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.