HI Uplift: Optimism fuels hatches, matches and deals at Verticon
Written by Mike Stones, Retrieved from Heli Investor
HI Uplift: Optimism fuels hatches, matches and deals at Verticon
If you are looking for optimism in the global helicopter industry, Dallas, Texas last week would have been a good place to start your search. More than 14,400 visitors (including Helicopter Investor), from nearly 90 countries thronged the aisles at Verticon 2025, the world’s largest vertical aviation trade show and conference.
This optimism came not from footfall but a sense that the industry’s long-awaited revival, unlike in 2014, is backed by hard, substantiated orders. Orders are being fuelled by replacement demand to replenish ageing helicopter fleets in offshore oil and gas and markets and organic growth in sectors such as emergency medical services (EMS) and firefighting.
One leading industry CEO told us: “There’s a real feel of optimism here. But unlike the spectre of 2014, this time, it’s backed by discipline.” So, join us as we scour the show for evidence of that optimism – manifested not in talk but firm deals based on hard-headed appraisal of revenue generation from helicopter operations. We divide our search into hatches, matches and deals.
New products
Let’s start with hatches or launches – of both new products and new businesses. Trying to steal the show with a (literally) curtain-dropping, big reveal was Airbus’s new H140 light twin-engine helicopter. An upgrade of the H135, the new light twin is designed for EMS, passenger transport, and private and business aviation markets. Entry into service in the EMS market is planned in 2028. The new aircraft is powered by two Safran Arrius 2E 700 shp engines, with a dual-channel full-authority digital engine control (FADEC).
The French engine manufacturer Safran also supplies the power unit for the new Robinson R88 helicopter, with its single Safran Arriel 2W, 1,000-shaft horse-power engine. The company’s first new helicopter in 15 years, the cabin has eight main cabin seats, two cockpit seats adding to a total cabin volume of about 275 cubic feet. Offering a range of more than 350 nautical miles and endurance exceeding 3.5 hours, the R88 is expected to have an internal payload of more than 2,800lbs.
“With the unveiling of the R88, we expect to disrupt the single-engine helicopter market, offering superior performance and capabilities at a competitive price,” said David Smith, president and CEO, Robinson. The new aircraft comes with a price tag of $3.8m.
New from Sikorsky
Also new from Sikorsky is the new S-92 Phase IV main gearbox, backed by a $100m-plus investment. Featuring an auxiliary lubrication system that automatically engages in the event of primary oil pressure loss, the new gearbox is designed to eliminate the need for immediate landing and allowing operators to safely reach their destination. FAA certification is anticipated in 2025. “The Phase IV main gearbox builds upon its predecessor’s reputation as one of the best and most reliable gearboxes in the industry and is yet another example of Sikorsky’s continued investment in the S-92 platform,” said Leon Silva, vice president of Global Commercial and Military Systems at Sikorsky.
Launches were not confined to new aircraft and components. Helicopter dealer and MRO Rotortrade boosted its financial services business with the launch of RotorLease. Offering a range of leasing options, including operational short or long-term leases, financial leases and financial structuring, the business is talking to clients across a range of industry segments.
“We have seen a big demand for helicopter leasing over the past five to six years,” Philippe Lubrano, CEO of Rotortrade told us. “People have been begging us[to launch this service]. We would be happy to do six to 10 contracts this year.”
Also launched as this year’s event was Shakespeare Heli Finance. The business, headed by highly regarded broker Brad Shaen, is designed to support operators, manufacturers, leasing companies and/or banks worldwide in easing the acquisition and re-marketing of non-core helicopter assets. “We want to build an alternative aviation flexible finance business initially targeting the global helicopter sector,” Shaen told us.
Macquarie Rotorcraft sale
From hatches to matches, or mergers and acquisitions. By far the biggest was the acquisition of Macquarie Rotorcraft, the helicopter leasing division of Australian bank Macquarie, by the joint venture between Sumitomo Mitsui Finance and Leasing Corporation (SMFL) and LCI.
To be managed by LCI, Macquarie Rotorcraft’s 120-helicopter fleet operates in offshore transport, EMS, SAR and utility markets. After the deal, the partners – SMFL LCI Helicopters Limited (SMFLH) – will boost the number of aircraft owned, managed and on order to about 310 units and will “pursue further expansion of its customer base and synergies with its existing businesses”.
The terms of the deal were not disclosed. When Bloomberg first reported rumours of a sale in December 2024, it identified a price tag of $1.2bn for the business.
D stood for deals
One nickname for Dallas is D-Town and last week that D stood for deals. Billions of dollars-worth of orders were revealed at the event. All the manufacturers were keen to reveal their burgeoning order books.
Airbus Helicopters reported 118 commitments, including 63 firm orders, from customers worldwide. The OEM secured more than 74 commitments for the H140, the new light twin-engined multi-mission helicopter unveiled at the show. EMS will be the first mission to enter into service for the H140. Major helicopter emergency medical services operators in the US and in Europe – including Global Medical Response, ADAC Luftrettung, ÖAMTC Flugrettung, Air Methods, Stat MedEvac, Metro Aviation and DRF Luftrettung – signed orders and letters of intent for the helicopter.
For the H160, Brazilian operator Omni signed a multi-services HCare service contract ahead of the start of operations for Petrobras. New York State Police will become the first law enforcement agency in the US to operate the H160 after announcing an order for one H160 and three H145 helicopters.
On the Support and Services side, Westair Helicopters signed an HCare contract to support the entry into service of its H225 fleet for offshore energy missions in Namibia. Leading helicopter operator in China, GDAT signed an HCare In-Service contract with Airbus to cover 10 H225 helicopters that perform multiple missions such as emergency services and forest protection in the country.
Bell Textron signed a Master Purchasing Agreement with Air Methods for up to 27 helicopters, including 15 IFR-configured Bell 407GXis with an option to buy an additional 12 aircraft. This follows an earlier agreement a Bell 429. The OEM launched too, new luxury interiors for the Bell 407GXi, creating a new addition for its Designer Series catalogue.
It also signed a purchase agreement for two Bell 429s with Entergy Services, an integrated energy company engaged in electric power production, transmission and retail distribution operations in Arkansas, Louisiana, Mississippi and Texas.
Bell chose Verticon to reveal a partnership with Omni Helicopters International Group for a joint offshore testing programme for its long-awaited Bell 525 helicopter super-medium helicopter. Pending type certification, the tests will be conducted over several months at Omni’s high-tempo operation in Georgetown, Guyana.
New markets
Leonardo Helicopters confirmed both new markets and new orders at the show. It reported combined orders for the AW109 GrandNew, AW169, AW139 and AW189 types to several operators with a total value of about €370m ($404m). Deliveries are scheduled between 2026 and 2028. The sales cover a range of missions – for energy support, public services and VIP transport operations – across the Americas, Europe, Africa and Asia-Pacific.
The manufacturer also unveiled preliminary sales contracts for 15 AW09 next-generation single-engine helicopters for European and southeast Asian customers. Plus, its entry into new markets supporting the energy industry and rescue missions with the AW169 and AW189. It is also offering simulation technologies for pilot training, including the VxR virtual and extended reality pilot simulator.
Lessor Milestone Aviation Group announced a series of lease agreements. One was with Omni Helicopters International for seven helicopters. The transactions included the lease of two Airbus H145s, one Airbus H135, one new Airbus H160 and one new Airbus H175, in addition to lease extensions on two Sikorsky S92 helicopters. The helicopters are expected to be delivered between now and the second quarter of 2025.
Offshore operations
Milestone also signed long-term lease agreements for two new Leonardo AW189 helicopters with CHC Helicopter. The aircraft are scheduled for delivery in the second and fourth quarters of 2025, respectively, and will be used by Aker BP to support offshore operations in Norway.
A third client, the Offshore Helicopter Services UK, signed lease agreements for four additional helicopters, including two new Leonardo AW139s, one new Airbus H175, and one Sikorsky S-92, which are scheduled for delivery this year and next. The Airbus H175 and Sikorsky S-92 helicopters will be configured for oil and gas missions to support OHS’s UK offshore operations. The Leonardo AW139 aircraft will be deployed on UK search and rescue missions.
Milestone also announced that it has extended existing lease agreements with OHS for four aircraft, including one Sikorsky S-92 and three Airbus H175 helicopters.
New(-ish) lessor GDHF said it had delivered the second of two Leonardo Helicopters AW189s on lease to OHI Group. The super-mediums will operate as part of Omni Taxi Aéreo’s fleet serving air transport requirements needs in Latin America.
Meanwhile, there was concern about continuing supply chain challenges. And worries about whether the Trump Bump to the economy (think presidential advice to “Drill baby drill”) could sour to the Trump Slump, if his on-off tariff plans continued to spook financial markets and spark escalating trade war.
But, with billions of dollars of investment in the global civil helicopter industry revealed at the event in Dallas, it’s no surprise D-Town became Deal Town during Verticon 2025 last week.
Have a grand end of week,
Helicopter Investor