What's happening at MD Helicopters?
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Late comments:
- Those two Turkish MD 600Ns were actually delivered in March, so it's disappointing that the ALEA release didn't mention any additional deliveries
- Even with the inertia of the congressional approval process, the Army, Boeing and MDHI all hope the Little Bird contract gets signed before 2007; 2005 if things go smoothly, 2006 if they don't.
- The Phoenix PD have reportedly been wanting to expand their MD 520N fleet for a number of years, but are - like many operators - frustrated by the impact of spares availability on their operational readiness rates.
- Re: 520N hot & high ops, see previous thread on the 530N
There will doubtless be more discussion on MDHI's future when it releases details of the "strategy to improve current financial and operational circumstances" referred to in Kaman's Q2 report.
I/C
- Those two Turkish MD 600Ns were actually delivered in March, so it's disappointing that the ALEA release didn't mention any additional deliveries
- Even with the inertia of the congressional approval process, the Army, Boeing and MDHI all hope the Little Bird contract gets signed before 2007; 2005 if things go smoothly, 2006 if they don't.
- The Phoenix PD have reportedly been wanting to expand their MD 520N fleet for a number of years, but are - like many operators - frustrated by the impact of spares availability on their operational readiness rates.
- Re: 520N hot & high ops, see previous thread on the 530N
There will doubtless be more discussion on MDHI's future when it releases details of the "strategy to improve current financial and operational circumstances" referred to in Kaman's Q2 report.
I/C
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There will doubtless be more discussion on MDHI's future when it releases details of the "strategy to improve current financial and operational circumstances" referred to in Kaman's Q2 report.
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MD will win the Border Patrol contract with the 520N. (This rumor should probably be labled the "Spicolli" rumor.)
Just as a matter of interest, there are 6 MD600's advertised for sale in last week's Helidata (UK). Of course, several of these might be the same one, but I reckon there's more of them advertised than JetRangers and R22's.
Is it just coincidence or is there another force at work here?
Is it just coincidence or is there another force at work here?
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Confidence in the product and availability os spares = a good helicopter.
MD must finance their spares organisation and it seems from the inputs above that, that is what MD are intending. Do they read this forum? I believe they do.
From my limited experience I find the 600 a super smooth ship in calm conditions however, when it's blustery it's uncomfortable and hard work to fly. The 900 is also super smooth and very nice to fly. It's weakesr link is the range. 3 hours should be the benchmark for all small helicopters
MD must finance their spares organisation and it seems from the inputs above that, that is what MD are intending. Do they read this forum? I believe they do.
From my limited experience I find the 600 a super smooth ship in calm conditions however, when it's blustery it's uncomfortable and hard work to fly. The 900 is also super smooth and very nice to fly. It's weakesr link is the range. 3 hours should be the benchmark for all small helicopters
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MD cut 22% of workforce
from the East Valley Tribune.....
Aug. 26--MD Helicopters, a Mesa-based producer of light nonmilitary helicopters, is slashing its work force by 22 percent through layoffs and involuntary furloughs as the company tries to restructure its finances.
Officials said Wednesday the company has been hurt by a slowdown in orders for its helicopters, which are primarily aimed at the law enforcement and air ambulance markets. "This decision is one of many we are executing on to improve the company's viability while aligning our business needs, financing and market requirements," CEO Henk Schaeken said in a written statement. "Our people are working very hard to work through our current difficulties, and we anticipate that many of these personnel will be brought back once our workload improves."
He also said the job cuts are part of "a comprehensive restructuring strategy for the company," which is a subsidiary of RDM Holdings N.V. of the Netherlands. Schaeken was not available for further comment Wednesday.
A total of 23 employees are being laid off, which means their positions are being permanently eliminated, while another 33 are being furloughed and will be eligible to return when business improves, spokeswoman Kyle Davis said. Following the reductions, about 200 employees will remain at the plant at 4555 E. McDowell Road.
RDM purchased the company from Boeing in 1999 after the merger of Boeing and McDonnell Douglas Corp., taking over what had been the light helicopter division of McDonnell Douglas. In the process RDM acquired the rights to several advanced-technology helicopters developed by McDonnell Douglas such as the MD Explorer and MD 600N. Those aircraft have a no-tail-rotor system that makes them quieter than conventional helicopters. Davis said the world civil helicopter market has been relatively flat in the past few years, while MD is facing increased competition in the United States from European manufacturers such as Eurocopter, a subsidiary of Airbus owner EADS, and Italy-based Agusta. "Those are large companies," she said. "This (MD Helicopters) is a smaller company that is needing to be extremely lean and competitive."
Last year MD delivered 15 helicopters, which consisted of eight Explorers, one MD 600N, three MD 530Fs and three MD 500Es. The layoffs came after a refinancing package for the company fell through, Davis said. "So now (MD officials) are in the process of working with a bank to bring in capital." Davis said "cash flow has been an issue" for the company, but she denied rumors the operation is in danger of folding.
The parent company in Holland has been "extremely supportive" of MD but has decided that MD should refinance with a major bank, she said.
"No one is talking about bankruptcy," she said, adding that "I haven't heard of any possibility of it (the refinancing) not happening." She said the company expects the new agreement to be completed within a few weeks.
Davis declined to comment on the unsuccessful deal, but speculation has centered on the Boeing Co. as possibly being interested in reacquiring MD. Boeing spokesman Hal Klopper declined to comment.
Aug. 26--MD Helicopters, a Mesa-based producer of light nonmilitary helicopters, is slashing its work force by 22 percent through layoffs and involuntary furloughs as the company tries to restructure its finances.
Officials said Wednesday the company has been hurt by a slowdown in orders for its helicopters, which are primarily aimed at the law enforcement and air ambulance markets. "This decision is one of many we are executing on to improve the company's viability while aligning our business needs, financing and market requirements," CEO Henk Schaeken said in a written statement. "Our people are working very hard to work through our current difficulties, and we anticipate that many of these personnel will be brought back once our workload improves."
He also said the job cuts are part of "a comprehensive restructuring strategy for the company," which is a subsidiary of RDM Holdings N.V. of the Netherlands. Schaeken was not available for further comment Wednesday.
A total of 23 employees are being laid off, which means their positions are being permanently eliminated, while another 33 are being furloughed and will be eligible to return when business improves, spokeswoman Kyle Davis said. Following the reductions, about 200 employees will remain at the plant at 4555 E. McDowell Road.
RDM purchased the company from Boeing in 1999 after the merger of Boeing and McDonnell Douglas Corp., taking over what had been the light helicopter division of McDonnell Douglas. In the process RDM acquired the rights to several advanced-technology helicopters developed by McDonnell Douglas such as the MD Explorer and MD 600N. Those aircraft have a no-tail-rotor system that makes them quieter than conventional helicopters. Davis said the world civil helicopter market has been relatively flat in the past few years, while MD is facing increased competition in the United States from European manufacturers such as Eurocopter, a subsidiary of Airbus owner EADS, and Italy-based Agusta. "Those are large companies," she said. "This (MD Helicopters) is a smaller company that is needing to be extremely lean and competitive."
Last year MD delivered 15 helicopters, which consisted of eight Explorers, one MD 600N, three MD 530Fs and three MD 500Es. The layoffs came after a refinancing package for the company fell through, Davis said. "So now (MD officials) are in the process of working with a bank to bring in capital." Davis said "cash flow has been an issue" for the company, but she denied rumors the operation is in danger of folding.
The parent company in Holland has been "extremely supportive" of MD but has decided that MD should refinance with a major bank, she said.
"No one is talking about bankruptcy," she said, adding that "I haven't heard of any possibility of it (the refinancing) not happening." She said the company expects the new agreement to be completed within a few weeks.
Davis declined to comment on the unsuccessful deal, but speculation has centered on the Boeing Co. as possibly being interested in reacquiring MD. Boeing spokesman Hal Klopper declined to comment.
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I think that we all hope that MD will pass through this awful phase and continue to produce helicopters. Competition is a healthy situation. If there were only one helicopter manufacting company can you imagine the awfulness of that!
We all saw what was happening at Bell that sitting on their laurals over so many years left them falling behind.
MD situation is different so lets see how their restructuring plan works. MD owners need supporting for sure.
Schweizer might be inerested in this line!!
We all saw what was happening at Bell that sitting on their laurals over so many years left them falling behind.
MD situation is different so lets see how their restructuring plan works. MD owners need supporting for sure.
Schweizer might be inerested in this line!!
'Last year MD delivered 15 helicopters, which consisted of eight Explorers, one MD 600N, three MD 530Fs and three MD 500Es.....'
That list is particularly worrying.
MD are apparently not now selling their bread and butter airframes into the home [USA] market. The law enforcers appear to be increasingly going elsewhere.......
In fairness for this years sales totals there are a handful of 600s off to Turkey, but I wonder if there has been any recovery in the home sales of the 500 line?
That list is particularly worrying.
MD are apparently not now selling their bread and butter airframes into the home [USA] market. The law enforcers appear to be increasingly going elsewhere.......
In fairness for this years sales totals there are a handful of 600s off to Turkey, but I wonder if there has been any recovery in the home sales of the 500 line?
Don't all you MD customers wish that Bell had been allowed to buy MD? Eurocopter must be laughing their asses off on how they convinced the FTC to block that move.
The Sultan
The Sultan
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Boy isn't that the truth. The Bell/MD merger would have been great for both, as Bell could have got a great twin (the Explorer) since the 427 has marginal performance, and they could have keep the 500 line going, and done away with the 600 line in favor of the 407. Plus the MD line would have benefited from Bell's great customer service, and Bell would have benefited from the NOTAR technology. Funny how the FTC let Boeing buy McDonnell Douglas, and form the largest aerospace company in the U.S., but yet they wouldn't let Bell buy MD helicopter which would have been a plus for the U.S. helicopter industry. I guess maybe Eurocopter does have someone inside the FTC, ha, ha.
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Nothing has seeped through to the UK yet but this purchase if it is true must be welcome news to the owners of MD products.
MD should realise that in this day and age putting all your hopes on a narrow based product line is risky. Look and see what the motor manufacturers get into, table ware to generators house building to ship building.
MD mating with Sikorsky should be OK.
MD should realise that in this day and age putting all your hopes on a narrow based product line is risky. Look and see what the motor manufacturers get into, table ware to generators house building to ship building.
MD mating with Sikorsky should be OK.
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Wild Wild Guess
Try this one
Boeing buys back MD, to recover the know-how they were not yet paid for to begin with.
They also buy some old MI-26's and put a team to analyse them, so that they are ready for developping a new big size transport heli, just in case the V-22 does not live up to the expectations....
(not meant as a us-euro ping-pong game)
delta3
Boeing buys back MD, to recover the know-how they were not yet paid for to begin with.
They also buy some old MI-26's and put a team to analyse them, so that they are ready for developping a new big size transport heli, just in case the V-22 does not live up to the expectations....
(not meant as a us-euro ping-pong game)
delta3
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New Management at MD
MD Helicopters Appoints Robert W. René Interim Chief Executive Officer; Randy Kesterson as Chief Operating Officer
Appointments Follows Recent Acquisition by Funds Affiliated with Patriarch Partners, LLC to Reposition the Company for Long-Term Growth
MESA, Ariz. Sept. 16, 2005 – MD Helicopters, Inc. (MDHI), a leading manufacturer of commercial and military helicopters, has named Robert W. René interim Chief Executive Officer and Randy Kesterson as Chief Operating Officer.
In this role, René will provide oversight for the formation of a new executive management team for the Company and will lead business development efforts. Kesterson will manage all phases of the Company’s production, quality assurance, engineering, completion, material management and information technology.
Patriarch Partners, LLC, a financial firm with approximately $4.5 billion under management, acquired within its investment vehicles (“Patriarch”) a controlling interest in MDHI in July. Patriarch’s acquisition of MDHI is structured as a long-term investment for the firm.
René has more than 20 years of operating experience in a variety of technology and manufacturing fields, and a proven track record in strengthening growth companies.
“I am excited to have the opportunity to work with MDHI’s management team as the Company positions itself to grow its business over the long-term,” René said. “MDHI’s proprietary NOTAR® no tail rotor system provides significant operating efficiencies and distinguishes the Company’s products from its competitors. The recent long-term commitment to the business by our majority shareholder, Patriarch, when combined with an industry-leading product, foretells tremendous upside potential for the Company and its people. We have, in this very short time, already seen a significant increase in demand for our spare parts and products.”
“Robert has a proven track record with Patriarch for bridging transitions and building management teams. He is a tremendous leader and innovative thinker and we expect his tenure here to be integral to the repositioning and growth of MDHI,” stated Lynn Tilton, founder and Chief Executive Officer, Patriarch Partners, LLC.
René has been the Chief Executive Officer for InnMedia, a distribution Company owned by Hilton Hotels Corporation, the CEO of Hartwell Industries, an apparel manufacturer, and CEO of Electro Source, LLC, one of the leading makers of accessories to the video gaming industry.
Both Hartwell and Electro Source are Patriarch portfolio companies. René was a Rhodes Scholar nominee from Cornell University and also is a graduate of the Stanford Graduate School of Business and Stanford Law School.
Kesterson is a 20-year aerospace industry veteran. Most recently he was executive vice president and Chief Operating Officer of Curtis-Wright Controls, Inc., a $300-million division of Curtis-Wright Corporation.
“Hiring Randy to join our team is a major coup for MD Helicopters,” René said. “He is a hands-on manager who builds collaborative environments, enabling his teams to perform at the highest levels. Randy will quickly drive MDHI’s product capabilities to an industry-leading level.” He earned an MBA degree at Syracuse University and was accepted into the Sloan Fellows Program at MIT. He also is a Six Sigma Black Belt.
Appointments Follows Recent Acquisition by Funds Affiliated with Patriarch Partners, LLC to Reposition the Company for Long-Term Growth
MESA, Ariz. Sept. 16, 2005 – MD Helicopters, Inc. (MDHI), a leading manufacturer of commercial and military helicopters, has named Robert W. René interim Chief Executive Officer and Randy Kesterson as Chief Operating Officer.
In this role, René will provide oversight for the formation of a new executive management team for the Company and will lead business development efforts. Kesterson will manage all phases of the Company’s production, quality assurance, engineering, completion, material management and information technology.
Patriarch Partners, LLC, a financial firm with approximately $4.5 billion under management, acquired within its investment vehicles (“Patriarch”) a controlling interest in MDHI in July. Patriarch’s acquisition of MDHI is structured as a long-term investment for the firm.
René has more than 20 years of operating experience in a variety of technology and manufacturing fields, and a proven track record in strengthening growth companies.
“I am excited to have the opportunity to work with MDHI’s management team as the Company positions itself to grow its business over the long-term,” René said. “MDHI’s proprietary NOTAR® no tail rotor system provides significant operating efficiencies and distinguishes the Company’s products from its competitors. The recent long-term commitment to the business by our majority shareholder, Patriarch, when combined with an industry-leading product, foretells tremendous upside potential for the Company and its people. We have, in this very short time, already seen a significant increase in demand for our spare parts and products.”
“Robert has a proven track record with Patriarch for bridging transitions and building management teams. He is a tremendous leader and innovative thinker and we expect his tenure here to be integral to the repositioning and growth of MDHI,” stated Lynn Tilton, founder and Chief Executive Officer, Patriarch Partners, LLC.
René has been the Chief Executive Officer for InnMedia, a distribution Company owned by Hilton Hotels Corporation, the CEO of Hartwell Industries, an apparel manufacturer, and CEO of Electro Source, LLC, one of the leading makers of accessories to the video gaming industry.
Both Hartwell and Electro Source are Patriarch portfolio companies. René was a Rhodes Scholar nominee from Cornell University and also is a graduate of the Stanford Graduate School of Business and Stanford Law School.
Kesterson is a 20-year aerospace industry veteran. Most recently he was executive vice president and Chief Operating Officer of Curtis-Wright Controls, Inc., a $300-million division of Curtis-Wright Corporation.
“Hiring Randy to join our team is a major coup for MD Helicopters,” René said. “He is a hands-on manager who builds collaborative environments, enabling his teams to perform at the highest levels. Randy will quickly drive MDHI’s product capabilities to an industry-leading level.” He earned an MBA degree at Syracuse University and was accepted into the Sloan Fellows Program at MIT. He also is a Six Sigma Black Belt.
Oh my! But do they know naught about helicopters and the helicopter market?
