On the Record with FABRICE BREGIER, PRESIDENT & CEO, EUROCOPTER
The beginning of production for the Tiger attack helicopter couldn't
come at a better time for Eurocopter, which has seen civil sales
remain flat because of the worldwide economy.
The result will be a significant shift in the company's ratio
of civil to military sales, which will migrate from today's 58%
civil and 42% military to a 50/50 split in the next several years,
according to Eurocopter's new president and CEO Fabrice Bregier.
"The biggest growth for Eurocopter will come from the military,"
he said. "We are in a transition with the end of Tiger and
NH 90 development phases, and will deliver the first production
Tiger to Germany at the end of the year."
Orders for the two helicopters exceed 500-182 Tigers on the books
(80 each for France and Germany, plus 22 for Australia), and 205
firm orders for NH 90 (for a variety of countries).
"It means we will drastically increase sales and reach 3.5
billion euros in revenue in three year's time for civil and military,"
said Bregier, who left the top job at missile consortium MBDA
and took over the helm of Eurocopter from Jean-Francois Bigay
in April. That's a significant 1 billion euros jump in revenue
from this year's expected revenues of 2.5 billion euros.
Interestingly enough, Bregier says that Eurocopter's civil sales
won't decrease in euro value, only in their percentage of overall
sales within the company.
The coming emphasis on military sales will mean a shift in resources
away from civil production and toward military, which Bregier
says is very much akin to what is being experience by other companies
with civil and military businesses-such as Boeing.
"It is clear that this 50/50 structure means the company
is less dependent on market fluctuations," said Bregier.
"In terms of organization, we have manpower that is migrating
at present from commercial to military, and we are recruiting
more workers in France and Germany as (military) production ramps
up."
That doesn't mean, however, that Eurocopter plans to ignore the
civil side, where it holds a 60% share of the worldwide market.
"We have competitors and we know we have to keep the edge,"
said Bregier. "It means shifting even more from a product
company to a service company. I intend to put my energy into global
services, to include training."
The training element will come through Helisim, a joint venture
with Thales Simulation and a French company called DCI in which
Eurocopter holds a 45% stake. Helisim initially will focus on
pilot training for the Super Puma and Dauphin helicopters.
Eurocopter has invested a good deal of money on product development
since the mid-1990s, so no new civil models are in store for the
foreseeable future, Bregier says. What will continue are upgrades
and modifications to existing models. One example is the EC 130,
an extension of the Ecureuil line that has a larger cabin and
low-noise fenestron tailrotor, which will also be shown here at
Le Bourget in VIP configuration.
Another is the EC 145, which holds 50 orders for police and security
operations, and is a mix of new technology with the older-generation
BK 117 airframe. Then there's the EC 155B1, an upgrade of the
Dauphin family with a more powerful engine, as well as the EC
225, a development of the Super Puma with a five-blade rotor and
more powerful engine for range and speed. The EC 145 and EC 225
will be demonstrated for the first time here at the show.
"We want to come up with new products that are not brand
new," said Bregier. We offer modernity without the risk."
Eurocopter also has big plans for the North American market. Progress
continues on development of a new facility in Columbus, Mississippi,
for manufacture of AStar (Ecureuil) helicopters, plus components.
The company has teamed with Lockheed Martin to bid on Canadian
requirements for a maritime helicopter. The American company would
be the prime, and Eurocopter and NH Industries would provide the
NH 90 platform. Eurocopter is also talking with EADS North America
about possible joint venture opportunities.
Opportunities also exist in China. Said Bregier, "The market
is way up. Regulations will allow more helicopters to fly (in
China), and we are in talks with the AVIC to see whether we could
expand agreements to parts of their market."
For Bregier, taking over the top job at Eurocopter hasn't been
much different than running MBDA. Both are multinational companies
with a worldwide customer base. The difference in the culture
between the two industries, however, has been enlightening for
Bregier.
Of helicopters Bregier says, "If you take the personnel of a company,
the customers, the pilots, you find a community that is passionate
for the business," noting the dangerous but satisfying work
of organizations such as the U.S. Coast Guard, which has used helicopters
to save the lives of thousands of people. "I have probably
gotten the virus since I joined the company."
