Newsletter    -    October 2002

H-60 contract for Breeze Eastern

31 October 2002 - Breeze-Eastern, Union, N.J., is receiving a US$6,542,178 firm-fixed-price contract for 102 power drum winch assemblies used on the H-60 helicopter. This contract also includes the purchase of one power drum winch assembly for Taiwan under the Foreign Military Sales program. Work will be performed in Union, N.J., and is to be completed by November 2004. The contract funds will not expire at the end of the current fiscal year. The contract was competitively procured, with two proposals solicited and two offers received. The Naval Inventory Control Point, Philadelphia is the contracting activity (N00383-03-C-N010).

Malaysian market spawns Eurocopter Malaysia

23 October 2002 - As part of the development of its future activities in the South East Asia region, Eurocopter considers Malaysia to be one of the countries with the strongest potential for economic expansion. The creation of Eurocopter Malaysia – its new subsidiary– reinforces the presence of the Franco-German group in Malaysia, a presence that dates back to the 1960s.

Malaysia is a very important, potential market for Eurocopter, especially for military and parapublic aircraft as well as corporate and civil operators. Malaysian operators currently employ more than 60 Eurocopter civil and military aircraft (the Puma, Super Puma, Ecureuil, Dauphin N2 and N3, and EC-155). The 23 Alouette IIIs in service with the Royal Malaysian Air Force (RMAF), and the Malaysian Army Aviation, are also part of this fleet.

Malaysia’s need for helicopters has significantly increased and became more specific over the past two years. The country is currently renewing its fleet and purchasing new aircraft. The Army Aviation division plans to acquire 11 new, light, twin-engine aircraft and Eurocopter is to this tender with the EC-635.

Eurocopter is also planning to propose new aircrafts such as EC-130 and EC-725 related to several programmes to be considered by the Malaysian government. In view of this prospective, Eurocopter has just given a presentation of the EC-725 and a flight demonstration of the EC-130 last March.

For the various acquisitions of equipment envisaged by Malaysia, the Franco-German group intends to round off its offer with significant industrial partnership package. Through this policy, Eurocopter aims to participate in the development of local aerospace industry skill inline with the government policy. For the past 40 years Eurocopter has already built partnerships in Malaysia for airframes, engines, and transmission assemblies.

These partnerships were reinforced last year under the framework of the Navy Fennec program for which cooperative agreements havebeen setup with Malaysian companies like, Ikramatic System, Zetro Aerospace, SME Aerospace and Sapura.  Eurocopter intents to further develop industrial cooperation with regard to it EC-635 helicopters proposal to the Malaysian Army Aviation. Eurocopter is already in discussion with several Malaysian aerospace and high-tech companies.

Air Methods buys Rocky Mountain 

17 October 2002 -  Air Methods Corporation (NASDAQ: AIRM) , the largest air medical transportation company in the United States, announced today that the Company has completed its acquisition of Rocky Mountain Holdings, L.L.C. (RMH).

The cash purchase price for 100% of the equity of RMH was UA$28 million. This amount was increased to US$33.6 million to reflect increases in net equity since December 31, 2001, which also decreased assumed indebtedness at closing. Assumed long-term debt and outstanding balances on RMH's working capital line of credit, net of cash, aggregated to US$36.2 million as of September 30, 2002. Additional consideration of up to $2.6 million is possible through earn-out provisions set forth in the Definitive Purchase Agreement which, if earned, would be paid out over the next several years.

Unaudited financial results of RMH for the twelve months ended September 30, 2002, reflect net income of US$7.0 million from revenue of US$98.9 million. Unaudited trailing twelve-month earnings before interest, income taxes, and depreciation and amortization (EBITDA) for the same period were US$14.0 million. Unaudited book equity for RMH exceeded US$30.6 million as of September 30, 2002.

The purchase price was financed in part through the issuance of subordinated notes for US$23 million. The unsecured notes provide for quarterly payments of interest only at 12% per annum, with maturity of principal in five years from date of closing. As additional interest, the Company issued warrants to the lenders to purchase 443,224 shares of Air Methods Common Stock at US$.06 per share.

To finance the remainder of the purchase price and related closing costs and to provide working capital for the combined entities, Air Methods originated a US$35 million revolving credit facility secured by the consolidated accounts receivable, inventories, unencumbered equipment (excluding aircraft), and general intangibles. The term of this facility is four years, with a floating interest rate at prime. None of Air Methods' unencumbered aircraft were encumbered in the acquisition.

Mr. George Belsey, Chairman and CEO of Air Methods, stated, "We are extremely pleased to have completed this acquisition. The combined companies are now able to better serve our customers given our aggregate talents and strengths, geographical coverage, and diverse fleet. Upon completion of our integration plan over the next two quarters, we anticipate that the combination will be accretive to earnings as savings, efficiencies, and growth opportunities become realized. We believe the combined companies present a very exciting future for our customers, employees, and shareholders."

Air Methods Corporation ( www.airmethods.com ) is a leader in emergency aeromedical transportation, medical services, and technology. The Air Medical Services Division is one of the largest providers of air medical transport services for hospitals in the United States. The Mercy Air subsidiary and LifeNet division of RMH create one of the largest community-based providers of air medical services. The Products Division specializes in the design and manufacture of aeromedical and aerospace technology. The Company's fleet of owned, leased or maintained aircraft features over 150 helicopters and fixed wing aircraft.

 Slovenia buys Cougars

15 October 2002 - The Slovenian Defense Ministry and Eurocopter signed a contract on 15 October 2002 in Ljubljana confirming an option for two AS 532 AL Cougar helicopters.

After the initial contract signed in July 2001, this new contract brings the total number of Cougars ordered by the Slovenian Defense Ministry to four. Together, the two contracts are worth approximately 60 million euros.

The helicopters will be used for troop 

transport and Search And Rescue (SAR) operations. The first two Cougars will be delivered in April 2003, and the last two in May 2004.

The AS 532 AL Cougar is a twin-engine helicopter in the 9 metric ton class. It is powered by two Turbomeca Makila 1A1 turboshaft engines, each developing 1877 hp, and is capable of carrying 25 troops at a fast cruise speed of 260 km/h.

To date, a total of 144 customers in 55 countries have placed 660 orders for helicopters from the Cougar/Super Puma family.

Launch of new aeromedical service in China

7 October 2002 - International SOS and Deer Jet have jointly announced a strategic partnership to launch SOS Air Rescue, China's first dedicated air-ambulance service.

Deer Jet, a subsidiary of Hainan Airlines Group, has dedicated a Hawker 800XP executive jet aircraft to International SOS as a 'flying hospital' to provide businesses and travelers in China and countries in the Asia-Pacific region, with world-class aero-medical evacuation services. This quality of medical care is available 24 hours a day, 365 days per year.

The flying range of the Hawker aircraft enables the aircraft to easily provide services as far afield as Korea, Japan, Mongolia and Singapore. The Beijing based air ambulance stands ready to provide a rapid response in any emergency situation and joins the growing fleet of dedicated air ambulance aircraft International SOS operates around the world.

John Williams, Managing Director of International SOS, China explains why he believes this service is so important: 'With increasing numbers of foreign business people and travelers coming to China, we are seeing an increased demand for our assistance services and high quality medical care. The quality of medical care is rapidly advancing in major cities such as Beijing, Shanghai and Guangzhou and SOS Air Rescue will be able to help people reach centers of medical excellence or their medical destination of choice.'

Chairman and General manager of Deer Jet, Mr Tu Zhizheng, explains what this service means for China. 'SOS Air Rescue fills the blanks in providing a unique aero-medical service in China. This clearly demonstrates the rapid development of Chinese society when we are able to provide both citizens and visitors with a professional air rescue service. I believe this is only the first step in a very close and harmonious partnership with International SOS.'

'Not every company has the capability and resources to professionally handle situations that require aero-medical assistance,' continues Dr. Charles Van Reenen, International SOS Medical Director for China, ' When it is a matter of life and death, you want to be sure that both the medical team handling the evacuation, the pilots and aircraft operator are highly experienced, trained professionals who can operate in the most efficient manner. Medical evacuations can be extremely complex and demand a combination of high quality medical skills and expert logistics management. That's why Deer Jet and SOS work so well together.'

Dr van Reenen describes how International SOS and Deer Jet would respond to an emergency, 'As soon as we receive a call at one of our China-based 24-hour Alarm Centers requesting urgent medical assistance, one of our coordinating doctors together with the alarm center's operations manager will gather as much information as possible about the patients' medical condition. They will then advise the caller on the most appropriate next-steps and arrange for immediate evacuation to the nearest hospital for treatment. '

'The SOS doctor will continue to monitor the condition of the patient through consultation with the local treating doctor until the patient is considered stable enough to be moved. In consultation with Deer Jet, ground and air ambulance arrangements will be made to transfer the patient together with aero-medically-trained doctors, nurses and crew to the nearest center of medical excellence. This rapid and efficient reaction to a crisis can save time and ultimately the life of the patient, compared to an unstructured response to the same situation.'

Mr. Williams concludes: 'We believe SOS Air Rescue will provide a valuable new service in the region, serving domestic travelers in China as well as international travelers. Senior managers, salespeople, engineers or consultants who travel long distances outside of the major cities for customer visits, business meetings or branch operation reviews can now rely upon this service.'

Technical and Medical Specifications:

About International SOS: International SOS is the world's largest medical assistance company, as well as the leading provider of remote medical services. It has a full time staff of 2,600 professionals operating in 25 Alarm centers and 21 international medical clinics around the world, 24 hours a day, 365 days a year. In China, with more than 250 employees, International SOS operates three Alarm centers in Beijing, Shanghai and Hong Kong as well as four international clinics in Beijing, Tianjin, Nanjing and Guangzhou.

About Deer Jet: Deer Jet Co. Ltd - the sole air charter operator in China, is one of the subsidiary companies of Hainan Airlines Group. It began to operate as a VIP flight service in 1995 and was formally founded in 1998. In 1999, Deer Jet received the Civil Aviation Administration of China (CAAC), Aircraft Operation Certificate (AOC) for its excellent performance and safety record. Its fleet of aircraft includes 6 Hawker 800XP's, two A109 Power helicopters and one Global Express. Two Gulfstream aircraft will be added to the fleet by the end of 2002.

UAVs form part of Deepwater

1 July 2002 – UAVs form part of US Coast Guard Deepwater Programme

On 25 June 2002, U.S. Deputy Secretary of Transportation Michael Jackson, joined by U.S. Coast Guard Commandant Thomas H. Collins, announced the award of the largest acquisition in the history of the Coast Guard.  The Integrated Deepwater System (IDS) contract was awarded to Integrated Coast Guard Systems (ICGS), a joint venture established by Lockheed Martin and Northrop Grumman.  The Deepwater contract has the potential to extend up to 30 years, with an approximate value of US$17 billion. 

At full implementation, the interoperable ICGS system comprises three classes of new cutters and their associated small boats, a new fixed-wing manned aircraft fleet, a combination of new and upgraded helicopters, and both cutter-based and land-based unmanned air vehicles (UAVs). All of these highly capable assets are linked with Command, Control, Communications and Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) systems, and are supported by an integrated logistics regime.

Integrated Coast Guard Systems (ICGS is expected to deliver 76 Eagle Eye VTOL UAVs (Bell Helicopter Textron) for deployment aboard the new National Security Cutters (NSC) and Offshore Patrol Cutters (OPCs). Access is also provided to the Northrop Grumman Global Hawk HAE UAV. 

Many of the Coast Guard's most critical missions – countering terrorist threats, rescuing mariners in distress, catching drug smugglers, stopping illegal migrants, and protecting the marine environment – demand forces that are able to operate effectively across a broad geographic spectrum, from overseas operating areas to U.S. Exclusive Economic Zone, coastal, and port regions.  The Coast Guard's Deepwater cutters and aircraft are designed to operate throughout these diverse environments. They comprise the first line of the Service's layered defense against threats to America's homeland and maritime security.

Unfortunately, the Service's current Deepwater assets are ageing and technologically obsolete. They lack essential speed, interoperability, sensor and communication  capabilities, which in turn limit their overall mission effectiveness and efficiency.  To address these shortfalls, the Coast Guard established the Integrated Deepwater System Program to replace and modernize its aging force of cutters and aircraft, and their supporting command-and-control and logistics systems. These new assets, which possess common systems and technologies, common operational concepts, and a common logistics base will give the Coast Guard a significantly improved ability to detect and identify all activities in the maritime arena, a capability known as "maritime domain awareness," as well as the improved ability to intercept and engage those activities that pose a direct threat to U.S. sovereignty and security.

New Canadian SAR Initiatives 2002/3

Canada’s SAR initiatives fund merit list for 2002/3, as stated by its National Search and Rescue Secretariat, includes the following proposals:-

Approval and Qualification of Low Cost 406MHz Emergency Locator Transmitter (ELT)

Enhancing SAR Capabilities – MB

Emergency Locator Transmitter (ELT) Electronic G-Switch

Safe Mountain/Glacier Travel and Rescue Program - Campbell River SAR, BC

Automated External Defibrillation (AED) for the CCG

Enhanced Response to Major SAR Incidents in the Arctic

Night Vision Goggles (NVG) for Ontario Provincial Police (OPP) Marine Detachments

Canadian SAR/Emergency Tabletop Exercise Program

Escape, Evacuation and Rescue (EER) Systems Research and Development

Emergency Response During Events

Air Rescue Northwest seeks US$43 million  

5 October 2002 - In October 2002, the Pacific Northwest will lose critical search and rescue, wildland/urban interface fire suppression, and law enforcement capabilities, as critical air resources are eliminated. In an effort to retain and enhance citizen safety and welfare in Oregon and Washington, Air Rescue Northwest (a public/private partnership) is seeking US$43 million to acquire and support the year-around operation of two rescue helicopters staffed with highly experienced experts.

“Based on the current timeline, in April 2003 the US Air Force’s 939th Rescue Wing, which possesses the bulk of the Region’s existing air search and rescue capability, will transfer its assets to active duty Air Force units outside the Northwest,” says ARW. “The 939th has been successfully used 700 times in the past three decades to rescue over 600 civilian lives. There are no replacement resources scheduled into the region. Remaining resources are not capable of filling this huge gap in air search and rescue capability for a variety of reasons, flight time restrictions, competing priorities, lack of appropriate equipment, trained personnel and financial resources. As a result, essential rescue operations will be significantly degraded, which will in turn increase the risks for residents and visitors in our state.”

With over 1,021 rescue missions executed in the state in 2000, and with more than 677 total aircraft hours logged on search and rescue (SAR) missions alone in Oregon and the Pacific Northwest region, the need for an extensive network of SAR resources and expertise is well established.

The public/ private partnership of Air Rescue Northwest is seeking grant funding to purchase and operate two Sikorsky S-70 Firehawk rescue helicopters in Central Oregon. These helicopters, with the highly trained staff of Air Rescue Northwest, will provide Central Oregon a versatile, effective capability to meet the fire suppression, search and rescue and law enforcement needs in the region. The Air Rescue Northwest team will be available to respond 24 hours a day, seven days per week.  

Air Rescue Northwest will also have the capability to serve as back-up transport for Emergency Medical Services, such as Air Life in Central Oregon and Life Flight of Portland. Equipment operated by these services are limited performance capable, whereas the Air Rescue Northwest helicopters will be capable of flying in all-weather conditions up to 20,000 feet and maintaining a three-hour flight range. These capabilities will significantly enhance the ability to execute night and adverse weather wilderness rescues. From their centrally located base in Deschutes County, the Sikorsky S-70 helicopters can not only service the Central Oregon region, but the rest of the state and the Pacific Northwest region as a whole.
 

Air Rescue Northwest seeks to raise US$43 million for its initial start up and then to fund a permanent endowment for the program. These funds will be managed by the firm of Hagin, Price, Fronk & Company, LLP, complying with state and federal audit standards and with financial statements posted every year.

Projected expenditures:

Currently there is written support from The Guidestar Organization, Deschutes County and Hood River County Sheriff Department, Senator Smith office, Oregon Economic Development and pending financial support from The Boeing Company, Albertson’s Foundation, and The William Randolph Hurst Foundation.

French order for combat SAR  

October 2002 - The French Air Force has ordered four EC 725 helicopters (the latest addition to the Cougar family) re-engined with the Turbomeca Makila 2A. The first helicopter in the batch recently made its maiden flight from the Marignane site under the control of test pilot Hervé Jammayrac, flight test engineer Bernard Turcat, and flight test technician Daniel Sémioli.

The first flight, which checked the behaviour of the Makila 2A engine and its Full Authority Digital Engine Control (FADEC), lasted about 90 minutes. The new engine developed by Turbomeca has a new-generation compressor. It operates at higher temperatures, and therefore generates 14% more contingency power (2,448 hp, 2,413 shp) than the preceding version. Each engine is an independent unit, and contains all the systems, equipment and accessories it needs to operate.

The helicopter will equip the French Air Force - the launch customer - which has announced a current need for 14 of these helicopters to fly Combat Search And Rescue (CSAR) missions for the French Armed Forces. Delivery of the first of the initial four EC 725s is set for June 2004, and the remaining 3 will follow on in the last half of 2004.

In late 2004, the French Air Force will therefore have a unit of 4 qualified helicopters in operational service, as scheduled.

This new medium-sized helicopter in the 11-tonne class exists in a military (EC 725) and a civil (EC 225) version. It first flew in November 2000 and offers substantial increases in performance. Its certification program calls for civil certification in late 2003, concurrent with its military qualification for CSAR operations, and certification in icing conditions in early 2004. Compared to the Cougar Mk2, the new version can carry a considerably higher military payload, and has a longer civil radius of action.

Its main improvements compared to the Cougar Mk2 are a completely new main rotor, a strengthened main gearbox (MGB), a new powerplant, and a new integrated flight display system.

US$10m contracts for Royal Danish and Portuguese Air Force SAR

2 October 2002 - FLIR Systems, Inc. announced today that it has been awarded a contract from Agusta SpA, valued at more than US$10 million, to supply its Star SAFIRE IITM multi-sensor airborne thermal imaging system to the Royal Danish Air Force (RDAF) and the Portuguese Air Force (PAF) for their fleet of EH101 helicopters.

The contract is for 20 systems to be delivered over a two-year period beginning February 2003, to coincide with simultaneous production of EH101 helicopters at Agusta's facilities in Italy and Westland, England. The contract also includes an option for delivery of additional systems over the next few years.

Both the RDAF and PAF will use the Star SAFIRE II for search and rescue missions. Additionally, the PAF will leverage the system to protect fishing territory, while the RDAF expects to use it in tactical troop transportation.

The Star SAFIRE II controls will be integrated into Agusta's custom operator's console on the EH101, allowing ease of control for the rear cabin operator. Selected aircraft will be equipped with multi-station controls. FLIR Systems will supply specially designed, ergonomic hand-controllers to be embedded into the operator's console and cockpit to facilitate exchange between crew members.

US$1.5 billion contract for Sikorsky H-60s

26 Sep 2002 -  The US Army Aviation and Missile Command awarded today a five-year, US$1.5 billion multi-service contract to Sikorsky Aircraft for the manufacture of H-60 helicopters and related support services and equipment. The award represents the sixth multi-year agreement for H-60 aircraft since the program entered full production in 1978.

The basic contract, awarded on behalf of the Army’s Program Executive Office, Aviation, and the Department of the Navy, includes 80 Army UH-60L BLACK HAWKs and 82 Navy MH-60S utility helicopters, associated mission kits, project systems management and related support for production years 2002 through 2006.

The contract also contains options which, if exercised, could potentially be worth US$6 billion for approximately 600 total aircraft, mission kits and support. The precise value of the contract depends on year to year budget allocations.

"Sikorsky has delivered more than 2,600 H-60s to U.S. government and international customers across the world, " said Paul Martin, Senior Vice President, Senior Vice President -Government & Advanced Development Programs.

Sikorsky delivered the first production H-60 aircraft in 1978, a U.S. Army UH-60A BLACK HAWK. Sikorsky later developed several H-60 derivatives including the SEAHAWK, JAYHAWK, and PAVE HAWK, and as well as the international variant S-70 for export.

The UH-60 BLACK HAWK is the front-line utility helicopter for the Army, and it is used primarily for air assault and general support missions. The MH-60S is used by the Navy for multi-mission maritime operations including VERTREP (vertical replenishment), vertical on-board delivery, amphibious and carrier search and rescue, and remote site logistics missions.

Eurocopter notches first US sale of EC 145

23 September 2002 - American Eurocopter has sold its first EC 145 in the United States to the Lee County Division of Public Safety/EMS. The launch customer will use the EC 145 primarily to support the Lee County Emergency Medical Services segment of the Division. 
 
Lee County, which lies along the west coast of Florida, includes the cities of Fort Myers, Fort Myers Beach, Cape Coral and Bonita Springs as well as 652,000 acres of coastal area and barrier islands. Lee County EMS (LCEMS) is a third-service municipal Advanced Life Support provider for Lee County, Florida. The EMS Helicopter Operation is responsible for providing advanced life support for out-of-hospital emergencies and primary health care. While trauma and medical calls constitute the majority of the operation, LCEMS also responds to personnel searches, mass casualty incidents, and missing or downed aircraft reports.  
 
Lee County EMS has been operating helicopters since 1978, and currently flies a B0-105. The EC 145 will be an addition to the fleet and will greatly enhance the Division’s capabilities. In discussing the selection of the EC 145, Fred Ungerer, Lee County EMS Chief Pilot, said, “Our foremost consideration was acquiring a helicopter that allowed us adequate medical capability. The EC 145 will be configured similarly to our ground units and give us plenty of working area without the large footprint inherent in other aircraft offering the same capacity.” 
 
The EC 145 is a derivative of the venerable BK-117 and shares its transmission and main rotor dynamics, but has a completely redesigned main rotor blade. The EC 145’s improved blade design allows a substantial increase in cargo-carrying capacity. The fuselage also has been stretched and features a cabin measuring 205 cubic feet.  
 
“Another reason for selecting the EC 145 was the fact that it was based on the BK-117,” continued Ungerer. “The BK 117 has an established reputation in the medical community and is held by many to be the standard for EMS transport. It also gave us credibility with the taxpayer, which is always important. 
 
“We also found that the EC 145’s operating costs were very competitive, especially given its load capability,” Ungerer added. “And since we’re operating the BO-105 as well, this makes our maintenance and after-market support very efficient.” 
 
LCEMS is responsible for covering approximately 1,000 square miles. In addition, they have mutual-aid agreements within a five-county area for emergency air transport of critical patients. Delivery of the EC 145 to Lee County is slated for early 2004. 
 
Lee County EMS is undergoing an aggressive expansion program to meet the needs of a rapidly growing population.

New thermal imagers for Air National Guard HC-130 SAR aircraft

21 August 2002 - FLIR Systems, Inc. (Nasdaq: FLIR) announced today that it has been awarded a contract from Modern Technologies Corporation, in conjunction with the U.S. Air Force, Warner Robins Air Logistics Center HC-130 Program Office, valued at $3.5 million to supply its Star SAFIRE IITM airborne thermal imaging system for the Air National Guard's HC-130 search and rescue aircraft.  

The HC-130 FLIR Integration Program is a multi-million dollar program for the procurement and installation of eight (8) Star SAFIRE II FLIRs over the next two years. The contract also provides for future delivery of up to 37 additional Star SAFIRE II systems through 2006, depending on future funding availability, for the Combat Air Force's entire fleet of HC-130 search and rescue aircraft. If fully funded and exercised, this future delivery option is valued at approximately $16.0 million. Air Combat Command, Air Education & Training Command (both active duty) and Air Force Reserve Command (AFRC) operate the HC-130 aircraft in addition to the Air National Guard. Deliveries are expected to begin in 2003.  

UK Maritime and CoastGuard Agency Announces Helicopter Contracts

July 2002 - The UK Maritime and Coastguard Agency today announced the award of a 5-year contract to Bristow Helicopters Limited for a 24 hour all-weather search and rescue helicopter based at Stornoway. This contract will end on the 30 June 2007. Additionally, further contracts were announced for the continuation of 24-hour search and rescue helicopters at Sumburgh in Shetland from the cessation of the current contract (31 May 2004) until 30 June 2007, and at Lee-on-Solent in Hampshire from the expiration of that contract on the 14 May 2003 until June 302007. Each of the three contracts announced today has the option to be extended by up to two years.  

Discussions are currently on-going concerning the redevelopment of the old Royal Naval Air Station at Portland. However this contract, also with Bristow Helicopters Limited for a 12 hour all weather search and rescue helicopter, is not due to expire until 14 May 2003. These competitively tendered contracts continue the provision of Coastguard Sikorsky S61N helicopters at Sumburgh in Shetland; Stornoway in the Western Isles and Lee-on-Solent in Hampshire. These aircraft have been operated by Bristow Helicopters Limited since the first contract began in Shetland in December 1983.

Maurice Storey, Chief Executive of the Maritime & Coastguard Agency said: “These contracts maintain a helicopter search and rescue capability in each of the three sea areas in which we have a helicopter presence.  Our distinctive red and white helicopters will continue to provide search and rescue in these operational areas, in which such activities as the off-shore oil and gas industries, ferry and cruise ships, and a prominent fishing workforce operate, not to mention ever increasing tourism, which can attract thousands of visitors to our busy coastline, during the summer months.  We will continue to maintain a helicopter search and rescue capability in the Solent area and this helicopter will cover the busy shipping lanes in mid-Channel including several ferry routes, as well as the popular holiday and recreational area of the Solent and along the South East coast. Our helicopter was first seen at Solent in 1988.

"I am also pleased that our helicopters based in Stornoway and Shetland will continue to maintain their reassuring presence far out into the Atlantic and the North Sea, and these significant rescue assets have provided some of the most dramatic search and rescue episodes in recent years.

"It is anticipated that early in the new Millennium a new generation of helicopters will be developed, which may prove appropriate for search and rescue operations, and the Agency will be looking closely at these new aircraft as they become available."  

International Search and Rescue Requirements

Search and rescue demands that an aircraft can search accurately for long periods at very long ranges from base. It must also be capable of operating in hostile climatic conditions as well as in harsh environments and be able to find, rescue and accommodate personnel.  

Belgium: Scheduled to issue a request for proposals in 2003 for up to 20 multi-mission medium lift helicopters for its armed forces

Canada: Canada’s new search and rescue helicopter, Cormorant, entered service with the Armed Force’s Operational Conversion Unit in June 2002 covering training of the first batch of Cormorant aircrew in new search and rescue hoisting techniques and procedures. The aircraft has completed its series of operational schedules with 442 SAR Squadron in Comox BC and was successfully certified for duty on 15 July 2002.

Comox will host five helicopters (that will form 442 Sqn and the Operational Training Unit) and the remaining ten aircraft will be divided between 413 Sqn (4 aircraft) in Nova Scotia, 424 Sqn (3 aircraft) in Ontario and 103 Sqn in Newfoundland (3 aircraft). 

Denmark: Denmark ordered 14 SAR/utility versions of AgustaWestland’s EH101. The first five are slated for delivery in 2004.

Portugal: The country has a US$300 million requirement for 12 long-range (over 700km) combat SAR helicopters with deliveries scheduled between 2004 and 2006.

UK: The Royal Navy has ordered 44 Merlin HM Mk 1s – all aircraft should be delivered by November this year. To date, the Merlin Integrated Project Team has taken delivery of nineteen of the twenty two EH 101 Merlin HC Mk3 helicopters on order. The final aircraft delivery is due to take place at the end of September 2002. At present, ten Mk 3s are based at RAF Benson

The Ministry of Defence further announced in July 2002 that it will proceed with an Assessment Phase for the UK’s Surface Combatant Maritime Rotorcraft Requirement. AgustaWestland’s Future Lynx was selected for this phase. In January 2002, it gave the go-ahead to the Assessment Phase for the UK’s Battlefield Light Utility Helicopter requirement.

AB139 Debut at Farnborough

July 2002 - Bell Agusta’s AB139 helicopter made its debut at the Farnborough Air Show earlier this month. The aircraft has been selected by the Northrop Grumman/Lockheed Martin Integrated Coast Guard Systems’ Joint Venture as part of a bid to modernise the USCG forces over the next three decades. It has been designated the future VTOL recovery and surveillance (VRS) aircraft for the Deepwater programme (Deepwater is valued at a potential US$17 billion).  The aircraft has been cited for missions such as search and rescue, anti-smuggling, anti illegal immigration and fisheries patrol.  

It is the second AgustaWestland design to be selected for the US Coast Guard – an award for eight A109 Powers was received in 2000 .The first production AB139 flew for the first time on 20 June  at Vergiate, Italy. Certification and first deliveries are expected next year.

Mi-38 On Track

July 2002 - The Russian-European consortium Euromil (Mil MVZ, Kazan Helicopters and Eurocopter) is readying the Mi-38 medium versatile helicopter for its maiden flight, due in December 2002 with certification expected in 2005. Russia’s Civil Aircraft Programme anticipates spending some $266 million on the new aircraft. The potential market for the Mi-38 has been estimated at 250-300 machines between 2005 and 2030 (of which 100 will be export deliveries).  

The aircraft is expected to challenge NH Industries’ EH101. Growth potential built into the Mi-38, says the consortium, will enable it to replace Mi-6 and Mi-10 series heavier-lift helicopters for some tasks. In future, the Mi-38 will carry up to six tones inside the compartment and up to eight tonnes underslung.

No Decisions Yet for Portland Helicopter

28 June 2002 - For some years now, since the Royal Navy withdrew, the UK Coastguard has operated a day time only search and rescue helicopter flight from the old Portland Naval Air Station. The base is now owned by the South West Regional Development Agency (SWRDA) and is being developed commercially. The site is being developed to include the SAR flight within any new development and discussions have taken place with the SWRDA over many months to reach a workable solution.  

The site is being developed for mixed use of land for employment, leisure, retail and residential use. This has resulted in the area left for the SAR flight being in a man-made flood plain. The flood plain is to protect the other commercial premises on the site. If the MCA located the SAR flight in the flood plain area it would need to take special mitigation measures to avoid the hanger itself flooding. This will be very expensive. Even with this expense the runway would still remain within the existing flood area. Discussions are therefore continuing on this issue with the SWRDA and an Environmental Risk Assessment has been produced for the area of the flood plain for further discussion.

Given this situation, options are now being considered for the future helicopter coverage of Portland’s operational area and basing arrangements. In the light of the uncertainty an operational risk analysis has been carried out on re-locating the helicopter to the existing Lee-on-Solent SAR helicopter base. This would result in two front line SAR helicopters, with backup, being based at Lee; one 24 hours (existing Lee aircraft) and one 12 hours (existing Portland aircraft).

The review of UK SAR helicopter provision states that: " A search and rescue helicopter should take off as quickly and safely as possible, normally within 15 minutes by day, and 45 minutes by night. From receiving notification of the incident by the appropriate Coastguard Station, a search and rescue helicopter should be capable of reaching all very high and high risk areas, (Portland area included) within the UK within 60 minutes of take off."

However the MCA stress that no decision has yet been reached and further discussions with SWRDA are on going.

2001: Eurocopter claims 57% of world civil and parapublic market

12 April 2002 - 2001 was an excellent year for the Eurocopter Group, who chalked up 375 new aircraft orders, representing 43% of the market based on the number of new civil and military helicopters, and confirming position as the world's No. 1 helicopter manufacturer. 
 
The orders were broken down as follows: 81 EC 120 B Colibri, 103 single-engine Ecureuil/Fennec, 27 EC 130 B4, 2 BO 105, 17 twin-engine Ecureuil/Fennec, 38 EC 135, 2 BK 117, 8 EC 145, 10 Dauphin/Panther, 13 EC 155 B/B1, 26 Super Puma/EC 225 - Cougar/EC 725 and 48 NH 90. 
 
The total order book, including new and previously owned aircraft (50 helicopters sold by Eurocopter and its subsidiaries), research and development, services provided to customers, and other various activities increased to $ 2.825 million*. The breakdown of these orders by value is 45% for the civil and parapublic sector and 55% for the military sector. 
 
The consolidated order book for series-production helicopters represents $ 1.760 million*. 
 
The primary contracts signed in 2001 in the military sector were as follows: forty-eight NH 90 (Portugal, Sweden, Finland), eight Cougars (Brazil), four Super Pumas (Greece), two Super Pumas and fifteen EC 120 B Colibris (Indonesia), 6 Fennecs (Malaysia), and in the civil sector: ten EC 130 B4 for Blue Hawaiian (United States), ten EC 130 B4 for Rocky Mountains (United States), two EC 225 and one AS 332 L2 Super Puma for CHC (Canada), three EC 155B and one EC 135 for COHC (China), two EC 155 B for SFC (Vietnam), three EC 155 B for SHS (Sweden), and four EC 145 for REGA (Switzerland). 

(* USD amount based on an exchange rate of $ 1 to 1 €)   

Turnover 
 In 2001, the consolidated turnover of Eurocopter reached $ 2.243 billion*, an increase of approximately 10% over the previous year. This figure comprises primarily customer support services, Research and Development, and the delivery of 335 helicopters. 
57% of turnover comes from the civil and parapublic sector and 43% from the military sector. 
Exports (outside France and Germany) totaled 65%. 
  
Civil and Parapublic 
 The upswing observed over the last three fiscal years was confirmed in 2001, as approximately 495 helicopters were delivered, versus 477 the previous year - despite uncertainty in the United States (the September 11 effect). 
 
Eurocopter accomplished the remarkable task of delivering 280 helicopters, representing 57% of the market. This was a sharp increase over the previous year (51% of the market, 241 helicopters delivered out of the worldwide total of 474 units).

 
This impressive number of deliveries is primarily due to the success of the EC 120 B Colibri, with more than 80 deliveries, and also thanks to the AS 350 and EC 135 helicopter families. 
  
Military 
315 aircraft were ordered worldwide in the military sector, and 75% of the helicopters were from the attack and heavy categories. 
 
The 2001 military market confirmed the fleet renewals which began in 1999 and the return to large-scale military programs (Nordic Standard Helicopter Program, Australia, United States, Canada, etc.). The strengthening of Eurocopter's position in these markets, with 25% of the order book, was also confirmed, due above all to the Tiger and NH 90 export contracts and to the success of the Cougar. 
  
(* USD amount based on an exchange rate of $ 1 to 1 €) 
 
Eurocopter is a wholly-owned subsidiary of EADS (European Aeronautic Defence and Space Company). With revenues amounting to 30.8 billion Euro and a workforce of 100,000, EADS is the largest European aerospace company and No. 2 worldwide. It is active in the sectors of commercial aircraft, helicopters, space, military transport and combat aircraft as well as defence technology and services.