Middle East and African helicopter markets set to grow says Honeywell

Middle East and Africa leads all regions in new helicopter purchase rates, with up to 32 percent of respondent fleets slated for turnover with a new helicopter replacement or addition according to Honeywell Aerospace in its 17th annual turbine-powered civil helicopter purchasing outlook.
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 Honeywell expects that 4,750-5,250 civilian-use helicopters will be delivered worldwide during 2015-2019. 
Overall, five-year demand for turbine-powered, civil helicopters remains steady versus the 2014 five-year forecast, with moderate improvement in new helicopter purchase plans reported, offsetting the short-term uncertainty of large-fleet operators in the face of lower energy prices and fluctuating market currencies. 
The forecast estimates the five-year share of demand from the U.S. and Canada at 34 percent, up nearly eight points on stronger North American buying plans. When combined with Latin America, the Western Hemisphere represents 53 percent of the five-year global demand. Europe’s share tallies 24 percent, with the Asia-Oceania region accounting for 14 percent, and Africa and the Middle East contributing 9 percent.
Operators who intend to purchase a helicopter within the next five years noted that the age of their current aircraft (which includes factors such as maintenance costs, performance erosion and safety concerns), contracted replacement cycle and warranty expiration were all key reasons for their decision. For those surveyed, make and model choices for their new aircraft are strongly influenced by range, cabin size, performance technology upgrades and brand experience.
“Near-term demand appears stable despite a pullback in 2014 deliveries and ongoing concerns with the energy sector,” said Mike Madsen, president, Defense and Space, Honeywell Aerospace. “Purchase interest for helicopters in training, tourism, firefighting and law enforcement categories is trending up, influenced by increased utilization rates and helicopter replacement cycles. Interest across these mission sectors is helping to sustain near-term demand. Looking ahead, several new platforms are scheduled to enter service over the next few years, also bolstering overall helicopter demand.”
Light single-engine helicopters continue to be the most popular helicopter class, garnering almost half the new purchase interest in the 2015 survey. The Airbus EC130/AS350 series, Bell 407, Bell 505 and Robinson R66 were the most frequently mentioned models. 
Intermediate and medium twin-engine helicopters are the second most popular product class, with approximately 31 percent of total survey participants planning to buy a new model of this type. The most frequently mentioned models were the AW139, AW169, Bell 412, EC145T2 and Sikorsky S-76 series. Emerging super-medium-class helicopters such as the AW189, Bell 525 and EC175 rely on large fleet operators in the energy, natural resource, and search and rescue sectors for substantial portions of their demand, and may be underrepresented in the current survey sample. Near-term interest may be volatile based on conditions in the energy markets. 
The light twin helicopter class earned between 18-19 percent of total operator purchase plans in the 2015 survey, with the EC135, Bell 429 and AW109 series helicopters noted most frequently. 
Heavy multi-engine helicopters, such as the EC225, AW101 and S-92, registered small but steady levels of new helicopter purchase plans in the 2015 survey; however, demand from large oil and gas fleet operators not included in the survey continues to support volume in the heavy class even though some near-term replacement activity may be deferred.