Bell Helicopter flying high in Japan

If you see a helicopter flying in the skies over Japan’s cities, conducting search and rescue operations in disaster-hit areas and at sea, or fighting fires, the chances are it will be a Bell copter. Headquartered in Fort Worth, Texas, Bell Helicopter – a Textron Inc unit - has had a presence in the Japanese market for 63 years, working with its partners. It has so far sold more than 1,500 helicopters in Japan. Bell will also be making the rotating parts for the V-22 tilt-rotor Osprey aircraft built by Boeing. Japan plans to purchase 17 of the V-22s in a deal worth about $3 billion deal.

To build on its long-term customer and partner relationships in Japan, Bell Helicopter took on full responsibility for the sale and support of its products in Japan on April 1. Heading the office is Richard Thornley, who has more than 30 years’ experience in aerospace, half of which has been spent in Japan. Prior to joining Bell Helicopter in January 2014 to establish their Japan office, Thornley was with Westland Helicopter for 22 years, eight of which he served as president of Westland in Japan. He also spent nine years at Rolls-Royce as president of its Japan operations.

A British citizen, Thornley was honored with a CBE (Commander of the Most Excellent Order of the British Empire) by Queen Elizabeth in 2012 for his contributions to Japanese industrial relationships and business in Japan. Thornley holds a Bachelor of Science in engineering as well as a Master in Business Administration. He is a Fellow of the Royal Aeronautical Society, and is active with the American and British Chambers of Commerce in Japan.

How long has Bell Helicopter been selling to the Japanese market?

We’ve had a market presence for 63 years and sold over 1,500 helicopters during that time. Our business model was to use a trading company and we were tied up with Mitsui Bussan Aerospace for 52 years until this year.

Why did the company decide to establish a separate company?

We thought it was best to have a direct relationship with our customers. That’s very important in Japan and we weren’t able to do that very clearly from Texas. We decided to invest in Japan and set up this office and employ a highly motivated and skilled aerospace team to directly support customers.

What are you selling in Japan?

In Japan, we sell all our product range but the helicopter attracting the most interest is the medium-sized Bell 412EPI. Its heritage is from the Huey and it is a very robust workhorse that can carry a heavy load a long way. Last February, we sold our first one in Japan to Aomori Prefecture’s Firefighting and Disaster Prevention Agency, their second 412. We expect to sell a lot more of those in Japan over the next 10 years. Overall, the Self-Defense Forces (SDF) are our biggest customer in Japan. They operate 130 UH-1J utility helicopters and also 60 Cobra AH-1S copters through our partnership with Fuji Heavy Industries.

Who do you sell to besides the SDF?

The Japan Coast Guard has over 20 Bell helicopters. The police also have our copters, as do most firefighting agencies. In the private sector, our customers include Nishi-Nippon Airlines, based in Kyushu, which is a subsidiary of Kyushu Electric Power Co. They use the helicopters for power line construction. Also, Shin-Nihon Helicopters bought a smaller one for the same purpose. Utilities need helicopters to get into remote areas.

How do you market your products in Japan?

In the defense sector, Fuji Heavy has been our partner for 55 years. They have produced over 700 Bell helicopters, including all the ones for the SDF. They have a good relationship with the SDF, so we don’t need to market to them ourselves. For the commercial segment, we do have to get out and about and explain our products to our customers. They replace their helicopters every 20 years, so by doing age analysis of the fleet, we can predict where the demand will come from. Our sales team visit a prospective customer and explain about our products. Then we will be invited to tender. Fortunately, our brand is very well known. Sometimes at air shows overseas, Japanese customers have placed orders on the spot. SECO international ordered 10 Bell 505s at the HAI (Helicopter Association International) air show in Orlando, Florida.

Which new models are coming onto the market?

We have two new models. The 505 Jet Ranger X. It has five seats and is priced very competitively at just over $1 million. At the other end of the spectrum, we have the 525 Relentless which is a 9-ton helicopter that carries 16-20 passengers and is very suitable for search and rescue operations. It’s also the first fly by wire commercial helicopter in the world. Flight control is more like a PlayStation joystick than conventional controls.

What is Bell’s involvement in the Osprey?

We make all the rotating parts of the V-22 Osprey. Japan will be the first export customer for the Osprey and that is a very exciting development. In the future, our office will likely be involved on the support side.

Do people express safety concerns about the Osprey to you?

Not really, though of course, safety is our top priority. The experts in the aerospace industry understand this unique aircraft, its operational capability and how it can be used for humanitarian relief operations. It has proven itself following natural disasters, in Philippines last year – where the Ospreys came from Okinawa – and they were operating in Nepal as well.

Is the SDF procurement system in Japan different from other countries?

The Japanese budgeting system was quite rigid. The SDF has a five-year plan and then there are annual purchases of equipment. However, there is some defense procurement reform going on and I think the reason is because they realize that buying annually is not efficient. It is much better to buy larger batches because it reduces your costs considerably. There will be a new organization set up after it is approved by the cabinet probably in October. So we are seeing a change in Japan more in line with what we are used to in the West.

Through working with our partner FHI, we have learned to adapt to the market. I have also been very fortunate to have kept my long-term relationships over 20 years in the government, the Defense Ministry and commercial aircraft organizations. The aerospace industry in Japan is quite small and even if you change companies, you meet the same people from time to time. Our success is based on trust and partnership.

Where do you see the main growth in Japan?

The industry overall is trying to promote more helicopter usage in Japan. The flight rules are still quite strict. Until recently, a private operator could not operate a helicopter at night and there were restrictions on carrying passengers. There aren’t many helipads in Tokyo, either, so there are many challenges, but I am confident. Our sales growth is already in double digits.

What is a typical day for you?

After a few circuits of the Imperial Palace on my bike, I am usually here by 9 a.m. My time is spent in meetings with staff and customers. Relationships come first with Japanese customers and I like going out to meet them. Naturally, nights are long due to the U.S. time difference.

How do you like to relax?

I enjoy cycling and used to ride long distances in England. Japan’s cycle paths are really beautiful, especially along rivers. I was part of the fund-raising cycling group called Knights in White Lycra. In May, we rode 530 kms in 3 1/2 days to Minamisanriku to raise money for the children in Tohoku. It was quite emotional to enter Minamisanriku to be greeted by cheering residents. They had flags and fireworks and the mayor was there. Bell Helicopter was the main sponsor due to the role our helicopters played after the terrible events of 3/11. The SDF credited their FHI-Bell UH-1Js with rescuing more than 2000 people, and we were honored to support them again four years later.

By the way, you don’t fly, do you?

I’m not a pilot, yet, and I don’t have my own helicopter, in case you were wondering.

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Editor's note: Photo below right shows Nagano firefighters using a Bell helicopter.

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