Tuesday, October 9, 2018

P50M allotted for chopper repair

Malaya Business Insight (Oct 10): P50M allotted for chopper repair

THE Philippine Air Force has allotted P50 million for the procurement of spare parts, including an engine, needed to repair one UH-1H “Huey” helicopter which figured in an accident last year.

The amount is nearly the cost of an almost similar refurbished helicopter, a UH-1D. 


The Air Force announced in its website a public bidding for the spares. The deadline for the submission of bids, at the Air Force headquarters in Villamor Air Base in Pasay City, is today.

Air Force spokesman Maj. Aristides Galang justified the cost for the repair for the UH-1H helicopter, saying spare parts are costly at the current market price.

“An engine already costs P16 million. That’s only for engine. How about the other components of (UH-1H No.) 516 that were damaged, that are in the recovery stage? It’s really costly to recover (an aircraft),” he said.

The spare parts are for the old UH-1H helicopter with body number 516. The chopper figured in a mishap in Negros Occidental in December last year, which the Air Force said was caused by “complete electrical/power failure.”


UH-1H choppers were mass produced in the 60s and saw action in the Vietnam war. The Air Force acquired its UH-1H helicopters second hand from various sources, including the US.

The P50 million for spare parts is nearly the cost of an almost identical UH-1D helicopter bought from Rice Aircraft Service Inc. a few years ago.

In 2013, the Department of National Defense signed a P1.2-billion deal with Rice for the delivery of 21 units of refurbished UH-1Ds, or equivalent to P57 million each. Rice was not able to deliver the aircraft within the agreed period, prompting the DND to terminate the contract. Rice managed to deliver only seven units which are now being used by the PAF.

Galang said the UH-1H choppers have no lifespan and are good as long as parts are repaired “as scheduled.”

Galang said the helicopter’s engine needs to be replaced. “That’s already P16 million less of the P50 million. How about the components that are going to be linked with the engine, with the transmission? The recovery of a helicopter is really costly,” he said.

Told that a refurbished UH-1D helicopter costs only P57 million based on the contract signed with Rice, Galang said: “We got them in bulk, through bidding, that’s why we acquired them at a cheaper price.”

Galang said UH-1H and UH-1D helicopters are identical in terms of capability. “They are almost similar but it’s really costly to recover (an aircraft),” said Galang.

The Air Force has dozens of UH-1H and UH-1D helicopters in its inventory. These aircraft are used mainly for personnel and supply transport and for disaster response.

An Air Force official, speaking on condition of anonymity, said the foreign exchange rate should also be considered if the repair cost for the UH-1D helicopter will be compared to the procurement of the 21 UH-1Ds.

“Take it in the context of the current FX (foreign exchange) rates. We must remember the peso depreciation so much. One more thing, you need to look into the scope of work which will indicate the kind of work to be done and spares needed,” the source said.

“The P50M is less than a million dollars,” the source also said, adding that the repair is not actually a big amount.” Not much really. It may just be worth an engine.”

“It (repair cost) depends on the scope of work. It may need engine requirements, thus the amount (of P50 million). Brand new utility helicopters will fetch eight times that price,” he added.

http://malaya.bayaninetwork.com/?q=business-news/news/p50m-allotted-chopper-repair

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