On the Record with
RUDY PALLADINA, PRESIDENT & CEO,
AMERICAN EUROCOPTER CORPORATION

Eurocopter Sets Sights on Super Service

New American Eurocopter president and CEO Rudy Palladina with model of AS 365 Dauphin in Maryland State Police livery. Palladina last month replaced Christian Gras, who returns to France to head worldwide Eurocopter service initiatives.

"Happy customers buy more helicopters," says Rudy Palladina, explaining why improving service is the number-one priority at both Grand Prairie, TX-based American Eurocopter and at its parent company in Europe.

Palladina took the president-and-CEO slot at American Eurocopter last month. "I'm really excited about being here," he told Show News. "I'm a helicopter guy. I can't think of a better place I'd rather be."

The 48-year-old Palladina replaces Christian Gras as American Eurocopter president. Gras has been promoted back to France, where he takes over executive VP of Eurocopter's customer support division, in charge of service.

Eurocopter, combining as it does the helicopter operations of the former Aerospatiale in France and Germany's MBB, has a formidable product line-up. "We are the number-one helicopter supplier in the world today," says Palladina.

Where Eurocopter is perceived to be lacking is in service. Service and support has "always been a customer concern," says Palladina. He should know, having been a Eurocopter operator himself. "Eurocopter has recognized that. The company is absolutely focused and doing something about improving its customer support and service."

Some $7 million has been invested in aftermarket facilities at Grand Prairie over the past three years, with upgrading of hangars and blade shop, and a greater emphasis on training among the improvements there. E-commerce solutions for more efficient parts delivery and warranty administration are being put in place. And although American Eurocopter and Canadian Eurocopter constitute separate divisions, all North American logistics, including Mexico, have been centralized at Grand Prairie.

Eurocopter also sponsors 'Epicenter' seminars for taking customer feedback, at which it pays for all accommodations for the event at its Texas headquarters. Between 100 and 150 Eurocopter operators are expected at the next Epicenter gathering, to be held in spring 2001.

Great helicopters mean little if the support isn't there. Eurocopter pledges it will be.

"We are not just talking about being number one in customer service," Palladina insists. "We will become number one. Your best prospect is an existing customer. Your best salesman will be a happy customer."

Prior to a stint at Eurocopter Canada, which he joined as executive VP in 1998, Palladina worked for more than a decade for Canadian Helicopter Corp, rising to president and CEO there. "I was a customer of Eurocopter and I can bring that dimension to this job," he says. He's also worked at Bell, but says he left his first Texas employer because he wanted to work on more advanced technology helicopters.

"We have state-of-the-art," he says, dismissing his Bell, Sikorsky and Agusta competition as purveyors of older technology. "These are not just marginally better," he says of the Eurocopter line. "These are technologically advanced, significantly more capable aircraft. One of the cornerstones of our strategy, short-term and long-term, is to go after the corporate market," says Palladina.

Also available for corporate use are the Eurocopter EC 120 Colibri (Humming Bird) and AS350 Ecureuil (Squirrel) light singles, and the EC 135 medium twin, which is available with either Turbomeca or Pratt & Whitney Canada engines. "We have an excellent menu of aircraft," Palladina says.

Being stressed here is the new EC 155, the first of which for the U.S. market is a corporate variant (by contrast, the seven EC 155s delivered to date in France have all been for police work). The inaugural American aircraft is to be delivered for completion in New Jersey at the end of this month and will enter service with its New York-area owner in the first quarter of 2001.

American Eurocopter delivered 29 aircraft in the U.S. in 1997 and is projecting 70 for this year. It expects to deliver 90 or more in 2001.

"I'm here to sell a lot of helicopters," Palladina says. "As many as we can."