By Doug Cameron
Bristow Group Inc. has taken the first step to acquiring
tilt-rotors, tapping a technology used by the U.S. Marine Corps for
vehicles that can fly like a plane and hover like a helicopter, for
use in its core businesses of transporting energy workers and
search and rescue.
Houston, Tx-based Bristow said Tuesday that it had secured
purchase rights on the new AW609 aircraft being developed by
AgustaWestland, and signed an exclusive development deal with the
Italian company to explore how the aircraft could enter service
later in the decade.
The announcement came alongside a flurry of orders at the
helicopter industry's main annual trade show in Orlando, Fla. as
manufacturers and operators adjust to a market hit by the slowdown
in demand for transporting workers and goods for the oil and gas
industry.
The push by energy companies to develop reserves in evermore
remote regions spurred helicopter manufacturers such as units of
Airbus Group NV, United Technologies Corp, Textron Inc. and
AgustaWestland--part of Finmeccanica SpA--to develop larger
aircraft that could fly further and faster than previous
models.
Demand had created yearslong waiting lists for the largest
models, even with factories running at full rate, and spurred deals
including the $1.8 billion purchase of leasing specialist Milestone
Aviation Group Ltd. by General Electric Co. last October.
Bristow's move into the tilt-rotor market takes that a step
further, as the technology offers aircraft with more range and
speed than helicopters. The company last month acquired control of
an Australian regional airline, adding to its purchase of a small
U.K. carrier, and believes tilt-rotors could be used for more
regular passenger business.
AgustaWestland took control of the AW609 project from joint
venture partner Bell Helicopters in 2011, and had secured
commitments for around 60 undisclosed customers. It aims to certify
the aircraft in 2017, and has been pushing regulators to explore
new ways for it to operate from, for example, urban areas.
Bell, a unit of Textron, produces the Osprey range of
tilt-rotors used by the U.S. military in partnership with Boeing
Co. It is also developing a new tilt-rotor called the V-280 Valor
for the Pentagon, setting up a potential competition with a rival
team of Boeing and United Technology's Sikorsky unit.
Bristow, whose work is concentrated in the North Sea, West
Africa and Australia, has played down the impact of the energy
slowdown, with most focused on production rather than exploration.
However, its shares have fallen by a quarter since the oil price
slide started last June. Rival CHC Group Ltd. has fared worse, with
the stock shedding more than three quarters of its value since its
initial public offering in January 2014.
At the Orlando show, Bell announced commercial deals that could
lead to the sale of more than 200 aircraft, helping to counter the
weakness in a market hit by the slowdown in work from the oil and
gas industry.
Air Methods Corp. agreed to buy 200 Bell 407GXPs for its core
medical transport business, while Waypoint Leasing Ltd signed a
tentative deal to buy 20 of the larger 525 Relentless
helicopters.
Denver, Co-based Air Methods operates a fleet of more than 400
helicopters, with deliveries of the new six-passenger Bell 407GXP
aircraft due to run for 10 years from 2016. Financial terms weren't
disclosed.
Ireland-based Waypoint Leasing would be one of the first
customers for the new 525 Relentless, which is due to make its
maiden flight this year. The helicopter can carry up to 20
passengers and fly further and faster than other Bell models. It is
the company's prime offering for the oil and gas market, and is
also aimed at the search and rescue and firefighting markets.
Write to Doug Cameron at doug.cameron@wsj.com
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