Waypoint Leasing

[chopper2004]

Hmmm, thought they were doing well as during the downturn in offshore ops, it was leasing companies such as Waypoint doing well out of it.

http://www.helicopterinvestor.com/articles/waypoint-leasing-files-for-chapter-11-bankruptcy-protection/

At Helitech last month they seemed to be quite positive...then again what about the other operators that have leased aircraft from them?

Cheers

[nowherespecial]

They have struggled enormously since CHC's Ch 11 which returned around 40 aircraft to them. They were top dollar assets which CHC were hugely overpaying for vs the market. I heard from a source that CHC had 2x 139s from WP on the book which were 6 years old and on for $125k a month, almost double the market rate at the time of CHC's Ch 11. WP refused to negotiate rates with CHC hence the huge return of aircraft when CHC went into Ch 11. CHC's old General Counsel is now the CEO there (and is super smart) so he knows what he's doing. He's put the same team CHC used back together as advisors. The only difference is the jurisdiction is now NYC and not in Texas which could make a difference but unlikely. The rest of the management team has also been cleared out, including some of the founders and original employees. They will survive, using the Ch 11 to shed old assets and refinance in just the same way CHC did. Not pretty if you are an investor but I think they'll be back. I'm sure they stated somewhere they'd like to be bought so anyone who wants to get into Rotary leasing from the fixed wing wide could snap them up quite quickly in theory once Ch 11 is done.

[malabo]

Really, you have to give credit to Bill Amelio for setting the wheels in motion to bring the helicopter world into the new world order of airline-type (and risk) financing. Heli-Expo interview with ex-CHC SVP and now Waypoint CEO, Hooman Yazhari (interview (http://www.helicopterinvestor.com/articles/new-guy-on-the-block-waypoint-leasing-ceo-hooman-yazhari-733/)) is more interesting now that we know he was hired to guide Waypoint through a Chapter 11. Also interesting in the creditor list that CHC Netherlands is listed as being owed .5M. We get to see perspectives not usually seen at the operating side we might be more familiar with, such as Hooman bullish on the AW139 because it is now "so cheap it can compete price wise with a Bell 412, (Vertical Mag interview)". Waypoint just leased another 139 to Heliconia, now being run by someone else familiar with CHC.

What does all this mean to you pilots waiting for an upturn in wages and conditions? Don't hold your breath, these financial measures vacuum a huge amount of capital out of the system, and only the really efficient at minimizing labor costs will survive.

[[email protected]]

And everything is driven by finance and accountants who understand nothing of flight safety...............

Aviation isn't cheap and if you make it so it means you have cut so many safety corners you have turned it into a circle..........

[nowherespecial]

That didn't take long. They've been bought by Macquarie. Will close Q1 2019. Hooman is getting really good at this!