The commercial single-engined turboprop (SETP) sector is one of the most enduring yet understated niches of the business aviation market. Thanks to their reliability and versatility, these niche aircraft have successfully fended off competition from small jets and silenced the sceptics who, during the frenzy over very light jets – so-called VLJs – a decade ago, were predicting their demise.
Philippe de Segovia – director of sales promotion for Daher’s venerable TBM-series – remembers it well: “Many people said the new wave of high-performance VLJ’s were going [to] revolutionise private and commercial air travel and nobody will be interested in single-engined turboprops for these missions anymore.
“Of course this didn’t happen. The financial crisis hit in 2008 and the VLJ sector almost collapsed.”
By contrast, SETPs weathered the economic storm and the sector is as robust today as it has ever been. In 2008, this segment consisted of five platforms: Cessna Caravan, Pilatus PC-12, Daher (formerly Socata) TBM, Piper Meridian and Quest Kodiak.
BUSTLING MARKETPLACE
Today there are at least 12 SETP models in service or at an advanced stage of development. There is also a clutch of undisclosed designs in the works – including a new clean-sheet model from general aviation hegemon Textron Aviation.
Deliveries have remained relatively robust since the 2008 hiatus, when the industry shipped a record 317 SETPs. According to the General Aviation Manufacturers Association (GAMA) the sector has seen deliveries increase year-on-year since 2011 and the trend looks set to continue.
“This segment of the market has remained quite solid throughout the post-crisis period,” says aerospace consultant Rolland Vincent, who attributes SETP popularity to proven reliability and high performance: “A SETP is a natural step-up for owners and operators looking for their next aircraft but not ready or not needing the capabilities of a light jet. These are fast, capable aircraft that are known for their safety, comfort and payload range capability.
This view is supported by fellow analyst Brian Foley, who describes SETPs as “utilitarian SUVs of the sky”. They are a successful niche of aircraft that have the ability to operate out of unimproved fields and carry heavy, outsized objects.
“On the corporate side, they provide a larger cabin for less money than an entry-level jet for the value-oriented buyer.”
AIRCRAFT LAUNCH
The sustained popularity of SETPs, coupled with the huge demand for its 18-month-old TBM 900, were the triggers for French airframer Daher to expand its turboprop offering for the first time. In April the company took the wraps off its flagship $4.1 million TBM 930 – an enhanced version of the $3.8 million TBM 900 featuring a revamped interior and Garmin’s G3000 touchscreen cockpit. Daher is confident the marketplace is large enough to accommodate both models and downplays suggestions its latest model will cannibalise the market for the TBM 900. "This is not a concern," says de Segovia. "There are plenty of customers who are happy with the TBM 900 and who won’t want to pay the extra money for the latest aircraft.”
A key appeal of the TBM series is its signature cruise speed of 320kt (590km) – making it the fastest turboprop on the market and a very popular choice for the owner-flyer community. The majority of the nearly 800 TBMs in service are owner-flown, although a growing number are being used for corporate and commercial transport, says Daher.
These missions, however, are traditionally served by the larger-cabin models such as the 208 Caravan, Grand Caravan EX and PC-12NG, the two platforms that dominate the SETP sector. GAMA figures point to a combined in-service inventory of around 3,600 aircraft – 70% of the global fleet.
“There is clearly a market for both ends of the spectrum,” says Vincent. “The Caravan is a rugged, unpressurised utility aircraft that holds its residual value quite well. It has good payload and excellent short field performance but [is] used on short missions because of [its] slow speeds.”
Cessna has been manufacturing the Caravan series for more than 30 years and its installed base of more than 2,200 units represents over 40% of the in-service SETP fleet according to Flightglobal’s Fleets Analyzer database. Annual shipments of the high-wing type have remained consistently robust with 93 units – recorded in 2012 – its lowest tally in a decade, GAMA reveals.
DOMINANT PLAYER
Pilatus’ PC-12NG has been a dominant player at the top end of this sector since the first iteration of the pressurised type was introduced in 1994. Today there are nearly 1,400 PC-12s in service worldwide and the desire for the all-metal, versatile type remains undiminished.
“These aircraft are in good demand, with a strong residual value record that is unmatched in business aviation today,” says Vincent. “Aircraft 10 years after delivery are still holding about 80% of their original purchase value – excluding the impact of inflation – which is pretty remarkable for what is supposed to be a depreciating asset.”
The fact is not lost on Pilatus. When unveiling the latest version of its upgraded PC-12NG in November, company chief executive Markus Bucher said: “Our biggest competitor is pre-owned PC-12s. These aircraft are really holding their value right now.”
The Swiss airframer, based in Stans, says it is constantly looking at ways to keep the product fresh and innovative. The latest version of the $4.9 million NG features better take-off and climb performance, more cabin comfort, greater range and speed and a quieter cabin.
Tom Aniello, vice president of marketing for Pilatus North America, attributes the popularity of turboprops such as the PC-12NG to their value and economy. “Operators get a very comfortable cabin, similar to a midsize business jet, at a fraction of the acquisition and operating cost,” he says. “Furthermore, it allows them to access more airports closer to their ultimate destination.”
This exceptional performance, he argues, has given the PC-12 access to diverse markets. “We are not reliant on just a luxury travel segment to maintain consistent sales,” Aniello says. “The PC-12 is appealing to a wide variety of operators, including corporate flight departments, individual owner-pilots, governments, law enforcement, air ambulance, fractional and charter users. Any healthy portfolio should have diversified investments.”
NEW NICHES
Aniello’s view is supported by Quest Aircraft’s vice president of sales for Europe, the Middle East, Africa and China, Steve Zinda. The Sandpoint, Idaho-based company has been producing the all-metal Kodiak since 2006 mainly for the passenger and cargo transport markets. But, says Zinda: “We are widening our scope. There is certainly potential for the Kodiak in the special mission segment, such as ISR [intelligence, surveillance and reconnaissance] and aerial mapping.”
As with the established platforms, sales of the unpressurised Kodiak have been “consistently strong,” Zinda says. “Production numbers have increased year-on-year and we expect that trend to continue as we expand into new markets.” And, he adds, Quest’s diversification is also likely to include a new product for untapped niches: “We certainly won’t be a one-aircraft family.
“This is an increasingly crowded sector, but there is some blue ocean. While Zinda will not reveal where these openings are, he hints any new addition to the family is likely to have a pressurised cabin: “This will allow the aircraft to operate at higher altitudes, and this in turn will broaden the range of missions it can fly. Air ambulance for example.”
Quest is not alone in its pursuit of new products. Piper Aircraft launched a flagship turboprop a year ago to broaden its market share and create a fresh top-end offering for customers moving up the product line. The M600 is based on the M500, formerly known as the Meridian, and features a redesigned wing and advanced digital fuel management technologies. Scheduled to enter service at the end of 2016, the $2.8 million model boasts a maximum range of 1,300nm (2,405km) – nearly 240nm further than the M500 – and a Garmin 3000 touchscreen flightdeck.
“My mission since joining the company [in 2012] has been to put Piper ahead of the pack with an innovative product strategy,” says chief executive Simon Caldecott. “I am well on my way to doing that and I still have a number of other cards up my sleeve.”
Similarly Daher – now a two-model airframer since the launch of the TBM 930 last month – has made no secret of its plans to expand its turboprop family. “We are always looking at new ideas,” says airplane business unit senior vice-president Nicolas Chabbert: “There will be a next.”
CLEAN-SHEET OFFERING
While Daher is keeping its aircraft ambitions under wraps, Textron Aviation is getting ready to unveil its all-new SETP programme – an explicit acknowledgement of the sector’s buoyancy.
“Our dialogue with our customers and contact groups has convinced us that the time is right to introduce a new model,” says Tom Perry, Textron Aviation’s vice president for sales, Europe. “There hasn’t been a clean-sheet design [in this sector] for decades. Our product will enable us to take advantage of new engine, material and construction technologies.”
Perry is referring to GE Aviation’s in-development GE93 engine, that will power the yet-to-be-named 280kt (520km/h) aircraft.
With its low fuel burn and high performance characteristics, this powerplant is predicted to be a game-changer for the single-engined turboprop sector. It should also prove a worthy and welcome rival to the Pratt & Whitney Canada PT6, which has been the engine of choice for SETP developers for decades. “The new GE SETP engine is a bold step – and long overdue,” says Vincent. “This market has seen little direct challenge to the venerable PT6, which has powered most new OEM production over the past 30 years.”
With single-level control, FADEC, and promised longer time between overhaul targets, GE’s entry will certainly attract the attention of manufacturers and customers, Vincent suggests. “This type of R&D investment is a critical technology enabler that is very likely to encourage a new wave of investment in eco-friendly, powerful business and utility turboprop aircraft,” he adds.
Foley agrees: “If the GE engine is able to provide the promised 20% better fuel burn, it will indeed be a long overdue disruptor in the category.” He says P&WC has had little incentive to meaningfully improve the decades-old PT6. “With a reputation of being bullet-proof and reliable, the ‘don’t fix it if it ain’t broke’ mantra at Pratt will now have to change. The change in the category could be analogous to what’s currently going on with the re-engining of legacy airliners such as the Boeing 737 MAX and Airbus A320neo,” he says.
Textron’s Perry is confident its new SETP will raise the bar in terms of performance, cabin comfort and operating costs. “This makes investing in the project worthwhile,” he says.
Textron will release further details of the programme on 24 May, at the European Business Aviation Association event in Geneva, and a mock-up of the aircraft will be unwrapped in July at the AirVenture show in Oshkosh.
SECTOR DEBUTANTES
While Textron is believed to be the only OEM actively developing an all-new SETP, a trio of sector debutantes are preparing derivative models for certification service entry over the next two years. Epic Aircraft’s E1000 – based on its LT kitplane – is in the latter stages of flight testing and first deliveries are on track for the first quarter of 2017; Mahindra’s Airvan 10 – a 10-seat, Royce l 250-B17/F2-powered version of the piston-engined Airvan 8 – is in flight testing, with approval anticipated within 12 months; and Diamond Aircraft’s DA50-JP7 – evolved from the DA50 piston single – will follow in 2018. The $1.1 million, Motor Sich AI-450S-powered single is the Austrian airframer’s first foray into the turboprop sector.
One Aviation is, meanwhile, continuing to seek funding to complete development of its high-performance Kestrel KA350, which is now in its detailed design phase. “It’s a tough environment to get investment right now,” admits One Aviation president Alan Klapmeier, who founded Kestrel in 2010. “We are more than three years late on [the] three-year project,” he adds, in a tongue-in-cheek swipe at the aircraft’s original development timetable.
“But I’m confident we can bring this aircraft to market. There is certainly a gap for this all-composite, large, comfortable SUV.”
Vincent agrees: “OEMs have been quite successful identifying and carving out market niches and that trend will continue”.
Source: Flight International
