Rainer Farid, Eurocopter’s Vice President for Sales & Customer Relations–South Asia, in an interaction with SP’s Aviation, painstakingly traces the company’s enduring ties with India and plans to not only enlarge existing industrial cooperations but also partner with more private organisations in the country

SP’s Aviation (SP’s): What is Eurocopter’s company profile, its global positioning and history in brief?

Rainer Farid (Farid): Established in 1992, the Franco-German-Spanish Eurocopter Group is a Division of EADS, a world leader in aerospace, defence and related services. The Eurocopter Group employs approximately 15,600 people. Overall, the group’s products account for 30 per cent of the total world helicopter fleet. Its strong worldwide presence is ensured by its 18 subsidiaries on five continents, along with a dense network of distributors, certified agents and maintenance centres. More than 10,000 Eurocopter helicopters are currently in service with over 2,800 customers in more than 140 countries. Eurocopter offers the largest civil and military helicopter range in the world.

We have successfully maintained our leadership in the global civil and para-public market. We have met our 2008 objectives for helicopter sales and deliveries and increased our turnover by 7.5 per cent. These figures constitute a production ramp-up of 20 per cent as compared to 2007. While 55 per cent of the turnover was derived from civil and para-public sales, 45 per cent was related to Eurocopter’s military products.

Order bookings, still showing demand for new helicopter models and services, amounted to €4.9 billion (Rs 34,170 crore). This includes 715 new aircraft. Our total order backlog by the end of December 2008 was over €14 billion (Rs 97,640 crore) or the equivalent of 1,550 helicopters. We are confident that the backlog and unique business model should be major assets in retaining our solidity through 2009 and beyond.

SP’s: Since when and with what products has Eurocopter or its predecessors been present in the Indian market?

Farid: Eurocopter and India have a long tradition of cooperation and business, with India being the first nation with which Eurocopter signed a licence agreement which included technology transfer. Since 1962, we have had a partnership with India’s leading local industrial company Hindustan Aeronautics Limited (HAL), through two cooperation agreements. Starting with enabling HAL to manufacture more than 600 helicopters of the Alouette III and Lama type (Cheetah/Chetak), the relationship strengthened further with Eurocopter outsourcing exhaustive Ecureuil work packages to HAL for the global market. In 1984, HAL associated Eurocopter in the development of the Advanced Light Helicopter, a twin-engined, 5-tonne transport helicopter. Today, HAL is part of our global supply chain by producing Ecureuil/Fennec airframes.

Our partnerships in India have extended across both public and private enterprises through partners like HAL, Pawan Hans Helicopters Limited (PHHL) and Indocopters. These partnerships span both civil and military domains, covering the entire spectrum of helicopter activities, from manufacturing to operations, maintenance and product support

To summarise, in the military environment, Eurocopter has a market share of 55 per cent, comprising HAL-made helicopters. It currently holds 30 per cent of the local corporate and civil turbine helicopter market. The oil and gas segment has 30 of Eurocopter aircraft in service with Pawan Hans and Vectra and 12 aircraft in VIP/state government operations with groups like Reliance, Raymond, Jindals, Kingfisher and Sahara.

SP’s: Why was the tender for 197 helicopters for the Indian Army cancelled rather abruptly in the recent past? What is your perspective on such a development?

Farid: The tender for 197 helicopters for the Indian Army was indeed cancelled in December 2007. But at this stage we would not want to delve into that. We are now fully concentrating on the new RFP. Like in 2007, we are confident that Eurocopter has the best solution to fully meet the requirements of the Indian armed forces.

SP’s: Is Eurocopter a participant in the fresh tender for Reconnaissance and Surveillance Helicopters for the Indian Army and Indian Air Force (IAF)? What is the product on offer and what stage is the tender in?

Farid: Yes, we are participating in the fresh RFP with the Fennec and we will field the military Fennec for Evaluation Trials in India in September/October. The AS550 Fennec offers a unique platform that provides answers to all requirements from the Indian armed forces requiring a versatile, high-performance and proven scout helicopter ready for next generation battlefields.

The multi-role capabilities of the Fennec have made it a success with several countries like Australia, the US, Brazil and so on. From the hottest of deserts to the highest of altitudes, the Fennec has the ability to map it all. In fact, in terms of temperature, it can function impeccably from -40°c to 50°c. Not only can it be deployed successfully at sea level, it also holds the world record for landing on the top of Mount Everest. Given its abilities, it is definitely the best suited for the requirements of the Indian armed forces and the natural successor of the Cheetah and Chetaks.

The success of Fennec lies in its versatility. Not only is it the only helicopter that is certified by both internationally accredited civil (the European Aviation Safety Agency and US’ Federal Aviation Administration) and military (French Ministry of Defence-Délégation Générale pour l’Armement) certification agencies, but is also the only one available in naval configurations with both single engine and twin engine versions on the same helicopter.

SP’s: Is Eurocopter a participant in the tender for attack helicopters for the IAF?

Farid: Yes, we have responded to the previous request for proposal (RFP) and offered the Tiger. We are actually evaluating the new RFP. We have always offered India the best of products and technology available at any point of time. With Tiger, we once again offer cutting-edge technology and stand by our commitment to the development of Indian aerospace industry. We are very confident about the capabilities of our product and hope to bring our global expertise and experience to India as well. The Tiger is considered the most multifunctional helicopter in the world and is now officially qualified and ready to be deployed in actual critical military operations. It is the latest generation attack helicopter available in the market and has already been selected by different countries. In total, 206 aircraft have been ordered by France, Germany, Australia and Spain, and 48 Tigers have already been delivered. These aircraft have recorded more than 13,000 flight hours.

The Tiger’s totally integrated weapon and navigation system is based on the latest developments in electro optical equipment. For example, the Tiger has night vision capabilities, and can perform air-to-air missile or gun attack (thanks to its chin mounted gun turret, the most advanced firing control in the world) while maintaining direct hit probability rates unthinkable for its opponents. It can also identify targets to be destroyed from great distances, thus avoiding friendly fire errors. It can be equipped with latest generation missiles like Hellfire. The Tiger is currently the most modern combat helicopter in the world and is clearly best suited to India’s needs.

SP’s: Has Eurocopter entered into a joint venture agreement with companies in India or are there any plans to do so? Should you be awarded a major contract, how does your company propose to meet the offset obligations?

Farid: We already have a long history of joint venture and partnerships with Indian industry/operators. Eurocopter is experienced in meeting offset requirements. We are ready to continue working with India according to this scheme. Eurocopter is considering several partners in India for industrial joint ventures in different fields of activities.

SP’s: It is well known that facilities in India for basic training for helicopter pilots for civil aviation are inadequate. Has Eurocopter considered the possibility of a joint venture to establish such a facility?

Farid: We have plans to set up pilot training facilities in India for both civil and military segments. Recognising the increasing need for qualified helicopter pilots, we are actively supporting the Indian government in setting up state-of-the-art helicopter pilot’s training facilities. But currently, we are in the initial stages of discussion and would not be able to discuss this in much detail.

SP’s: The fleet of civil helicopters in India is growing steadily. Does Eurocopter have plans to establish maintenance, repair and overhaul facilities as a joint venture in India to support its products?

Farid: At Eurocopter, we lay a lot of emphasis on meeting end-to-end requirements of our customers. We realise that no company can be successful till it meets the product service and maintenance needs of its customers. To this end, we are already running a maintenance centre for our hugely popular Dauphin helicopters in association with PHHL. In addition, in 2006 we joined hands with Indocopters (formerly Vectra Aviation) as our maintenance partner. The company carries these operations from its Greater Noida base, which was launched as a Green Field project in 2006.

SP’s: What is Eurocopter’s assessment of the market potential in India both in the civilian and military segments in the short, mid and long term perspective?

Farid: The defence products market in India is definitely significant and on the growth path. This is clear from the RFPs that have been issued or are planned by the Indian Ministry of Defence. The list of RFPs is quite exhaustive, addressing the needs ranging from attack helicopters, reconnaissance and surveillance helicopters, to those of the Indian Navy. The first step towards self-reliance and indigenisation has been taken. The next step is to implement the plans at the earliest.

Eurocopter, with its wide range of defence solutions, is prepared to meet all of India’s defence requirements. Our products are mission oriented and can adapt themselves according to the needs of the country. The market in India is definitely big with a lot of potential for all stakeholdersand we hope to partner with India in every way we can.

In the civilian segment too, India can truly be called a “helicopter country”. We see a significant growth in the civil helicopters segment. There appears to be tremendous potential especially in the oil and gas segment in India. Our medium-range helicopters like the Dauphin N3, EC155 or the EC225 very popular worldwide and are ideally suited for this kind of requirement. Moreover, we have just signed a contract for three Ecureuil B3 with Pawan Hans at the Paris Air Show.

Also, the helicopter emergency medical service business in India looks very promising. We are in talks with several leading hospital majors in Delhi, Mumbai and Bangalore. There are several other corporates that are bullish on the growth of the emergency medical services segment in India. We are hopeful of selling at least 10 to 15 helicopters every year.

SP’s: What is the broad strategy Eurocopter would adopt in order to consolidate its position in the Indian market?

Farid: We have had a long association with India, especially through our relationship with HAL. The Cheetah/Chetak fleet based on the Eurocopter Alouette III and Lama models are at the base of the relationship. In terms of products, Eurocopter has the widest range of defence and civil products in the world for all kinds of missions, like VIP and corporate missions, search and rescue missions, police missions, multi-role missions, combat missions, naval missions and so on.

In all, we plan to not only enlarge existing industrial cooperations, like the one with HAL, but also check for synergies in partnering with more private companies in India. In fact, in this framework of trustful and mutually fruitful cooperation, Eurocopter has always offered India the best of products and technology. Throughout this ongoing partnership, we have helped create a highly skilled technical workforce of over 2,000 people. Further, recognising the increasing need for qualified helicopter pilots, the company is actively supporting the Indian government in setting up state-of-the-art helicopter pilot’s training facilities.

While many other players are now planning to offer such a mix of technology and skill, we have already been truly partnering with India across the entire spectrum of helicopter services, ranging from manufacturing to operations, maintenance and product support. This partnership has also helped Eurocopter in supporting the development of local ancillary industry.