By Ryszard Jaxa-Malachowski
AWN Central European Correspondent

Bell, Boeing, Kaman and Sikorsky are in a major competition for the Polish helicopter market.

The three bigger ones are focusing mainly on the expected contract for attack support helicopters to be ordered by Ground Forces. Those three are to face efforts from two European companies - Agusta and Eurocopter.

The much smaller Kaman is hoping to introduce its SH-2s into the Polish Navy, however it may encounter tough competition as well.

Poland requires some 100 attack and armed helicopters. The RFI announced last year was focused on 50 attack helicopters which were to be backed up by an associated order for 50-60 armed, and locally manufactured, PZL W-3 Sokols. Initially only four bidders were invited but later Sikosky made its independent approach with the Blackhawk configured very similar to the ones offered in Australia. Surprisingly, the H-60 is warmly received by many potential operators and would be accepted if it is selected by a special governmental commission created to run all major military/industrial bids.

One of the key requirements to be included in the expected RFP is participation in the privatization of PZL Swidnik. However, the RFP was not announced as expected in September and meanwhile the government in Warsaw decided that Swidnik will be sold before the final selection of the attack helicopter, which has been postponed indefinitely. This negative scenario has not frightened off helicopter manufacturers, which are still trying to stay in the game.

Boeing is offering its newest AH-64D, which immediately put it outside competition due to price per unit. The US giant already has serious problems with its other European property, Aero Vodochody, and it is believed in Warsaw that Boeing will not fight hard for this contract.

Sikorsky wants to pass whole production of its S-76 to Swidnik, with promises for 500 units to be manufactured over the next 20 years. The company has presented its offer to Swidnik's management and also to the unions, which received it especially warmly.

Bell is offering the oldest of all designs and seems to be favored to win, despite the fact that Cobra is not meeting a number of STANAG's safety requirements and its operational capabilities are at the level of PZL Sokol, which has already demonstrated full NOE profile flights.

The power of Bell remains in the industrial offer as the company would like to purchase Swidnik, and install their production of Super Cobras for all of Central and Eastern Europe. This recent approach is based on the potential need for up to 100 AH-1Ps to be delivered over the next seven years.

Other activities would strongly depend on future market research but will not materialize until the sale is concluded. So far the Fort Worth, Texas-based subsidiary of Textron would like to invest not more than 100 million USD in the deal. Bell seems to have strong influence on the Ministerial level, and its strongest advantage is the favor of many politicians in the current governmental coalition.

But competition from Europe will remain formidable. Eurocopter is trying to play its political card, using the Polish aspirations to join European Union to its advantage. Also, Warsaw belongs to the Weimar Group that gives both German and French governments even more capabilities. However, along with the Polish bid, the European consortium is trying to purchase IAR Brasov in Romania. The Tiger itself has made a great impression on top ranking officials, but its price and required infrastructure to ensure effective operations might put it outside real competition.

Under those conditions, the much smaller Agusta and its A129 International seems to be the black horse in the bid, especially because the purchase price is at the acceptable level and the operational specifications to which it was designed fits the Polish environment. Sources inside company say that a prolonged selection process and negotiations will have only reinforced the European position (mainly Eurocopter's). One of the engaged bidders asked to postpone the final date for preparation of offers, however it has not been specified as being American or European.

The delay in RFP announcement and the much earlier sale of Swidnik reflects the complex political and economical situation in Poland. General lack of funds and a slowing down economy have dramatically influenced the already troubled military and aviation industry.

Swidnik has fallen into problems and closed 1999 with a loss of 20 million PLN, about 5 million USD. Just before end of the year, it received support from KGHM Polska Miedz SA with an investment of 5.2 million actions, worth 12 million PLN. The other Swidnik shareholder, Agencja Rozwoju Przemyslu, wants to invest some 7 million PLN to bring its shares from 14.8% to 20%. Local authorities are trying to support Swidnik by reducing debts in exchange for facilities now being converted into a much needed local Civic Center.

Next year orders call for three PZL W-3W Sokols to be delivered to the Polish MOD and a single helicopter for Korean Aviation Industry. The KAI Korean consortium has taken over rights for Sokol's contracts from Daewoo, which signed an original agreement with Swidnik in 1994.

Swidnik will also assemble Agusta 109 fuselages, prepare to manufacture structures for prototypes of AB-139s, Airbus A320 and A340 cargo doors, as well center wing boxes for ATR-72 turboprops. The cooperation has gained highest priority as domestic orders are falling down fast.

The serious situation is reflected in the recent decision to lay off some 300 employees from the non-production sectors. This led to a loss of 1/3 of all engineers previously working at Swidnik.

According to recent unofficial leaks from governmental levels, funding might be made available for the purchase of new helicopters, however, there is not any slots for them in the current budget. This puts all efforts under a big question mark as all participants state that the contract for attack helicopters will be the key factor for any investments to be made at the Swidnik or any other place in Poland. A much smaller deal that could develop is with the Polish Navy, which is looking into ship board helicopters. This service is about to raise its flag on the first of two former US Navy frigates. The ship is to be handed to Poles this month and will be shipped down to Gdynia. Both of them used to have two Kaman SH-2s on board and all infrastructure to maintain and operate helicopters has been left.

This is despite the fact that the Navy refused to acquire helicopters at first and is now trying to find a suitable solution for vessels without helicopters. This is rising Kaman's hopes. The domestic industry cannot compete effectively as Swidnik has given up ship board helicopters some time ago, not seeing it sensible. Sikorsky hopes for the same slot and it found a good response within the Navy, but is far from being successful.

Most recently Bell became interested in the Navy, too, and an initial presentation of the company and its products took place. Despite this competition, Kaman has the strongest position. Initial deliveries might take place as a donation of surplus SH-2s from the US Navy depot which might build a strong foundation for future deliveries.