The oil-and-gas slump of 2014 had a significant negative impact on the leasing sector, said Clark McGinn, a former executive at Waypoint Leasing and CHC Helicopter, who today works as an independent consultant. Combined with the Covid-19 pandemic, this “hit the demand for leasing helicopters to the energy sector for nearly a decade.”

However, HAI Heli-Expo at the end of February showed “a much more buoyant helicopter market than we’ve seen over the last five or six years, with record footfall and number of exhibitor stands,” McGinn said. The past six months has brought a return to equilibrium, he said, with Russia’s full-scale invasion of Ukraine having pushed oil prices upwards.

“Because the energy companies need large, robust machines, that sector is by far the biggest in value to the lessors, so they, too, are just coming out of the doldrums,” he said.

Even during tougher times, lessors were incentivized to find other uses for helicopters.

While changing geography and mission configuration is expensive, they found good traction in areas like EMS, SAR and supporting wind farms, McGinn noted.

“With the recovery in the oil price, the overhang of idle helicopters has been eliminated,” he said. “In fact, the [Sikorsky] S-92 and [Leonardo] AW139 fleets are pretty much back at full capacity.”

The recent demand brings supply chain challenges, McGinn said. While he pointed to several large orders at Heli-Expo, “the supply chain, after so many quiet years, is finding it hard to regain capacity in the face of quickly rising demand.”

Even so, McGinn said the leasing sector has turned a corner. “While there are several bumps in the road ahead — mainly interest rates and supply chain — the outlook is for significantly improved demand, which will see both improved income and helicopter valuations.”

The signs of a turnaround were on full display in late April, when a new helicopter leasing and finance company was launched in Dublin, Ireland. GD Helicopter Finance (GDHF), a subsidiary of Chinese company GDAT, entered the market with an existing order book of 50 Airbus H160s, before then placing an order for 20 Airbus H175s. The company also lists Leonardo AW189s and AW139s in its fleet.

The new company is led by Michael York, who was previously joint head of commercial at leasing giant Milestone Aviation. York said the company would offer near-term availability of the “newest technology, efficient, cost-effective, multi-mission helicopters” through its existing order book of H160s, as well as an additional order of super mediums.

The energy sector

Demand in the offshore sector is buoyant, with considerable future growth potential, said Con Barber, chief investment officer at Macquarie Rotorcraft Limited (MRL). Recent geopolitical events have underpinned concerns over energy security, with increases in offshore oil production expected by 2030, along with a surge in wind energy, he noted.

The offshore segment is the dominant leasing market, Barber said. While helicopter leasing penetration overall is about 15 percent (compared with 50 percent in commercial fixed-wing aircraft), the proportion is higher in offshore. There, about a third of helicopters are under lease. This compares with around 15 percent in EMS and eight percent in SAR, he said.

“The size of the offshore market is expected to increase as operators continue to rationalize their balance sheets and seek efficient sources of funding in a capital constrained market,” Barber added.

Given the relatively low levels of lease penetration across different markets, MRL adopts a diversified portfolio strategy, Barber said, enabling the lessor to adapt to future changes. In the past year, it has invested in one heavy platform (a Sikorsky S-92), four super mediums (Leonardo AW189 and Airbus H175), 16 mediums (Leonardo AW139 and Bell 412), and five intermediate-light twins (Leonardo AW169, Leonardo AW109, Airbus H145 and Airbus H135). “We also have a strong pipeline for further fleet growth, targeting modern helicopters in all market segments,” said Barber.

The lessors are also exploring opportunities in renewables, such as wind energy. Barber said this is a focus for MRL. “Helicopters play a critical role in the energy transition by enabling the transition from high carbon sources of energy such as coal to low carbon offshore natural gas and ultimately to wind energy,” he said. “MRL’s future investments will continue to focus on efficient helicopters that will enable sustainable energy solutions.”

Nigel Leishman, chief commercial officer at LCI, said oil-and-gas makes up less than 30 percent of the use of his company’s helicopter fleet. Still, demand in the sector is strong, he said, highlighting the tight supply chain and the wider economic environment.

“We have seen more lease extension of helicopters currently operating in this sector, as well as deliveries of new helicopters,” said Leishman. “In both cases, lease rentals have increased, partly through higher demand — but also reflecting underlying economic factors, including escalation and increases in interest rates.”

Leishman also pointed to the potential of other areas of the energy sector, notably offshore wind production. This is still developing as a focus for helicopter support, he noted, but LCI expects to see significant growth in the coming decade. LCI delivered the first-ever dedicated offshore wind helicopters to the U.S. in 2023, and expects to see more activity in the market. “There are also emerging opportunities in other countries, including Japan, South Korea, Australia and even Brazil,” he said.

EMS, SAR and Firefighting

Emergency services are a major focus for several companies in the leasing sector. About two-thirds of LCI’s fleet of 150 aircraft are engaged in areas like EMS and SAR, along with offshore wind, Leishman said.

These “mission critical” sectors are growing strongly, he said. For example, there has been rapid growth in EMS in Australia and Asia. “We have seen significant increase in tender activity over the last 12 to 18 months,” Leishman said. “This is partly due to delays during the Covid period, but also driven by replacement activity in several markets where we are seeing many operators moving up to larger, new-generation helicopters.”

Offshore energy growth is helping to drive growth in EMS and SAR, Barber noted. “Energy companies are contracting SAR services in parallel with their expansion of crew transport helicopters, especially in emerging markets where government-provided coast guard services are not available.  MRL has placed several SAR and LIMSAR [limited SAR capability] helicopters in these roles in recent years.”

Gustavo Semeraro, senior vice president of global business development at Lobo Leasing, said the company is highly focused on critical missions, including EMS, SAR and firefighting. Most of the company’s committed funding is aligned to these missions, he said, rather than oil-and-gas.

Semeraro said firefighting is growing as an area of particular demand, thanks to an increase in wildfires. “This is a worldwide problem and demanding all types of aircraft to support it, from fixed-wing to helicopters,” he noted.

Leishman also pointed to growing demand from the firefighting sector. “While firefighting has typically seen the use of older helicopters on short-term contracts, fire seasons in many parts of the world have expanded,” he said. “We see more end-users and governments looking to secure newer, more capable helicopters on longer contracts.”

New aircraft, new markets

Lobo Leasing has a strong interest in advanced air mobility (AAM) and eVTOLs, having begun discussions with developers worldwide in 2019-2020, said Semeraro. The company has a partnership with Pipistrel, which saw it order 15 of the manufacturer’s hybrid-electric VTOL (or hybrid eVTOL) Nuuva V300 autonomous cargo aircraft back in 2022. Since then, it has announced deals to lease these platforms to its customers. For example, it signed a letter of intent to lease one Nuuva V300 to HeliOperations in 2023.

Semeraro said that such platforms are likely to see demand in humanitarian work initially, before complementing offshore helicopters by transporting cargo to oil rigs. “Cargo transportation aircraft are going to open the doors for all the other type of eVTOLs,” he said, opening opportunities for the leasing sector.

Leishman said LCI is also increasingly focused on AAM, and has committed to up to 165 electric or hybrid-electric VTOL aircraft from Beta Technologies and Elroy Air. In addition to this, it has signed a long-term collaboration agreement with Airbus to develop new ecosystems for AAM, he noted.

Leishman pointed to initial demand for such aircraft in mission critical areas, such as remote logistics, humanitarian aid, and aeromedical, including organ transfers. This will be part of a broader move to a more sustainable future, he added.

“This will complement our existing helicopter fleet and we are working together with several of our existing customers to see how we can start to move toward a more sustainable future,” Leishman said. “This may be beyond the one- to two-year timeframe, but together with our operators and suppliers, we are already making significant steps forward, including with sustainable aviation fuel [SAF], which can be used on all of our new-generation helicopters.”

The post How helicopter leasing companies are bouncing back appeared first on HeliTrader.

While there may be reduced opportunity for shipping by air between some regions these days, new oceanic options have opened up over the last three years, and are now well-established and functioning very efficiently.

Here’s a look at the options for operators wanting to ship in 2024, in terms of cost, timelines and more.

By plane or by sea

By air, sanctions against Russia during the Ukraine conflict have somewhat lessened the number of options.

But despite restrictions on companies operating from Russia, there still exists a “restricted set of alternatives” for air transport of helicopters, Vivek Bisht, commercial manager at Bruhat Logistics in Singapore, told HeliTrader.

He reported that while “certain enterprises have opted out of participation and specific charter companies have ceased utilizing particular carriers, our collaborations persist with a select number of companies, primarily situated in Asia/Middle East.”

At the same time, reduced options have meant a notable increase in air shipping costs, he said, with a current hike of roughly 10 to 30 percent over the preceding one to two years.

Leading Edge Aerospace, a Transport Canada-approved maintenance provider in Vernon, British Columbia, has been offering disassembly, packaging and shipment of helicopters (among other services) since before the pandemic. This is mainly from Europe to North America.

Used European helicopters are very popular with many North American customers as the Europeans typically operate them from new for about 10 years before selling them, Beth Christianos, director of maintenance at Leading Edge Aerospace, told HeliTrader.

“North Americans buy these helicopters in great condition at a good price, and keep them running for another 10 to 20 years,” she said. “We have a team in Europe and our specialist mobile crew also travels from here in Canada to wherever we are needed.”

It was several years ago that Leading Edge identified a need for end-to-end concierge service to give buyers support for their import process from start to finish. “Buying a helicopter abroad, whether it’s expanding your fleet, changing types or buying your very first one, is an exciting milestone, so we wanted to develop a service that ensures you get to enjoy the whole process,” said Christianos, “instead of dealing with potential stress and uncertainty about an event that most people don’t do very often.”

Once a customer and their broker have selected the helicopter to purchase, the Leading Edge team prepare and present the project management overview and the specialist services (pre-purchase inspections, disassembly and packing, and reassembly and import services) to get the helicopter from purchase point to desired end location.   

“We partner with professional freight forwarders specializing in helicopter transport from pickup to delivery,” she said, “to make sure that the product we offer is supported by the best companies who share our passion for high standards of care.”

Bruhat Logistics also continues to offer oceanic shipping for smaller/medium-sized helicopters. “We’ve done a lot of this from Asia to Africa, and Europe to U.S., and Asia to U.S.,” Bisht said. “There’s less demand for larger ones, but we prefer to ship these by sea as a ‘Break Bulk cargo.’ I think we will see an increase in the amount of shipping by sea, and in Break Bulk/RORO shipments.”

Regarding cost, while shipping by sea is much less expensive than air, fuel surcharges are now common. Christianos also noted that there’s still an “emergency situation” surcharge from the pandemic in every part of the world, and no word on when it will be removed.

Keeping factors in mind

While you weigh your options — and some of those can obviously change at any time — here is a summary of key current geo-political factors to keep in mind.  

The good news is that right now, there are no delays for shipping containers, according to Christianos.

While the pandemic caused a massive container shortage due largely to the huge demand for shipping consumer goods from China to the rest of the world, Christianos said the situation has normalized. “There were also problems with availability of port slots for ships and personnel to process shipments, with massive delays to get your container onto ships,” she noted. “At its worst, the delay was about eight weeks above normal but now we’re pretty much back to normal. A typical timeframe to get your helicopter port-to-port across the ocean from Europe to North America is currently 16 to 20 days on the water.”

However, the world’s two shipping-critical canals are experiencing challenges. A severe drought that began last year in Panama caused authorities in charge of the Panama Canal to decrease crossings by 36 percent earlier this year.

As for the Suez Canal, seven of the world’s biggest shipping companies (including CMA-CGM, Hapag-Llyod and Maersk) had suspended all shipments through the route earlier this year due to Houthi attacks on Israel-linked shipping and the U.S.-U.K. counterstrikes. Many firms from Europe and North America who previously used the Suez were rerouting ships around the southern tip of Africa instead, obviously increasing fuel and labor costs significantly and adding anywhere from 10 to 20 additional days.

In the Pacific, if a military conflict breaks out concerning control of Taiwan, it is likely to affect oceanic and air shipping for a long time. Although the election in Taiwan in mid-January showed strong support for sovereignty among voters, China has indicated it will not allow Taiwan to achieve this. As of publication, the Biden administration has not declared official support for Taiwan independence, but Taiwan has already ordered more than US$14 billion of U.S. military equipment.

Overall, Stanley Wong, sales manager at DSV Global Transport and Logistics, recommends several actions to mitigate risk.

“Diversify carrier choices — use multiple shipping lines and forwarders — and supplier choices,” he advised. “Communicate at least every two weeks with your service provider, and ensure digital integration of systems with your service provider [EDI/API].”

Bisht added that “in addition to diversifying shipping lines and forwarders, considering a diversification of shipping modes — land, air, ocean, rail — is essential.”

Resourceful and cooperative

Even with the current challenges it faces, the shipping sector remains a positive space, and those working in it are proud of the effective options available worldwide this year.

“The shipment of helicopters is a small tight-knit space,” said Bisht, “and you can always find a solution. Shipping helicopters is a niche market, so options are always relatively limited, but there remain good options currently available no matter the start or end point.”  

Christianos added that “everyone in this industry is resourceful and hardworking. Shipments are happening all the time time no matter what challenging circumstances present themselves.”

Doug Scott, owner of Alberta-based Calgary Gooseneck, concurred. He and his staff have been transporting helicopters by ground (with a few fixed-wing shipments) since 1979. In both Canada and the U.S., Scott does a little delivery from helicopter manufacturers to ports and ports to customers. However, most of his work is in intra-continental shipments from sellers to buyers, and from operators such as law enforcement or health care institutions in one U.S. state to another state for maintenance and repair.

“Helicopter shipping is very much a cooperative industry,” he said. “Even though we are competitors, there are occasional times we work together and help each other out. We very much realize we’re in it together.”

The post Shipping options: How to get your helicopter smoothly delivered in 2024 appeared first on HeliTrader.

Fortunately, there are options that can help lower annual costs, from leasing the aircraft to using it as a part of your own business. We talked to a couple of aircraft brokers to get their advice on how a new helicopter owner can offset helicopter ownership costs.

Lease to a commercial operator

Michael Bashlor, managing partner of Meridian Helicopters in Broussard, Louisiana, works a great deal with Bell 206L helicopter refurbishment, sales, brokerage and leasing in the $1 to $1.7 million price range — where his customers often have insurance rates between $50,000 to $120,000 a year. He’s seen several of his customers find leasing relationships to help reduce out-of-pocket costs.

“There are some Part 135 commercial operators out there that have an occasional need for a helicopter, but not enough to justify the full purchase price and operating costs of adding another aircraft to their fleet,” Bashlor said. “Partnering with one of these companies can be a real benefit. They’ll put your aircraft on their 135 certificate, which means they have to inspect it and maintain it to that level. That is a plus for you, the owner. You can work with them to set up your own lease terms.”

Common leasing scenarios include a call-when-needed basis, certain days of the week, or full time for a short contract period. Bashlor also suggested owners can work out arrangements that have the lessor covering costs directly. For instance, the lessor could put the aircraft on their insurance, listing the owner as additional insured — an arrangement that can be far less expensive than the owner acquiring insurance alone. Hangar space and maintenance could also be included. All of these would reduce the cash price per hour paid to the owner, while certainly lowering the owner’s direct costs.

“You can draw up your lease agreement pretty much however you like,” Bashlor said. “However, I caution you to review the companies, financials, maintenance practices, type of operations, pilot experience, training, and safety procedures before you commit. After all, it is your aircraft.”

Scott Wagner, vice president of sales at Helicopter Marketing Associates, not only sells helicopters but also maintains his certified public accountant credentials. He agrees leasing the aircraft can offset personal expenses, but income made from leasing must be reported appropriately on taxes.

“I highly recommend owners looking to lease their aircraft consult with an attorney for the lease agreement and a tax advisor to ensure you know what your tax situation will be ahead of time should there be an audit,” Wagner said.

The downsides of leasing include the potential of not having your aircraft when you want it, Bashlor said. This is a good option for people who are flexible with when they want to fly the helicopter.

Wagner also advises owners to consider wear and tear. He warns that there is the potential the aircraft will not be treated as carefully as the owner may have cared for it.

Use for your business

Many helicopter owners have businesses where an aircraft can come in handy. Flying between business locations; flying customers to your factory location to pitch your business; flying real estate customers over properties to consider for purchase; or, flying to a convention for your business, are all legitimate business uses of the aircraft.

In those scenarios, Wagner says there are a couple of ways to offset costs. One is to write off the hours much like you would write off mileage on business use of your personal car.

“There are plenty of sources of documentation on the cost per hour of your type of aircraft,” he advised. “Be sure to keep clear documentation of your operating costs, insurance, fuel, etc., and how many hours you flew that year. Dividing that overall cost by the number of hours gives you a reasonable hourly rate that IRS will accept for you to write off.”

Another option is leasing the aircraft to your company. Most aircraft owners create an LLC to own the aircraft for liability and tax purposes. That LLC could lease the aircraft to your company under whatever terms you draft. Again, Wagner recommends consulting legal and tax professionals to determine the best way to do this for your needs, as taxes are owed on any income gained from the aircraft’s use.

Putting your company’s logo on the aircraft can also provide the opportunity to write off marketing expenses. Although, it can get tricky based on the aircraft’s use so, again, check with a tax professional, Wagner warns.

Wagner also warns against having your business purchase the aircraft directly if it will be used mainly for personal use, as that can lead to hefty fines if you’re not reporting the personal use and paying the appropriate taxes.

Perform commercial work

Without your own Part 135, you can still legally perform some types of work with the helicopter for compensation if you have a commercial license, Bashlor said.

This work falls under Part 91 and can include photo flights and area tours within 25 miles of the flight’s point of origin if the aircraft takes off and lands from the same point. Under Part 91, you cannot transport people or cargo between two points for compensation.

Charity work

Owners can also use their aircraft for charity work. Examples of this include flying blood for blood banks between locations, transporting rescue pets, helping deliver supplies in a disaster, flying Santa Claus to a charity event, golf ball drops, etc. Ensuring the work is for an IRS-recognized charity allows the owner to write off the hours flown.

The post Business uses for a personal helicopter appeared first on HeliTrader.

When weighing which option is best for you, it’s important to consider a few things: your financial commitment limits, how long you plan to own the aircraft, how long you are willing to be without the aircraft during overhaul, how much you plan to fly the aircraft in a year, what level of aircraft customization you seek, and what kind of insurance you can obtain — and its price.

With answers to these questions in hand, you’re ready to start exploring your options.

When leasing is a better option

One of the attractive benefits of leasing a helicopter is it takes far less initial financial commitment. Unlike purchasing — where a 20 to 30 percent down payment is required depending on your credit — leasing requires a comparatively smaller deposit. Typically, you’ll owe a deposit, often equaling the first and last month’s lease payments — though every leasing company will have its own terms.

This can be attractive even if you have more than enough capital to make a helicopter purchase.

“There are financial advantages to leasing for some customers based solely on return on investment,” Los Angeles-based Touchstone Helicopters owner John Nielsen explained. “Let’s say you’d be required to put down $100,000 to $200,000 to purchase an aircraft then pay today’s high loan interest rates. Could you make a better return on that money elsewhere by investing it or putting it into your business and driving increased sales?”

Adding to the financial advantages of leasing are tax benefits.

“One of the biggest drivers for leasing are the tax advantages, if you are tying it to business use,” explained Ehsan Monfared, partner at YYZ Law in Toronto, Ontario. “If you have the finances to buy an aircraft and are using it privately, then there isn’t this advantage.”

Lease payments are 100 percent tax deductible where an aircraft purchaser can receive a tax deduction for a large percent of an aircraft purchase. This deduction is then recaptured as taxable income when the aircraft is sold down the line, Nielsen added.

Another advantage of leasing is it allows you the opportunity to try out an aircraft to determine if it’s the right fit before making a long-term purchase commitment. Leases typically run 12 months, allowing you to operate the aircraft through all seasons and truly experience it. 

Other benefits can include the aircraft being fully compliant with voluntary service bulletins (SBs) and airworthiness directives (ADs) by the lessor and having an immediate replacement aircraft when the one you’re leasing times out and goes into overhaul.

Drawbacks to leasing can vary depending on your situation. Lessors will require a specific minimum level of insurance, and some will have a minimum number of hours of operation you’ll be billed per month regardless of how much you fly. In most cases, unlike when leasing a car, there is no option to purchase the aircraft at the end of the lease.

Leases typically require you to pay the deposit then cover all maintenance and hold the required minimum level of hull and liability insurance. In the long run, leases do end up incurring more cost, Monfared said, mainly because they take funds that can be used elsewhere to make money.

When buying is the best option

Buying a helicopter can happen in two ways: The owner either pays cash for the aircraft with no financing, or the aircraft is financed after a down payment is paid.

Buying is typically the best option for someone with the financial means to purchase an aircraft outright but wants to save money on insurance. By not owing payments on a high interest loan and, as such, having a bank set the insurance terms, these aircraft owners have the freedom to choose lower cost insurance by self-insuring their hulls.

Touchstone’s Nielsen also recommends buying over leasing when a customer is sure that the specific type of aircraft will suit their needs; they have experience purchasing and selling aircraft; and they know they’ll keep the aircraft for several years.

“If someone knows they want certain customization from paint color to avionics, and they know they want to keep the aircraft for several years, it may be advantageous for them to purchase the aircraft themselves or, alternatively, the lessor may be willing to customize the aircraft specifically for them in return for a longer-term lease,” he explained.

The tax advantage will depend entirely on how the owner sets up the aircraft’s ownership structure.

“One advantage of buying through financing with a bank is interest payments are tax deductible,” Monfared explained. “Research how your money can be the most productive. If using your helicopter will help your business increase productivity by five, six or seven percent — more than the bank is charging in interest — then it may make sense to invest your funds into the company and take out the loan, writing off the interest.”

Ultimately, Monfared recommends consulting with a business attorney or tax professional to determine the best route for your individual situation given all the variables and personal goals that can come into play.

The post To buy or lease a helicopter, which option is best for me? appeared first on HeliTrader.

The result was a smaller pool of aviation insurance underwriters, which reduced competition. The reduced competition paired with increased payouts led to significant rate increases across the industry. It also let underwriters become more selective, leaving some low time pilot owners of high value aircraft facing cost-prohibitive insurance premiums, if they could get a premium at all.

The good news is, the pendulum is beginning to swing the other way, ever so slowly.

“The market is in good shape today compared with five years ago,” explained Rick Ross, president of Leading Edge Insurance Services in Colorado Springs. “While costs aren’t really coming down, the extra competition has brought more flexibility. Underwriting has definitely softened, allowing for a lot more aggression and capacity. Today there is not much out there I can’t get insured.”

Ross explained that after 2001, the insurance industry got significantly aggressive with investment and rate increases. New companies came on the scene willing to underwrite at losses to get into the U.S. market and rate wars ensued. When the losses became too much, some left, and insurance rates started increasing.

“Now we’re seeing more competition again because the rates have increased to where there is a profit to be made,” Ross explained. “Typically, that means we’ll move into a softer market, but that isn’t happening. We’re not seeing prices coming down, at least not now, because they don’t want to make that costly mistake again.

“The companies are making a profit, but they’re not killing it. That’s a good thing because extra competition brings us more flexibility. For instance, it was difficult five years ago to get a low-time pilot insurance in a turbine. Now I can get a pilot with a couple hundred hours into just about any turbine. Maybe not an S-76, but certainly the more popular helicopters for private use.”

The situation is similar in Canada. Ken Britt, aviation underwriter for AXA XL in Calgary, Alberta, sees supply on the rise. While trends in Canada tend to lead those in the U.S., he sees increased insurance flexibility coming to the Great White North.

“Increasing premiums over the past several years provided aviation insurers with much needed capitalization,” he said. “Healthy premiums, coupled with a significant reduction in total aircraft movements throughout the pandemic, may have resulted in an improving claims experience for insurers — though the jury still is out as it takes several years to settle lawsuits defending policyholders and officially close a year of account.

“But with the potential for profitability comes competition, and the market is once again witnessing an increasing number of insurance providers entering the aviation sector with new capital — eager to benefit from current rates in a post-pandemic environment. New entrants will be eager to accept all risk levels to build premiums quickly. Aircraft operators are likely to benefit from the increased availability of insurance products and competition. The past four years, however, are a challenging precursor to the future of premium stability.”

The Benefit for Operators

Those who previously struggled to find insurance will certainly have more options now.

“It’s a soft underwiring market, but not a soft price market,” Ross emphasized. “I don’t see prices changing.”

The current key forces on price are threefold. First, jury payouts for accidents continue to be at maximum coverage.

“In the past, you could have a $50 million insurance policy and settle for a $10 million claim,” Ross explained. “Now, if you paid for that much coverage, and it’s demanded in court, you pay it. In California, if you deny a claim and a jury overturns it, there is no limit to what the jury can award regardless of your insurance coverage. This can actually happen in any state. If the carriers don’t offer up the policy limit, and they lose, the judge can hit them with bad faith and punitive damages. Insurance companies don’t want to be in that position.”

Second, new and used aircraft prices are increasing with increased demand, and parts prices are rising — which requires higher insurance to cover the value, Ross added.

Third, post-pandemic aircraft movement is increasing, and that increases accident potential.

“As total aircraft movements return to their peak, the frequency of reported claims is expected to as well,” said AXA XL’s Britt. “Together with the rising cost of aircraft and components; ongoing supply chain pressures for repairs and replacement; increased awards for liability damages, and so on, these market cycles have generally been shortening in length.

“From a policyholder perspective, this cycle should be met with careful optimism. My advice is to partner with an insurance broker who knows the difference, an insurer you can trust to be with you long-term to help you understand, anticipate, and navigate these cycles.”

The post The continually changing face of helicopter insurance appeared first on HeliTrader.

Dr. John Shufeldt is an emergency room physician who also runs a medical staffing business that serves close to 50 Native American reservations around the U.S. A dual-rated pilot, he flies both airplanes and helicopters to commute to staffing assignments — depending on the distance from his Scottsdale, Arizona, home.

Shufeldt’s first aircraft was a Schweizer 300, which he owned in the early 1990s to learn to fly. He says the aircraft taught him skills he uses to this day in the H125, as both types have three-bladed fully articulated rotor systems.

He’s since owned an MD 500, Robinson R44, Robinson R66, and Bell 505. However, it was the AS350/H125 that stole his heart.

“You know, every time I had a helicopter, I thought that was the last one I’d own, but that wasn’t the case until the H125,” Shufeldt said.

He had been particularly excited about the Bell 505 but found himself disappointed after taking delivery of the aircraft. He described it as being slow and having an uncomfortable aft center of gravity. Then he flew a friend’s H125. He was sold.

“A lot of people said it was incredible, and it was,” he shared. “It adds so much power and maneuverability, and it’s very fast. I also really liked that it had the autopilot.”

Shufeldt purchased a new H125 with a paint scheme he designed, upgraded avionics, air conditioning, and autopilot. He took delivery in May 2023 and has used the aircraft to fly all over the American West, mostly for work.

“I work in a lot of very remote areas that can take hours to get to by car,” he explained. “I am able to get there so much faster with the helicopter. For example, sometimes there is an acute staffing issue where I’ve literally been able to start at the airport and get to the hospital — usually using the hospital’s landing pad — within 50 minutes, when it would have taken three hours or more to get there by car.”

When friends are in town, Shufeldt enjoys showing them around Arizona with the helicopter. One of his favorite trips is to fly north to Sedona and land at the town’s iconic airport on a butte after exploring the red rock region. He says he’d do more exploring on his own if he had more time.

Pilot Joe Fisher, on the other hand, has the time, and he makes the most of it with his H125. A former car dealer now retired and living in Anacortes, Washington, he and his pilot wife love to explore in their aircraft. Like Shufeldt, both are dual rated.

“My helicopter is 100 percent for fun trips, and I take it whenever possible,” Fisher said.  

Fisher has been a pilot for more than 40 years, and a helicopter pilot for 30 of them. He also holds an airframe and powerplant license, allowing him to help maintain his aircraft.

He started his helicopter ownership journey with a Schweizer 300C and has since owned an AS350 B3, Bell 505, and MD  500E. In April 2023, he took delivery of a brand new H125 from Airbus’s Mississippi plant and flew it home to Washington via Arizona and the Pacific Coast.

“All of those aircraft had their pros and cons,” he explained. “I loved learning in the Schweizer, it was really the best beginner aircraft, and I really enjoyed my first AStar. I flew it all over the midwest, Arizona, and west. The Bell 505 was a great helicopter, but I’m not a big fan of two-bladed helicopters. They’re just not as smooth or fast, and there are some dynamic concerns I wanted to move away from. The MD 500E was my favorite helicopter to fly. It’s a Ferrari, but it doesn’t have power steering and is not very comfortable [for the pilot or passengers] on long flights.

“The AStar, now H125, is fast, smooth, and has power steering,” Fisher continued. “It has plenty of horsepower to handle any of the situations I’ve flown in, even hot and high locations. The dual hydraulics have even done away with concerns of hydraulic failures. It’s the perfect aircraft.”

Fisher also appreciates the H125’s flat floor and open cabin. His passengers have a front row seat regardless of where they’re sitting, and he finds of all the aircraft he’s flown, it is the most comfortable for long flights in terms of smooth ride and comfort in the seat. Its only drawback, in his eyes, is the amount of maintenance it requires, which he offsets by doing much of it himself.

Fischer’s favorite thing to do in his H125 is take trips with friends. He recently rented a large Airbnb outside of Palm Springs with enough property for four helicopters to land, and hosted a fly in. During that trip, the flock of helicopters and their owners explored the region together from Lake Havasu to San Diego.

Back home in Washington, Fisher loves flying out to the San Juan Islands, exploring and stopping for meals at restaurants within walking distance of landing sites. He also loves exploring the remote regions of the North Cascades — again, with friends flying along in their own helicopters.

“I really like to explore, but I’m careful about where I go,” Fisher explained. “I’ve dreamed of a flying trip to Alaska, but I don’t want to do it alone. I’ve boated up to Alaska, but if something goes wrong [in a boat], you have options. I feel far more comfortable if there is at least one additional helicopter flying along. That way, if anyone does have an issue, regardless of how remote we are, the other can always help. I’m confident I can survive an engine failure. It’s the surviving after that until you get help that worries me.”

Fisher is set to depart in June 2024 for his dream helicopter trip to Alaska with another friend joining in his own H125.

The post Why Airbus H125 owners love their helicopters appeared first on HeliTrader.

One area where many people look to save money is parts procurement. A new part from the OEM can cost so much more than a slightly used part. Why not purchase that less expensive used part? It still has time on it so it should be fine, right?

Maybe.

“There is a rash of counterfeit parts coming out of Central and South America,” noted Six, one of two maintenance professionals who make up the crew of the Cancelled for Maintenance Podcast on Apple Podcasts. “They were taking high time and timed out parts that had been installed on N-numbered aircraft in the U.S., and even Canadian registered aircraft, [then] cleaning them up a bit or maybe changing a couple of O-rings to make [a part] look newer, put a new parts tag on it to claim it was zero time, and sell it. Mostly they went to vendors in Europe, but some did make their way into the U.S. and Canada despite our robust counterfeit prevention programs.”

These parts are failing much sooner than they would have had they been new. Best case scenario: you need a new part. Worst case: the part’s failure creates expensive damage to the helicopter and, in some cases, causes a fatal accident.

Avoiding the counterfeit pitfall

OEM parts are certainly the best bet for avoiding this scenario, Six emphasized, but there is another source: parts manufacturer approval, or PMA. This is a combined design and production approval for modification and replacement parts. Manufacturing companies receive this approval after a rigorous application process with the FAA. Issuance of a PMA allows the company to produce and sell these parts for installation on type certificated aircraft.

“There are PMA parts now that are just as good if not better than OEM parts,” said Mark Tyler, vice president and general manager of Precision Aircraft Services (PAS), and a 44-year maintenance veteran in Georgia. “I will put whatever part the customer wants on the aircraft, as long as it has an 8130 FAA authorized release certificate.”

The 8130, also known in the industry as an airworthiness approval tag, confirms the part conforms to its design and is in condition for safe operation. Tyler warns, however, that the installer is still the final authority, so helicopter owners and operators should insist a part be inspected in-house again and its origins double checked before installation.

“I had a mentor who worked on Bell helicopters and he used to say, ‘Just because it came from Bell doesn’t mean it came from heaven,’” Tyler said. “That goes for every OEM, PMA, or any other part you may find. I’ve had customers bring me parts bought somewhere with no paperwork, so we scrapped them. We’ve done that several times with customers looking to save a buck and buying parts out of the back of somebody’s car. We won’t use them. Your installer is your last defense against these dangerous parts.”

The good news is the FAA has gone to great lengths to help owners, operators, and maintenance professionals verify a part’s approval status for installation in several ways. One is through the FAA’s PMA certification database, which lists all FAA-approved suppliers of specific parts. The FAA also maintains an extensive Suspect Unapproved Parts (SUP) list, which flags suppliers with a history of counterfeit parts.

When it comes to used parts, whether overhauled or those with time left before life limit, Six also recommends owners, operators, and maintenance shops take the time to ensure all documentation is present and complete. Incomplete records are a red flag.

“Definitely be careful where you’re sourcing your parts from,” added MBP, the second maintenance professional from the Cancelled for Maintenance Podcast. “Other reputable suppliers, and even your competitors, will tell you who the reputable suppliers of the part you’re looking for are. Also, you as the buyer are well within your right to go in and audit a supplier, to do an inspection. You can even hire an auditing company to audit them.

“I see it this way: you either pay for it now, or you’ll pay for it later.”

The post The importance of using FAA-approved parts appeared first on HeliTrader.

FAR Part 43 governs maintenance, including preventative maintenance. Part 43.3(g) stipulates any holder of a pilot certificate issued under FAR Part 61, except for a sport pilot certificate, “may perform preventive maintenance on any aircraft owned or operated by that pilot which is not used under part 121, 129, or 135 of this chapter. The holder of a sport pilot certificate may perform preventive maintenance on an aircraft owned or operated by that pilot and issued a special airworthiness certificate in the light-sport category.”

That said, a Part 135 operator can get approval from the FAA to allow pilots to perform preventative maintenance on rotorcraft operating in remote areas.

A full list of what constitutes major alterations, major repairs, and preventative maintenance can be found in 14 CFR Appendix A to Part 43. Preventative maintenance is described in section C of the appendix as a list of items that are allowed provided it does not involve complex assembly operations. The list is extensive as it covers all aircraft, from airplanes to lighter than air aircraft.

For helicopters with skids, that list is shorter and, again, only pertains to situations where no complex disassembly or reassembly is required. Examples of preventative maintenance in this list include replacing and refilling lubrication fluid (including oil) and filters; replenishing hydraulic fluid; replacing defective safety wire and cotter pins; refinishing decorative coatings on the fuselage; applying preservative or protective material to components; repairing upholstery and decorative furnishings; replacing seats and seatbelts; and, replacing bulbs, reflectors and lenses of lights.

It also includes replacing skis, cowling, spark plugs, some hose connections, prefabricated fuel lines, batteries, and nonstructural standard fasteners, as well as troubleshooting and repairing broken circuits in landing lights, and removing, checking and replacing magnetic chip detectors.

Owner pilots seeking to save money on maintenance can certainly perform everything listed in Appendix A, Section C. However, what you can do and what you should do can be very different.

Jason Pope owns Eternity Helicopters in Redlands, California. As the owner and pilot of his aircraft, he can legally perform the entire preventative maintenance list, but he never would.

“I’ve changed oil in cars a million times, so I am very comfortable changing the oil in the helicopter,” he said. “As far as any other maintenance, I leave that up to my mechanic. The good thing about using your mechanic is he or she could find something additional and by having your mechanic do preventative maintenance, you’re getting another set of trained eyes on your helicopter. For me, the responsible thing is to take it to my mechanic.”

Simon Jones, who previously owned his own helicopter before selling it to become a full-time traveling flight instructor performing safety training, has a similar outlook.

“I’d really rather my mechanic do all the maintenance,” he admits. “I’m not very mechanically inclined so I don’t even like doing the oil changes. Now, if I was operating remotely and I had the tools, I could change oil, replace a lightbulb, and check spark plugs, but I’d be inclined to have a mechanic check my work as soon as possible afterwards.”

Jones also advises the pilots he flies with to always work with a mechanic, whether that’s having a mechanic teach you the proper way to perform the preventative maintenance, having your work checked, or having the mechanic perform all the work.

“If you make just a little mistake, it can have a bad outcome,” Jones said. “For me, it isn’t worth the risk. I’d make sure I at least had the training from a mechanic and felt very confident before doing preventative maintenance, especially things beyond changing light bulbs, spark plugs, hydraulic fluid, and oil. It just isn’t worth it to risk making a mistake.”

That said, there are a great deal of things a pilot can do that are preventative — even though they are not listed in the FARs. For example, Pope makes sure his aircraft is always hangared or covered with the blades tied down when outside to protect the aircraft from heat, cold, and debris. He also ensures it is clean inside and out.

“During preflight, I always have a rag in my hand and am wiping things down,” he explained. “When you care how your aircraft looks, you take better care of it on a whole. It’s a mindset of taking pride in your aircraft. Also, I wipe things down inside the cowling. If the engine and transmission area is wiped down, and the next time I check it’s no longer clean, that immediately indicates there is a problem. If you weren’t keeping that clean, you may not find [the problem] as soon.”

When he had his helicopter, Jones kept it on the ramp at an airport not far from the ocean, which exposed it to salt. As an extra preventative measure, he frequently wiped down the aircraft and ensured the blades were clean; not only can dirty blades decrease performance, but the corrosive effects of the salt air can reduce paint life.

“As a pilot, focusing on keeping the aircraft clean and protected goes a long way in preventing additional maintenance,” he advised. “Let your trained mechanic be a part of everything else.”

The post What a new pilot owner should know about performing their own maintenance appeared first on HeliTrader.

Ralph Van Woerden grew up in the Netherlands and, as a kid, watching helicopters spray fields sparked a desire to be a helicopter pilot one day. He immigrated to British Columbia, Canada, and while the path to become a professional pilot was not in the cards for him, he learned to fly for fun many years later.

“I got my license so I could at least say I did it, but after I had it, I wondered what I’d do next to keep flying,” Van Woerden shared. “With the help of my instructor, I found a business partner. We got together and bought one of the school’s helicopters.”

That helicopter was a two-seat piston Schweizer 300CBi, and it opened a whole new world for him. Now no longer constrained by the flight school’s time and limitations, Van Woerden began exploring the mountains just north of his home in Chilliwack, British Columbia, and the province’s coast and islands. He’s since traded that aircraft for a newer Schweizer 300CBi, which he owns with his son, and shares his adventures on Instagram.

“We have so much nature here, we can land pretty much anywhere other than official parks and reserves, within the limits of the helicopter,” he explained. “While it’s not a turbine, the 300CBi can still get me to a lot of places I want to go and doesn’t cost anywhere near as much as a turbine would.”

Van Woerden purchased an external aftermarket basket for the aircraft that allows him to carry extra cargo. He regularly takes the aircraft camping and fishing in the mountains. He also uses his helicopter to visit friends with property where he can land.

“I can visit friends quicker than I could in a car, and we’ve even taken longer flights to Alberta,” he shared. “Now, those flights take longer than an airline would, but you get to see so much more. You’re not as high as an airplane. We fly through the valleys and it’s much more beautiful and relaxing. And if we need a break and find somewhere nice, we just land there. Having a helicopter on these long trips makes you slow down and really enjoy the experience.”

Matt Lombard started flight training in his early 20s with aspirations of being a professional helicopter pilot. However, the sky-high cost of renting a helicopter to build his flight time led him to consider helicopter ownership once he had his commercial license.

Lombard purchased a used Robinson R22 Beta II in April 2023 and has since flown 120+ hours exploring the area around his home outside of St. Louis, Missouri. Since he lives in a fairly rural area, he’s been able to use his helicopter to save time and simply have unique experiences.

“I live in the middle of nowhere and while there aren’t mountains, there are some great places to visit that would take an hour or more to hike to,” Lombard explained. “There are a couple of great spots that have a little elevation, and I can fly up there to watch a sunset for example in a few minutes rather than hours of hiking. I’ve also found some great secluded spots where humans haven’t been in a very long time. It’s very peaceful to fly out there and experience these places.”

Lombard also uses his R22 to save time. Midwest grocery chain Menards is a two-hour drive from his home. The store has a large lot where he can safely land, and he’s flown there several times to stock up — storing his bounty under the seats for the flight home. He’s used his helicopter to pick up and take a pizza to the Mississippi River for a picnic, to catch a drive-in movie, and to have lunch at various restaurants.

Like Van Woerden, Lombard has visited friends who have lakeside property, again saving driving time, and he’s even done a little charity work — delivering Santa for a gift giving event. He’s shared his adventures with his more than 470,000 followers on both Instagram and YouTube combined.

Recently, after a police officer retired from his 27-year position as a resource officer at a local high school, Lombard landed in the school’s field to provide the officer his awe-inspiring final departure in front of the student body — a helicopter ride back to the police station. Lombard shared that he can’t, however, offer tours due to his insurance and federal regulations, which has been a letdown as he was hoping to offset his costs with paid tours.

“Owning the helicopter has been a lot of fun,” said Lombard, who has also been training to become an A&P mechanic. “I bought the helicopter to build my time and will hopefully sell it for about what I paid for it; although, now I’m not sure I want to sell it. There are so many things about owning a helicopter that people don’t tell you. Having a helicopter has really changed my mind about what I want to do for a career. My dream was to be a tour pilot, but that’s changing after this experience. We’ll see what the future holds.”

The post The adventures of private helicopter ownership appeared first on HeliTrader.

“European-operated helicopters, for instance, can sell at attractive prices to buyers outside of Europe and may even have the added benefit of higher maintenance standards than other parts of the world,” said Xanthe Garahy, marketing manager at Leading Edge Aerospace’s HeliPackers subsidiary. “Purchasing a helicopter outside of your own country could add stress to buyers who don’t have a lot of experience in purchasing, packing, shipping, and importing a helicopter. That’s where using a professional service can make all the difference.”

Based in Vernon, British Columbia, since 2017, Leading Edge Aerospace is a Transport Canada-approved helicopter maintenance provider that specializes in providing mobile field maintenance services including AOG support, skilled labor for short-term contracts, flight testing, pre-purchase inspections, and now helicopter packing and import services.

After witnessing several customers’ difficulties and stressful experiences in purchasing and importing helicopters into Canada and the U.S., Leading Edge Aerospace began researching the business case for a service dedicated to coordinating end-to-end helicopter shipping for the buyer.  It would need to maintain the highest standards of care in properly packing and securing aircraft for shipping, deeply vet freight forwarders and shipping companies, be highly transparent, maintain constant communication with all parties, and serve as a single trusted point of contact for the buyer.

Three years ago, HeliPackers was launched to provide buyers with every link in the chain required for a successful import: pre-purchase inspections and flight tests; helicopter disassembly and packing; full logistical support from pick up to delivery; import and export processes; helicopter reassembly; and, final flight test for release into operation. Clients are able to select any one of these products as its own module, or the whole package depending on the availability of their own in-house engineers.

Before anything: pre-purchase inspection

Many professionals we’ve interviewed here on HeliTrader have emphasized the importance of a pre-purchase inspection. HeliPackers’ director of maintenance Beth Christianos echoed their sentiment.

“You absolutely must do a pre-purchase inspection, and with a third party representing your interests, not the seller or broker’s interests,” Christianos emphasized. “Most people would never buy a house without a home inspection, but the number of multi-million-dollar helicopters bought without a pre-purchase inspection is shocking.”  

Not only will an engineer go over the aircraft in the inspection to find any discrepancies or required maintenance that can affect the price, but equally as critical is an audit of the technical records to assess the integrity and traceability of these records. Without full traceability back to 0.0 TSN, your helicopter will not be able to be imported into your country.

“We don’t want this happening to you and your helicopter, so we advise folks not to close on their purchase until they have sent a qualified helicopter engineer who is experienced on type to thoroughly evaluate the helicopter and its technical records — before it’s too late and you find out at the border that you just bought an expensive paperweight.”

While HeliPackers provides a detailed pre-purchase inspection service, Christianos noted that there are many qualified engineers/mechanics with experience on aircraft type who can do a thorough job. That said, she warns buyers not to hire someone who is financially tied to a broker or the seller, as they may have a conflict of interest.

“You want to be sure who you hire is working for you,” she said. “Your broker can recommend people, of course, but do your homework and select someone who is working for your side of the table.”

Preparing your aircraft to ship

How an aircraft is shipped will determine how it is prepared and packed for shipping.

“The challenge that we see within the industry is people don’t realize there is much more involved than putting a helicopter into a shipping container and shipping it,” HeliPackers’ Garahy said. “It must be properly dismantled and secured by licensed engineers in order to protect all the fragile parts.

“A helicopter must also be packed specifically depending on how it will be shipped,” she continued. “Land, sea, and air all require different packing measures. Depending on the size of the helicopter, there are criteria in terms of what type of container is used, its size, and if the aircraft should be shrink wrapped or not. If the aircraft could be sitting in a port for some time, which can happen with the issues in the Panama and Suez canals these days, shrink wrapping to protect against salt air is a good idea. All of this affects how the helicopter arrives at its destination. Of course, you want it to arrive in the same state it left, and that is very dependent on how it’s prepared and shipped.”

Preparing and packing a helicopter is in fact a complicated process with many small nuances that can make all the difference. Examples of the many steps involved include, but are not limited to:

• Properly covering all openings, vents, and ports
• Defueling and marking proof of defueling
• Desiccant applied as a protective coating
• Draining gear boxes, filling them with preservative, and marking them
• Stowing all flight controls securely
• Removing antennas, disconnecting battery, turning off ELT
• Swapping landing gear with shock absorbent shipping gear
• Securing avionics and gimbals
• Packing, marking, photographing, and securing all removed aircraft parts
• Loading and securing all helicopter sections
• Producing and securing photos and manifests on the outside of the container for customs
• Protect windows and interior surfaces
• Ensuring correct ratchet straps are utilized
• Incorporating redundancies into securing parts and aircraft sections
• Shrink-wrap the aircraft and parts if needed
• Install Drop-N-Tell shock indicators on the container
• Photograph every step of the process for insurance, transparency, and reassembly
• Following all helicopter manufacturer disassembly and shipping procedures
• Record all work in the maintenance logs 

“A lot of people don’t realize how specialized all this work is, especially if they’re new to aviation,” Christianos noted. “That container you are packing will be subject to different forces during the journey. Riding on a truck, loading and unloading, crossing an ocean, all of that has the potential to cause damage to any part of the aircraft, including the finely machined gears and engine parts if it has not been packed and secured properly. If anything moves, rubs or, God forbid, breaks loose, it can be very, very expensive.”

For instance, Christianos shared a story where the incorrect type of ratchet strap was installed, and consequently failed on its sea journey. The result was the aircraft fuselage slid back and forth during the trip, hitting the other parts and jolting parts within the aircraft and engine — resulting in a total loss.

In another incident, the aircraft container was improperly marked. The Drop-N-Tell indicator wasn’t there along with markings that it was very sensitive cargo. While the aircraft survived the trip across the ocean, it was loaded onto a tractor trailer without air ride suspension, causing the aircraft to vibrate and bounce so much on the final journey that hundreds of thousands of dollars of damage were incurred. 

Do your homework

In the end, the best thing a buyer can do to protect a helicopter investment that needs to make the journey is carefully research and invest in experienced engineers/mechanics who go the extra mile to prepare and pack the aircraft. From there, Christianos says it’s important to research freight forwarders and shipping companies. There are some out there that say they can ship aircraft, but may not be as versed in the technical specialties that a helicopter shipment requires.

“We do a lot of vetting to ensure companies we partner with are transparent, experienced, and professional,” said Christianos. “If you’re not going with a company that manages all these logistics, be sure you’re taking the time to carefully vet everyone – pre-inspection engineers, packers, freight forwarders, shippers, trucking companies, and reassembly engineers. Ensure they are experienced with and respect the process of high-value cargo, and that they’ll communicate clearly and transparently the whole time.”

A good freight forwarder will provide seamless end-to-end transportation and coordinate cross-border transit, for example. If it can’t do this without involving multiple other companies contacting you for information, be wary, Christianos warned.

“While the tasks themselves are highly specialized, the logistics is straightforward – you load the helicopter into a container, it goes to the port, it’s carried across the ocean, it arrives and clears customs, then it goes to your final destination. If a company you’re researching makes it confusing, keep researching.”

The post What you must know about shipping a helicopter appeared first on HeliTrader.