Helicopter Fleet Report YE 2023

OVERVIEW OF CHINA
others. Airbus’ Medium Twin fleet in China comprised 26 AS365 and
EC155/H155 helicopters flying law enforcement, offshore support and
firefighting missions. Some 60% of the Airbus fleet was operated by
COHC. AVIC had a 15% fleet share (21 helicopters) in the Medium Twin
category, which comprised various models of the AC312/Z-9 family,
operating mostly in law enforcement. The 21 Russian KA-32s were
deployed in forestry and law enforcement roles throughout China.
and flies a number of missions such as SAR, law enforcement, VIP and
offshore support. The increased focus on using local products means
the AC352 will play a vital role in the future China helicopter fleet. It has
the potential to replace ageing types in the both the Medium Twin and
Heavy categories, and also develop new opportunities. However, initial
performance and reliability issues mean that entry into service has been
pushed back by a few years.
The new Airbus H160 is now in service and could enter the China market
in 2024, adding a further new technology option in this category, likely as
replacements for older generation helicopters such as the AS365/EC155
and early S-76s. This would leave the H160 and AW139 as the major (in
production) models in the Medium Twin category in China.
While the Super Medium Twin category has the smallest fleet amongst
all categories, it also has the highest potential for growth in the coming
years. There was just one law enforcement Leonardo AW189 in operation
in China at the end of 2023.
The Chinese built AC352 helicopter has achieved certification, although
first deliveries are not expected until 2026. The AC352 is developed
from the Airbus Helicopters H175, which entered service in late 2014,
The Super Medium Bell 525 was launched in 2012 but still yet to be
certified as at January 2024. If, and when the 525 enters the China
market, it would be up against the AW189 and AC352/H175, as well as
the larger of the Medium Twins, especially the H160.
The existing Heavy fleet of 110 in operation was mainly deployed in
offshore support and comprised helicopters such as the AS332, EC225
and S-92. Super Mediums are expected to take an increasing share of the
offshore support sector. While no significant demand growth is expected,
the uncertain future of the S-92 and ageing fleet could boost the demand
for Super Mediums.
In addition, there were 43 Russian Helicopters Mi-171/Mi-8 and Mi-26 in
operation in forestry, survey and multi-mission roles.
OUTLOOK
Given the nature of China’s helicopter market, its large fleet, the
restrictions imposed and often fluctuating demand in different
missions, many of the “in operation” helicopters may fly very
infrequently. There is, without doubt, much surplus helicopter
capacity in many missions, especially in the smaller size categories.
While new government initiatives which could increase utilization of
helicopters, there are still significant variations between provinces.
EMS, “light” search & rescue and aerial sightseeing are missions
being increasingly supported by local governments. Guangdong,
Anhui, Hainan and Jiangsu are some of the leading provinces to
support the growth of helicopter usage with new initiatives including
simplifying operational regulations and offering financial support
through contract work. Smaller operators, in particular new startups,
have often struggled to achieve profitability, and any form of
government support would be highly beneficial.
In addition to the generally low utilization of helicopters, the fleet
of almost 100 units in storage is also a concern. The majority of
the stored fleet are with dealerships and/or large operators, and are
basically part of the inventory, which highlights the OEMs’ reliance
on dealers in China. The demise of Kingwing added some 30 Singles
and Light Twins to the stored fleet, while there were at least 24
unplaced Bell 407s, 429s and 505s which have been delivered to
dealers but with no end user. It is unclear whether or when these
surplus examples will be placed with operators. This is very much
dependent on additional demand driven by government incentives to
increase helicopter usage in China. One other threat is the increased
use of unmanned air vehicles/drones in the commercial sector,
and demand for smaller helicopters would likely be reduced in the
next five to ten years, again dependent on government policies and
regulations, and how successful unmanned operations become.
Helicopter missions which can be superseded by unmanned vehicles
include short distance passenger transport, aerial sightseeing,
agricultural support, as well as inspections and surveys.
The increased availability of Chinese OEM built helicopters offers
new opportunities, as the country continues to promote the “Made
in China” incentive, with less reliance on imported products. While
some Chinese-built helicopters still lack the performance and
reliability of proven imported types, local types are expected to take
an increasingly larger fleet share in the China market.
26 | YE 2023 ASIA-PACIFIC CIVIL HELICOPTER FLEET REPORT