When the speed of a coaxial rotor helicopter in forward flight increases, the wake skew angle of the rotor increases and consequently the position of the vena contracta of the upper rotor with respect to the lower rotor changes. Considering ambient air and the effect of the upper rotor, this study proposes a nonuniform inflow model for the lower rotor of a coaxial rotor helicopter in forward flight. The total required power of the coaxial rotor system was compared against Dingeldein's experimental data, and the results of the proposed model were well matched. A plant model was also developed from first principles for flight simulation, unknown parameter estimation and control analysis. The coaxial rotor helicopter used for this study was manufactured for surveillance and reconnaissance and does not have any stabilizer bar. Therefore, a feedback controller was included during flight test and parameter estimation to overcome unstable situations. Predicted responses of parameter estimation and validation show good agreement with experimental data. Therefore, the methodology described in this paper can be used to develop numerical plant model, study non-uniform inflow model, conduct performance analysis and parameter estimation of coaxial rotor as well as other rotorcrafts in forward flight.