Helicopter manufacturers
Encyclopedia
It is useful to think of helicopter manufacturers as falling into two categories, those that can design, certify and manufacture new helicopter
designs from scratch and those that can only manufacture extant designs under license
. Boeing Vertol is an example of the first type and Kawasaki Heavy Industries
, who license-produced Boeing Vertol designs for much of its recent history, is an example of the second type.
The peace dividend
at the end of the Cold War
and the increased cost of developing new helicopters has seen a consolidation
of arms manufacturers, and helicopter manufacturers are no exception, with even great names such as Aérospatiale
disappearing. With too many manufacturers chasing the same contracts, and the removal of government subsidies, it was impossible for individual manufacturers to absorb the costs of bringing a design to maturity that subsequently failed commercially. For example the AgustaWestland EH101
, which will be a mainstay of the newly merged AgustaWestland
company for the foreseeable future, had, and to an extent still has, the ability to break its parents. Although sales of the design are growing, there is still the danger that not enough helicopters will be sold to be able to maintain the teams needed for the continuous development of the design to keep it competitive over the next twenty to thirty years, and to eventually develop its replacement. The sporadic nature of defense procurement is also unattractive to companies wishing to maintain a constant income stream. While the upkeep of a work force and industrial infrastructure is expensive without a full work load, companies that have reduced capacity have lost work for fear that they would not be able to meet production targets.
Consolidation is seen as a way of both limiting the number of competing designs and increasing the financial strength of companies. However, helicopter manufacturing is seen as a strategic industry, and some governments have sought to protect their national champions from the marketplace. Even when consolidation is inevitable, governments and politicians have sought to play matchmaker, as seen in the Westland affair
. In the United States, in addition to the concern of maintaining national champions, there is also the fear of a loss of competition in the domestic market, creating a situation where designs and prices become uncompetitive. Increasing competition by considering foreign designs is something the US government is especially loathe to do. The selection of a foreign helicopter for the new Presidential helicopter
being seen by some as unpatriotic. This is a problem facing the US defence industry as a whole. There is the very real possibility that defence contractors with failing bids will leave segments of the industry for good, leaving an ever smaller pool of qualified contractors. One possible solution would be to use a system similar to the OKB
s of the Soviet Union, where bidding companies whose designs were not chosen would be allowed to bid as subcontractors on the winning design.
The major Western European helicopter manufacturers are now AgustaWestland
and Eurocopter Group
. In America, the three large remaining companies are Boeing
(Boeing Vertol and McDonnell Douglas
), Bell Helicopter and Sikorsky Aircraft
.
In Japan the three main manufacturers of helicopters are the aviation arms of the Japanese conglomerates
Mitsubishi
, Kawasaki and Fuji Heavy Industries
. These companies initially followed a business model based on forming strategic partnership
s with foreign, usually American, companies with the licensed production
of those companies products, whilst building up their own ability to design and manufacture helicopters through a process of workshare and technology transfer. Though initially loose these partnerships settled down to the pairing of Mitsubishi with Sikorsky, Kawasaki with Boeing, and Fuji with Bell. With the experience they have built up as licensees and sub-contractors the Japanese companies are beginning to produce and offer their own products.
, a holding company to bring together Mil
and manufacturing plants. In the Soviet-planned economic system, the Mil and Kamov
OKB
s were responsible only for the design of helicopters. After a winning design had been chosen it was assigned to large manufacturing complexes responsible only for production. For example, both the Ulan-Ude Aviation Plant
and the Kazan Helicopter Plant
were responsible for the production of helicopters derived from the Mil Mi-8 family. The products of these factories were then exported through state export corporations, the predecessors of the present Rosoboronexport. With the dissolution of the Soviet Union and the breakup of the Soviet Empire
, the helicopter industry in Russia became fragmented. For example, PZL, in the former Soviet satellite state of Poland, was tasked with the production of light helicopters. As a result, there was no production of light helicopters in Russia and the Mil Mi-8 family of helicopters was used for tasks which in the West would have been carried out by much smaller OH-58 Kiowa
-sized helicopters. Although light helicopter designs had been produced by Mil and Kamov, there was no longer a system by which the manufacturing complexes could be forced to retool to produce these designs. There was also a damaging conflict of interest between the manufacturing complexes and Rosoboronexport, with both Ulan-Ude Aviation Plant
and Kazan Helicopter Plant
competing to undercut official Rosoboronexport prices, by exporting helicopters destined for military users as civilian in purpose.
Helicopter
A helicopter is a type of rotorcraft in which lift and thrust are supplied by one or more engine-driven rotors. This allows the helicopter to take off and land vertically, to hover, and to fly forwards, backwards, and laterally...
designs from scratch and those that can only manufacture extant designs under license
Licence-built
The term licence-built refers to an object manufactured by one organisation with the authorisation of the organisation that owns the intellectual property of the design...
. Boeing Vertol is an example of the first type and Kawasaki Heavy Industries
Kawasaki Heavy Industries
is an international corporation based in Japan. It has headquarters in both Chūō-ku, Kobe and Minato, Tokyo.The company is named after its founder Shōzō Kawasaki and has no connection with the city of Kawasaki, Kanagawa....
, who license-produced Boeing Vertol designs for much of its recent history, is an example of the second type.
The peace dividend
Peace dividend
The peace dividend is a political slogan popularized by US President George H.W. Bush and UK Prime Minister Margaret Thatcher in the early 1990s, purporting to describe the economic benefit of a decrease in defense spending. It is used primarily in discussions relating to the guns versus butter...
at the end of the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
and the increased cost of developing new helicopters has seen a consolidation
Consolidation (business)
Consolidation or amalgamation is the act of merging many things into one. In business, it often refers to the mergers and acquisitions of many smaller companies into much larger ones. In the context of financial accounting, consolidation refers to the aggregation of financial statements of a group...
of arms manufacturers, and helicopter manufacturers are no exception, with even great names such as Aérospatiale
Aérospatiale
Aérospatiale was a French aerospace manufacturer that built both civilian and military aircraft, rockets and satellites. It was originally known as Société Nationale Industrielle Aérospatiale...
disappearing. With too many manufacturers chasing the same contracts, and the removal of government subsidies, it was impossible for individual manufacturers to absorb the costs of bringing a design to maturity that subsequently failed commercially. For example the AgustaWestland EH101
AgustaWestland EH101
The AgustaWestland AW101 is a medium-lift helicopter for military applications but also marketed for civil use. The helicopter was developed as a joint venture between Westland Helicopters in the UK and Agusta in Italy...
, which will be a mainstay of the newly merged AgustaWestland
AgustaWestland
AgustaWestland is an Anglo-Italian helicopter design and manufacturing company. It was formed in July 2000 when Finmeccanica S.p.A. and GKN plc agreed to merge their respective helicopter subsidiaries to form AgustaWestland with Finmeccanica and GKN each holding a 50% share.AgustaWestland is now a...
company for the foreseeable future, had, and to an extent still has, the ability to break its parents. Although sales of the design are growing, there is still the danger that not enough helicopters will be sold to be able to maintain the teams needed for the continuous development of the design to keep it competitive over the next twenty to thirty years, and to eventually develop its replacement. The sporadic nature of defense procurement is also unattractive to companies wishing to maintain a constant income stream. While the upkeep of a work force and industrial infrastructure is expensive without a full work load, companies that have reduced capacity have lost work for fear that they would not be able to meet production targets.
Consolidation is seen as a way of both limiting the number of competing designs and increasing the financial strength of companies. However, helicopter manufacturing is seen as a strategic industry, and some governments have sought to protect their national champions from the marketplace. Even when consolidation is inevitable, governments and politicians have sought to play matchmaker, as seen in the Westland affair
Westland affair
The Westland affair was a political scandal for the British Conservative government of Margaret Thatcher in 1986. The argument was a result of differences of opinion within the government as to the future of the United Kingdom helicopter industry. The struggling Westland company, Britain's last...
. In the United States, in addition to the concern of maintaining national champions, there is also the fear of a loss of competition in the domestic market, creating a situation where designs and prices become uncompetitive. Increasing competition by considering foreign designs is something the US government is especially loathe to do. The selection of a foreign helicopter for the new Presidential helicopter
Marine One
Marine One is the call sign of any United States Marine Corps aircraft carrying the President of the United States. It usually denotes a helicopter operated by the HMX-1 "Nighthawks" squadron, either the large VH-3D Sea King or the newer, smaller VH-60N "WhiteHawk", both due to be replaced by the...
being seen by some as unpatriotic. This is a problem facing the US defence industry as a whole. There is the very real possibility that defence contractors with failing bids will leave segments of the industry for good, leaving an ever smaller pool of qualified contractors. One possible solution would be to use a system similar to the OKB
OKB
OKB is a transliteration of the Russian acronym for "Опытное конструкторское бюро" - Opytnoe Konstructorskoe Byuro, meaning Experimental Design Bureau...
s of the Soviet Union, where bidding companies whose designs were not chosen would be allowed to bid as subcontractors on the winning design.
The major Western European helicopter manufacturers are now AgustaWestland
AgustaWestland
AgustaWestland is an Anglo-Italian helicopter design and manufacturing company. It was formed in July 2000 when Finmeccanica S.p.A. and GKN plc agreed to merge their respective helicopter subsidiaries to form AgustaWestland with Finmeccanica and GKN each holding a 50% share.AgustaWestland is now a...
and Eurocopter Group
Eurocopter Group
The Eurocopter Group is a global helicopter manufacturing and support company. It is the largest in the industry in terms of revenues and turbine helicopter deliveries. Its head office is located on the property of Marseille-Provence International Airport in Marignane, France, near Marseille...
. In America, the three large remaining companies are Boeing
Boeing
The Boeing Company is an American multinational aerospace and defense corporation, founded in 1916 by William E. Boeing in Seattle, Washington. Boeing has expanded over the years, merging with McDonnell Douglas in 1997. Boeing Corporate headquarters has been in Chicago, Illinois since 2001...
(Boeing Vertol and McDonnell Douglas
McDonnell Douglas
McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It formed from a merger of McDonnell Aircraft and Douglas Aircraft in 1967. McDonnell Douglas was based at Lambert-St. Louis International Airport...
), Bell Helicopter and Sikorsky Aircraft
Sikorsky Aircraft
The Sikorsky Aircraft Corporation is an American aircraft manufacturer based in Stratford, Connecticut. Its parent company is United Technologies Corporation.-History:...
.
In Japan the three main manufacturers of helicopters are the aviation arms of the Japanese conglomerates
Keiretsu
A is a set of companies with interlocking business relationships and shareholdings. It is a type of business group. The keiretsu has maintained dominance over the Japanese economy for the greater half of the twentieth century....
Mitsubishi
Mitsubishi Heavy Industries
, or MHI, is a Japanese company. It is one of the core companies of Mitsubishi Group.-History:In 1870 Yataro Iwasaki, the founder of Mitsubishi took a lease of Government-owned Nagasaki Shipyard. He named it Nagasaki Shipyard & Machinery Works, and started the shipbuilding business on a full scale...
, Kawasaki and Fuji Heavy Industries
Fuji Heavy Industries
, or FHI, is a Japanese transportation conglomerate most known for being the manufacturer of Subaru automobiles. It traces its roots to the Nakajima Aircraft Company, a leading supplier of airplanes to the Japanese government during World War II...
. These companies initially followed a business model based on forming strategic partnership
Strategic partnership
A strategic partnership is a formal alliance between two commercial enterprises, usually formalized by one or more business contracts but falls short of forming a legal partnership or, agency, or corporate affiliate relationship....
s with foreign, usually American, companies with the licensed production
Licence-built
The term licence-built refers to an object manufactured by one organisation with the authorisation of the organisation that owns the intellectual property of the design...
of those companies products, whilst building up their own ability to design and manufacture helicopters through a process of workshare and technology transfer. Though initially loose these partnerships settled down to the pairing of Mitsubishi with Sikorsky, Kawasaki with Boeing, and Fuji with Bell. With the experience they have built up as licensees and sub-contractors the Japanese companies are beginning to produce and offer their own products.
Russia
A 2006 re-organisation of the helicopter industry in Russia created OboronpromOboronprom
OPK Oboronprom is a Russian aerospace holding company. The company is involved in helicopter production, engine production, air-defenсe systems, complex radio-electronic systems and leasing...
, a holding company to bring together Mil
Mil Moscow Helicopter Plant
Mil Helicopters is the short name of the Soviet Russian helicopter producer Mil Moscow Helicopter Plant , named after the constructor Mikhail Mil. Mil participates in the Euromil joint venture with Eurocopter....
and manufacturing plants. In the Soviet-planned economic system, the Mil and Kamov
Kamov
Kamov is a Russian rotor-winged aircraft manufacturing company that was founded by Nikolai Il'yich Kamov, who started building his first rotor-winged aircraft in 1929, together with N. K. Skrzhinskii...
OKB
OKB
OKB is a transliteration of the Russian acronym for "Опытное конструкторское бюро" - Opytnoe Konstructorskoe Byuro, meaning Experimental Design Bureau...
s were responsible only for the design of helicopters. After a winning design had been chosen it was assigned to large manufacturing complexes responsible only for production. For example, both the Ulan-Ude Aviation Plant
Ulan-Ude Aviation Plant
Ulan-Ude Aviation Plant is a Russian joint-stock company specializing in aircraft manufacturing. It is based in Ulan-Ude, Buryatia.- Overview :...
and the Kazan Helicopter Plant
Kazan Helicopter Plant
Kazan Helicopters, Joint Stock Company is a Russian helicopter manufacturing company based at Kazan, Republic of Tatarstan. It is one of the largest helicopter manufacturers in the world....
were responsible for the production of helicopters derived from the Mil Mi-8 family. The products of these factories were then exported through state export corporations, the predecessors of the present Rosoboronexport. With the dissolution of the Soviet Union and the breakup of the Soviet Empire
Soviet Empire
During the Cold War, the informal term "Soviet Empire" referred to the Soviet Union's influence over a number of smaller nations who were nominally independent but subject to direct military force if they tried to leave the Soviet system; see Hungarian Revolution of 1956 and Prague Spring.Though...
, the helicopter industry in Russia became fragmented. For example, PZL, in the former Soviet satellite state of Poland, was tasked with the production of light helicopters. As a result, there was no production of light helicopters in Russia and the Mil Mi-8 family of helicopters was used for tasks which in the West would have been carried out by much smaller OH-58 Kiowa
OH-58 Kiowa
The Bell OH-58 Kiowa is a family of single-engine, single-rotor, military helicopters used for observation, utility, and direct fire support. Bell Helicopter manufactured the OH-58 for the United States Army based on the 206A JetRanger helicopter. The OH-58 has been in continuous use by the U.S...
-sized helicopters. Although light helicopter designs had been produced by Mil and Kamov, there was no longer a system by which the manufacturing complexes could be forced to retool to produce these designs. There was also a damaging conflict of interest between the manufacturing complexes and Rosoboronexport, with both Ulan-Ude Aviation Plant
Ulan-Ude Aviation Plant
Ulan-Ude Aviation Plant is a Russian joint-stock company specializing in aircraft manufacturing. It is based in Ulan-Ude, Buryatia.- Overview :...
and Kazan Helicopter Plant
Kazan Helicopter Plant
Kazan Helicopters, Joint Stock Company is a Russian helicopter manufacturing company based at Kazan, Republic of Tatarstan. It is one of the largest helicopter manufacturers in the world....
competing to undercut official Rosoboronexport prices, by exporting helicopters destined for military users as civilian in purpose.