London, UK

31 January - 02 February, 2017

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CONTENTS
INTRODUCTION

CUSTOMER INSIGHT

France

Nepal

United States

NATO Support & Procurement

10

INDUSTRY INSIGHT

BLR

13

MD Helicopters

17

EVENT INFORMATION

23

DEFENCE IQ OCTOBER 2016

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INTRODUCTION
The adaptability of the modern military
helicopter, its potential for multi-role and
multi-mission deployment, and its ability
to penetrate the most austere and hostile
environments is testament to its enduring
value to armies, air forces, navies and
special forces, demonstrated by the
increasing spending figures in new
platforms, modernization of existing
fleets, MRO and serviceability, and
sophisticated payloads. But such a
diverse set of operations and roles
presents the helicopter commander with
a complex set of challenges that span
technical, tactical and strategic
dimensions.
The 2017 International Military
Helicopter conference will leverage the
expertise and experience of its speakers,

sponsors and visiting delegates to find

answers to these critical questions.
Returning for its 16th year, we are
pleased to invite you to join the largest,
most internationally diverse conference
for the global military rotorcraft
community, with three days of debate
and discussion with Chiefs of Staff,
Commanders, Operators and
Programme Managers.

Here, we take an early look at a selection

of developments and challenges that
international end-users have been
experiencing, as well as provide updates
from the commercial sector with insight
from companies developing solutions on
both sides of the cost and capability
scales...

CUSTOMER
INSIGHT

Lieutenant-colonel Edmond Toudji

OCEM Projection Mobilit et Soutien
The French Air Force has to
modernise the oldest part of its
helicopter fleet (Puma generation) in
a short-term perspective, then replace
it in the medium-term to match the
most recent standards.
One of our recent progresses is the
integration of an air-to-air refuelling
capacity, which has now been used
in operations. We are also qualifying
a whole squadron for special
operations instead of having several
detached crews. Meanwhile, we are
always improving our night and day
interception capacity on low
speed/low altitude targets.

so on) to adapt the ways we face

them using the third dimension,
especially with the short readiness
status of helicopters dedicated to air
defence.
In terms of new technologies, the Air
Force is currently studying the
acquisition of heavy helicopters for
operational purposes. We are also
particularly interested in the
development of high speed

Among our various working axis, we

are aiming at reducing maintenance
costs by modifying our organization
and developing inter-services
acquisition strategies. We are also
evaluating the impact of actual
threats on national territory (new
forms of terrorism, use of drones, and
OCTOBER 2016 DEFENCE IQ

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helicopter programmes with an eye
to how these could contribute to
operational needs.
At this years International Military
Helicopter conference, we will be
interested in talking to other nations
that are deploying heavy helicopters
to get an understanding about their
organization, operations and the
major difficulties theyve faced on this
topic. We also expect to see if the
industry is developing projects that
could fit into our vision.

Lieutenant General Baldev Raj Mahat

Chief of the General Staff, Nepalese Army
Nepal is a mountainous country with
a dramatic altitude and temperature
variation that is just within 80 NM,
ranging from 60m to 8800m above
mean sea level. Due to its
geographical diversity, a helicopter
has a unique role in both civilian and
military sector. The utmost
requirement is hot and high
performance. Our priority is based on
our geography, temperature, altitude
and the nature of military operations.

aviation has left an indelible mark on

its operational duties.
The Nepalese Army is currently
analysing the long-term plan for the
modernisation of its equipment,
including aviation. We are planning to
auction or phase out the old air
assets and acquire the latest
technology and platform variants for
Army Aviation needs. For the last

Presently, our helicopter fleet is

composed of light single engine and
medium multiengine helicopters.
Light single engines are used in high
mountain SAR, while medium
multiengines are used in troop
deployment, logistics and other
operational requirements. Nepals
Army is very renowned for its air
operations throughout the country.
From insurgency combat operations
to the disaster response of our last
great earthquake in 2015, army
OCTOBER 2016 DEFENCE IQ

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two years, we have been procuring
air assets towards a planned total of
30 aircraft by 2023. The service faced
a shortage of number of its air assets
during the last earthquake,
particularly when it comes to High
Availability Disaster
Recovery (HADR). The
plan is basically based on the
Special equipment table and
Operational equipment
table.
So our main challenge is
that the number of air assets
is low. Adding to this number will
increase the airlifting capability of our
troops. Army aviation is based at the
capital city and the reach of the army
aviation units is not ideal in terms of
both the distance and the
geographical diversity. In order to
render the air service effectively and
efficiently, were aiming to expand our
air bases for enhanced reach and to
make the air operations capability
economically practical.
While low in number, our Army has a
diverse aviation fleet. A uniformity in
diversity is the goal of our macro
plan. The idea is to place helicopters
in three categories each Heavy,
Medium and Light. Similarly, fixedwing aircraft will be grouped in two
categories Heavy/Medium and
STOL. The heavy/medium airplanes
will be used as strategic airlifters
within our national context, which will
connect the Main Operating Base
(MOB) and Forward Operating Base
(FOB). The STOL airplanes and
heavy/medium helicopters will
connect the FOB to the Hub and
medium/small helicopters will
7

connect Hub to Spokes.

This uniformity and categorisation
effort, with their dedicated duties, will
soundly standardise operations
and
maintenance.
The focus has
very much been on
cost-effectiveness and we
are of course looking for an
optimal
operating cost.
Our areas of
interest are
customised maintenance
support and training services.
While we have not focused on any
specific company, our current interest
remains on products that have hot
and high performance and specific
details regarding each category of
airplanes and helicopters, which we
have outlined in our global tenders.
The International Military Helicopter
conference is an event supported by
the Nepalese Army. In my knowledge,
this is the first time the Nepalese
Army is attending the conference.
Obviously, as a military helicopter
operator based within the Himalayas,
it is no exaggeration to say that we
are operating against adverse
weather, challenging terrain and
extreme performance demands. Our
participation is more than justified.
We hope to share our experiences
and acquire more knowledge on
technology, development,
techniques, practices, best practices,
trends and the innovations in
aviation.

DEFENCE IQ OCTOBER 2016

Colonel Allan H. Lanceta

Commander Corpus Christi U.S. Army Depot (CCAD)
Our current priorities lie in
strengthening readiness and doing
more with less. That means
anticipation, preparation for future
maintenance, and repair and
overhaul requirements in order to
provide the Warfighter with the best
advantage at the point of need. CCAD
uses the entire Aviation Enterprise to
provide coordinated, effective and
efficient support to the Warfighter.
Were the industry leader and we
continue to be the preferred source
for the repair and overhaul of
helicopters, engines and
components.
In that respect, the Depot operates as
a premier business partner within the
Aviation and Missile Command and
the Army Materiel Command (AMC).
CCAD also supports the Army's
accident investigation processes
worldwide with materials expertise
and laboratory analysis, while
remaining focused on safeguarding
the workforce and integrating safety
OCTOBER 2016 DEFENCE IQ

and risk mitigation into every aspect

of depot operations. CCAD's
workforce is approximately 3,300
strong with a total funded workload of
$1.5bn and $884m in revenue. Our
economic impact to the local
economy is $1.5bn.
Our branch has made much progress
in the past few years. This is
especially true in Shop Floor
Automation with the implementation
of the Complex Assembly
Manufacturing Solution (CAMS).
Since May 2009, CCAD has relied
upon the Logistics Management
Program (LMP) to integrate a variety
of functions

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such as planning, manufacturing, supply
chain management, inventory
management, finance and human
resources. LMP compiles data and
information into one database with
global visibility across the Army,
managing people and resources while
supporting the Army mission.
In June 2015, the Depot began deploying
the Complex Assembly Manufacturing
Solution (CAMS) to extend the benefits of
global visibility to the shop floor. CAMS
collects and provides data for the shop
floor though labour tracking, production
order management and the use of
automated identification tracking (AIT).
The ability to manage the shop floor with
automation provides actionable
information to the Depot leadership at
key decision points.

CAMS also supports a key process

improvement initiative referred to The Art
of the Possible. This effort significantly
improves the turnaround time for the UH60L Recapitalization Program by
focusing on eliminating process flow
choke point thru lean and continuous
process improvement solutions.
The primary challenge facing the Depot
is controlling costs. In an era of reduced
operations and constrained funding, the
Depot must provide the Warfighter with a
surge capability for tomorrow while
sustaining today's fleet within budget.
This challenge is best addressed with

improved planning "left of the

requirement". Supply management is
critical for this effort given our multiple
supply chain routes that include both
government and commercial managed
sources. Other factors that require
careful management are ensuring skilled
labour and facilities are in place, and
understanding the technical
requirements for the items sent for
overhaul.
CCAD is continuously seeking to improve
its processes and realize efficiencies.
These can brought in as standalone
projects or as part of our major
construction initiatives. Current
capabilities under development include
advanced composite traits and cold
spray application metal finishing
processes.

I am interested in learning and sharing

best business practices in the
sustainment of Army Aviation at
Januarys International Military Helicopter
event. We all face the same challenges
of cost, quality and schedule. Learning
how others have achieved success and if
those achievements can be realized at
CCAD would benefit the Aviation
Enterprise. It is also a welcome
opportunity to share the Depot's unique
capabilities and certifications for aircraft
and component repairs.

Major General (Ret'd) Dimitrios Petridis

Aviation Support Programme Manager
NATO Support and Procurement Agency (NSPA)
Our current priorities are to support
all the requirements of HELICOPTER
Support Partnership Nations in
whatever type of helicopter they
possess, from legacy B-205 to NH90s, and in all their requests related to
supply support, all types of MRO
business related to components and
accessories and, last but not least, all
kinds of heavy repairs and overhauls,
along with fleet wide modifications
ranging from installing more powerful
engines to glass-cockpit upgrades
and installation of EW suites. Priority
is always given to those customers
assets which are going to be
deployed in any theatre of operation
to support NATO or EU missions.

maintenance of legacy platforms like

Sea Lynx or Sea King. We have also
been preparing the Spanish
helicopters of all types of deployment
in various theatres of operation by
installing EW Suites or ballistic
protection panels or guns, and we
conducted the heavy repairs and
overhauls of Mi-17 helicopters in
support of the US troops in
Afghanistan.
Under the problem of continuously
decreasing military budgets the
primary challenges of all NATO

We have been fortunate to have seen

many big successes ranging from
overhauling and modernising almost
all types of the German inventory
helicopters, to acquiring and
modifying for them a large number of
different flight simulators, as well as
undertaking all the heavy
OCTOBER 2016 DEFENCE IQ

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R O TA RY
nations are to maintain the availability
of legacy platforms in the most costeffective way by increasing their
operational capabilities when and as
required, rather than going for new
platforms with all the state-of-the-art
technologies and goodies included.
For those nations able to acquire
modern platforms, their primary goal
is to maintain them in the long run
and again in the most costeffective way when it comes to heavy
maintenance or important fleet wide
modifications which are important to
safely operate across the various
theatres of operation. Being a
customer-funded, no-profit/no-loss
organisation, our task is not to predict
but to materialise the customers
requirements as they appear. Our
vast experience of over 60 years and
our corporate knowledge
in creating complex contracts in
minimum time is
the value we add
to fulfilling those
requirements.

platforms like glass-cockpits,

HOTAS and HUMS functions, and
upgrading legacy platforms to multipurpose ones, such as CSARMEDEVAC, within minimum time and
cost.
My main goal at the International
Military Helicopter conference is to
communicate to the Helicopter
Community in the best possible way
the existing solutions that have
already been combat-proven for
other Allies and to help them
understand that if they want to
achieve economies of scale the best
way is to join the HELICOPTER
Support Partnership of NSPA. This will
allow them to consolidate their future
requirements with others and share
the cost, as well
as to
benefit from FFP and zero
lead times when putting
together a contract that
already exists for others.

Industry solutions which are of

paramount importance for the
Alliance are the development of
Performance Based Solutions at an
affordable cost, which should not
only be available in-house but mainly
during deployments. NSPA is not
dealing with research in order to be
able to identify technology gaps
which might be essential for the
future but based on our experience
gained so far, the tendency of the
customers is to maximise the lifecycle of the legacy platforms with
handy and innovative solutions
embodied already in modern
11

DEFENCE IQ OCTOBER 2016

INDUSTRY
INSIGHT

BLR Aerospaces business is performance innovation. Its

FastFin Tail Rotor Enhancement and Stability System, Winglet
Systems and other performance improvement products are
operating on more than 5,000 helicopters and airplanes
worldwide, and are endorsed by industry-leading OEMs
including Bell Helicopter and Beechcraft Corporation. Last
year, they made public that it is providing the FastFin System
and several other performance related modifications as a
bundled performance improvement for legacy attack
helicopter, the AH1. Defence IQ spoke with Dave Marone, Vice
President of Sales and Marketing, to find out how the
company is exporting innovation

DIQ In the military market, you

have to keep moving. In the past 12
months, where has been the major
progress for BLR?
DM Its mostly within the helicopter
domain. Our Cobra programme is
one of our most aggressive and we
have two other civilian helicopter
models, so for us it was a year of
flight tests to adapt our core
technology on different platforms.
Weve had direct feedback from
several foreign militaries, which is an
important value that comes from
events like International Military
Helicopter. The briefings on offer are
13

from around the world, showcasing

different operational challenges and
different leaders. That really helps an
engineering solutions organisation
like mine to understand what the pain
points are to understand what the
challenges are. If you know what the
problem is and you're willing to share
with us what your problem is, the
organisation can be a very likely
consultant.
DIQ I'd wager good money that the
pain point for almost every military
at the moment is budget. How are
you offering affordability?
DEFENCE IQ OCTOBER 2016

R O TA RY

DM Well, I think you're right. The

reality is, austerity is still the word. But
what does that really mean? Well, the
two biggest supporters of most
military organisations around the
world are the United States and the
UK, in that order. The French have
something of a hold on that as well.
My point being is those three
countries account for the vast
majority of foreign military support to
smaller countries with less financial
prowess. So when the United States
starts cutting back aggressively, as
it's doing, you can imagine the trickledown effect on those who, say, over
the last 15 years, have seen generous
support offers from the US
Department of State or similar.
If you cut that flow of funding off to
these allies, then, of course, these
countries face a problem in how to
keep a sizeable, functional or viable
force fielded at a time where the
revenue source for militaries has
throttled back rapidly and
significantly. That makes ideas that
save money or provide added value
economically very, very popular.
That's what BLR does.
OCTOBER 2016 DEFENCE IQ

Our roots are in the commercial

market. For years, we've provided Bell
Medium operators with systems that
help them get a greater return on
assets they've already invested in.
That's good for almost everybody. I
think the 1,000 systems we put into
the global market proves that there is
a demand for that type of valueadded product. But it was only a
matter of time before we could find a
military platform that would benefit
from the same concept. There is a
difference and it's a significant one
between the commercial market and
the military market. The commercial
market is already providing fierce
competitive pressures every day, so
their receptiveness to saving money
is extraordinary. Their eagerness to
work together to find more costeffective solutions is amazing. The
primary function of the military is to
have the legality and mission
readiness necessary to get the job
done. It's then, secondarily, about
cost effectiveness. That doesn't
undermine my previous comment
that, at times like these, they need
both. That reality makes a company
like mine popular.
DIQ I'd say as well one of the core
realities of the military market is that
demand is often very much driven
by the unpredictable emergence of
conflict or by the operational
necessity to have a lot of these
platforms out there. With the
changes we've seen on a strategic,
political level in the past year, has
this impacted BLR much in terms of
what's happening on the front
line?
14

R O TA RY
DM Absolutely. Definitely throughout
Africa; definitely throughout the
Middle East; definitely throughout
South-East Asia. Youre seeing almost
every military thats friendly to the
United States coordinating in some
manner to get aircraft mothballed.
Sent to the boneyard, I call it. We see
these aircraft getting pulled back in
and trying to get them back into
service condition. That's going on in
the Philippines, in Korea, Japan,
Jordan, Austria you name it. That's a
positive.
The negative is that if you're a USbased economy, the old greenback
has rebounded the US dollar is very,
very strong right now against almost
all world currencies. That sounds like
a good thing but, in reality, if you're
denominated in US dollars and you're
building things in the US, exporting
them at this time is an expensive
proposition. That's not a good thing
for BLR.
DIQ So is that putting a wrench
into anything youre currently
working on?

DM No, we're fine. Fortunately we

started investing heavily about two
years ago into our new line of
products that should start coming out
this year. We actually launched into a
turboprop propeller product last year,
and this year we intend to serve up
the H125, an Airbus Helicopter
product, and we have a couple of
others, including the Cobra. So, when
times are turning down, if you are
fortunate to have R&D delivering new
products at the same time, you
usually come out okay. The new
product sales will offset the currencyrelated export challenges.
DIQ Are you generally taking more
of a reactive approach in terms of
what's happening around you and
trying to ensure that your solutions
are in place at the right time, or do
you have a grand goal in mind for
the next five, ten years, of where
you would like to see this
organisation going?

R O TA RY
DM We certainly have a strategic
plan for the next five years. All plans
for us are effectively to develop new
technologies that lead to new
products that lead to new sales. The
sales opportunity part of it is pretty
straightforward. We're already
established on most continents
where we want to be with channels
to market. Therefore, for a company
like BLR, it comes down to the
innovative ideas that churn out the
new technology and new products.
Our biggest challenge, like any
company, is to originate value-added,
truly value added products.
We've been doing this now for 26
years and we intend to continue with
our model. Our model is built around
performance improvements that are
high value-added, helping fielded
fleet operators get more return on
those assets they've already invested
in. It's a popular model, but it's not
easy.
DIQ Has anything youve
discovered at International Military
Helicopter this year been of
particular note to you?
DM This is our second year of
participating. Both last year and this
year, the attendance has been very,
very good. The contacts we've made
here have been excellent quality
contacts, and they're the types of
contacts that arent the easiest to
make outside of a venue like this. You
could spend months, or even years,
trying to get access to certain
militaries, like Saudi Arabia or
Pakistan. It can even be difficult
OCTOBER 2016 DEFENCE IQ

getting in front of the right Canadians.

What's nice about this event is that
it's attended by higher-up levels
within those respective militaries.
The colleagues at the event are very
highly experienced folks in the
military sector, period it's not usually
where you find your entry-level
business types. It usually takes much
more experience to be able to deal
with the challenges of the military
customer. It's so much more
complex. The funding process is
more complex. The decision making
process is far more complex. The
solutions are far more complex. The
commercial market knows a lot more
about what they need and want
whereas the military market needs
advice. Your senior level guys have to
come out and handle these types of
challenges. So the folks attending
IMH from industry are highlyexperienced seasoned veterans. This
is the A-Team.
Here we definitely pick up a lot of intel
about individual countries to know
how to position ourselves and take
advantage of the opportunities.
There's quite a lot of exchange. It
doesn't take long for industry veterans
to know who's friend and who's foe,
meaning that if we're not competing
with each other, we aim to
collaborate. There's also a good level
of camaraderie here in this event. It's
one of those smaller, intimate venues
that actually offer high value because
you can get access to senior leaders,
whether it's in industry or foreign
military.

16

In 2016, Andy Pillado, Vice President, Business Development for MD Helicopters,

presented a briefing at the 2016 International Military Helicopter Conference
(London, United Kingdom) on Multi-Mission Light Scout Attack Helicopter
Solutions and Delivering Rapid Operational Readiness. Pillado discussed the
critical role that light scout attack aircraft play in a range of unpredictable
operational theatres at a time when there is a real and compelling need for
rotorcraft platforms to offer more in the way of faster delivery, expanded
capabilities, and a wider range of mission profiles. In response, the MD
Helicopters Scout Attack fleet, manufactured by the Mesa, Arizona-based
manufacturer, includes the (L - R) MD 530F, MD 530G and MD 540A, all of which
offer a key component flexibility at an affordable price.
In addition to MD Helicopters expanding fleet of MD 530F Cayuse Warrior
helicopters in service with the Afghan Air Force, the company was recently
awarded a contract to deliver the more advance MD 530G Light Scout Attack
helicopter to Malaysias Ministry of Defence, Malaysian Army Aviation. Additionally,
the company has training, scout and light attack helicopters in service with Saudi
Arabia, Japan, El Salvador, Costa Rica, Kenya, and others.

Alongside Craig Kitchen (Chief Commercial Officer), Pillado discussed the

companys role in the military helicopter market today with Defence IQ, as well as
the strategic game plan for the years ahead
17

DEFENCE IQ OCTOBER 2016

R O TA RY
DIQ Gentlemen, when it comes to
light multirole helicopters, where
does the need for a solution lie?
What are the threats that aircraft
like this are intended to counter?
AP Were seeing conflict on a global
scale. The threat has changed
immensely, from force-on-force to a
lot of smaller engagements. Some
are sophisticated, some are less so
but the point is that its varied. Were
able, through our family of
helicopters, to offer solutions from the
low intensity to a higher intensity
threat and conflict. Were able to
rapidly field solutions based on
proven platforms at an affordable
price for not only acquisition, but also
for sustainment and operations. We
provide that end to end solution.
CK And thats our major selling point
in this global market the fact that we
can rapidly deploy assets. As an
example, today when we are
shipping products to Afghanistan,
well build helicopters, have them
ready to go, and ship them within six
to eight months in this case
because of the urgent requirement in
that region. The helicopters will leave
our facility and within two weeks
theyre in combat. They get over
there, we reassemble them, flight test
them and theyre undertaking
operations all within that short time.
So people are being able to field a
weapon system in less than a year at
a very good cost. The operational
cost going forward is then so low its
under $1,000 an hour for this
helicopter, so it really makes it an
affordable asset to bring to the fight.
OCTOBER 2016 DEFENCE IQ

When engaged in small-scale

skirmishes, you have to ask yourself
whether you want to deploy a $50
million attack helicopter asset or a $5
million attack helicopter asset that
can really do the same thing for that
type of mission? Its easy economics,
really.
DIQ Is that a unique selling point,
the timeframe to operations?
CK For the most part, it is. I dont
think anybody in the rotor wing
business can deploy and build as
quickly as we can. We normally quote
12 month lead times on our
helicopters but where theres an
urgent and compelling need, were
able to move quickly to respond. In
this case, the US Army needed to field
this system. We went to contract last
October. Six months later we
delivered six aircraft. Within nine
months we delivered 12. In less than
12 months they were fully operational,
performing combat operations in
theatre. So we have the ability to
throttle our production line to meet
the needs when they arise.

18

R O TA RY
DIQ What about end user
feedback? Weve heard discussion
today about the need for OEMs to
ensure constant communication
and properly understand the
operational demands, so how do
you go about ensuring that that
dialogue does not break down as it
so commonly seems to where
defence industry matters are
concerned?
CK Youre right. Our setup is that we
offer nose to tail solutions for our
aircraft when we ship them. As in
Afghanistan, we have partners and
teams on the ground maintaining the
aircraft. We are in daily 24/7
communication with the support
group on the ground and with the
customer. You have to have that type
of support system in place and just
keep at it day in and day out.
AP Knowing the demands is about
listening to the customer. For the
militaries throughout the world that
we deal with, we go there, they
present their problem set, what
theyre trying to accomplish, what
their needs are, and then we design
the solution together. We put the
capabilities into the platform that they
need so that they can be put into
effect. It doesnt matter what youre
providing, industry needs to listen to
the customer. Thats why we call talk
about our family of helicopters its
almost a menu for them to choose
what capabilities fit their needs. No
threat is the same. I agree with
everyone when they say the response
needs to be overwhelming, but the
question is how overwhelming? You
19

still have a cost on the end of it. You

can have the most expensive
platform in the world but if you cant
fly it, you cant afford to fly it, and cant
employ it, what good is it? We
provide a solution they can take to
the fight day to day and that meets
affordability and sustainability
parameters.
DIQ Being able to cherry-pick a
range of solutions is a popular
approach, particularly where
smaller or more financiallyconstrained nations are concerned.
That brings with it a question of
integration
CK The way we go about it is that
we do all the hard work upfront.
Theres a range of capabilities that
customers want which is why, again,
we offer the family of helicopters.
When one of these 500s hits the
production line, they all look the
same. Day one, they roll in, they look
the same, and as they get the bits
and pieces added to them, the
systems are integrated. It may be a
(MD 530F) Cayuse Warrior, it may be
a 530G, or it may be the next
generation we have coming down
the line. You cant tell the difference at
the start. Once the customer
requirements are tabled, it takes on its
own shape.
DEFENCE IQ OCTOBER 2016

R O TA RY
So we do the integration from the
start, hand-in-hand with our team
mates, whether its the weapons
systems management, night vision,
forward looking infrared, whatever it
might be. Show me another example
where somebody has been able to
field an airborne combat system in
less than 12 months and put it in a
fight. You cant find one ever,
anywhere thats gone that fast. Its a
very unique solution set.
DIQ But thats not to say its an
easy process, Im sure
CK: Well, all the hard work is upfront.
Were working with the user on a
continual basis to evolve the upmost
system. We look to offer more than
one solution for any given
requirement more than one
weapon; more than one FLIR
capability, and so on. Because we do
that work, our customers dont have
to. Weve found that our customer
base is quite diverse and a lot of them
have different experiences with
different systems and subsystem
suppliers. There may be a country we
work with that will tell us they dont
use a particular system because
theyve either had a bad experience

OCTOBER 2016 DEFENCE IQ

or because they just have a

preference of one over another. Were
not trying to offer all things to all
people but we are offering a wide
range of systems and capabilities so
that customers can be certain were
meeting their requirement at an
affordable cost.
DIQ Youve talked about the
success of the past year what can
you tell me about the goals for the
next 12 24 months? Is it a case of
maintaining the pace or are you
changing anything about the shape
of what and how you provide to this
market?
CK: Were staying the course with
how we see the market developing.
We anticipate that well be growing
over the next couple of years so that
we can meet even more
requirements, and so that more folks
find their way to us. The more we do,
the more people become aware of
what we can do for them.
In the longer term were looking at
more evolved systems and at more
capable airframes that can do more
carry more, fly longer, farther, faster,
those kinds of things. Were

R O TA RY
currently doing those trade studies
and looking at initial designs for
things to answer present and
emerging threats. For MD, our growth
will take us only to a certain point.
Were never going to address the light
attack scout market. Were
responding to some requirements
from other customers that may or
may not include twins, and were
beginning to do trades on those kinds
of things as well.
In short, we like this market space.
The military market space is what the
company was really grown on, with
the OH-6 in South East Asia during
Vietnam. From that emerged the
500s, 530s, 520s and the 500Cs, Ds,
Es, and so on all an evolution of
commercial helicopters. Weve now
come back full circle in a way,
developing a new set of light attack
scout helicopters that will result in
new law enforcement helicopters and
other innovative products for the
commercial market.

21

DIQ And thats not MD pushing

that, its simply the fact that demand
and supply for light attack is
surging?
CK Theres such a diverse base of
customer requirements. Again, you
have the Apache and Tiger on one
end of the attack spectrum, light
attack on the other end of the
spectrum, and then everything inbetween. There really is quite a
difference between the two poles but
were marching up the chain. The
guys at the top end of it arent coming
down because it doesnt make sense
for them. That said, theres only a
certain amount of distance we can
travel, only a certain system we can
offer and maintain in a cost-effective
way. The more complexity you add,
the less reliable these platforms tend
to get. So our aim is to keep our birds
ready to go, to remain reliable, and to
maintain our 97 percent operational
readiness rate (for three years
running) in Afghanistan. Its the
highest rate of any fielded system in
the US Army, so its a phenomenal
achievement. We dont want to
sacrifice that sort of pedigree. You
dont want to find youve left your gun
at home and find yourself in a
gunfight. If youre in a situation where
you need a parachute and you dont
have one on you, chances are youre
too late to correct the problem. In
other words, we have to have a
system thats ready to go as soon as
you need it to go.

DEFENCE IQ OCTOBER 2016

Has anything stood out for you

about the dialogue or opportunities
here at International Military
Helicopter 2016?

CK: I think its a great networking

opportunity. The customers who
come here are interested in whats
going on in the market and a lot of
them havent spoken to all the OEMs
or dont have points of contact. Here
they get a chance to look more
discretely at the products available.
From that standpoint its good for us

OCTOBER 2016 DEFENCE IQ

because it allows us to renew our

acquaintances and to potentially
make new ones. Weve talked to folks
from Nigeria, Colombia, Poland its a
diverse group. Anywhere you can get
your message out to a broader
spectrum of people is good for the
company. End users have a chance
to really learn about what we and
others offer.
So its valuable, its worth doing, and I
think its been a good experience for
us. Weve had a lot of conversations.

22

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