Originally Posted by
industry insider
I have some sympathy with CHC's view. The industry has been in a prolonged downturn which has resulted in a race to the bottom. We now have oil company nirvana, ridiculously low helicopter contract rates coupled with a record high oil price.
If the oil price remains high (>$80 per barrel), it will be economical to bring additional oil and gas capacity into production and to explore for more, renewables and electric cars are not there yet.
Helicopter contract prices will have to rise as increased activity will lead to a shortage of aircraft as the market is now quite finely balanced with aircraft and personnel capacity. Combined with supply chain disruption of some raw materials, we could see the capacity to produce new aircraft limited by cost and production constraints.
I think things may improve for offshore helicopter operators providing they can secure aircraft and people capacity to meet demand.
Well said....getting people in is going to be the challenge imho, if it does pick up. For what it's worth, just my opinion, but I think we operators may see an improving situation very soon. Have heard from several sources at different companies that the piles of CVs they used to get have long gone, compounded by Brexit licensing issues further reducing the pool of talent the numbers aren't coming through the door anymore. Yet pilots are still retiring, losing their licences and going off to the sandpit/police/HEMS etc. I left the military and went straight to offshore, but most of the generation after me went to airlines instead. Who knows - crazy assumption to make, but could we see improved T&Cs for pilots coincidental with an upturn in the offshore market?