Story ID: 313_Honeywell forecast.doc
Honeywell: Helicopter Demand Remains Strong In China
By: Kerry Lynch
Caption: Honeywell survey reveals softening of demand in China, but purchase expectations still above world averages.
Word Count: 324
Honeywell Aerospace’s 2015 Turbine-Powered Civil Helicopter Purchase Outlook found a softening of expectations from the Chinese market, but the demand still remains above world averages, said Charles Park, director of market analysis. The Chinese market also had stronger rotorcraft purchase expectations than the entire Asia-Pacific region.

Worldwide, the survey forecasts a market for between 4,750 to 5,250 civilian helicopter deliveries between 2015 and 2019. The survey reflects moderate improvement in new purchase plans, led by an uptick in the U.S. and Canada.

The Asia Pacific region accounted for 14 percent of global demand, but purchase expectations slipped both in the region and in China specifically. Even with a decline, the purchase plan expectations are still stronger than many regions of the world, and Park said the survey still found a flow of new aircraft into China.

In Asia, purchase expectations favored medium and heavy helicopters, Park said. “Demand has shifted toward heavier helicopters,” Park said. “The light-single class is much less popular.”

The utility of the heavier helicopters makes them more attractive to Asian buyers, Park said, but he also noted the survey does not reflect piston helicopters.

As far as use, flying hours are significantly increasing in the tourism sector as China eases restrictions on flights in low-altitude airspace. But corporate use is ranks among the lowest in terms of flight hours.

Intermediate and medium twin-engine helicopters ranked second worldwide in purchase plans, accounting for 31 percent. But Honeywell suspects that the emerging class of super-medium helicopters, such as the AgustaWestland 189, Bell 525 and Airbus EC175, might be underrepresented given current volatility based on the energy markets.

Park, however, said Honeywell does not expect fuel prices to remain depressed, and this class may see even more demand in the future.

Unlike in the Asia Pacific region, the light-single class is the most popular worldwide, accounting for 49 percent of the purchase plans.