Honeywell Lowers Its Helicopter Expectations;
Sees Less Growth Than Last Year

Honeywell has toned down its helicopter sales expectations from last year, now predicting annual growth of 2.5% for 2000-2004, with overall sales of approximately 2,300 aircraft.

Last year it looked ahead to three percent annual growth over five years, predicting sales of 2,350 helicopters from 1999-2003. Another eyebrow-raiser: reported new civil turbine helicopter deliveries in 1999 were down slightly compared to 1998.

"The slight decline in purchase expectations is attributable to operators' increased caution regarding the near-term economic outlook and the effect of many proposed regulations on operations," Honeywell said. Key to the more modest growth now expected is "excitement over recently introduced helicopter models"-new and derivative models accounted for over 43% of all helicopters mentioned for purchase during the next five years, according to the former AlliedSignal's third annual Turbine Powered Civil Helicopter Market Outlook.

Light singles lead the market in terms of unit numbers, followed by light and intermediate twins.

Geographically, only Europe reported higher expectations compared with last year's survey, largely because of seven percent more replacement interest. In North America, which with 55% will have a slightly bigger share of the world market, buyers evinced "a more cautious attitude toward sustained economic growth based on the turmoil experienced over the last two years in other regions of the world."

Both Latin American, and the Asian/African/Middle Eastern operators among the approximately 1,000 queried worldwide during the fourth quarter of 1999 indicated a less aggressive helicopter buying posture than they did a year ago.

Honeywell's outlook for 2000-2004 represents a gain of two percent over the period 1995-1999, when some 2,250 new turbine rotorcraft were delivered.

"Fleet age and the recent introduction of important new and derivative helicopter models continue to be important factors," said Honeywell engines and systems vice president Mike Redenbaugh.

By Rich Piellisch