The leadership team at MD Helicopters were in a reflective mood when they hosted a virtual media briefing yesterday (3 October 2023), looking back over the past 14 months since the company’s new ownership and leadership took over the reins of the light utility helicopter manufacturer. As Brad Pedersen, MD Helicopters President and CEO, explained: “When we met a year ago, I said our mission was all about winning back trust: the trust of our operators, the trust of suppliers and the trust of new customers. Our focus has been getting out, seeing our operators, finding out what they need and making sure they get it. That’s been as important as winning new orders, although that’s important too.”
That said, the Mesa, Arizona-based company has also boosted its production capability from five aircraft last year to the high teens this year and predicts 20 plus in 2024. “That’s the expectation, but we have the capacity to go higher if we need to – the goal is to get to 50 a year,” Pedersen enthused. Indeed, the company has gained new aircraft sales momentum with recently announced orders for its Cayuse Warrior variant for 18 aircraft to a Middle Eastern customer and the Nigerian Air Force. Not to mention a single order for an armed 530F for the Lebanese Air Force. While the military side has dominated, the company has also posted several orders to the civil side, notably in law enforcement, with aircraft heading to the Huntington Beach PD and shortly to the Atlanta PD (see RotorHub International June/July).
Fleet support progress
New aircraft orders garner headlines, but the core of the company’s efforts has been supporting the existing fleet. Now, operators with the E to F conversions can get work carried out by authorised service centres rather than the aircraft having to return to the factory. Allied to that programme, the upgrade will shortly be offered to operators of 500Ds. MD Helicopters also announced earlier in the summer, that it is offering a -C30 engine upgrade to its 520N operators.
Meanwhile, the company is also making inroads into spares availability. “What we did was look at spares demand. We have around 30,000 part numbers across the 500s, 600s and 900s. We identified the 1,000 most commonly asked-for parts, and [we] have been working to have a 100% within 24-hours dispatch reliability for those 1,000,” explained Ryan Weeks, VP of Aftermarket at MD Helicopters, “Right now, we’re at 76-77% reliability and should get to 80% by the end of the year and the 100% goal by the third or fourth quarter of next year.” The cumulative effect of that work has seen revenues from aftermarket business grow by 50% in the past year.
The bulk of the parts that will be held on 24-hour dispatch are 500-series specific, which is no surprise as 500-series aircraft make up the overwhelming bulk of the current 1,600-strong operating fleet with 85 900s and 45 600s also flying.
.
Still exploring the Explorer future
While supporting the types “as long as they need it”, the company has no plans to bring the 520N or 600 series back into production. However, the same cannot be said of the 900 Explorer series, which may still have a new aircraft future, according to Pedersen. “Personally, I’d like to see us bring an upgraded 900 back to production, but we’re still looking at the options.”
One thing the company has ruled out is the development of any all-new models, noting that a ‘clean sheet design is a difficult and expensive thing’ and would divert too much attention from the core mission. Asked about the longer-term plans of the company’s ownership, Pedersen said that you can never rule anything out: “Anytime you take a company out of bankruptcy and turn it around, it’s going to catch the eye, be attractive to buyers. But right now, there is nothing like that in our thinking. We’re still working on our goals.” For European operators, those near-term goals include the prospect of EASA certification for the 530F.
