Asian Sky Quarterly - Q3 2020

FULL REPORT NOW AVAILABLE VIA
S92 FLEET CENSUS EXTRACT
Q3 2020
Research & consulting firm Air & Sea Analytics publish regular 6-monthly updates on the S-92
crew transfer fleet. In this article, we share some of the key findings of the latest study and the
rationale for taking a closer look at this part of the offshore rotorcraft sector.
The offshore crew transfer market has in years past not been particularly transparent in terms
of the commercial status of the operating fleet. This has led to speculation regarding utilization
and activity levels. However, through a combination of multiple data sources and primary
research Air & Sea Analytics believe that it is possible to build a robust data-driven view.
The ‘S-92 Fleet Census’ report shows the current fleet by operator, location, year-on-year
change, and provides a detailed list of aircraft with each crew change aircraft identified by serial
number, current registration along with current status, owner, and location.
WHY IS S-92 UTILIZATION IMPORTANT?
• Idle Capacity is Expensive. At $28.5m per new unit, an
S-92 is a costly machine to have sitting idle. The problem
of excess capacity during a downturn is not unique to the
helicopter business (and indeed the S-92 has fared far better
than most other models in this latest downturn) but like the
offshore vessels and rigs markets – having multi-million
dollar assets idle and out of work puts a financial strain on
the owners and operators.
• Excess capacity = higher competition for new tenders
and contract renewals = price competition. In a downturn,
excess capacity creates a buyers market for helicopter
services. Where there are concentrations of activity and
multiple helicopter operators active (e.g. Brazil, USA, UK,
Norway, Australia) there may be as many as four operators
each competing to place aircraft with oil industry clients.
Fierce competition on price occurs as a direct result. Vice
versa, during an upcycle if there is a lack of available aircraft
this swings the pricing power in their favour.
• High levels of utilization are a trigger for new orders to be
placed. OEMs take a keen interest in utilization because as
the market approaches full utilization, orders for new units
are typically placed to accommodate demand.
• Utilization in one weight class can often affect another. Low
pricing levels can drag aircraft that would normally operate
in one weight category into another. We have seen this with
the Super-Medium category – availability of S-92s at cyclical
pricing lows has made it difficult for the operators of Super-
Medium aircraft because they have to compete with larger/
higher performance helicopters at a similar pricing level to that
which they are trying to achieve with their own units.
50 | ASIAN SKY QUARTERLY — THIRD QUARTER 2020