Lutz Bertling - CEO of Eurocopter ©C. Kermarrec

Deliveries in 2010 generated a turnover of over €4.8 billion, representing a growth of 6% compared to 2009. By playing with the figures and announcements of future program, Lutz Bertling, Eurocopter’s CEO wanted to highlight Eurocopter’s expectations for the next few years. The plans for the future include launching new programs as well as entering new markets. A summary of the situation … By Gabrielle mansier
« The civilian sector has been stagnating while the military sector continues to suffer from cuts announced in Europe’s defense programs, » said Lutz Bertling. Even if he wanted to be reassuring by presenting the current R & D work and the company’s opportunities for development, he was unable to hide the numbers. Eurocopter expects a decline in turnover of 5 to 10% for 2011. Mindful that the effects of the crisis have not disappeared from the equation, Eurocopter’s leader acknowledges that deliveries for 2011 have not yet been secured. In 2009, Eurocopter delivered 558 aircraft compared 527 in 2010.

© Sirpa Air

Another difficult year
Because of this, the cancellations that occurred last year can not be excluded for 2011. Even more so since Eurocopter is facing a new difficulty: the decline in funding allocated by the various governments for defense. « The military market is affected by significant constraints on public budgets,” stressed the CEO. As for new orders, they are expected to stagnate at about 346 helicopters. Nevertheless, Lutz Bertling confirms, « an increase in turnover. » Last year, Eurocopter had a turnover of €4.8 billion (+6% over 2009) and announced that it had contributed positively to EADS’s results, stating that the profitability of the subsidiary directed by Lutz Bertling, « was not less than the average profitability of the parent company. » In 2009, operating income (EBIT) stood at 263 million euros. The expected increase in turnover is explained, according to Lutz Bertling, « by increases in service activities and sales of heavy lift helicopters.”

© Eurocopter

Innovation is central to its business strategy
These pessimistic perspectives have not prevented Eurocopter from innovating. In 2010, Eurocopter presented the X3 to the press. « Flight tests of this high speed hybrid helicopter demonstrate the group’s efforts in innovation, a central element of its business strategy …, » highlighted the CEO before continuing to say, « as well as the maiden flight of the second prototype of the EC175 whose certification is scheduled for 2012 and the CH-53GA’s first flight test, which is being upgraded for the German army. » In addition, management also announced, « the continuation of the X4 program, the Dauphin’s successor, with a first flight planned for 2014 and the beginning of commercialization planned for 2016.

A strategic geographical deployment
In a market where competition remains fierce, Eurocopter has targeted the needs of each continent in order to adapt its offer to actual demand. Training, the flight simulator market and related services are among the different segments being developed by Eurocopter to stay in the competition. For the past few years, the leading manufacturer of rotary wing aircraft has been closely followed by its main rivals. In the military sector, Eurocopter takes second place, behind Sikorsky, and still holds the lead in the civilian market ahead of AgustaWestland and Bell. For 2012, and in order to stay ahead of its rivals, « several projects will strengthen and expand our industrial capacities, » explained Lutz Bertling. For the civil aviation market, the targeted regions are Latin America, Africa, the Middle East and Asia which are described as, « high potential, especially for offshore activities. » On the military side, Asia and Latin America have particularly received the manufacturer’s attention. Specifically, Brazil stands out as an attractive region for the commercialization of the EC725. Furthermore, the implementation of a joint venture for the assembly of the EC145 in Kazakhstan, as well as the opening and modernization of Eurocopter’s facilities in Europe are also on the schedule.

New aerospace center in Le Bourget
Eurocopter plans to finally expand its services through various measures including investment in full flight simulators (FFS), and certification of new training and maintenance centers in Great Britain, southeast Asia and Brazil. In addition, Eurocopter plans to expand its partnerships and acquire new companies. The CEO took the opportunity to state that Eurocopter is focusing this year on improving the safety of its fleets, both with small operators and in new markets. Particularly noticed, was another announcement about the move of the activities at La Courneuve to Le Bourget. This project, based on a partnership with 6 different government agencies should become official this year. The objective is in time to make Le Bourget an aviation hub. All of the activities at La Courneuve should be moved during 2013 at a cost of €100 million. This project is part of the of the Grand Paris initiative. It will welcome the research and development branch of EADS, creating a true aviation hub integrating multiple enterprises that will benefit from the platform at Le Bourget Airport.