ROME–The American Eurocopter subsidiary of European Aeronautic Defence and Space Co. (EADS) North America said late last week it was awarded a contract worth up to $150 million by the Department of Homeland Security to provide U.S. Customs and Border Protection (CBP) with additional AS350B3 helicopters.
“EADS North America and American Eurocopter are committed to meeting–and exceeding–the mission requirements of those who protect America and ensure its national security,” Ralph Crosby, chairman and CEO of EADS North America, said in a statement. “American Eurocopter is a leading provider of highly capable helicopters that are integral to military and homeland security–as demonstrated by this significant award from the CBP, and the other U.S. customers it serves.”
This contract is an Indefinite Quantity/Indefinite Delivery contract with a base year and four-one year options, the company said.
It expects orders of up to 50 additional AS350B3s to CBP through the life of the contract.
CBP already has 48 Eurocopter AS350s and 15 EC120 helicopters, with five additional EC120s on order.
CBP requested an aggressive delivery schedule with an initial order of 17 AS350B3s, the company said.
These aircraft will be produced at American Eurocopter’s Mississippi facility, with the first delivery scheduled for 2009 and a target delivery schedule of one AS350B3 every 45 days when rate production is achieved, the company added.
American Eurocopter’s facility at Golden Triangle Regional Airport, Miss., is the production center for the Army’s UH-72A Lakota Light Utility Helicopter (LUH), a derivative of the Eurocopter 145. Army Aviation is buying up to 345 LUHs to replace aging OH-58 Kiowas and UH-1 Iroquois (“Huey”) helicopters (Defense Daily, April 15).
Speaking to reporters recently in England, Lutz Bertling, Eurocopter’s president and CEO, called LUH “a door opener” for the vast market in the U.S. that the company was targeting for future growth.
Eurocopter had expected a slowdown in the market this year, but Bertling said that turnover is tracking better than anticipated.
“We expected in 2008 that the market would slow down, but we should have 650-700 [bookings] by the end of the year, and we’re conservative on bookings…only counting them when there is a down payment,” he said. “2008 will be our second best year…we expect turnover and profit to continue to grow.”
Eurocopter has a presence in 20 countries and is in discussions with others to expand activities worldwide, Bertling said.
He specifically mentioned big plans for growing the helicopter industry in Brazil under Eurocopter.
Future acquisitions abroad will not be big mergers with others since the company has about 53 percent of the market share, he said.
“But expect major external growth in the service area,” he added. “There will be no big bangs, we will integrate a lot of them…two to four acquisitions a year is what we have on our plate.”
The company also plans to extend heavily in training, including opening pilot schools in China and Mexico.
“85 percent of accidents are due to operational causes,” Bertling said. “The key is to improve things like [man-machine interface], training and simulators. There is a high customer value in saving lives…we are looking at major improvements.”
Total staffing at the expanded production facility in Mississippi will surpass 200 later this year as UH-72A and other production increases to meet customer delivery requirements, the company said.
“With today’s contract announcement, Mississippi continues to expand its vital contribution to our nation’s security,” Sen. Roger Wicker (R-Miss.) said last week.
American Eurocopter’s continued growth will provide substantial economic benefit to Mississippians. This is certainly a win-win program for both the state and the nation,” he said.