LONDON – Bristow Group Inc has announced the signing of long-term maintenance support agreements with Leonardo Helicopters for airframes and Pratt & Whitney for engines on their global fleet of AW319 helicopters.

Previous maintenance agreements

Prior to the negotiation of the recent contractual arrangements, Bristow previously held a more limited power-by-the-hour (PBH) maintenance agreement with Leonardo for the airframes.

The legacy Bristow fleet of AW319s was thus covered by multiple, disparate PBH agreements for airframe maintenance.

The Pratt & Whitney PT6 engines were maintained on a time and cost of materials basis.

The brokering of the new long-term agreements with the key airframe and engine manufacturers will mean a far more consistent global maintenance support program for the Bristow Group fleet.

Management statements

“Following the merger of Era and Bristow in June 2020, we have been working for two years to align our AW139 maintenance support agreements on the most favorable terms possible for Bristow,” said Stuart Stavley, Senior Vice President, Global Fleet Management.

“The cost certainty contained in these agreements is particularly valuable given the broader economic backdrop of the current inflationary environment.”

The aggregate buy-in cost is approximately $55 million, which will be paid in installments between June and December 2022.

“These long-term agreements provide greater certainty and better economics for our global AW139 fleet,” said Bristow President and CEO Chris Bradshaw.

“In addition to the direct investment benefits, which we expect to deliver unlevered, cash-on-cash returns of approximately 20 percent over the life of the agreements.”

“These new support programs will result in maintenance expenses that are more directly correlated with flight hours and provide more predictable cash flows for the Company.”

“In addition, we believe the standardization of these maintenance programs and associated reserves enhances the value of Bristow’s AW139 aircraft, and we believe the totality of the agreements, inclusive of enhanced cash flows for the Company, represents substantial value creation for Bristow shareholders.”

Avionics & additional support

In addition to the AW139 agreements for airframe and powerplant support, Bristow has also signed an agreement with aerospace conglomerate Honeywell for the AW139 avionics suite.

Bristow has also signed a long-term maintenance agreement with General Electric for support of its AW189 and S-92 engines.

About Bristow Group

Bristow Group Inc. primarily provides aviation services to a broad base of major integrated, national and independent offshore energy companies. It provides commercial search and rescue (SAR) services in several countries and public sector SAR services in the United Kingdom (U.K.) on behalf of the Maritime & Coastguard Agency (MCA). Additionally, the Company offers ad hoc helicopter and fixed wing transportation services.

Bristow currently has customers in Australia, Brazil, Canada, Chile, the Dutch Caribbean, Guyana, India, Mexico, the Netherlands, Nigeria, Norway, Spain, Suriname, Trinidad, the U.K. and the U.S.

Summary

The new long-term maintenance agreement package represents a significant step by Bristow Group for its longer-term fleet maintenance.

Specifically the new arrangements aligns multiple, disparate agreements into one cohesive maintenance program package which will result in lower maintenance costs and improved cash flow for the company.

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