Sat, Feb 27, 2010
Light Single and Twin Engine Models Remain Most Popular
The 12th Turbine-Powered Civil Helicopter Purchase Outlook
released by Honeywell Thursday projects flat overall deliveries of
new civilian use helicopters during the five-year period 2010 -
2014 compared to the 2005 - 2009 period. Continued soft economic
growth prospects in key markets, lingering tight credit conditions,
high inventories of used current production models for sale, and
weak new order intake are still constraining growth.
New OEM order intake remained weak throughout 2009, however,
utilization of turbine-powered helicopters has begun to rise in the
past few months. On an upbeat note, European usage rates moved into
positive territory in November and December and the inventory
growth of current production helicopters for sale has stabilized
since July 2009. Deliveries in 2009 fell below peak 2008 levels and
are expected to decline further in 2010 and 2011 as backlogs
depleted over the last year will not support sustained deliveries
until order rates significantly recover.
Five year purchase plans fell eight percent in 2010, after
declining over 20 percent last year. The timing of new helicopter
purchase plans indicates fairly firm plans for 2010, but exhibited
considerable uncertainty thereafter with a notable decline in
2011-2012. Many operators surveyed said they remain undecided about
the specific timing for their next new purchase, waiting for
clearer signals of sustained economic recovery in their business or
region. Honeywell's 2009 survey data indicated a reduction in
demand for new helicopters was likely during the 2009-2011 period.
Actual industry performance in 2009 was weak and relatively
consistent with survey projections. 2010 survey findings continue
to indicate additional pressure on delivery rates is likely for the
next one-to-two years absent a rapid recovery in order intake.
Five-year new helicopter purchase expectations fell another 26
percent in North America and by 40 percent in Europe, which was
relatively stable last year. In Latin America, purchase
expectations were up significantly, increasing over 100 percent
from sharply lower levels posted in 2009. Asia results declined
modestly by about 10 percent over a year ago, and in Africa/Middle
East purchase plans rose by 17 percent.
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