Local subsidiaries and cooperation policies form the winning strategy for a lasting presence
in Asia: These are the foundations on which future sales campaigns will be based.
All countries taken together, the Asian (1) civil and parapublic market amounts to approximately 250 new aircraft a year. Eurocopter has sold an average of 150 helicopters over the last few years, and the Group can take satisfaction from the fact that it has captured market shares of more than 50% in the Asian region (2). Thanks to its broad range of aircraft, Eurocopter can fulfill every requirement, for very application, in every geographical area. From the EC120 to the EC225, the entire modern range is being developed so that it can cater to every civil and parapublic assignment.
The EC225 has made a remarkable breakthrough, garnering several prestigious contracts over the last few months, including the sale of three VIP aircraft to Japan for the Emperor’s personal use, and two more helicopters for the Chinese Ministry of Transport to perform rescue operations at sea. This is a new mission for the Chinese government, which intends to invest an increasing amount of resources in this field. In the medium helicopter category, the EC155 is also making great strides in the oil & gas industry in India and Vietnam, where very large numbers of aircraft have been sold to the operators Vectra, Pawan Hans and SSFC. Brief mention must also be made of the EC175’s commercial potential in Asia: This aircraft is being co-developed with the Chinese.
China is the market with the greatest potential for growth, and Eurocopter’s current market share of 41 percent is another source of pride for the Group.
However, factoring in the aircraft on order, this figure rises to 53 percent. Some estimates place the volume of orders required to meet the demand from the civil and parapublic market at approximately 1,000 new helicopters between now and 2020. It must be said that the margin for progress is enormous as the current fleet is seriously limited: There are only 180 turbine-powered helicopters registered in this country with 1.3 billion inhabitants.
By way of comparison, the United States has 12,000 civil helicopters for 300 million inhabitants.
In India, Eurocopter has a 38-percent share of the civil and parapublic market but, once again, the Group intends to increase its market share by making the most of the very high demand in the oil & gas, corporate, VIP and tourism sectors. The aim is to increase sales by 30 percent, rising from 15 new helicopters sold in 2007 to more than 20 in 2008. And the Philippines is another success story, where air activity is thriving thanks to the more relaxed regulations. Eurocopter has captured 57 percent of the Philippine market for turbine-powered helicopters. To meet the Group’s objectives, and consolidate these good results in the long term, a development policy that entails much more than the sale of helicopters is required.
Expanding Eurocopter’s Presence
“Over the last five years, we have significantly increased our local presence, and we did this to bring ourselves closer to operators and customers,” emphasizes Norbert Ducrot, Senior Vice President Asia-Pacific. “We currently have five subsidiaries in the region (see page 14) and we are constantly extending our network of distributors.”
Eurocopter China is among the more recently created subsidiaries, and four others are being planned. The main objective for 2010 is to create subsidiaries that can act as a distribution center – plus a maintenance and support center – in each of the major countries. In addition to these affiliates, new networks of service providers and distributors, like Vectra Aviation in India, are also being set up.
“We also have other, equally important, projects in the pipeline,” adds Norbert Ducrot. “We are negotiating with Indian and Chinese partners to establish training centers for pilots and technicians. These academies will require the most up-to-date helicopters and simulation equipment. We will also extend our presence in Asia through industrial cooperation and co-development projects.”
In fact, Eurocopter is playing a key role in the major industrial cooperation programs in Asia (for more information, see Rotor page 16).