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Old 31st Jul 2015, 11:52
  #195 (permalink)  
terminus mos
 
Join Date: May 2012
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NWS

1) Leasing companies might charge 14% (more like 9% these days) but they don't make that amount in profit. They make nothing at all if they don't get paid.

BA pay their leases, some helicopter operators are struggling to do so. A"few" S-92s and EC225s? 20x aircraft idle on the books awaiting customers would be $600m, these aircraft could be idle for 3 -5 years because it will take that long for the operators' existing idle capacity to be soaked up again.

2) No comment, I am not an operator but some are desperate to win work to at least keep cash coming in to pay leases (those that have a large leased fleet) GSE would be unlikely to be expensive enough to have deliberately not supplied to save money.

3) Some won at low rates 3- 4 years ago which have had subsequent escalations wound back as part of cost cutting by the oil and gas industry are not making money. One operator recently offered us a 40% discount on the marginal MSC price bid.

Lastly: 3 month termination? I may not agree personally but my company default is 30 days for termination for convenience. However "together" the RW industry may get, I assure you that one will always break ranks around the negotiating table as they chase cash contributions for idle aircraft.
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