By Tim Hepher

MARIGNANE, France (Reuters) - Airbus Helicopters expects new orders and deliveries to keep growing this year, its chief executive told Reuters, as a scramble for new energy supplies and higher military spending accelerate a recovery in the long-sluggish rotary-wing sector.

Cushioned by critical public services, helicopter demand suffered less of a battering from COVID-19 than the grounded airline industry. But the looming energy crisis and a rethink of priorities amid war in Ukraine have added zest to the recovery.

"We expect a very strong year in terms of order intake especially by value," Airbus divisional CEO Bruno Even said as the world's largest civil helicopter maker celebrates its 30th anniversary since taking flight in a Franco-German merger.

"We also expect growth in revenues, which will be supported by growth in services and deliveries of helicopters."

Orders had already risen thanks in part to a major French military order, reaching a record 8.55 billion euros ($8.53 billion) in 2021 after a decade of overall decline led by offshore oil firms. Further military contracts were booked this year.

"2021 really marked a turning point compared to previous years, which were hard for the industry," Even told Reuters.

Flight hours, which drive service revenues that make up almost half of Airbus Helicopters sales, are now back to 2019 pre-COVID levels and the number of available second-hand helicopters - a brake on new sales - has fallen, he added.

"We are seeing the first positive signs in the oil and gas market (and) positive signs of recovery in activity and flight hours," Even said.

The average worldwide oil-rig count rose 24% in the first eight months of 2022, compared with the same period last year, but remains below 2019 levels, according to Baker Hughes.

Any offshore recovery could benefit fuel-efficient and cleaner models like the new H160, taking shape on a line pulsing forwards on automated guided vehicles inside the giant Marignane helicopter plant in France in a bid to reduce lead times.

"There has been a big lull in the oil and gas part for a long time. We note the operators are very concerned to contain their own emissions," said programme manager Gilles Armstrong.
Source: Investing.com
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