Posted on 10/11/2005 11:01:08 AM PDT by Tolerance Sucks Rocks
China's skies are getting busier.
The country is no longer just a lucrative market for long time rivals Boeing and Airbus. Major helicopter manufacturers are also keen to jump into China's aviation sector.
Bell Helicopter believes that the country's huge market potential and manufacturing opportunities hold great promise, even though actual returns may be a long time coming.
Two new Bell 206 L-4 helicopters were recently delivered to Beijing Capital General Aviation Co (BCGA). BCGA plans to buy another three to four Bell helicopters by 2008, BCGA officials say.
The Texas-based company has signed a collaborative manufacturing agreement with Hafei Aviation Industry Co Ltd. Hafei, based in Northeast China's Heilongjiang Province, is the only manufacturer of airframes for Bell-430 helicopters.
Hafei delivered the first part of the fuselage at the Aviation Expo/China 2005 held late last month in Beijing. It will deliver the complete helicopter body next February.
"China is late (in the helicopter market), but with the skies gradually opening, it is where we will see real growth," says Jacques St-Laurent, president of Bell Helicopter Textron Canada Ltd.
"I think there is a big demand for different types of helicopters."
He is referring to the widespread use of helicopters for power line surveillance, tourism, disaster relief, police patrols, medical services and the general utility market. Choppers bring people and equipment to remote areas.
"They should become very significant in the future."
Bell plans to set up maintenance and training facilities in China.
"Maintenance and support will be an essential part of our presence as we develop our market on the mainland," St-Laurent says.
"We want to establish a maintenance and overhaul service facility through a partnership or collaboration."
Bell has about 200 service centres throughout the world.
"We are also looking at opportunities to develop a training facility in China to meet expected need to train pilots and mechanics for our helicopters," St-Laurent says.
He refuses to say when these plans will be implemented, however.
Demand for helicopters in China's general aviation industry is expected to reach 2,000 helicopters by 2013 and 10,000 helicopters by 2020, say researchers at the Development Research Centre under the State Council. The country currently has less than 80 helicopters in civil operation.
The Bell 206L-4 is a seven seat, single engine helicopter developed in the mid-1990s. Powered by the Rolls-Royce Model 250-C30P, the helicopter can operate at high altitudes and can stay airborne for three hours.
"We see the Chinese civil helicopter market as an important element in our global sales strategy," says Ken Roberts, executive vice-president of helicopter and small gas turbine engines for Rolls-Royce.
"We expect demand for civil helicopters in China to increase dramatically in the decades ahead."
BCGA, the first Chinese company to purchase the Bell 206L-4, now operates four helicopters, primarily for electrical power line maintenance work. It is the only general aviation company in the country that uses helicopters for power line surveillance, which the 8-year-old firm has been doing in North China since 2002.
Many high voltage cables are built in mountains. With manual surveillance, power grid companies can only maintain 3 to 5 kilometres of power lines per day. Helicopters can speed up the process by covering 30 kilometres an hour.
"There will be three to four new high voltage power lines built around Beijing by 2008 to meet power demands during the Olympic Games," says Qin Youxing, BCGA's general manager.
"That will be a great opportunity for us." Qin says BCGA's fleet will be expanded to eight helicopters by 2008 to meet rising market demand.
"Other opportunities will come from areas such as information gathering for the news media, aerial photography, aerial tourism, VIP transportation and medical services for athletes during the Games."
Earlier media reports said that Beijing will spend US$400 million upgrading its medical infrastructure and renewing its medical equipment before 2008. The Beijing Emergency Medical Centre will add 400 ambulances to its first-aid vehicle fleet and begin providing helicopter-based emergency medical services.
Qin says BCGA will also benefit from highway traffic monitoring.
"Beijing is expected to use helicopters to monitor traffic conditions throughout the Olympics," Qin says.
Qin will not reveal his company's annual sales, but says that business has been positive. He says, however, that general aviation companies in China need to be patient.
One major issue is the country's strict control on air space within 600 metres. In Beijing, for example, helicopters are forbidden from flying above areas within the Third Ring Road.
Another challenge, Qin says, are the costs. Customers are usually charged between 8,000 yuan (US$989) and 15000 yuan (US$1854) per hour.
"Not many people can afford that," Qin says.
The current ratio in China puts 0.06 helicopters for every 1 million people. In Canada, there are 54.1 helicopters for every 1 million people. The world average number is 3.9 helicopters for every 1 million people.
Helicopter manufacturers still believe in China's long-term market potential, however.
"There will be an evolution in China for the demand for helicopters," St-Laurent says. "Everything is possible here. Ten years ago, I never thought of having a sole fuselage supplier from China."
There are 15 Bell helicopters in operation in China. The company sold five to the country in 1979. Bell globally controls 30 to 40 per cent of the helicopter market.
Bell is not alone in China. Other helicopter manufacturers are also mapping out China strategies.
Eurocopter and China Aviation Industry Corp II (AVIC II) have produced 400 EC120 helicopters and have signed a co-operation agreement to develop a new multipurpose helicopter.
US-based Sikorsky Aircraft Corp set up a joint venture with Shanghai Little Eagle Science & Technology Co Ltd in 2001 to produce Schweizer 269C and 269CB helicopters.
Italian manufacturer Agusta also recently formed a joint venture with Jiangxi Changhe Aviation Industries Co Ltd to produce Agusta A109E helicopters.
He is referring to the widespread use of helicopters for power line surveillance, tourism, disaster relief, police patrols, medical services and the general utility market. Choppers bring people and equipment to remote areas.
Choppers can also pick up and deposit troops in combat zones, as well as strafe enemy positions. I wonder if the PLA is going to get involved in this action. I don't know how far along the PLA is with military helicopters, and I don't suppose the Chicom censors will let us know about that or any PLA involvement in these "civil aviation" deals.
PING!
Only question is how long does it take the ChiComs to rip off the designs and technologies so that they can make their own knock-offs and don't need the western companies any longer. Haven't western automakers been ripped off constantly?? (not to mention all the other areas of constant fraud and piracy in the PRC's economy)
Between the environmentalist and the unions, the US is no longer the manufacturing giant it had been.
What's that old term oh yeah - Chinese Copy.
Soon as the ChiComs get those German/Jap machine tools set up watch out. Wonder how they're doing with those big machine tools from the B-1 Bomber plant that Bubba Crinton let them have.
Don't these people know that they're arming one of the most repressive thugocracies in existence? or do they just not care?
Feeding the dragon while it's eating other people instead of themselves.
What a deal!
A win-win situations for both parties involved.
I just got back from China, and I have an honest eye-opening observation:
They cant do it without help.
Nice people, not stupid, but they need some serious cultural re-training on how to think and improvise before they can make these on their own!
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