07 June 2024

We’re reflecting on a busy and engaging two days at the Helicopter Investor Conference in London. The event was a success, with a crowd of familiar faces and new attendees, sparking dynamic interactions and lively debates. 

Steve Robertson, MD of LCI Analytics, addressed the conference on two panels – the first entitled ‘Helicopters and ESG’, emphasising the need for the helicopter industry to fill a data gap and embrace ESG reporting.  

LCI Analytics acknowledged that a “spectrum of enthusiasm” exists for addressing sustainability in the industry, highlighting the increasing demands from stakeholders such as financiers and end users for more sustainability data. Steve noted that helicopters are currently “lagging behind” other transport modes such as fixed-wing and road transport in this area. 

The panel speakers discussed the mixed feelings towards sustainability and how this may be due to “too much focus on the E” of ESG where the industry should instead be highlighting positive developments in social responsibility and corporate governance. The current limited diversity in the industry could be partly connected to an “image problem” with aviation and the panel suggested that “communicating an informed and positive narrative” may help attract a more diverse mix of younger talent into the sector. 

On a second panel in the afternoon session entitled ‘The state of the market 2024-2025’, Steve Robertson highlighted the growth in helicopter demand since 2021. He noted the “rapid flip in bargaining power” as excess capacity was absorbed and available aircraft became scarce, droving lease rate increases of over 50% for some key offshore types.   

The industry faced several challenges despite being “lifted by a rising tide of demand”, with some persistent issues from the downturn including contract terms, which remain a barrier to investing in new capacity. Additionally, increased activity has brought new problems such as supply chain constraints and component delivery delays which, according to proprietary LCI Analytics data, have not yet shown signs of improvement.  

On a positive note, Steve noted that the latest generation super-medium helicopters could deliver CO2 emissions savings of “over 30%”. However, this benefit is limited as it is “highly field-specific” with longer-range missions outside the super-medium “sweet spot” still requiring heavy types such as the S-92 and the H225. 

We look forward to building on the insights and issues raised at the Helicopter Investor as LCI Analytics continues to navigate the continuously evolving landscape of the aviation industry.