CHC LLC purchases Babcock
“We continually assess our operations performance to ensure we deliver the highest standards across our portfolio. Thanks to the excellent reliability we have seen from the Walney Extension turbines and high-quality service provided by our technicians, we have not required the use of a helicopter as much as originally envisaged. This has in turn brought down the requirement for troubleshooting and emergency maintenance, where helicopter transfer of parts and personnel can assist in delivering significant value. Therefore, we have coordinated with Babcock to pause helicopter logistics support. As with all measures on our performance journey, we will continue to review our processes and should circumstances change we may reinstate helicopter service in the future.”
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.
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.
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.
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.
Mitchaa
I wouldn’t have thought so.
Declining oil market, an oil and gas hating Scottish government which is being continually influenced by the Greens. In addition to that, there is always a steady stream of military helicopter pilots that come into the offshore industry on much lower salaries that I don’t think recruitment (albeit with some training) is ever going to be a problem.
Really? We seem to be having one heck of a time finding any suitable candidates? Yes, there maybe the odd one or two ex-mil available but nowhere near where it used to be. At the moment we cannot keep up with the vast amount of retirements that is happening every year, the scenario that was highlighted years ago, as the average age of offshore (and onshore for that matter) get higher each year, with less and less newbies joining the profession.This problem of recruitment is the same across all of the operators, I witness it first hand every week. The oil and gas market is not disappearing tomorrow, and other new offshore work ( renewables) requires support in the meantime.
B.
I wouldn’t have thought so.
Declining oil market, an oil and gas hating Scottish government which is being continually influenced by the Greens. In addition to that, there is always a steady stream of military helicopter pilots that come into the offshore industry on much lower salaries that I don’t think recruitment (albeit with some training) is ever going to be a problem.
Really? We seem to be having one heck of a time finding any suitable candidates? Yes, there maybe the odd one or two ex-mil available but nowhere near where it used to be. At the moment we cannot keep up with the vast amount of retirements that is happening every year, the scenario that was highlighted years ago, as the average age of offshore (and onshore for that matter) get higher each year, with less and less newbies joining the profession.This problem of recruitment is the same across all of the operators, I witness it first hand every week. The oil and gas market is not disappearing tomorrow, and other new offshore work ( renewables) requires support in the meantime.
B.
Agreed, but companies can't sponsor IRs when the oil companies are still insisting on screwing their aviation suppliers down to the lowest of low single digit percentages.
In the current economic direction there can be no sponsorships, no investment in new technology and no (no matter what anyone says) true advances in safety.
The oil companies need to understand that there is a minimum price for a quality aviation service...and they are not meeting it. That's why it is so laughable that the CMA state that this [so called] loss of competition will result in a degradation of safety. It would do just the opposite. Fewer suppliers would result in a steady rise in margins for the aviation suppliers and that, indeed, would result in greater safety and new, safer, technology.
In the current economic direction there can be no sponsorships, no investment in new technology and no (no matter what anyone says) true advances in safety.
The oil companies need to understand that there is a minimum price for a quality aviation service...and they are not meeting it. That's why it is so laughable that the CMA state that this [so called] loss of competition will result in a degradation of safety. It would do just the opposite. Fewer suppliers would result in a steady rise in margins for the aviation suppliers and that, indeed, would result in greater safety and new, safer, technology.
you a funny guy - not only do they 'not' talk to each other, CAA do 'not' facilitate their methods
Having said all that, I am certain every operator will look at the individual and their attitudes, etc and that will have primacy over anything else that is being considered.