On the Record with
Dean Borgman, President, Sikorsky Aircraft

Expansion of Sikorsky's activities in China is big news here at Asian Aerospace.

The company this month unveiled a new strategy to enter the light end of the helicopter business in a joint venture with Shanghai Little Eagle Science & Technology Co. The new Shanghai Sikorsky Helicopter Co. will build the piston-engined Schweizer 300 series under license for Chinese civil customers, bringing a helicopter to market far faster than designing and certifying an indigenous aircraft.

"This dynamic team will be perfectly positioned to tap the emerging market for light civil helicopters in China," said Sikorsky president Dean C. Borgman. "We see great potential in China and we expect great success for this venture."

Sikorsky already has a solid presence in the People's Republic of China. The company recently delivered two S-76 coastal search-and-rescue aircraft to the Ministry of Communication, adding to the many Sikorsky civil helicopters that are already in service for government, offshore oil, and airline customers across the country. The Jingdezhen Helicopter Group, of Jingdezhen, China, is a partner in Sikorsky's S-92 aircraft program and builds the tail section of the medium-lift class helicopter.

Sikorsky's other celebration here is over the first government selection of the S-92, where Ireland selected it over Eurocopter to fill a requirement for three search and rescue helicopters with options on two more. "The Irish decision confirms everything we've been saying about the airplane-that it met the requirements better than the others and that it was the most cost-effective," said Borgman.

"It's not a big number but it is strategically very important."

So important, in fact, that Eurocopter has sued the Irish government over the decision.

Borgman noted that with one government selection under its belt, the S-92 will stand a better chance in future competitions. Meanwhile, airline, offshore and VIP customers are showing an increasing interest in the 20-passenger aircraft as flight tests draw it closer to certification at the end of this year.

Sikorsky has taken $100,000 deposits on 11 S-92s, with options for four more. Another four letters of intent bring firm interest to 19 helicopters, including a number for an existing S-76 airline customer outside the U.S.

Business is looking up all round at Sikorsky as its new strategies and programs begin to come on stream and the military moves to feed a growing appetite for helicopters.

The company delivered 92 helicopters last year, up significantly from 70 the year before.

"We're pretty well positioned," Borgman told Show News. "The civil market may well continue flat for the next few years, but we see the military markets, both U.S. and international, growing for our class of aircraft as the military identifies more missions for helicopters."

The bulk of the business will be Black Hawks, but other programs and businesses are becoming increasingly significant. For example, Sikorsky's aftermarket and support business will surpass $1 billion for the first time this year as the world's military outsources an increasing proportion of its overhaul and maintenance.

Production of the S-76 is expected to increase as airframe manufacturer Aero Vodochody comes up to speed, and deliveries of 20 to 25 a year could represent up to 20% of Sikorsky's aircraft shipments.

Borgman noted Sikorsky will be strengthened by growth in other programs, which include:

• Modernization for the U.S. Army of up to 1,200 Black Hawks to UH-60M standard, or building new ones, over several years.
• U. S. Naval Hawk programs for a potential 500 aircraft over the next 13 years. Deliveries of the MH-60S fleet combat support helicopter began in 2000 with contracts for 33 aircraft and plans to procure 85 more through 2006. The MH-60R is currently a remanufacturing program.
• A possible modernization of over 100 CH-53E Super Stallion heavy-lift aircraft for the Marines.
• More funding for the RAH-66 Comanche as the U.S. Army considers production.

By John Morris