Helicopter Fleet Report YE 2023

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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
LEASING MARKET LEASING MARKET LEASED FLEET BY MAJOR LESSORS 67 FLEET SIZE (UNITS) 19 15 LESSOR MILESTONE LCI MACQUARIE 101 TOTAL 1,601 REPLACEMENT COST (USD$M) 191 279 1,131 NOTE: “Replacement Cost” figures are based on the assumption that existing helicopters are replaced by the latest versions of their particular OEM variant at 2023 list prices. This section highlights only the three largest international lessors in the Asia-Pacific market: Milestone, LCI, and Macquarie, which in 2023 leased helicopters to large operators including CHC and Global Vectra. LEASED FLEET BY SIZE CATEGORY Single 12 4 Light Twin Medium Twin Super Medium Heavey Milestone leased 67 helicopters in 2023 to operators in the Asia- Pacific region, with a total replacement cost as of December 31, 2023, of USD USD $1.1 billion. Approximately 67% of Milestone’s leased helicopters were Medium Twin helicopters, totaling 45 helicopters. Medium Twin helicopters are typically utilized for offshore related missions in the Asia-Pacific region. In total, 45 4 18 2 Milestone 1 LCI 12 3 Macquarie 67% of Milestone’s Medium Twin fleet served the offshore market. Other missions for this category of helicopters included EMS, Multi-Mission and Corporate/Private. Milestone had 12 heavy helicopters, 11 serving the offshore market and one for charter. Leonardo and Sikorsky were the most popular OEMs in Milestone’s fleet, both accounting for 36% of its fleet, followed LEASED FLEET BY MISSION Offshore 1 4 7 10 EMS Multi-Mission SAR Charter Corporate/Private by Airbus with 16% and Bell with 12%. Australia and India are Milestone’s largest markets in the Asia-Pacific region. All LCI’s helicopters leased in 2023 were Leonardo medium twin and super medium helicopters, including the AW139, AW169 and 45 Milestone 4 8 7 LCI 1 4 10 Macquarie AW189 models. The total replacement cost of these 19 helicopters as of December 31, 2023, was USD $279 million. The majority of LCI’s leased aircraft were based in Australia, which accounted for LEASED FLEET BY OEM Leonardo Sikorsky Airbus Bell 58% of its leased fleet in Asia-Pacific. Like LCI, Macquarie’s leased fleet served the Offshore, EMS and SAR markets. Australia was 8 11 also a key market for Macquarie, with 40% of its fleet leased there. Some 15 helicopters were leased in the region in 2023 with a total replacement cost of USD USD $191 million. Seventy three percent of Macquarie’s leased fleet was manufactured by Leonardo, with 24 24 19 1 3 11 the remainder being Airbus and Bell-built. Milestone LCI Macquarie YE 2023 ASIA-PACIFIC CIVIL HELICOPTER FLEET REPORT | 27
Page 1 and 2: CIVIL HELICOPTERS | ASIA-PACIFIC YE
Page 3 and 4: CONTENTS PUBLISHER 03 06 08 12 14 1
Page 5 and 6: EXECUTIVE SUMMARY ASIA-PACIFIC CIVI
Page 7 and 8: EXECUTIVE SUMMARY and Bell Helicopt
Page 9 and 10: REGIONAL OVERVIEW With 984 helicopt
Page 11 and 12: COUNTRY/SUBREGION SNAPSHOTS in mult
Page 13 and 14: COUNTRY/SUBREGION SNAPSHOTS TOTAL F
Page 15 and 16: MARKET TRENDS representing 57% of t
Page 17 and 18: OPERATOR OVERVIEW in 2023, moving u
Page 19 and 20: MISSION OVERVIEW MISSION COMPOSITIO
Page 21 and 22: EMS MARKET MISSION OVERVIEW Top EMS
Page 23 and 24: SPECIAL FEATURE CHINA CIVIL TURBINE
Page 25 and 26: OVERVIEW OF CHINA The Single engine
Page 27: OVERVIEW OF CHINA Single Turbine Ci
Page 31 and 32: HELICOPTER OEM OVERVIEW AIRBUS NET
Page 33 and 34: BELL HELICOPTER OEM OVERVIEW NET GR
Page 35 and 36: SIKORSKY HELICOPTER OEM OVERVIEW NE
Page 37 and 38: RUSSIAN HELICOPTERS NET GROWTH 6 4.
Page 39 and 40: AVIC HELICOPTER OEM OVERVIEW NET GR
Page 41 and 42: ENGINE OVERVIEW Pratt & Whitney, wh
Page 43 and 44: Mainland China SPECIAL FEATURE AERO
Page 45 and 46: SPECIAL FEATURE EHang EHang achieve
Page 47 and 48: SPECIAL FEATURE Volant Aerotech Vol
Page 49 and 50: SPECIAL FEATURE ZEROG ZeroG is head
Page 51 and 52: APPENDIX APPENDIX SUBREGION BREAKDO

Helicopter Fleet Report YE 2023

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