Equinor puchases B525 & AW189
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Joined: Mar 2016
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From: Underneath the Radar
Equinor puchases B525 & AW189
Interesting move for Equinor as they announce the purchase for 10 x Bell 525s and 5 x Leonardo AW189s.
https://www.equinor.com/news/2024030...opter-capacity
https://www.equinor.com/news/2024030...opter-capacity
Joined: Feb 2018
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From: UK
Interesting move for Equinor as they announce the purchase for 10 x Bell 525s and 5 x Leonardo AW189s.
https://www.equinor.com/news/2024030...opter-capacity
https://www.equinor.com/news/2024030...opter-capacity
Joined: Sep 2005
Posts: 768
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From: Montreal
The airline model is that the operator owns nothing, he leases the aircraft from the leasing company that buys the aircraft. Frees up cash flow. Never heard of a customer buying aircraft on behalf of the operator.
Maybe I've lived under a rock, anyone have any insight? Nowherespecial?
CHC has a long history of looking at the 525, ran into some of their pilots at the development sim in Amarillo. Fly-by-wire perfectly replicates PC1 profiles.
Maybe I've lived under a rock, anyone have any insight? Nowherespecial?
CHC has a long history of looking at the 525, ran into some of their pilots at the development sim in Amarillo. Fly-by-wire perfectly replicates PC1 profiles.
Joined: Oct 1999
Aviation Qualifications: ATPL
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From: Den Haag
Never heard of a customer buying aircraft on behalf of the operator.
Joined: Jun 2005
Posts: 491
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From: nowhere special
Hi Malabo,
It's mostly (but not entirely) accurate that the airline industry owns nothing, albeit the portion of leased (incl financed) vs owned outright is skewed heavily in favour of financed/ leased. Covid accelerated the trend away from owning as airlines preserved cash as best they could. Covid was a bonanza for patient leasing companies. The generally accepted portion of owned outright in the airline industry now is about 20% so very low.
On the rotary side, in terms of oil companies buying assets for others to operate, it's not really been done as far as I'm aware, certainly not at scale: I think Chevron bought some 429s in Angola for Heli Malongo years back but I might be wrong. There are plenty of examples of oil companies buying aircraft but then also then operating them in house. Exxon own their 139 fleet in Australia but also operate them, BSP same. There are others of course. I'm still not convinced Equinor will actually buy these assets in the end, the oil company might have just placed the order and will then sell the slots to a finance company elsewhere at a later date on the quiet.
I can't see the finance teams in oil companies being excited about buying helicopters and having them on these assets on their balance sheet. I think Equinor just wanted to kick start the move to a new type so did this knowing the market could/ would likely take care of the financing down the line. I suspect there are also ways for Equinor to get out of the deal if the aircraft is not certified by a certain date or there is a minimum guaranteed performance clause (ie if Equinor cannot move X people X distance offshore in X weather then Equinor can walk).
It's mostly (but not entirely) accurate that the airline industry owns nothing, albeit the portion of leased (incl financed) vs owned outright is skewed heavily in favour of financed/ leased. Covid accelerated the trend away from owning as airlines preserved cash as best they could. Covid was a bonanza for patient leasing companies. The generally accepted portion of owned outright in the airline industry now is about 20% so very low.
On the rotary side, in terms of oil companies buying assets for others to operate, it's not really been done as far as I'm aware, certainly not at scale: I think Chevron bought some 429s in Angola for Heli Malongo years back but I might be wrong. There are plenty of examples of oil companies buying aircraft but then also then operating them in house. Exxon own their 139 fleet in Australia but also operate them, BSP same. There are others of course. I'm still not convinced Equinor will actually buy these assets in the end, the oil company might have just placed the order and will then sell the slots to a finance company elsewhere at a later date on the quiet.
I can't see the finance teams in oil companies being excited about buying helicopters and having them on these assets on their balance sheet. I think Equinor just wanted to kick start the move to a new type so did this knowing the market could/ would likely take care of the financing down the line. I suspect there are also ways for Equinor to get out of the deal if the aircraft is not certified by a certain date or there is a minimum guaranteed performance clause (ie if Equinor cannot move X people X distance offshore in X weather then Equinor can walk).
