There have been many changes to the Industry since this post started, all more than adequately covered elsewhere, each deserving detailed discussion and analysis. Two recent stories, however, illustrate the systemic collapse of the valuations and demand for assets that still haven't reached their bottom, or ended in a viable transfer of ownership to a new entity. The last discussions of the future of Milestone and even the greater GECAS fleet, highlighted the impaired asset value, and I would hate to think what any of those numbers look like today, in either the Airline or Helicopter business. This announcement last week with the write-down of assets aligns very closely with the previous negotiation to sell the Organization and the interested parties' valuation of the assets. I'm not sure if this action is the portent of a sale, but it potentially seems quite possible.
https://www.ainonline.com/aviation-n...nes-value-729mGECAS Slashes Milestone's Value by $729M
by
Mark Huber
- July 31, 2020, 7:58 AMThe continuing decimation of the depressed offshore helicopter market writ large anew earlier this week when GECAS wrote down the value of its Milestone Aviation helicopter leasing unit by $729 million. Milestone holds the world’s largest fleet of Sikorsky S-92 heavy helicopters, used primarily in support of the offshore energy market.
The write-down was revealed this week in GECAS parent GE’s second-quarter 2020 10Q SEC filing in the form of a goodwill impairment. It represents a 41 percent devaluation of the $1.775 billion GECAS paid to acquire Milestone in 2015.
Milestone was founded by former NetJets chief Richard Santulli in 2010 with an initial capitalization of $500 million and based in Dublin, Ireland. It would go on to draw substantial investment from global financial powerhouses, including Lloyds, Barclays, and Lombard, the asset finance division of the Royal Bank of Scotland. Milestone built one of the world’s largest helicopter lease fleets that over the course of its first five years grew to 168 aircraft valued at $2.8 billion. It was quickly joined in the market space by a variety of new competitors, including Waypoint Leasing, LCI Aviation, Lobo Leasing, and Macquarie Rotorcraft Leasing.
The fallout from the 2008 recession and tumbling oil prices has had a lasting overhang on the offshore helicopter business, triggering a crescendo of bankruptcies and consolidations among operators and lessors in recent years.
https://www.ainonline.com/aviation-n...copters-parkedOne in Five S-92 Helicopters Parked
by
Mark Huber
- August 3, 2020, 10:32 AMWhile the offshore helicopter market is showing signs of recovery, 39 Sikorsky S-92s, comprising 19 percent of the global market, remain parked. Among the active fleet, flying hours are down 27 percent. Those are among the findings from the most recent “S-92 Fleet Census” from Air & Sea Analytics.
The report notes that offshore helicopter services companies Babcock, Bristow, CHC, and Lider are returning aircraft to lessors against the backdrop of one-quarter of the world’s mobile offshore oil rigs being scrapped since 2015. Nevertheless, Air & Sea Analytics director Steve Robertson said, “Relative to other [oil field services] segments, we’d argue it’s [the S-92] one of the best performing over the last 12 months.” But he acknowledged that many owners and operators are “having a rough time.” The largest concentration of based S-92s continues to be in the UK, with 41, but of that number only 29 are active.
Nevertheless, glimmers of hope remain. GECAS helicopter leasing unit Milestone Aviation is adding to its S-92 fleet, already the world’s largest, and finding placements for them. The overall count of heavies and super-mediums has increased slightly, from 214 to 224, a function of increased deliveries of the latter to offshore operators. The report found that “super-medium units continue to be delivered and find work in the market.” And at least two operators, Cougar and Chevron, are increasing their super-medium fleet size.