Flying higher

While the opening day of the Zhuhai Air Show on November 4 witnessed China's first major overseas deal selling 25 home-grown ARJ 21 regional jets, the country's general aviation industry also made a small, but important step forward.

The EC175 helicopter, jointly developed by China Aviation Industry Corp (AVIC) and Eurocopter, received five orders from Longken General Purpose Aviation. Longken, based in Heilongjiang province, became EC175's first commercial customer in China.

Also on the same day, Eurocopter announced the sale of 10 EC155 helicopters to Citic Offshore Helicopter (COHC), a leading Chinese offshore operator based in Shenzhen.

"Once the (Chinese) government relaxes low altitude airspace controls, the Chinese (helicopter) market should reach a size at least similar to the US market today," says Lutz Bertling, CEO of Eurocopter.

"The Chinese market might reach around 200 (helicopter) deliveries a year in the second half of next decade," says Bertling, adding that China could become the largest market in Asia given the relaxation in regulations.

China's civil and semi-public sector promises great potential for using choppers for offshore oil and gas exploration, homeland security, search and rescue, power line surveillance, medical service and fire fighting.

General aviation refers to all flights other than military and scheduled airline flights. It includes civilian flights and other purposes such as rescue, offshore exploration and aerial photography.

There are only 124 civilian helicopters in China, while the United States has more than 10,000 helicopters and Brazil has nearly 500, according to statistics from China Aviation Industry Corp (AVIC), a major Chinese aviation manufacturer.

A major constraint is airspace inconvenience and the resultant lack of air and ground services. Except for designated commercial air routes, the airspace of the Chinese mainland is currently under the administration of the air force. Another constraint is insufficient pilot and maintenance crews in China.

The Chinese government is reportedly working on a plan to gradually open airspace below 600 meters to facilitate growth in general aviation. That proposal is part of the country's 11th Five-Year Plan (2006-10).

Bertling says Eurocopter plans to open a pilot training facility in China with a local partner. Both sides are currently in the final assessment of the project and a decision is expected to be made by January.

"The devastating (May 12) earthquake in Sichuan earlier this year showed the urgent need for developing general aviation, which plays a very important role in rescue," says Wu Tongshui, president of Civil Aviation University of China. "China needs a comprehensive and systematic planning for the industry."

The quake toppled many buildings, blocked roads, destroyed railways and damaged bridges. Helicopters demonstrated their unique advantage in the disaster-relief efforts, which were unmatched by any other means of transportation.

During the disaster relief the EC225 helicopters delivered to the Chinese Ministry of Transport (MOT) at end of 2007 and the Super Puma AS332 helicopters from Government Flying Service (GFS) in Hong Kong, rescued more than 100 people who were trapped in mountainous areas, steep and deep valleys.

Since the 1960s, the European helicopter maker has sold more than 120 helicopters in China. It controls more than 40 percent of the Chinese market and achieved sales of over $100 million in the country last year, while its global turnover reached 4.17 billion euros.

A major market for Eurocopter is the strong and dynamic oil and gas market in China. COHC will use the 10 medium twin-engine EC155 helicopters to raise its ability of offshore oil service provision as the country's offshore oil sector is undergoing a rapid growth. Deliveries will start from the end of 2009. COHC already has a fleet of 22 Eurocopter helicopters. About 30 percent of the EC155 fleet in the world today is used for offshore transport missions.

Eurocopter is also promoting its helicopters for homeland security. There is a rising demand from the Chinese police force and they have placed orders to help their daily operations and equip anti-terrorist units and traffic control units. The Shanghai Public Security Bureau ordered two light twin-engine EC135s and one EC155 in 2007. The city government plans to establish a police helicopter squad.

Industrial partnership

China is more than a market to Eurocopter.

The France-based company plans to more than triple the value of components and parts sourced from China, reaching a value of $65 million per year, by 2013, Bertling says.

Besides Eurocopter, China also supplies components to other helicopter makers such as Sikorsky Aircraft Corp and Bell Helicopter.

Eurocopter and then AVIC II co-developed the 1.7-ton EC120 in 1992, in which the Chinese company had a 24 percent share. About 600 units have been sold worldwide.

AVIC I and AVIC II, China's two leading aviation manufacturers, were recently merged to create AVIC as the government tries to consolidate the nation's aircraft development and manufacturing capabilities.

AVIC and Eurocopter are now jointly developing the six-ton EC175, also called Z15 in China. It is designed for civilian use and will fill the gap in the current helicopter range in the two companies with models between five and 10 tons.

The project is equally shared between AVIC and Eurocopter in both design and production. There will be two assembly lines, one in Harbin, capital city of China's Heilongjiang province, and the other in Marignane, France. The helicopter is scheduled to make its first flight in 2009.

Eurocopter, responsible for the sales of EC175 abroad, has received 150 orders for the helicopter from the Untied States, New Zealand, Russia and the United Kingdom, Bertling says.

The Chinese government has made the aviation industry, including the manufacturing of helicopters, a priority for development during the 11th Five-Year Plan.

(China Daily 11/17/2008 page6)