Honeywell Sees New Helicopter Sales Slowing

Its forecast for 4,300 to 4,800 civilian use helicopters delivered from 2016 to 2020 is about 400 fewer than the 2015 five-year forecast. Twenty percent of the delivered helicopters are for EMS and search and rescue.

Honeywell delivered its 18th annual Turbine-Powered Civil Helicopter Purchase Outlook on Feb. 29, reporting that slower global growth and the weaker oil and gas market caused its forecast to slip: The company expects 4,300 to 4,800 civilian-use helicopters will be delivered from 2016 to 2020, about 400 fewer than in its 2015 five-year forecast.

The breakdown of these civilian-use helicopters is 30 percent for corporate use, 25 percent for general utility, 20 percent for EMS and search and rescue, 12 percent for oil & gas, 12 percent for law enforcement, and 1 percent for news.

"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 Carey Smith, president of Defense and Space at Honeywell Aerospace. "Even in a slower-growth environment, Honeywell is well positioned to help operators keep current fleets lasting longer with aftermarket upgrades and repairs."

The company's 2016 outlook showed that Latin America leads all other regions in its rate of new aircraft purchase plans, despite an economic slowdown in Brazil. Latin America now has the second-highest projected demand for new helicopters, after North America, and just under half of the Latin American planned acquisitions will be light single-engine models, according to Honeywell Aerospace. The Middle East and Africa region has the second-highest new purchase rate among all regions, with more than 60 percent of its planned new helicopter purchases being intermediate and medium twin-engine models.

The survey that provided the research for the outlook queried more than 1,000 chief pilots and flight department managers of companies operating 3,070 turbine and 360 piston helicopters worldwide.

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