Kate Sarsfield/LONDON

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MD Helicopters plans to sever its manufacturing ties with Boeing when the contract to build parts for the five-strong civil helicopter line is fulfilled in early 2001.

"As part of the deal to buy Boeing civil helicopters, we signed a binding manufacturing agreement," says MD Helicopters chief executive Henk Shaeken. "We can, however, reduce our costs significantly by outsourcing parts manufacture [tail booms, horizontal stabilisers, wings, etc] to other companies. We shall be issuing tenders for these contracts, which will be awarded next year," . Outsourcing began in February with the transfer of fuselage production from de Havilland Australia, to Turkish Aerospace Industries in Ankara.

MD Helicopters, a subsidiary of European Industrial group RDM, plans to double helicopter production in the next two years to keep pace with demand for its single- and twin-engined line-up. "We hope to produce around 50 aircraft this year, ramping up to around 70 in 2000 and up to 100 the following year," says Shaeken.

Mesa, Arizona-based MD Helicopters has delivered 19 MD500/600/Explorers and won 32 orders since it acquired the line in February. Shaeken adds: "We have witnessed a phenomenal surge in demand, particularly from the private buyer, air ambulance, police, border control and electronic news gathering markets. We are looking to expand our Mesa base to accommodate this growth."

MD Helicopters is negotiating with Boeing to buy its 3,720m² (40,000ft²) former Apache hangar on the site to increase capacity.

Source: Flight International