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The separation of MDH's civilian line from its military counterpart represented a potentially lethal risk to the company's future. This risk could have been mitigated by absorption of the civilian line into a larger existing family of products. This almost happened in '98 but - the US Federal Trade Commission rejected the deal between Boeing and Bell.
By the time the Bell buy-out had failed MDH had already offloaded its 300 series to Schweizer and was left with the 500, 600 and 900 lines. The skepticism surrounding the 600 has led, rightly or wrongly, to a lack of confidence in the product which has in turn affected sales. The 900 series, MDH's breakthrough product, is in need of ongoing investment if it is to retain its already slender market share let alone penetrate further. The 500 shall continue to provide needed cash flows through spare parts sales but, new sales prospects (as I see it) are limited.
MDH no longer represents the opportunity it did 13 years ago when Bell were prepared to take them over. Moreover, product development among Agusta, Eurocopter and indeed Bell makes increasingly certain the gap between MDH and their contemporaries.
When MD Helicopter Holdings bought the civilian line in 1999 the opportunity existed to negotiate agreements with India, China and additional growing markets for the manufacture of training and light commercial helicopters under licence. According to my understanding this strategy was rejected. More recently, had MDH's sales and marketing team gone on an all out offensive it is conceivable that they could have won contracts for both the 500 and 900 in Latin America, Africa and Asia. Of the contracts that I am familiar with the MDH presence was scarce with one client never being contacted at all.
From a management perspective I am guessing that MDH's future is bleak with little hope of any reprieve and I find it difficult to imagine that any clear-thinking businessman acqauinted with the rotorcraft industry would be attracted by what they have to offer. Even their NOTAR technology is licenced from Boeing under the terms of the original sale!
Tilton's input (from what I have seen) has merely prolonged the firm's inevitable demise but .. I could be (and certainly wish to be) wrong.
This situation is depressing and it has been sad to watch MDH's increasing isolation over the years. Sincerely speaking, I am unsure what the way forward is. Some years back there were options but with every year that MDH stagnates those options diminish.
S.