Bell Watches Backlog As 429 Nears Approval

Bell Helicopter expects certification of its Model 429 light twin by the end of June, and will then find out how much of its 300-aircraft backlog remains intact after the steep downturn in the civil rotorcraft market.

Following certification, Bell will begin working to convert the letters of intent, backed by small refundable deposits, into firm orders secured by nonrefundable downpayments.

“After the first commercial flight we’ll be able to tell the quality of the backlog,” says Bell CEO Richard Millman. The company plans to deliver 14 aircraft this year.

The abrupt downturn in the civil market has forced Bell to cut forecast production of civil helicopters to 170 from the 240 originally planned for 2009. This would be only marginally up from the 167 delivered last year.

“We don’t know how many of our customers will be able to get financing,” says Millman. Bell entered the downturn with 370-380 orders in hand, excluding the 429, but with cancellations and deferrals “we are ripping up our backlog pretty quickly.”

While its commercial sales have been hit hard by the economic crisis, Bell’s military business is growing as it ramps up production of upgraded H-1 helicopters and V-22 tiltrotors. As a result, research and development is still being funded and Millman expects to have new civil products ready for when the market recovers.