program that the company says provides owners of the installed fleet of 1,100 of those helicopters that are likely upgrade candidates with cost-effective, performance-enhancing airframe modifications. They include longer main and tail rotor blades, tail rotor gearbox extensions, longer tail rotor drive shafts, and/or engine upgrades, depending on the model.
Associated performance increases include almost 300 pounds of additional useful load on the Super D and Super E and significantly better hot/high hover performance on the Super N. All of these enhancements can be completed in the field by select MDH-authorized service centers or the MD Helicopters factory in Mesa.
MDH said the price of the upgrades will be approximately $400,000 plus the cost of the engine and will require approximately 350 man-hours. The company hopes to be able to offer the upgrades via service bulletin, as opposed to an FAA supplemental type certificate, beginning in the third quarter.
Several “Super” models are on display this week at Heli-Expo 2024, including a Super D, a glass cockpit-equipped Super E, and a Super N. The display also will include the Huntington Beach (California) Police Department’s new MD530F. MDH will showcase Airwolf Aerospace's selected STC for the TSO-certified True Blue Power TB17 lithium-ion battery as a factory option for the MD500E, MD530F, and the AH530 models. The battery offers a 63 percent weight reduction and an average eight-year lifespan.
MDH is soliciting customer input at Heli-Expo via survey kiosks located in its booth. Each MD operator who completes the survey will receive a $50 gift card. Other booth events include a presentation of $12,000 in Whirly-Girls and Embry-Riddle turbine transition scholarships at 2:00 p.m. on Tuesday and a drawing for a Garmin 7 Pro-Sapphire Solar Edition watch and an Apple HomePod on Wednesday at 2:00 p.m.