DALLAS, March 6, 2017 /PRNewswire/ -- Impacted by a
slow global economic growth environment and volatility in oil and
gas-related markets, the helicopter industry is reacting with a
cautious outlook for near-term new purchases. In its 19th annual
"Turbine-Powered Civil Helicopter Purchase Outlook," Honeywell
(NYSE: HON) forecasts 3,900 to 4,400 civilian-use
helicopters will be delivered from 2017 to 2021, roughly 400
helicopters lower than the 2016 five-year forecast.
"The current global economic situation is causing fleet managers
to evaluate new helicopter purchases closely, and that's why we're
seeing a more cautious five-year demand projection compared with
previous years," said Ben Driggs,
president, Americas, Honeywell Aerospace. "Even in a slow growth
environment, Honeywell is well-positioned to help operators keep
current fleets lasting longer with aftermarket upgrades and
repairs."
Key global findings in the outlook include:
- The survey showed new purchase-plan rates were lower for the
next five years, for all regions, leading to a more cautious
near-term outlook.
- When considering a new purchase, operators' results mirrored
those from last year, with make and model choices for their new
aircraft most strongly influenced by range, cabin size,
performance, technology upgrades and brand experience.
- Helicopter fleet utilization in the past 12 months generally
increased compared with last year. Over the next 12 months, usage
rates are expected to improve significantly in North America and Latin America, but at a reduced rate in
Europe.
Regional Overview
Latin
America: The 2017 results show lower fleet replacement
and growth expectations compared with 2016 results. Still above the
world average, the purchase plans have declined more than 13
percent compared with the prior year.
- Latin America led all global
regions in the rate of new aircraft purchase plans, but is down
year over year and impacted by weak economic performance in
Brazil and Venezuela.
- Latin American respondents currently favor light single-engine
models, representing almost 60 percent of their planned
acquisitions, followed by intermediate and medium twin-engine
platforms.
Middle East and Africa: The region has the second-highest
new purchase rate among the regions, with up to 22 percent of
respondent fleets slated for turnover with a new helicopter
replacement or addition. However, purchase plans are 8 percent
lower compared with 2016 survey results.
- Close to 80 percent of planned new helicopter purchases are
intermediate and medium twin- engine models.
- Light single-engine models are the second-highest-mentioned
platform in the survey by operators.
North America: Purchase
expectations fell by more than 2 percent in this year's survey. The
purchase plans are down for a second year since 2015.
- More than 75 percent of planned North American purchases were
identified as light single-engine models, while just under 13
percent of new purchases were slated as intermediate or medium
twin-engine models.
- North American purchase plans are a significant component of
the overall 2017 survey demand, as the region represents more than
40 percent of the current world fleet.
Europe: Purchase plans
decreased by more than 3 percent in this year's survey, down for a
second year in a row.
- The sample of Russian operators responding in the 2017 survey
remains small, which continues to add some uncertainty to the
overall European results.
- Excluding heavy-twin helicopters, European purchase intentions
currently tend to favor all classes in nearly equal shares this
year.
Asia Pacific: Despite
solid results from these nations, overall buying plans slipped
about 1 percent. Operator purchase plans continued to drift
slightly lower compared with the past few years in the 2017
results.
- APAC operators tended to focus more on corporate and oil and
gas end uses for their new purchase plans, and consequently,
intermediate and medium twin-engine helicopters were the most
popular models in their new aircraft plans.
- India held fairly steady year
over year based on very small sample input.
- There are a number of countries contributing more relative and
absolute new helicopter purchase plans in the region, including
China, Australia, South
Korea, Japan and
Malaysia.
BRIC countries (Brazil,
Russia, India and China): Purchase plans are lower for all
countries except Russia in this
year's survey. Overall, BRIC plans are down more than 11 percent
compared with 2016 results.
- Brazilian purchase plans are down significantly, by almost 20
percent in 2017, reflecting the impact of the economic recession in
the country.
- Small sample sizes in Russia
and India make it difficult to
draw conclusions.
- Planned Chinese purchase rates slipped, reflecting near-term
slower economic growth prospects.
Methodology
The 2017 outlook presents a snapshot of
the helicopter business at a point in time and reflects the current
business and political environment. This year's survey queried more
than 1,000 chief pilots and flight department managers of companies
operating 3,746 turbine and 362 piston helicopters worldwide. The
survey excluded large fleet or "mega" operators, which were
addressed separately. Input received from large oil and gas support
and emergency medical service fleet operators is factored into the
overall outlook in addition to the individual flight department
responses. The survey detailed the types of aircraft operated and
assessed specific plans to replace or add to the fleet with new
aircraft.
Supporting Resources
- Read more about Honeywell's helicopter offerings
- Read more about Honeywell Aerospace on the Follow The Aero
blog
- Like Honeywell Aerospace on Facebook
- Follow @Honeywell_Aero on Twitter
Honeywell (www.honeywell.com) is a Fortune 100
software-industrial company that delivers industry specific
solutions that include aerospace and automotive products and
services; control technologies for buildings, homes, and industry;
and performance materials globally. Our technologies help
everything from aircraft, cars, homes and buildings, manufacturing
plants, supply chains, and workers become more connected to make
our world smarter, safer, and more sustainable. For more news
and information on Honeywell, please visit
www.honeywell.com/newsroom.
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SOURCE Honeywell