Marketing

Marketing project due: 24th January 2016: Each person presents about a 2.5mins per their part worth 25% of total marks

Macro environment ( Airbus Helicopters)

Economics factor Helicopters

Value Influencers - Economic Useful Lives

Considering civil helicopters as an asset class, a key factor in the strong residual value retention is their long useful lives (typically 30 years) – more akin to engines or business jets than commercial airliners.

As they are unpressurised aircraft, there is no ultimate fatigue life and in terms of its dynamic components installed, these are substantially renewed (overhauled or replaced if necessary) through the life of the helicopter. Helicopters can also be easily upgraded with newer avionics, systems etc.

The age profile in 10-year bands highlights that around 35% of the current civil helicopter fleet are already over 30-years old and 13% – almost 2,700 helicopters – are above 40-years old.

Value influences – Optional Specification

The value of a specific serial (tail) number will be influenced by which specification options have been selected.

All helicopters are built effectively to the same baseline specification. Subsequently, the helicopters are configured for the particular roles they will be used in, with the addition of avionics and cabin and exterior options. These options can add considerably to the value of a specific helicopter, by 10-40% depending on size and role. In the case of the high specification All Weather Search and Rescue (AWSAR) heavy types, the add-ons can total over $10 million.

Value influences – Maintenance

Helicopter maintenance differs to that of fixed-wing aircraft primarily due to its components. The stresses on many moving parts in helicopters mean that maintenance cycles are much shorter in terms of total flight hours.

For this reason, there is an increasing trend for operators, especially the larger commercial ones, to place their helicopters on hourly maintenance support agreements....