Chinese crop-spraying contractor Qiqhar Kun Feng General Aviation ordered a pair of Bell 407GX helicopters and signed a letter of intent for five of the manufacturer’s new 505 model. The deal, announced on March 2, represents the second order Bell Helicopter has received from a major Chinese agricultural group.
“For many years Qiqihar Kun Feng has utilized leased helicopters in their operations,” said Chris Jaran, vice president of Bell Helicopter in China. “We are proud they have chosen Bell helicopters as they build a reliable fleet of self-owned aircraft.”
Demand for new civil helicopters in China has been boosted by the government’s long-awaited relaxation of flight operations rules in airspace below 1,000 meters (3,281 feet). By the end of 2015, there will be only a few restricted military zones in the country’s lower airspace, excusing operators from the need to file flight plans that are difficult to get approved.
Despite declining U.S. Defense Department spending and a worldwide contraction in new civil helicopter sales in 2014, Bell Helicopter CEO John Garrison said that the company is “bullish” for a “return to growth this year.”
Over the last 30 months Bell has laid off more than 3,000 workers as deliveries of the military Bell/Boeing V-22 tiltrotor have been reduced from 41 in 2013 to an estimated 21 this year. Production of that aircraft is scheduled to end altogether in 2019 unless Bell receives further orders.
Bell posted revenue of $4.2 billion in 2014 and currently derives 62 percent of its total revenues from U.S. government programs. Although the V-22 program is winding down, Garrison said he is optimistic about the third-generation V-280 tiltrotor Bell is developing for the Pentagon's Joint Multi-Role Technology Demonstrator (JMR-TD) competition. That aircraft is scheduled to make first flight in 2017 and Garrison said that continuing global instability, and the need to transport troops quickly over increasingly longer distances, will make it an important military tool moving forward.
525 Engines and Tailboom Fitted
While Bell has made significant head-count reductions, Garrison noted that the company tripled its global sales and marketing force over the same period, updated legacy civil platforms and is making good progress on the new 505 and 525 programs. On the latter, Garrison revealed that the engines and tailboom were installed last week as Bell continues to aim for first flight in the second quarter of this year. Bell delivered 178 civil helicopters in 2014, down from 213 in 2013.
Garrison said that Bell is committed to maintaining its manufacturing, engineering and test facility for civil helicopters in Mirabel, Canada. He said the 525 is being produced in Amarillo, Texas to take advantage of excess plant capacity there caused by slowing V-22 production. The economics of the 505, expected to be priced near $1 million, dictated that it be assembled at a green-field facility. Bell is building that helicopter in Lafayette, La. at a plant that should open later this year.
Finally, Garrison said that he is confident that Bell had solved customer service problems that lingered into last year as a result of implementing new enterprise software. “Our AOG turnaround time is into the high nineties [percentage] in less than 24 hours in terms of parts shipment. It was painful for a period of time, but now we are through that.”
