Helicopter firms set sights lower

Medical services, disaster relief and rescue mission have also become part of the new growth area for the industry, as helicopters play a key role in these operations. In the next five years China needs at least 100 helicopters for observation and relief related to natural disasters, the report says.

To develop its presence in China, Eurocopter set up a helicopter completion and customization center in Tianjin in August for its best-selling product there, the Ecureuil series. The light helicopters are popular worldwide for aerial utility work, police operations, business aviation and tourist flights.

The company and the Tianjin Port Free Trade Zone, which is a partner of Airbus for its Tianjin-based A320 final assembly line, formed a joint venture.

"Eurocopter is the majority shareholder in this joint venture," Ducrot says. "We are aiming to commence operations by the end of 2013. According to Chinese market growth and demand, we anticipate delivering around two units per month over the first two years."

Ducrot says this investment is Eurocopter's first step toward meeting the expected growth in China's helicopter demand, before developing more complex projects in the country.

The helicopter market in China can already be seen to have taken off in the wealthy village of Huaxi in East China's Jiangsu province, where the locally run company Jiangsu Huaxi General Aviation Co Ltd has bought two helicopters at a total cost of 90 million yuan ($14.41 million).

In July, the Civil Aviation Administration of China granted a license to the new company, which mainly offers air travel services for villagers and tourists.

By the end of 2015, the village company hopes to expand its fleet to five helicopters and one business jet, and take on other services, such as emergency rescue and multi-purpose commercial flights.

Helicopters made in the United States, Italy and Russia also account for a large share of China's helicopter market. Bell Helicopter in the US is aiming to sell more light helicopters to China's rich and the public sector over the next five years.

The Anglo-Italian manufacturer AgustaWestland claimed 90 percent of the nation's public security equipment market when it gained orders from law enforcement authorities throughout China for 30 helicopters in August.

However, as the helicopter sector is not as developed as in other countries, a shortage of technicians and pilots may hamper its growth in this emerging market.

Bruno Boulnois, CEO of Eurocopter China Co Ltd, says his company has launched a number of investment activities in China, including training pilots and technicians, setting up a spare parts hub in Beijing, and developing a network of support centers.

The company has set up offices in Beijing, Shanghai, Shenzhen, Hong Kong, Harbin, Wuhan and Chengdu, staffed with 65 employees.

It has also set up a regional customer service center in Hong Kong, a logistics hub in Beijing, and a maintenance, repair and overhaul center in Shenzhen.

Boulnois says the company will bring its first full-flight simulator for pilot training to China soon.

For China's part, says Zhao of the Chinese Academy of Social Sciences, the country "needs to build more helipads and airports for private aircraft to take off and land, and these should also be able to provide proper maintenance for the aircraft".

Wang Chao contributed to this story.

zhongnan@chinadaily.com.cn