The Business of Aviation

Sunday, November 08, 2009 - Guy R. Maher, Vertical Online

While attendance was understandably down at NBAA 2009, there was a sense the show marked the turning point of the industry's trying times.

As I guided the Cessna 310R I was flying into the pattern at Orlando Executive Airport for the National Business Aviation Association's 2009 convention, a quick survey of the ramp areas confirmed what I had suspected I'd see: lots of empty parking spaces. Except for the static display area, the airport looked like any normal day. It was a significant change from what I've become accustomed to seeing at the NBAA base airport ramp.

Quality not Quantity

American Eurocopter was the only helicopter
airframe manufacturer with a display at NBAA,
showing off an EC120. Guy Maher Photo

Show attendance was definitely off, but while the exhibitors' collective mood was one of facing the reality of harsh economic conditions, it was also one of touting expectations for a return to better times. My mission was a bit simpler: to survey the show and its rotorcraft-oriented representation, and to take the pulse of NBAA as a possible indicator of what might be expected for Heli-Expo 2010, Feb. 20 to 23, Houston, Texas.

Although the first A in NBAA stands for aviation, it has been pretty clear from previous conventions that it could also stand for airplane. This year was no different: fixed-wing aircraft — jet, turbine and piston — ruled the show. But that didn't mean the rotary-wing industry was entirely left out.

American Eurocopter was the only manufacturer with a helicopter, an EC 120, on display in the exhibit hall. (Actually, it was the only helicopter manufacturer with a presence at all.) And, regional marketing manager Robert Brant spoke about the overall market conditions, “Things at American Eurocopter are holding their own: we're not picking up yet and our numbers are off, but we are doing better than others.” As far as how the show itself was going, he remarked, “I've had a pretty steady stream of traffic. I'm surprised, actually — it's more than I expected.” He indicated that the show was worthwhile for the effort.

Eric Davidson, business development and distribution manager for FLIR Systems, echoed Brant's comments, and added, “Yes, the traffic has been slower, but the quality of the traffic has been very good. Clearly those who spent the money and time to attend this show were not here just to look.” He further commented that, “I was also surprised to see as many rotor-wing folks come through as I have seen.”

Technology Abounds
Sandel Avionics of Vista, Calif., was at NBAA showing off its new ST3400H TAWS for helicopters. The panel mount unit is capable of fitting within any existing 3-inch-ATI indicator space. Sandel is calling it the “only fully self-contained TSO [technical standard order] C194 and TSO-C151c compliant HTAWS [helicopter terrain awareness and warning system].”

Sandel’s eastern sales manager, William Elliott,
discusses the company’s new ST3400H TAWS
for helicopters. Guy Maher Photo

Discussing this with Sandel's eastern sales manager, William Elliott, I learned the company is emphasizing the unit's accuracy, made possible in part by the refining of a nuisance-alert rejection feature. Acknowledging that eliminating invalid alerts in a helicopter is much more complicated than in an airplane, he affirmed that, “Our nuisance-alert rejection feature will make certain that the alert a pilot receives will be one where action is required to handle the threat.” The ST3400H has a retail price of $18,950 US. And, there are options for night-vision-goggle-compatible display lighting, altitude callouts and provisions to allow the HTAWS to provide primary traffic-alert-and-collision-avoidance-system or traffic-advisory-system displays.

In addition to the expected engine manufacturers who were at the show (but had a primary focus on fixed-wing aircraft), the notable helicopter-focused exhibitors included: Cobham, which indicated that its HeliSAS was ready for installation in the Bell 206; Scheme Designers, which was showing off its helicopter (as well as airplane) paint scheme design and layout services; Iridium, with its flight tracking, and satellite and cellular phone services; Flightcell DZM, which also displayed an all-in-one communications and tracking hub; and Hutchinson Aerospace, manufacturers of bearing, dampers, bushings and active-vibration isolation systems.

Where Are We Going?
Interestingly, aircraft financing and insurance companies were here in force. And one thing is certain: in an economy that is as down as ours is, their representatives might as well give it to us straight, because there is no spin that will pass the BS test. Wells Fargo, appropriately, was right to the point, stating, “This year was brutal.” Said Dave Hamilton of the Wells Fargo business aircraft finance group, “Costs and rates are easing just a bit, but there is not much loosening. We're still active in the market, and certainly the transaction volume is less than we'd like to see.” But, he also emphasized, “There is plenty of money and obviously plenty of aircraft out there. It's as much an issue of getting the buyer to finally step up and commit to buy as anything.”

Scheme Designers founder and CEO
Craig Barnett discusses the company’s
paint scheme and design layout
services, here on a Bell 206L.
Guy Maher Photo

Regarding insurance, Hope Aviation Insurance's Eric Barfield stated the obvious, “Things are a little bit down, of course,” but also remarked that, “We're expecting this soft market is going to swing back to one that's a bit tighter. But it won't be as bad as it was after the September 9/11 attacks.”

Finally, Helicopter Association International (HAI) exhibited here, too. President Matt Zuccaro and his staff met with current and potential HAI members, NBAA exhibitors, industry regulators and other associations to discuss current industry issues, the concerns of operators and field personnel, and HAI activities. HAI staff also participated in a number of NBAA forums and activities.

In my conversation with Zuccaro, he commended NBAA for producing an excellent show during such a demanding period for our industry. Said Zuccaro: “Attending this show is part of our aggressive outreach initiative. The buzz of the show was certainly slow, but I believe we achieved the cycle low point — although that doesn't mean we'll see a rapid rise.” He continued, “NBAA did a great job in trying circumstances: the topics were timely and informative, and there is certainly a sense of optimism now.”

One of the reasons for Zuccaro's sense of optimism — and also a key factor in my decision to attend the NBAA convention — is Heli-Expo 2010. I received one of my indicators as to how next year's show might go when Zuccaro reported, “Right now, in terms of exhibitors, we are right at the same point as we were for last year's show — and that was a record breaker. And the rooms at the headquarter hotel sold out within an hour of them being posted!”

Zuccaro also emphasized that, “HAI is doing very well — we're healthy. Unlike many in the fixed-wing world, our diversity in missions is the key to our survival. We certainly know it's tough out there for many, but HAI is doing all we can to help our member operators keep their rotors turning.”

My time with Zuccaro definitely got me revved up for Heli-Expo 2010. So, see you all Feb. 20 to 23 in Houston!



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