MD's Lynn Chilton aka The Wrath of a Woman Scorned!!

[13snoopy]

MD Helicopters Acting CEO Protests US Army Award of Major Military Contract to French-German Conglomerate
Wednesday, July 05, 2006 - MD Helicopters, Inc.

MD Helicopters, Inc. Acting Chief Executive Officer Lynn Tilton today called the US Army's selection of a European conglomerate to receive a multi-billion dollar military aircraft award an "outrageous decision completely at odds with supporting American industry." Ms. Tilton said that the award of a major American military contract to a foreign company belies rationality when US companies produce superior products for better value.

"I am profoundly disappointed by this decision," Tilton said from her office in New York. "When US companies like MDHI provide high quality products at outstanding value and cannot get support within their own country, it is a very sad day for both American companies and American workers. The United States is struggling to stay competitive with its global neighbors and our own taxpayer money is being poured into the coffers of foreign companies when that money could be going to re-build this industry in our country, it is a true injustice."

Ms. Tilton is also founder and principal of Patriarch Partners, LLC, a $5 billion private investment firm that, through its investment funds, holds a controlling interest in MDHI. The Patriarch funds acquired its interest in MDHI last summer. At that time, the Company was on the brink of insolvency. Over the past year, MDHI has engaged in a major financial and operational turnaround process to include vertical integration and reigniting its supply chain, the institution of lean manufacturing and flow production and the upgrade of its legendary technology.

Ms. Tilton said MDHI is a classic American turnaround story and did not receive the same level of consideration as its competitors. "The process was seriously flawed and perfunctory, at best. Had the military taken the time and expended the energy to conduct serious diligence and come out and kick the tires, the conclusion would have been inescapable. The simple reality is that there was no attention to substantive matters. No rational investor would commit capital absent a recent on-site review. There is absolutely no question in my mind that the MDHI bid offered by best overall product and value."

MDHI's analysis of the winning EADS bid provided to the Company, Tilton said, demonstrates that MDHI offered the lowest cost across the board for aircraft and logistics support. MDHI has determined that the US Army will commit more U.S. taxpayer money to the awarded contract, which the US Army selected based an assessment of risk that was devoid of any recent on-site due diligence at a company well-publicized for its comeback in recent months.

The US Army announced on Friday its selection of a unit of European Aeronautic, Defense and Space Co. ("EADS"), the French-German aerospace conglomerate, to build a new fleet of 322 light utility helicopters in an award that could be worth as much as $3 billion over the next 20 years. Sikorsky Aircraft Corporation will provide contractor logistics support for the program.

To compete for the Army contract, MDHI had teamed up with DynCorp International, GENCO and Aviation Systems of NW Florida, Inc. (ASI) for logistics and support, to compete for the Army contract.

"I have no doubt that MDHI met or exceeded all U.S. Army requirements, the MD Explorer offers the exclusive NOTAR® anti-torque system that allows for significantly lower noise, increased safety and the ability to operate the aircraft in confined spaces typically inaccessible to other helicopters," said Tilton.




Oh, the wrath of a woman scorned!!!

Looks like MD Helicopter's CEO Ms. Lynn Chilton is showing the wrath of a woman scorned as she "calmly" discusses the U.S. military's choice of a new utility heli.:rolleyes:
For her to even remotely think MD had a chance is absurd.
She needs to put down the glamour shot photos and lip gloss that she uses in all those MD company ads and get a grip on reality.

[Fun Police]

"absurd" is right, but i guess when you know that the rest of your product line isn't worth buying, it would be a big dissapointment.

[Gerhardt]

Nah, she's the leader of a company that she's trying to turn around and just lost a huge opportunity. I'm sure she knew all along that it was a long shot and no doubt MD was hoping for the best. But being obviously disappointed, she had to say something and it seemed to be harsh yet with some tact.

[Cyclic Hotline]

Ms. Tilton is new to the helicopter business, and just managed to purchase the worst performer in the arena.

That is not the US Government's fault and the taxpayer should be thankful that they are not on the hook for a bunch of worthless equipment eminating from Mesa, AZ.

For those of us that have been in the helicopter industry for more than 2 years, the reputation that MD built over the years was one of poor quality products; abyssmal product support; a non existent parts/logistics supply and the same problems with the aircraft as the day they were first produced.

I am not sure about the capability of the winning model, but I do know the correct decision was made in not acquiring anything from MD. I think the Border Patrol would probably agree with that, following their dire purchase of the MD 600.

Even extremely successful businesswoman occasionally buy a pig in a poke.

[13snoopy]

Nah, she's the leader of a company that she's trying to turn around and just lost a huge opportunity. I'm sure she knew all along that it was a long shot and no doubt MD was hoping for the best. But being obviously disappointed, she had to say something and it seemed to be harsh yet with some tact.
Tact? Where was any?
All she did was maybe anger the same fellows that will now be apt to pass over her company again at the next buying opportunity.
She's crazy to think the military would even consider a company with MD's terrible track record.
And I don't care how many businesses she's turned around.:D :p

[BlenderPilot]

Remids me of the S-92, very similar stuff.

I think the US Army should have purchased Made in the USA no matter what.

[HillerBee]

Totally agree with the last poster. Meaning also that European forces should buy European products as well.

[Flingwing207]

Hm. I guess the "Global Economy" is only a good thing when it benefits ME... :=

[gadgetguru]

'Down Under' we are working on a device called....'the hover box' or 'amazing-fang-dangled-up&downy-whirly-whirly-thingamajig'
to compete with US & EU markets

once built we will end up having to sell the design to the NZ
because no Ozzy company has the foresight to invest in anything home grown
then NZ will then make it marketable by selling it back to us (it must now be a good thing if it comes from somewhere else)
@ 4x the price we sold it to them for. :}

[ppheli]

"I think the US Army should have purchased Made in the USA no matter what"
and
"European forces should buy European products as well"

BlenderPilot and HillerBee - you seem very short-sighted - what you are actually saying is

MD was the right option (the Bell 412 is a Canadian product these days - or do you mysteriously count that as American?)
the US military should have turned down what they chose as the ideal product for their requirements given all the bid factors. What an opportunity for US aerospace go back to the drawing board and create products which can win bids!
you don't rate your US products highly enough to export them to Europe (remember, UK and many others have bought 412s because they wanted to)
you are insular and don't count any other country or group of countries as meritworthy to work with (UK residents may agree with you, as they really want Mr Bush to stop working with Mr BLiar). You get more out of people/countries if you work with them rather than against them...
all the bidders had to prove a minimum percent US content, so you are rejecting the fact that the UH-145 will be made in USA and inputting into the USA economy in salaries, taxes etc as a result
you don't really want to admit that the US aerospace industry needs a shake-up to make it competitive again - why else would US military have chosen non-US products in two out of the last three big bids (ARH being the exception).
perhaps you think the US aerospace industry has a given right to expect corporate funding by means of being handed out big military orders? Well, it ain't like that these days, and they are going to have to go the banks and prove their financial credentials to get funding.... Sit back and watch the fall-out....

So here it is - a nation-wide call to "WAKE UP AMERICA" - there's more to the world than just your country! Give it a few years and you will only be the third richest country in the world behind China and India and the US President may well become an "also-ran" in world politics.

I'd agree with you that the MD bid was a stab in the dark, but at least they tried and from what I have seen of Tilton, we certainly haven't seen the last of her.

[Head Turner]

I fully agree with ppheli, who has expressed the situation clearly.

The UK has underfunded many projects in the past and these inventions have drifted into other countries to become world leaders. There have been inventions that have taken the same route and have vanished as they either were total absurb or too far ahead of time to be accepted.
I belieive that Ms Tilton has a mamoth task on her plate to turn around a product that is basically ok for the job it was designed to do but stumbled perhaps due to idea that 'It's American' and therefore the best and that the administration would fork out dollars to save it. That could have been the fact in the 70's and 80's, but we see that the world has changed and 'American' is now not the leader. Nor are they entitled to be, by some unknown devine right to assume they are superior to everyone else.
So, the outcome is that the administration has decided to buy the best option avaiable, and it happens to be a proven design with it's origins in Germany.

I do though hope that MD can be saved otherwise the future looks as though there will be just two helicopter producers, one in US the other in Euroland. Competition is a healthy state to be in.

[Sonofigor]

13 Snoop well put !!!

[ppheli]

I notice the MD website title is "MD Helicopters - American Pride Rising To New Heights".. so seems like Lynn Tilton is as insular as BlenderPilot and HillerBee. I presume the following photo of LT with one of ther two LUH Explorer demonstrators was taken pre-rant (as she is smiling).

http://mishuna.image.pbase.com/g3/57/572957/2/56969730.Lynn8568.jpg

[Hughes500]

13snoopy, why such a down on MD, when Eurocopter produces a machine with 5 seats that if you put 5 people in is out of forward c of g and with any reasonable fuel load is over mauw. Oh yes the 3 rd fcu in 18 months with a bill of $ 40k for it ! Never had this problem with an MD product, at least it does what it says it does on the tin !

[aeromys]

Well now it is allegedly becoming the "Helicopter of Choice for UK Police" :eek:

http://www.ebanmagazine.com/mag_story.html?ident=8270

[ppheli]

Cambridgeshire Police boss man HAD to say that to defend the amount of time he has stuck by his choice of aircraft. Perhaps he was tied in by a contract he signed that he could not get out of..?

The Dutch Police got out of theirs, but then there was a clause in their contract which MD could not meet (usable weight they could not achieve, and to be supplied by a given date, I think that was the gist of it). Interesting to see that one of the airframes allocated to the Dutch cops has been bought by a UK corporate owner to replace his 600.

So, prizes for the first UK force to ditch the Explorer in favour of the 135 to disprove this mans choice of words.... And yes, there is one such change not too far off....

[Heli-kiwi]

I think I remember the US border patrol purchasing a whole lot of EC120s when MD machines did the job just fine before - What is with American helicopter products........ does the US Government know something we don't........So much for supporting your own economy! :ugh:

[PANews]

The current UEO [boss] of the Cambridgeshire Force Tony Cowan did not order the aircraft - his predecessor has now retired and 'missed' the launch of the new aircraft. Tut tut.

Tony is a former civilian police fixed pilot [as well as RAFR pilot of Grobs etc etc] and he was ousted from his original police post when North East went for two EC135s rather than the Islander.

Yes he does believe in the Explorer he has [ex-Dutch] - for it has not let him down and may not now most spares availability problems are over. It is noteworthy that he mentioned the potential for problems though, he could, his hands were clean.

Kiwi, the EC120s were bought because the MD600s were not performing well... and the Los Angeles County Sherriff [and a whole string more agencies] ditched the type as well. Product support and development [including new engines] were again the cited reasons. It is noteworthy that in among Lynn Tiltons plans are product support [well on the way] and development... a long way to go still...

Most times the replacement has been an AS350 series.



I do not believe that the type will become the 'Helicopter of choice' in the UK for many a long day yet.... But not to be written off.

[PO dust devil]

If true believers think US products are perenially superior, maybe they would like to orchestrate a buy back scheme. Make the Aussie Gubbermet a reasonable offer for Navy sea sprites which seem to be occupying space usually reserved for white elephumps.

[chopperdr]

having strong commercial interest in both md and eurocopter products and being directly involved with LASD and USBP, i agree with heli-kiwi. the 600 was not performing well for anyone in law enforcement. border patrol probably did prefer to use 500E / 530FF for the sign cutting mission, however at the time of that contract MD was on such shakey ground that the only wise move for USBP was 120's or 350's both of which they bought.
the current status of MD is changing for the better if Ms tilton remains on course, again time will tell.
as far as buying american, last time i looked, french kc-135 / 707 flying tanker sorties over afghanistan, C-130's dropping supplies and Hawkeyes off the de gualle. also both Iran airlines and syrian airlines were grounded due to lack of spare "american made" parts for their respective airbuses, cuts both ways

[13snoopy]

13snoopy, why such a down on MD, when Eurocopter produces a machine with 5 seats that if you put 5 people in is out of forward c of g and with any reasonable fuel load is over mauw. Oh yes the 3 rd fcu in 18 months with a bill of $ 40k for it ! Never had this problem with an MD product, at least it does what it says it does on the tin !
LOL! I'm not "down" on any manufacturer. Sorry if I hurt your feelings (as it's obvious by your poster name you're an MD lover).
It was simply ludicrous for ANYONE to even remotely consider that MD was a viable option after the dire straights they have been in. I hope they turn it around big-time but right now they are clawing their way back from the brink of extinction. So it was far-fetched (to say the least) for anyone to expect the biggest military op on the planet to gamble on such a demoralized company.
Maybe five years from now, but not now.
And again, I hope they come back blazing.:D
PS
I still say the glossy MD magazine ads with her face covering a quarter page was a little over the top. If she wanted to be taken seriously, maybe someone in her PR department should have told her to go easier on the lip gloss.:= :rolleyes: :oh:

[13snoopy]

Hm. I guess the "Global Economy" is only a good thing when it benefits ME... :=
Very well put, Fling.

[cowboyz]

isn't this the same lady that preaches the global economy and building fuselages in china and mexico?

[Brian Abraham]

It really is a global economy these days. Boeing in many cases merely bolts together the pieces made in Australia, China, Japan, Spain, Italy etc and a major portion of the dollar value of an Airbus is for bits made in the good ole USA. Even the 76 can no longer be called "Made in the USA".

[13snoopy]

isn't this the same lady that preaches the global economy and building fuselages in china and mexico?
Yes, but apparently this only applies to MD.

[BlenderPilot]

I mean if there would have been no other options to the 145, fine buy the 145, but there were choices, I know about the part problems, but that could have been worked out, Lynn Tilton seems like she knows what she's doing and I am sure being the owner of other multimillion dollar companies she would not put her reputation on the line if she couldn't deliver.

The EC-145 has some really ridiculous limitations such as the VNE at altitude, there is a TV Network who just purchased one for their news operations and on some days around here their computer tells them their VNE is in the 80 to 90 KT IAS range, that is ridiculous, especially when helicopters are used in vital situations, you can acutally go faster in an old Jet Ranger or even a Turbine Enstrom than in the 145, and this is the technology that they are bringing across the pond? It's not even FADEC equipped! Performance at altitude is nothing to be proud of and the CG is always a problem.

I think they had better US helicopter manufacturer options to that skytractor they purchased, and they would have supported their own industry.

[Farupthere]

The EC-145 has some really ridiculous limitations such as the VNE at altitude, there is a TV Network who just purchased one for their news operations and on some days around here their computer tells them their VNE is in the 80 to 90 KT IAS range, that is ridiculous, especially when helicopters are used in vital situations, you can acutally go faster in an old Jet Ranger or even a Turbine Enstrom than in the 145, and this is the technology that they are bringing across the pond? It's not even FADEC equipped! Performance at altitude is nothing to be proud of and the CG is always a problem.


What computer ? What altitude ? Do they know they have to start both engines ? :E
VNE is in the 90 kts range at... 18000 ft AEO

[Eurobolkow]

Well done to Eurocopter, great effort to get this machine into this contract. I think its just a shame that the AW139 wasnt a bit further into its lifecycle.

[13snoopy]

Now it appears that MD is "protesting" the selection of Eurocopter as the winner.
I hear MD CEO Lynn Chilton is now demanding:

1) MD Helicopter be allowed to appear in at least one episode
of MTV's "Pimp My Ride" TV show to demonstrate their new heli.

2) The selection committee return to the table and take one more look at her latest glamour shots. She has chosen a new lip gloss and lost a few pounds, you know...

:D := :rolleyes: :mad: :)

[BigMike]

What exactly is your problem with this woman? That she is a woman in charge of a helicopter company? That she is doing things differently to other manufacturers so she must be wrong? Did she once offend you in some way?

As the CEO of MD I would expect her to protest the selection. She is trying to rebuild the company and by all accounts is making progress.
Your personal attacks and comments on her looks are a bit childish to be honest.

[Ian Corrigible]

Some additional insight into one of the industry's leaders. Makes for entertaining reading... :E

Lynn Tilton - a 46-year-old vision of cleavage and diamonds (http://www.observer.com/20061016/20061016_Mary_Dixie_Carter_pageone_newsstory6.asp)

I/C

[Aser]

Well done to Eurocopter, great effort to get this machine into this contract. I think its just a shame that the AW139 wasnt a bit further into its lifecycle.

The problem was the 139 it's on another league above a MD-902,EC-145,B412...
:oh:

[NickLappos]

Aser,
Your statement is so very correct, but perhaps not as you had intended it!

The fact that such a disparate set of helos, with vastly different payloads, levels of safety/technology, cost to operate, performance and life cycle cost were lumped into a single "procurement" is the issue at hand.

I once was told by a prospective customer that he was considering an A-109 or an S-76B, and he asked me what could I tell him to sway him. I told him to stick to cars, the two aircraft were so widely apart (the 76 could carry a chopped up 109 as cargo) in peformance that he didn't yet know enough about what he was going to do with the machine. He would either be vastly disappointed when he couldn't carry enough, or when he was paying too much.

The poor LUH requirements are responsible for setting up a race between horses, tuna and aardvarks, frankly.

BTW, Ms. Tilton sounds like quite a woman!

[diethelm]

Some very sophisticated buyout and restructuring firms took a run at MD to include Carlyle group and most of the industry players took a look also. At the end of the day, the only person willing to pull the trigger without a reorganization under federal bankruptcy laws was Ms. Tilton. The consensus of the others was that it needed to go through a reorganization to make the deal work both financially as well as structurally.

At the end of the day, you have to give her credit. She pulled the trigger when the others were waiting for the filing, then a cramdown or a 363 sale. I beleive that if it would have gone into Chapter 11, the recovery would have been quicker but more painful for employees and suppliers. However, she paid up, she gets to play. Only time will tell if it works out.

With respect to the woman scorned or cleavage or any of that stuff, that is all just blither. She, like all of us should simply be measured based upon the merits.

[13snoopy]

What exactly is your problem with this woman? That she is a woman in charge of a helicopter company? That she is doing things differently to other manufacturers so she must be wrong? Did she once offend you in some way?
As the CEO of MD I would expect her to protest the selection. She is trying to rebuild the company and by all accounts is making progress.
Your personal attacks and comments on her looks are a bit childish to be honest.
"Personal attacks?" What are you talking about?
I just commented on her appearance and all those close-ups of her in some of the early MD ads.
Hey, I'm all for women. I love 'em!:D
I just think she should have thought about it a little longer before she OK'ed the lip-glossy, close-up glamour shots that ran in those ads last spring/summer. Notice they're gone now, don't you?
Replaced by info/bios on the guys who design/build these fine helis.
PS
Personally, I'd rather see her.

[13snoopy]

What exactly is your problem with this woman? That she is a woman in charge of a helicopter company? That she is doing things differently to other manufacturers so she must be wrong? Did she once offend you in some way?
As the CEO of MD I would expect her to protest the selection. She is trying to rebuild the company and by all accounts is making progress.
Your personal attacks and comments on her looks are a bit childish to be honest.
BigMike,
Please read the link provided a few posts back that feaures a story on her where she's quoted talking about her boobs/clevage. She's a trick, all right.
And you cry that I'm "attacking her"???
I think she likes it rough.:D :E

[13snoopy]

Well, here we are nearly a year later and she's still got MD improving. Good for her.
Although if she's leaving the Heli Expo in one of her ships she'll definitely need her pilot to do a max-performance take-off...since it seems like she's maybe gained a few more pounds since last year.:=

[Red Wine]

Why do we constantly belittle success in our Industry?

This lady [who I have never met] has obvious talents to promote her company across numerous markets, only to be stifled by the “Big” business end of the established major producers and the unaccountable Government Procurement Systems.

We suffer from the same ludicrous government [with a small “g”] decisions here in Oz.

To mention a few:

• The Army Tiger
• The Navy Kaman
• The Navy A109…..what a typical disaster.
• The Air Force [in fact what has the Air Force been doing?] [Laughing Fits of Raptor]

Hey 13 Snoppy…….the lowest form of jealously [wit] is the sneaky personal attack.

Put aside the Masculine Hairy Chests fella’s……support the home grown product…..the Multi Nationals Suck….!!!

[topendtorque]

…….the lowest form of jealously [wit]

Wouldn't you be saying, that 'Sarcasm is the lowest form of wit'. Thank god it's not an impediment to flying or most of the contributors here wouldn't get a decent nose-bleed between em all.

That mob you refer to ~ Rhapsody in blue,?
I think you'll find that they're doing OK at the sharp end,
but it'll be a travesty in black if they get to spend half of what every second press release on Govt spending suggests.

The lady in question must be much more talented than a political Lady that we had a few years ago - the one who loved whiteboards - Why, I'm dead set sure that had she showed up in a german staff car on a back road someplace here-abouts they (those boys in blue) would have shown the Luftwaffe how to do it like.

[Red Wine]

Even a lowly Rotaryman can claim a little poetic licence now and again.
I stand by my words.
Hope your correct with the Raptor, however I feel history will repeat itself time and time again.

[13snoopy]

MD loses their top three in one fell swoop:
President, CFO and head of sales all replaced/resigned at the same time.
Let's see, MD has now had FOUR CEO's in the last two and a half years.
This lady seems to have a problem keeping men happy, eh?:D

Maybe she should go back to the glamour shots in R/W!
I sure did love the way she was caught on film rubbing R/W editor's chin at Heli-Expo!:= ;)