HELICOPTER FINANCE AMERICASSeptember 11, 2013 – Miami, FL

International Helicopter Community

Update

• Presented by: Matt Zuccaro

President

Helicopter Association International

Helicopter Association International

– Established 1948

– The professional trade association for the international helicopter community

– 3,500+ Members in 78 countries

– 91 Affiliate Members in 73 countries

– HAI Members operate over 5,500 helicopters and fly nearly 2.5 million hours each year

– 45 Staff Members

HAI Members Include

– Helicopter owners

– Operators

– Manufacturers & suppliers

– Service organizations

– Affiliate associations

– Military

– Pilots

– Maintenance Technicians

– Students

– People interested in industry

The Operating Environment

• Twin vs. Single engine

• VFR vs. IFR

• Urban vs. rural vs. offshore

• 1 aircraft to 300 aircraft fleets

• 85% of industry are small operators

with 1 to 5 helicopters

• Commercial / private / public

Corporate Air Tours

Aerial Applications Instruction / Training

Utilities Patrol Construction

AERIAL FIREFIGHTING Mineral Exploration

Air Taxi Environmental Patrol

ENG HEMS

Law Enforcement Logging

Aerial Photography Department of Defense (Military)

Schedule Airline Service Firefighting

Military Search and Rescue

HEMS Homeland Security

Traffic Reporting Courier / Cargo

Missions: R-22 to Boeing-234

Helicopter Environment

1. OFF AIRPORT

2. LOW LEVEL

3. REMOTE LOCATIONS

4. NO NORMAL INFRASTRUCTURE

5. HOSTILE ENVIRONMENTS

6. FIRST TIME OPERATIONS AT LANDING SITE

Helicopter Association International

Heli-Expo Trade Show – Las Vegas – March 2013

20,000+ Attendees

65 Helicopters on Display

740 + Exhibitors

1,000+ Students in education courses

1 million s.f. exhibit floor and meetings

Est. 2 Billion U.S. dollars Exhibitor sales

One of the Top 50 shows in the U.S.

Rated the Fastest growing show in the past 3 years

HELI-EXPO 2014

February 25-27, 2014

Anaheim, California

HAI Salute to Excellence AwardsAgusta Westland Safety Award

Bell Helicopter Lifetime Achievement Award

Airbus Helicopter Golden Hour Award

Excellence in Communications Award

MD Helicopters Law Enforcement Award

Pilot of the Year Award

Rolls-Royce Excellence in Helicopter Maintenance Award

Sikorsky Humanitarian Service Award

Dub Blessing Certified Flight Instructor of the Year Award

Anyone can nominate Anyone

New HAI Headquarters

WWW.ROTOR.COM

• ROTORNEWS – (Free Daily E-Newsletter)

• 20 LANGUAGE TRANSLATION

• GOOGLE SEARCHABLE

• NUMEROUS DOWNLOADS

www.helicopterfoundation.org

Helicopter Foundation Int’l

• Virtual Museum – Searchable database

• School Outreach Program

• Heritage interviews of industry pioneers

• Heritage Aircraft at HELIEXPO

Scholarship Programs

$ 20,000 Maintenance Technicians

$ 20,000 Pilots

$ 40,000 TOTAL HFI COMMITMENT

Scholarship Golf Tournament at Heli ExpoSilent Auction

Helicopter Foundation Int’l

REPRESENTATIONNTSB (D.P.) HEMS – Public Aircraft

FAA Safety Management Systems ARAC

RTCA ADS-B Working Group

ICAO Heliport Working Group (Paris)

ICAO Climate Summit

ICAO IFR Working Group

FAA / EASA Harmonization Efforts

FAA / ICAO Noise modeling Working Group

FAA / NPS Nat’l Parks Overflight Advisory Group

FAA N.Y. City Airspace Task Force

Industry Alliance - Aviation Across America

U.S. Congress Testimony – Informational Forums

U.S. Congress General Aviation Caucus

HAI INTERNATIONAL PRESENCE

•AHS American Helicopter Society

•AIA/NZHA AIA of New Zealand / New Zealand Helicopter Association

ALEA Airborne Law Enforcement Association

•AMTC Air Medical Transport Conference

•AOPA Aircraft Owners and Pilots Association

•APA American Planning Association

•HAA Helicopter Association of Australia

•Oshkosh Experimental Aircraft Association - “HELI-CENTER”

•EBACE European Business Aviation Exposition - Geneva

ABACE Asian Business Aviation Exposition – Shanghais

•HAC Helicopter Association of Canada

•HeliRussia Russian Ministry of Industry and Trade - Moscow

•Helitech-UK Helitech – Duksford England

•NASAO National Association of State Aviation Officials

•NBAA National Business Aviation Association

•Paris Air Show Le Bourget - Paris

•Sun ‘N Fun Lakeland, Florida

Farnborough Air show & Exposition, London

ILA Berlin Berlin Air show

AirMed Air Medical Conference – United Kingdom

HeliDubai Trade Show & Exposition, Dubai, United Arab Emirates

ABRAPHE Brazilian Helicopter Association

HAI Heli Center – Oshkosh Airshow

HAI Heli Center

Global Perspective

Next five years, Global purchase expectations are up 4% vs last year.

U.S. & Europe new helicopter demand rose 3% and 7% respectively in 2012.

Latin America and Asia have the highest predicted fleet replacement and expansion rates.

Light Single-Engine helicopters are the most popular product class, comprising 47% of expected sales*.

*Source: AWEX Houston and HeliCAS

Global demand for heavy-twins Farther range / Higher passenger loads

We also expect continued development of medium and super-medium helicopter market as well.

Search and rescue operations expansionWill provide support in regions with new and existing offshore oil and gas operations.

Number of used helicopters sold continues to grow.

U.S. resale market (roughly 50% of global sales) Almost 17% increase in sales, from 853 total aircraft in 2011 to 997 in 2012*.

*HAI HELICOPTER MARKET NEWSLETTER 2012

Global expansion – 4,900 to 5,600 new sales by 2017 (Honeywell)

Oil demand continues to grow, along with need for offshore

helicopter operations

Corporate Ops trending up following a global recession

Emergency Services Ops fast growing - aging fleets (avg. U.S. EMS

aircraft is 17 years old)

HELICOPTER FORECAST 2013

Helicopter Industry Economics

Lease vs Purchase

Operating Leases

Power by the Hour

Stable operating costs

both fixed and hourly

By 2020 the Chinese helicopter fleet is predicted to grow to

1,867 helicopters, from today’s fleet size of about 200,

representing a $4.9 billion investment*.

Chinese growth predicted on Chinese government relaxing

air space restrictions under 1,000 feet for private flights,

elimination of the US $4,400 flight plan fee, and cutting

bureaucratic red tape that has caused significant delays.

An opening of Chinese airspace is an opportunity for the

development of Search and Rescue, Helicopter EMS and

training segments. *Source: China Daily

China

Purchase and utilization of Western Aircraft

Development and Production of Russian Helicopters

complying with Global Certification standards

Expansion of Operations and Maintenance services

outside of Russia

Russia

Utilization as Personal Transport

Expansion of Oil Exploration and Charter operations

Enhanced and expanded government oversight

South America

Potential Influences on future

• Safety - Public perception / Regulators / Legislatures

• Exterior Noise / Emissions impact

(Green Initiatives)

• Unmanned Vehicle Operations

• Infrastructure (Heliports / Access to Airspace)

Potential Influences on future

• Instrument Flight Capabilities

– (Safety / Expanded use / Schedule reliability)

• Technology – NextGen / HUMS-FDM

– (Economic / safety / operational impact)

• Customer requirements / standards

Pilot / Mechanic Shortage

As demand for helicopters increases, the number of pilots and

mechanics is not keeping pace.

Global problem, only reliable data from the U.S.

Last five years (of available data): U.S. helicopter fleet has grown

an additional 943 aircraft, from 9,159 to 10, 102*. A growth trend

we expect to continue.

Meanwhile, rotorcraft only certified pilot population has grown by

5.7% since 2000, yet has slowed to only 0.4%* growth over the

last year.

Combined with an aging pilot population and reduced mechanic

starts, these trends are not sustainable. We are looking at an

increased pilot and mechanic deficit in the near future.*Source: FAA GA Survey

U.S. Rotorcraft fleet size and Pilot Numbers

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

Rotocraft Fleet Size

Projected Rotocraft FleetSize

Active Rotorcraft OnlyPilots

Source: FAA GA Survey 2010

Helicopter Industry Economics

Industry Healthy and growing

Diversity of industry key to survival & growth

Readily available financing for aircraft acquisition and capital investment is essential

CONTACT INFORMATION

MATT ZUCCARO

HAI OFFICE: 703-683-4646

E-MAIL: TAILROTOR@AOL.COM

HAI WEBPAGE: WWW.ROTOR.COM