Cyclic Hotline
2nd Jun 2000, 03:53
Sikorsky Upbeat as Army Sets Comanche Helicopter Deal
STRATFORD, Conn. (Reuters) - United Technologies Corp.'s Sikorsky Aircraft Corp., one of the world's biggest helicopter
makers, said that its Comanche armed helicopter program passed a key milestone on Thursday, with a $3.1 billion U.S. Army contract.
Taking a big step toward its goal of full-scale Comanche production in the year 2006, Sikorsky and project partner Boeing Co. said they signed the contract, agreeing to build 13 RAH-66 Comanche armed reconnaissance helicopters for the Army by
2006.
Sikorsky and Boeing have been working on the aircraft -- which can fly backward at high speeds and circumvent radar -- -- for about a decade. Thursday's move means that the Comanche has exited the research and prototype phase and entered the engineering and manufacturing-development stage.
"We view it as very significant," Sikorsky President Dean Borgman told reporters.
The U.S. Army has said it views the Comanche as the centerpiece of its plan to modernize its aviation capabilities.
Starting in 2006, the army wants to buy 1,200 Comanches for about $34 billion, spread over 20 years. The $34 billion would be split by Sikorsky and Boeing.
Borgman, 59, said the Comanche program should have a long life span with great appeal to international customers. In 10 years' time, it could perhaps represent up to 40 percent of Sikorsky's total revenues, he said.
"We don't pin our whole company hopes to any one program, but it's going to be a major contributor (to revenues) once we get into significant production (after 2006)," Borgman said.
Stratford, Conn.-based Sikorsky had 1999 revenues of $1.4 billion, down nine percent from 1998 amidst a slowdown in the world aviation market. Profits for 1999 were off 36 percent.
Borgman projected revenues to grow by about 20 percent in 2000, with about 80 aircraft deliveries compared to 65 last year.
Sikorsky was founded in 1923 by aviation pioneer Igor Sikorsky, designer of the first practical helicopter.
The company is nearing the end of a major restructuring in which it is slashing 1,100 jobs by the end of this year, bringing total worldwide employment to about 7,000. No more job cuts are anticipated, Borgman said.
The Comanche could eventually become as important to Sikorsky as its Black Hawk program, which Borgman called the "backbone" of the company.
"I see the Comanche being that same type of program," he said. "It's a more specialized aircraft than the Black Hawk is, so it may not have as many derivatives from it, but on the other hand, it's got the potential for a very long production run into the U.S. military services, and ultimately into international sales as well."
Asked about frequent speculation that the world helicopter industry will consolidate -- with Hartford, Conn.-based United Technologies and Boeing perhaps merging their helicopter operations into one -- Borgman said:
"We'd like to do an acquisition. George (David, United Technologies chairman and chief executive) has been pretty vocal
about that. Part of the problem is that... (nobody) particularly wants to part with their helicopter company.
"But I do think that sooner or later, economics will drive someone to decide that they no longer want to be in the helicopter
business," Borgman said. "When that happens, we want to be there (as) a buyer. I don't know when that's going to happen."
STRATFORD, Conn. (Reuters) - United Technologies Corp.'s Sikorsky Aircraft Corp., one of the world's biggest helicopter
makers, said that its Comanche armed helicopter program passed a key milestone on Thursday, with a $3.1 billion U.S. Army contract.
Taking a big step toward its goal of full-scale Comanche production in the year 2006, Sikorsky and project partner Boeing Co. said they signed the contract, agreeing to build 13 RAH-66 Comanche armed reconnaissance helicopters for the Army by
2006.
Sikorsky and Boeing have been working on the aircraft -- which can fly backward at high speeds and circumvent radar -- -- for about a decade. Thursday's move means that the Comanche has exited the research and prototype phase and entered the engineering and manufacturing-development stage.
"We view it as very significant," Sikorsky President Dean Borgman told reporters.
The U.S. Army has said it views the Comanche as the centerpiece of its plan to modernize its aviation capabilities.
Starting in 2006, the army wants to buy 1,200 Comanches for about $34 billion, spread over 20 years. The $34 billion would be split by Sikorsky and Boeing.
Borgman, 59, said the Comanche program should have a long life span with great appeal to international customers. In 10 years' time, it could perhaps represent up to 40 percent of Sikorsky's total revenues, he said.
"We don't pin our whole company hopes to any one program, but it's going to be a major contributor (to revenues) once we get into significant production (after 2006)," Borgman said.
Stratford, Conn.-based Sikorsky had 1999 revenues of $1.4 billion, down nine percent from 1998 amidst a slowdown in the world aviation market. Profits for 1999 were off 36 percent.
Borgman projected revenues to grow by about 20 percent in 2000, with about 80 aircraft deliveries compared to 65 last year.
Sikorsky was founded in 1923 by aviation pioneer Igor Sikorsky, designer of the first practical helicopter.
The company is nearing the end of a major restructuring in which it is slashing 1,100 jobs by the end of this year, bringing total worldwide employment to about 7,000. No more job cuts are anticipated, Borgman said.
The Comanche could eventually become as important to Sikorsky as its Black Hawk program, which Borgman called the "backbone" of the company.
"I see the Comanche being that same type of program," he said. "It's a more specialized aircraft than the Black Hawk is, so it may not have as many derivatives from it, but on the other hand, it's got the potential for a very long production run into the U.S. military services, and ultimately into international sales as well."
Asked about frequent speculation that the world helicopter industry will consolidate -- with Hartford, Conn.-based United Technologies and Boeing perhaps merging their helicopter operations into one -- Borgman said:
"We'd like to do an acquisition. George (David, United Technologies chairman and chief executive) has been pretty vocal
about that. Part of the problem is that... (nobody) particularly wants to part with their helicopter company.
"But I do think that sooner or later, economics will drive someone to decide that they no longer want to be in the helicopter
business," Borgman said. "When that happens, we want to be there (as) a buyer. I don't know when that's going to happen."