Friday, January 02, 2004

Changing fortunes in the helicopter industry The civilian helicopter business is been shaken up as a Franco-German firm, Eurocopter, has become the dominant player in the world. In an industry long dominated by American firms, Eurocopter now dominates the business. Its US clients include tour operators and law enforcement agencies, including federal government agencies such as the Border Patrol and the Drug Enforcement Agency. US companies Bell and Sikorsky were dominant in this field until recently. But they have focused on military procurement and let the civilian slide slip, while Eurocopter and British-Italian Agusta Wetherland have focused on meeting customer needs in the civilian area. This includes quieter helicopters with more passenger space and lower vibration levels. As a Wall Street Journal article points out ("Helicopters Soar Overseas". 1/2/2004), Eurocopter is owned by EADS (European Aeronautic and Defense Space Co., which also runs Airbus. In the same way that Airbus is clobbering Boeing in the civilian marketplace, Eurocopter is beating its American rivals. It's telling that both Bell and Sikorsky are parts of larger corporations as well. Bell is part of Textron (which makes weapon systems, golf carts, Cessna Airplanes, and many other things), while Sikorsky is part of United Technologies (which makes airplane parts, elevators, and air conditioners, and so on). These companies have fed fat on relatively easy military contracts, and the civilian area has become a stepchild. According to industry analysts figures quotes in the WSJ story, 2002 market share for nonmilitary helicopters were approimately: Eurocopter              40% Bell                        17% Sikorsky                 10% Agusta Westland     10% All indications are that in a complacent market, one that is a side-business of larger corporations, an ambitious and nimble company can cause disruption. Eurocopter hasn't come out of nowhere; it is the result of the merger of DaimlerBenz's helicopter operations and those of French Aerospatiale. But the company saw an opportunity while its rivals napped, restructuring this market to their profit. 2:29:24 PM

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