The North Sea is only big enough for the both of us

[pitchlink]

Rumour has it that there will only be two operators on the North Sea in 12 months time. Will this mean that at last rates may go up without the interference of companies whose only goal is to survive at any cost?

[MaxNr]

Any idea who ????? Or is this still staff in confidence for now. The reason I ask being that if BIH is out, then this might have a knock-on effect for CHC, and hence the market over the pond.

[pitchlink]

MaxNr, Nice to read someone over there who has an interest in what is going on over here! With BIH now only having I beleive 3 full time contracts, and with I belive in excess of 10 aircraft laying idle in ABZ, it may be all right filling the gaps with short term ad-hocs. However, it doesn't take a genius to do the sums and ask that if a large oil company is no longer bailing them out, and they have no money making contracts, how long will CHC be willing to foot the bill?!!!!

[MaxNr]

Makes sense, however, I believe CHC International has the contract to support the Sable Island field (East coast of Canada) which is just starting out. Maybe that will be a Golden Goose and offset BIH a bit. Are all the North Sea fields tapped now?? Do you know if BIH has plans to diversify into overseas markets?? 10 aircraft at idle eh! sounds grim.

[leading edge]

BIH were undoubtedly hurt by the loss of the Shell contract but they have undergone some structural and management changes which should help them weather the storm. Their new Commercial Director is excellent and he will aggressively pursue any contracts which come up. As for BIH expanding internationally, being part of CHC they probably have to toe the CHC line when it comes to tendering for international contracts. There are a lot of contracts changing hands on the North Sea at the moment which happens when one operator drpos rates and goes for volume. The 10 idle aircraft is probably a bit overstated, a few may be idle but there is still a big shortage of experienced crews and a general shortage some aircraft types. I hope that the oil industry keeps the competition going and does not let BIH go down the gurgler!

[pitchlink]

"Dropping rates and going for volume". Isn't that exactly what BIH has been doing for the past five or six years! It is this type of silly tenderring for contracts that has resulted in the North Sea operators having to cut costs and overheads. In some areas this has been no bad thing, but in others it has resulted in a reduction of inward investment. This does not only include lack of money toward new airframes, but also and argueably more importantly, investment in propper maintainance, and a reduction in safetey margins!
At a time when Oil companies have been posting record profits, is it not time that the operators had something to show for it other than lower rates. The demise of BIH at a time of high demand for helicopter services on the North Sea would not result in fewer jobs, they would simply transfer to a different company. A fact bourne out by those taken on by Britows when KLM folded! If BIH have to go in order that the rates are increased then sobeit!

[Hugh Jardon]

Pitchlink: "...if BIH have to go so that rates are increased then so be it."

I'm sure your fellow Pilots in BIH would not quite agree with you on that one.

Changing companies every few years to follow the contracts cannot be the answer...there's no security for the workforce (let's not forget it's not just pilots who have to keep changing) and an insecure workforce is not a very loyal one. What is needed is for the three remaining North Sea companies to work together at increasing rates, & therefore moral, and not to offer "break even" rates just to keep the company afloat until the competition are forced out of business.

Having flown for both BIH & Bristow I know which company I would prefer to work for again. I have never met a more loyal & professional group of pilots than my former colleagues in BIH (I'm not saying that Bristow pilots are unloyal or unprofessional) and it saddens me to hear "rumours" that the company that gave me my footstep into the aviation industry might be "facing the final curtain".

For those North Sea pilots who are young enough (under 45 ???) you really should consider converting to fixed wing...I know the flying isn't as much fun and there's always the cost (it cost me about £12k) but at least you don't have to look for a new job every three years (hopefully). I left to fly "planks" a few years ago and, although I miss flying on the North Sea, I can now afford to fly helicopters for fun without thinking that I should be putting the money in the bank for when I'm made redundant...again. I definitely feel that I made the right decision.

Good luck to EVERYONE on the North Sea, especially BIH.
I hope that this winter treats everyone kindly.