Story ID: 132April18
Making Heli Taxi Possible In Asia
By: Chen Chuanren
Caption: Customers will be willing to pay for the time savings helicopters afford, OEMs believe.
Word Count: 1008
In Manila, Bangkok, and Jakarta, capitals of three of Southeast Asia’s thriving economies, hour-long traffic gridlocks hinder productivity. In fact, traffic jams in Jakarta are estimated to cost the economy 65 trillion rupiah (US$4.87 billion) in losses annually. Helicopter taxis, or heli-taxis, are taking off in some parts of Southeast Asia, as business executives and members of the upper middle class seek alternatives to ground traffic.

Airbus Helicopters and Bell are seeing the market come back in various segments after the 2008 economy crisis. Today they capture 40 percent and 27 percent of Asia Pacific’s market, respectively, much of that in the single-engine segment. Most are involved in commercial, air-taxi and helicopter emergency medical services (HEMS), which has seen a boom in recent decades.

“Governments are spending more on public services. Most deals in 2017 are for parapublic usage like HEMS, police etc.” said Sameer Rehman, Bell's managing director, for the Asia-Pacific region. 
The Value of Heli-taxi
“The idea of air mobility will be popular once the concept of value make its way down to everyone,” said Rehman, who believes the time savings heli-taxis provide will justify the cost.

“We are in the talks with operators in Manila, Jakarta, Bangkok, and potentially Kuala Lumpur for an Uber style ride-hailing business model for heli-taxi,” Fabrice Rochereau, Airbus Helicopters vice president sales, Asia Pacific told AIN, and both agree that all functions seen on the ground will migrate to helicopter applications. 

While helicopter shuttles are currently reserved mostly for high-net-worth clients in most societies, establishing predictable expenses is seen as one way to make helicopter operations affordable to all, by ultimately reducing the price.

“In fact, the more you fly, the more affordable it will get, and you rationalize the [cost of the helicopter]. Everyone should have access to affordable vertical lift," said Rehman.

He said many of their Bell 505 clients have never owned a helicopter before. Seeking value, they have traded their sports cars and yachts for helicopters, and he believes that trend will filter down to heli-taxis.
Indonesian Case Study
Indeed, such a heli-taxi model has gained traction in Indonesia, which tops Southeast Asia in helicopter operations.
 
Jakarta is probably one of the first cities in the region to possess on-demand urban air transport under Helicity Indonesia, managed by Whitesky Aviation. The company now operates in the Indonesian capital and Bandung, which have 173 and 50 helipads, respectively.

Currently Whitesky Aviation operates an Airbus H130, two Bell 429s and a pair of new Bell 505 Jet Ranger Xs, with two more due for delivery this year. Rehman revealed that the company is looking to “work on a new number” from the 30 Bell 505 orders made in 2016.

A single flight within Jakarta starts at 7 million Rupiah (US$490), not including landing fees, which start at 2 million Rupiah (US$147). Intercity flights to Bandung could be twice as much. Whitesky CEO Denon Prawiraatmadja told Indonesian media that some days are already fully booked after the launch of the service in early December last year.

Ride-hailing company Grab has also begun trials of GrabHeli last June, with a Bell 407. The GrabHeli had similar study in the Philippines, operating Phijet’s H130. 
Singapore’s Potential
Rehman would like to develop a viable HEMS in Singapore. He notes that four of the major hospitals are capable of handling helicopter medevac from the Republic of Singapore Air Force. Such capabilities are currently reserved for the RSAF’s Super Pumas, and helicopters are only allowed to operate along three helicopter routes over the island, all managed by the air force.

“We need to get the government to think about how to have helicopter access to these high-rise buildings in Singapore, for those in need for critical care. Singapore has some of the tallest buildings, and we should take advantage of these landing sites as any advanced country should," said Rehman. So far, there is only one helipad on a commercial building in the Lion City, on Swissotel Stanford. “There should be an effort within the ministry to discuss how to make it work safely, reliably, and benefit all.” 

“I think it could be one or two hospitals with a couple of helicopters funded through company social initiatives or insurance schemes, and it will charge the country for better helicopter management, headed by the RSAF. I think it is possible for commercially owned HEMS services to operate here," he said.

He thinks that medical tourism from neighboring cities could be the start to such services, as Singapore is one of the preferred destinations for healthcare in Southeast Asia. 
Now Overcoming Hurdles
Heli-taxis and even HEMS have encountered speed bumps in Asia, and regulatory issues usually outweigh the lack of infrastructure. 

“In China and India it is almost impossible to operate helicopters outside of airports, and it is senseless for HEMS to operate between airports,” said Rochereau. “In China, I think it will really take off as long the government gives the go-ahead. There are many big cities in China, and there is good potential.”

He added that in Bangkok and Singapore single-engine helicopters are prohibited over populous cities, and there is work to be done to remove the stigma. A single-engine asset model is more efficient and costs less.

“For a start, we are trying to propose flights over the river in Bangkok, as we did in Paris,” he said

Rochereau is optimistic that regulations will change to allow single-engine helicopter operation. He pointed out that, in Europe, single-engine fixed-wing IFR operation was banned a decade ago, but it was later approved once reliability was proven, and the probably of failure was shown to be low.

“It is the same for helicopters. First you have to demonstrate that it is as safe as a twin-engine, and both the manufacturers and operators have to work together to convince the regulators.”