China to streak ahead in civil helicopters

Aviation company Airbus predicts China will soon fly past the United States as the world's largest civil helicopter market - and says it aims to increase its market share from the current 40 percent to 60 percent by 2020.

"The market could be the biggest by 2018 for light single and light twin helicopters, and definitely before 2020," says Norbert Ducrot, president and CEO of Airbus Helicopters China.

"With the further opening up of the Chinese low-altitude airspace, and the growth in the civil and parapublic segments, China is gearing up to be the biggest market for helicopters."

The parapublic sector encompasses public services such as the police, medical evacuation, search and rescue, use by utility companies and firefighting.

Airbus is set to build its first final assembly line in China after signing an agreement on June 13 to build the H135 helicopter in the east-coast city of Qingdao. The deal is with a consortium made up of China Aviation Supplies Holding Co, Qingdao United General Aviation Industrial Development Co and CITIC Offshore Helicopter Co Ltd.

The move is a key component in a commitment to purchase 100 H135s, worth about 700 million euros ($788 million), agreed last year between the consortium and Airbus Helicopters.

The H135s will be assembled in China. The assembly line is scheduled to start operations by 2018, with a target to assemble up to 300 helicopters over the next 10 years, says Ducrot, who estimates an output of 1,000 to 1,200 H135s by 2036.

According to the agreement, Airbus and the consortium will establish a joint venture, of which Airbus will control more than 50 percent, he says. The consortium will also be Airbus Helicopter's biggest distributor in China.

Last month, China's State Council released a regulation on the development of the general aviation industry. It set several goals for 2020, including reaching a market value of 1 trillion yuan ($151 billion; 134 billion euros), and increasing the number of airports from the current 300 to 500.

The regulations open up more areas for civil use, and expand the role of civil helicopters in disaster relief, environmental monitoring and resource exploration. It also allows for the promotion of research and increased manufacturing in the sector.

There are about 750 helicopters in China, and over the past five years the market has seen annual sales of about 100. Ducrot estimates the country will need 5,000 to 10,000 helicopters and private jets in the foreseeable future.

Airbus sold 40 helicopters in China last year and plans to sell more than 60 this year. Ducrot says by next week the order book for the first six months will stand at more than 45 units.

duxiaoying@chinadaily.com.cn