By Rebecca Rayko
LAS VEGAS, Nevada - The fact that MD Helicopters is still in business after what they called "a one-year shutdown" was a surprise in itself here at Heli Expo 2000.
Judging by their presentation at the show's opening day press conference, MD Helicopters actually seems to be on solid ground in terms of sales and deliveries.
"We're still here," said chairman and CEO Henk Schaeken. "I think that's something some of our competitors didn't expect!"
Schaeken assured his audience that the company is indeed selling helicopters again some 10 months after it purchased the product line from Boeing. MD Helicopters experienced a major confidence crisis during the time between Boeing's announced plan to sell off its commercial helicopter line and its eventual purchase by the Dutch company RDM Holdings.
MD Helicopters came to Heli Expo 2000 to celebrate its first year of business, and most importantly, to assure the industry that its future will be bright and busy.
"Keeping in mind that 1999 marked our first year in business and was actually just over 10 months long, I think what we accomplished is astounding," Schaeken said. "We managed to regain the confidence of a skeptical public by demonstrating our commitment to our customers and their products."
Despite the shaky start, last year MD Helicopters recorded 50 firm sales and delivered 37 helicopters in 1999 (19 MD Explorers, 7 MD 600Ns, 5 MD 520Ns, 4 MD 530Fs, and 2 MD 500Es). Schaeken predicts they will deliver 65 helicopters in 2000 after a considerable increase in their production effort.
MD Helicopters plans to increase production to 64 aircraft in 2000 and 90 aircraft in 2001.
"Our biggest challenge right now is keeping up with customer demand, especially for the MD Explorer," he said. "That's where we are focusing most of our energy."
The focus includes further expanding the capabilities of the MD Explorer with a new, more powerful engine. It's currently flight testing the new engine, the Pratt & Whitney 207E, on an MD Explorer in Mesa.
Also planned for 2000: cutting all ties with Boeing.
The company is finalizing the purchase of the facilities it now leases from Boeing in Mesa, Arizona, at Falcon Field Airport. This was Boeing's Apache helicopter facility. MD Helicopters also plans to buy a 40,000-sq-ft hangar that will give the company room to grow.
Schaeken noted with pride that MD Helicopters was able to retain more than 85% of the former Boeing employees under the new ownership, which has made the transition much easier to complete.
A lingering challenge is a spare parts shortage, but Schaeken expects this to be remedied this year.
"We are not aiming to become a very large company. We just want to be among the best - if not the best - in important areas such as support and overall product quality," he said. "Competitively speaking, we are right where we want to be."
