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On the Record with
Henk Schaeken, Chairman & CEO, MD Helicopters
 Asia is shaping up as
an excellent market for MD Helicopters, which is just celebrating
its third birthday since being sold off by Boeing.
Recent victories include the first sale of an Explorer light twin
helicopter into China, and delivery of two Explorers to Indonesia
for offshore work-the first Explorers ever selected for that task.
And MDHI just delivered its 100th Explorer, to Aero Asahi of Japan,
bringing the Japanese fleet to 11 aircraft.
"We see good potential in Asia," MDHI chairman and CEO
Henk Schaeken told Show News. "The Doctor Helicopter program
in Japan, the offshore market, and China-all will be much more important
markets for us in the future.
"But our biggest achievement to date, if you've got to believe
our competitors, is that we are still here," Schaeken said.
"Initial forecasts for our survival ranged from three months
to six months-but were still here."
In the last three years Schaeken and his team have not only relaunched
MD Helicopters into the utility, EMS and law enforcement markets,
but also built a headquarters and warehouse, restructured the supply
chain, and created a new infrastructure in Mesa, Arizona. The path
has not been easy, especially in 2001 when deliveries slumped to
28 aircraft from 41 in 2000, and well below the target of 60 helicopters.
But Schaeken expects a recovery this year, with delivery of 58
helicopters comprising 22 MD Explorers, 14 MD 600Ns, 10 MD 500Es,
seven MD 520Ns and five MD 530Fs.
So what went wrong last year?
"First," Schaeken explained, "we still managed
to grow revenue by a little over 10% to $135 million, as 20 of the
28 deliveries were Explorers, the bread and butter of this company.
And orders in the last quarter shows the drop in demand for singles
was only a temporary shift."
Yet MDHI was squeezed by several factors. Four Explorers for the
Dutch Police were delayed as a lawsuit by Eurocopter prevented the
orders being placed, and 10 MD 600Ns for the Turkish Police slipped
a year as financing was put in place.
In addition, Schaeken points out the increasing complexity of
installing and integrating all the systems now required on law enforcement
helicopters means longer in the completion shop than anyone had
imagined. This is unlikely to improve as each agency specifies its
own custom fit, he added.
MDHI is entering 2002 with a substantial backlog of 58 aircraft,
worth some $135 million. Explorers are sold out until the last quarter
of this year, he noted.
Schaeken is particularly gratified by the selection of the Explorer
as an offshore support helicopter by PT Airfast of Indonesia, which
ordered two aircraft. "One of the toughest requirements they
have to meet under their contract to AirBP is to maintain a readiness
rate of 98%. That is one of the reasons they bought the Explorer,"
he said.
By John Morris
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MD Helicopters has scored its first success
in the military market with the delivery on January 25 of
the first armed MD Explorers-three MD Combat Explorers for
the Mexican Navy's drug interdiction mission. The Mexican
Navy has ordered a total of 10 Explorers.
Each helicopter is equipped with a General Dynamics GAU-19/A
(.50 caliber) Gatling gun capable of firing 1,300 rounds per
minute, and seven 70mm (2.75-inch) rockets.
In development now is a second generation MD
Combat Explorer capable of carrying point target and anti-armor
missiles. The helicopter has already been qualified with an
M2 (.50 caliber) gun pod.
MDHI believes there is potential from other
navies, especially in Asia, for a ship-capable Combat Explorer
that dispenses with the potentially dangerous tail rotor thanks
to its NOTAR system.
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