MD's Lynn Chilton aka The Wrath of a Woman Scorned!!
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MD's Lynn Chilton aka The Wrath of a Woman Scorned!!
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.
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.
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.
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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.
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.
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.
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Originally Posted by 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.
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.
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Ozzy ingenuity
'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.
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.
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"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
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.
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....
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.
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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.
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.
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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).
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 !
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Well now it is allegedly becoming the "Helicopter of Choice for UK Police" 
http://www.ebanmagazine.com/mag_story.html?ident=8270
http://www.ebanmagazine.com/mag_story.html?ident=8270
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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....
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....
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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! 
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.
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.
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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.
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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
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