On the Record with
DEAN BORGMAN, PRESIDENT, SIKORSKY AIRCRAFT

Business is looking up at Sikorsky Aircraft, with the helicopter manufacturer expecting a 20% increase in worldwide sales this year. And there could for more sales announced here at Farnborough for its 20-passenger S-92 transport helicopter.

That's the prediction of president Dean Borgman, who told Show News activity is heating up for a number of products in a number of areas.
While many think of Sikorsky as "the Black Hawk company," it is pinning high hopes on the $12.5 million, S-92 eventually to produce up to 50% of its revenues. The first prototype aircraft, now sporting military colors, is on show for the first time here at Farnborough, although the full-scale mockup was unveiled here 10 years ago.

"Sikorsky's sales this year will be up 20% over last year, and we expect to maintain that and grow it some over the next few years," said Borgman. "One area of growth is based on the S-92, as well as upgrades to Black Hawks."

The S-92 is a clever program in that it is largely a development of the Black Hawk, yet technological improvements such as the 21% more powerful engines and drivetrain can be spun back into Black Hawk upgrades. This is precisely what Sikorsky plans to do to support the U.S. Army's plans to modernize the Black Hawk fleet as the UH-60X. So while the Department of Defense has no requirement for the S-92 per se, it will be getting much of its hardware.

Then there are the potential sales of the S-92 itself.

Major competitions being contested today are for 12 aircraft in Portugal, some 75 for the Nordic countries' joint procurement program, and an unspecified number in Oman. In addition, Sikorsky has teamed with Lockheed Martin Canada and Bombardier to offer the S-92 for a pending Canadian requirement to replace Sea Kings there.

"There will be more international campaigns coming up for the S-92, and we are in discussions with various commercial customers," Borgman said. One or two deals could be announced here if negotiations progress sufficiently, but Borgman would give no more details.

Obvious buyers for the S-92 are the five airline operations around the world that operate the twin-engined, 12-passenger S-76 helicopter: Copterline (owned by Copter Action) of Finland, Helikopter Service of Sweden, Alidaunia in Italy, East Asia Airlines of Macau, and Helijet Airways of Canada. Helijet and Copter Action have agreed to operate the S-92, while the only other customer to date is Canadian offshore oil operator Cougar Helicopter, which has placed a deposit on five aircraft.

Sikorsky anticipates a total market for about 1,000 S-92s, with perhaps as many as 200 earmarked for civil use as offshore transports, corporate shuttles, and as feeder-airliners. First delivery will be in April 2002. Seven S-92s will be built that year, followed by 20-24 in 2003, with 100 deliveries slated for the first five years.

Borgman believes the S-92 is a perfect replacement for the VH-3 helicopters in the U.S. Presidential fleet, too.

Meanwhile Black Hawk helicopters continue to sell. By early next year Sikorsky will have delivered 109 to Turkey, and eight S-70 Seahawks are being built for the Turkish Navy. Greece was a recent customer for two S-70B Seahawks, while production for the U.S. Navy should resume in 2001 after a five year break with a requirement for up to 200 of the new utility CH-60S amalgam of the Black Hawk and Seahawk.

In another recent victory-which Borgman describes as "strategically important"-Turkey ordered eight heavy-lift S-80E commercial equivalents of the CH-53E Super Stallion for $350 million, which will now keep the production line open into 2004. "We expect there will be other international orders for this helicopter," he added, especially as it is now remaining in production.

Sikorsky's other major program for the future is the RAH-66 Comanche attack and scout helicopter, which it is developing in partnership with Boeing. A $3.1 billion contract was signed in June to launch the Engineering and Manufacturing Development (EMD) phase of the program that will lead to the manufacture of 13 additional aircraft. The Army has recommended acquisition of 1,213 Comanches, valued at nearly $34 billion, over the life of the program.

By John Morris