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Mon, Jul 07, 2008

Bell Questions Tilt-Rotor Tech For US Civilian Market

Pulls Back Support For BA609 Project

It's not a full withdrawal... more like a strategic retreat. After 50 years of developing tilt-rotor technology for both the defense and civilian markets, Bell Helicopter now says the commercial appeal for such aircraft has dropped considerably.

According to the Fort Worth Star-Telegram, Bell now believes the potential US market for a civilian aircraft using the same technology now in service with the military's V-22 Osprey would be slim... and has shifted a larger part of development work on the BA609 tilt-rotor to Italian partner AgustaWestland.

"I think Bell will always be involved in the 609 program in some way," said Mike Blake, executive vice president of programs at Bell. "How is to be determined."

Full-size mockups of the BA609 have been fixtures at industry trade shows for several years... but actual progress on the program, first announced in 1998, has been slow in coming. Most of the 80 orders for the 6-9 passenger aircraft have been on the books for a decade, and neither side has quoted a firm asking price for the BA609 in years.

Originally touted as a $10 million alternative to corporate helicopters and turboprop fixed-wing transports, many believe today's pricetag could be twice that amount.

Privately, Bell officials say the cost/benefit equation simply doesn't work at $15-$20 million. The Star-Telegram reports that in comments to a group of Bell engineers this year, CEO Dick Millman said the BA609 "ends up costing so much there will not be much of a market for it in my opinion."

In a recent public statement, Millman said "AgustaWestland to evaluate the 609 market and what the best options are to move this program forward. We designed the 609 for a new US market and unfortunately we are not seeing that materialize, so we are looking at all options that make sense for the future of this program."

Bell originally had a 75 percent stake in its joint-venture with AgustaWestland, with Italian officials expressing interest in a larger share in the program. Now that they have that chance, however, it's unclear how eager AgustaWestland is to take over a larger percentage of work on the BA609. Emailed requests for comment from the Fort Worth newspaper were not returned by Agusta.

To date, three test aircraft have been delivered to AgustaWestland, with Bell continuing to fly the first test aircraft. Both companies now say FAA certification for the advanced aircraft will occur in 2012, about a year later than previously reported and five years past its original 2007 target date.

FMI: www.bellagustaaerospace.com/

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