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On the Record with
TERRY STINSON, CHAIRMAN AND CEO, BELL HELICOPTER TEXTRON

Sales of the six-nine passenger Bell/Agusta BA609 Tiltrotor have been so brisk that production is sold out for the first three and a half years, according to Bell chairman and CEO Terry Stinson, who is here at NBAA to promote business use of his helicopter product line.

Orders for the civil tiltrotor -- an executive-equipped mockup is here at the show -- stand at 77 with firm deposits at a 1996-based price of $8million to $10 million each. Sales from now on will be priced 18 months before delivery, or not for another five years. Despite the huge gamble on price, customers are still signaling their intent to place firm orders to guarantee a ship on the production line after deliveries begin in 2002, Stinson said.

"We've been taking commitments even after ending the price guarantee, including two or three generated by Agusta," he said. "Most are so convinced in the technology they don't want to wait and see; they're placing orders now to ensure availability."

He added that those who placed the initial 77 orders "are going to be very pleased with the pricing."

Any program slippage in the Tiltrotor caused by taking Agusta on board as a partner has been made up, and the program is on track, Stinson said. "We've been doing business with Agusta for half a century, so we didn't have to do the traditional mating dance."

Bell/Agusta will build four prototypes of the 609, the first of which will fly late in 2000. Dual production lines will be set up in Amarillo, Texas, and Italy.

Bell is also here with the 407 light single-engined helicopter, which is currently emerging from tail rotor and rudder control problems that severely limited its flight envelope until a fix was found. FAA approval of Bell's solution is expected this month; meanwhile VNE is being pushed back up first to 130 and then to its original 140 kts.

"We've resolved all those problems," Stinson said, and plans now call for a 250 pound increase in gross weight to 5,250 pounds.

Confidence in the 407 hardly seems to have been shaken by its misfortunes: orders stand at 400 just three years into the program, of which 61 were logged this year alone as it publicly displayed its weak points. "That is quite remarkable," noted Stinson.

The twin-engined Bell 427 built jointly with Samsung of Korea is here with 1,500 development hours behind it and plans for certification in Canada in November, some three to four months behind schedule. Orders stand at 80, meaning it is sold out for the first three years of production. Stinson himself has 18-20 hours flying the 427. "I love it," he said. "It's a real hot rod."

Huge backlogs on the BA609 and 427 "are good problems to have," noted Stinson, "although we hate to keep customers waiting."

Bell intends to certify the 427 for dual pilot IFR early next year, and for single pilot IFR toward the end of 2000. Gross weight will be raised from 6,000 pounds to 6,500 pounds. Orders have picked up for the Bell 430, "which is having a wonderful year," according to Stinson. "We had to increase the production rate," he added, in order to deliver 11 this year alone while taking orders for another eight. Bell isn't known for the executive-configured business helicopter, so many potential customers wanted to wait and see how the first 430s performed in this role. "A number operate two, three or four, and they're so pleased with their fleets that acceptance has really taken off," he said.

In other developments, Bell recently acquired Edwards & Associates, a leading company in the manufacture of helicopter customization kits and accessories, as well as the sale of after-market Bell parts. It will be run as a standalone business, but allows Bell to have a greater influence in helicopter modifications and support.

"Edwards will add tremendously over time to our business," Stinson said, as well as allowing it a greater role in the used helicopter business and a greater ability to take customers' machines in trade for new models.

By John Morris

NBAA 1999, Atlanta, Ga.


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