The purpose of this SAE Aerospace Information Report (AIR) is to illustrate the effect of installation power losses on the performance of a helicopter. Installation power losses result from a variety of sources, some associated directly with the basic engine installation, and some coming from the installation of specific items of aircraft mission specific equipment. Close attention must be paid to the accurate measurement of these losses so that the correct aircraft performance is calculated. Installation power losses inevitably result in a reduction in the overall performance of the aircraft. In some cases, careful attention to detail will allow specific elements of the overall loss to be reduced with immediate benefit for the mission performance of the aircraft. When considering items of equipment that affect the engine, it is important to understand the effect these will have on overall aircraft performance to ensure that mission capability is not unduly compromised.