hai survey ops performance 2006

2006

HAI SURVEY OF OPERATING PERFORMANCE

Conducted by:

ECONOMICS COMMITTEEHELICOPTER ASSOCIATION INTERNATIONAL

1635 PRINCE STREETALEXANDRIA, VIRGINIA 22314

Data collected and analyzed by:

Conklin & de Decker Associates, Inc.P.O. Box 1142

Orleans, MA 02653

© Copyright 2006, Helicopter Association International All Rights Reserved.

Dedication This report is dedicated to those responsible, community-minded operators who provided usable responses to this 2006 HAI Survey of Operating Performance. Only through such cooperation can the helicopter industry continue its progress toward efficiency and sustained growth.

Table of Contents Page Introduction 1 Comparison with the 2005 Survey 2 Summary of Findings 3 2006 Survey Results: Respondent Profile ……………………………………………………………….. 6 Fleet Profile ……………………………………………………………………… 8 Respondent Profile – By Fleet Size …………………………………………….....10 Fleet – Category of Helicopter ………………………………………………….. .12 Trend for Number of Helicopters ……………………………………………….. .14 Fleet Acquisition ………………………………………………………………….16 Flight Hours – Type of Operator …………………………………………………18 Flight Hours – Size of Operator …………………………………………………. 20 Trend for Number of Flight Hours ………………………………………………..22

Flight Hours per Helicopter ……………………………………………………….24 Flight Hours per Helicopter – Type of Operator ………………………………….26 Flight Hours per Helicopter – Size of Operator …………………………………..28

Annual Utilization per Helicopter ………………………………………………...30 Employee Categories – Relationships …………………………………………….32 Employees per Light–Single Turbine ……………………………………………. 34 Trend for Number of Employees ………………………………………………….36 Productivity – Operations …………………………………………………………38 Productivity – Revenue …………………………………………………………....40 Amount Budgeted for Training – Pilots …………………………………………...42 Amount Budgeted for Training – Maintenance …………………………………...44 Amount Budgeted for Training – Management/Financial ………………………..46 Costs of Operation ………………………………………………………………...48 Operating Cost Concerns ………………………………………………………….50 Types of Operation – Sources of Revenue ………………………………………..52 Types of Operation – Flight Hours ………………………………………………..54 Revenues – Sources ………………………………………………………………. 56 Quarterly Distribution of Flight Hours …………………………………………… 58 Quarterly Distribution of Days Flown ……………………………………………. 60 Inventory Value – Per Helicopter …………………………………………………62 Labor Rates for Outside Services …………………………………………………64

Profitability ………………………………………………………………………..66 Profitability vs. Utilization ...……………………………………………………..68 Factors Preventing Growth ………………………………………………………..70 Guaranteed Maintenance Programs …………………………………………..….....72 Idle or Parked Helicopters ………………………………………………………...74 Trend for Revenue …………………………………………………………………76 Computer Systems (Flight Management, Maintenance, Inventory, Financial) …………………..78-84 Trend for Insurance Rates …………………………………………………………86

Steps Taken to Control Insurance Rates …………………………………………..88 Aviation Insurance (Vehicle, Health, Worker’s Comp, Disability, Facilities, War/Expro) ……....90-100 Appendix: A – Questionnaire – 2006 Survey of Operating Performance

1

INTRODUCTION The Helicopter Association International (HAI) initiated the thirteenth Survey of Operating Performance in April 2006, to furnish relevant operational data and statistics to its members, the helicopter industry, and other interested organizations. The HAI Economics Committee developed the Survey, which consisted of 21 questions. That number is similar to prior-year surveys. Additionally, the questions can be segregated into several categories. The first category asked all operators about basic operational statistics (number of helicopters, flight hours, employees, type of operator, location of operation, etc.). This part of the Survey has asked basically the same questions since this series of surveys began in 1993, which permits comparison between surveys in certain situations. The remaining categories of the survey contained questions addressed in prior-year surveys (revenue, profitability, operating costs, training, inventory, regulatory costs, aircraft acquisition sources, distribution of annual flight hours by quarter, factors impeding growth opportunities, computer usage, etc.) while one question (guaranteed maintenance programs) addressed a new area of interest. The HAI sent approximately 3,900 surveys to two groups of operators: Regular Member companies of the HAI and Non-Member operators. One-hundred-and-fifty-six operators responded to the 2006 Survey. The response rate for Regular Member companies of the HAI was almost 13 percent while the Non-Member rate was two percent. Overall, the response rate was four percent, which is a decrease from the five percent that responded to the 2005 Survey. The operators that responded to the 2006 Survey represent approximately 1,400 helicopters and 700,000 flight hours. These totals are a decrease when compared to the 2005 Survey, however are greater than the totals for the 2004 Survey. Additionally, 16 operators outside of the United States responded to the survey: a drop of 33 percent when compared to the 2005 Survey. The physical layout of the report should make reading for the user an easy task. Responses to each question are presented on two facing pages. One page (even-numbered pages) contains a series of charts or tables that reveal the results to the 2006 Survey. The results are displayed by type, size, and/or location of operation (U.S. or Non-U.S.). The facing page (odd-numbered pages) primarily displays prior-year information but occasionally shows a further breakdown of the 2006 Survey. The facing page also contains, when relevant, a restatement of the question from the survey. Appendix A of the report contains a copy of the 2006 Survey questions.

2

COMPARISON WITH THE 2005 SURVEY One of the objectives of the 2006 Survey was to make comparisons with the 2005 Survey (and prior-year surveys) when possible. Key similarities between the surveys allow this comparison.

- Historically, despite the variance in the number of responses to each year’s survey, the response rates have remained consistent. The response rate for the 2004, 2005, and 2006 surveys has remained between four and five percent.

- A core set of questions have remained consistent as to how they are posed

since the 1993 Survey. Other questions that appear less frequently are posed using the same format, which also allows comparison.

- Since 1993 operators’ responses have been analyzed using three primary

classifications – type (commercial, corporate/private, and public service), size (one-helicopter operators, two-to-three helicopter, four-to-seven-helicopter, and eight-or-more) and location (U.S and non-U.S. operators). The breakdown within the categories remained similar for each of the categories between the 2005 and 2006 surveys.

- Commercial operators were the most responsive type of operator, which has

been the case in each of the prior-year surveys. The Economics Committee asked 21 questions in the 2006 Survey, the same number as the 2005 Survey. One question changed between the two surveys. Question 19 changed from a question concerning depreciation on airframes and engines to one on guaranteed maintenance programs. More specifically, the new question asked operators to reveal more information about participation in those types of programs and reasons for enrolling. A question soliciting similar information was last asked in the 1991 Survey: the first year of this series of surveys. The format of the question in the 2006 survey remained consistent with the question that appeared in the 1991 Survey.

3

SUMMARY OF FINDINGS The 2006 Survey of Operating Performance highlights certain information about the operators in the helicopter industry. The number of helicopters and flight hours as represented by this group of operators were higher as those in the 2004 Survey and slightly lower than the 2005 Survey. What does the 2006 Survey reveal about our industry? Summarized below are a few of the highlights.

- Fifty-six percent of the respondents were HAI members. Sixty-six percent of the Commercial operators that responded were HAI members.

- Commercial operators were the most responsive group at 51 percent, which is a

decrease from 58 percent in the 2005 Survey. Thirty-seven percent of the 2006 respondents were Corporate/Private operators. Public Service represented the remaining 12 percent. Commercial operators, while the percentage decreased in 2006, have remained the most responsive group over the years.

- Despite the decrease in the percentage of Commercial operators, as mentioned in the

previous bullet, the group operated 90 percent of the helicopters, an increase from 83 percent in the 2005 Survey.

- Large operators (eight or more helicopters) operated 80 percent of the helicopters,

which was an increase from the 78 percent in the 2005 Survey.

- Two types of helicopters made up 79 percent of the fleet. Light-single turbines made up 44 percent of the fleet followed by light-medium twins at 35 percent.

- The same two types of helicopters flew 82 percent of the flight hours. Light-single

turbines flew 51 percent of the hours, followed by light-medium twins at 31 percent.

- Flight hours per helicopter averaged 521, which was a decrease from 548 hours when compared to the 2005 Survey. The 521 hours is higher than the 499 hours in the 2004 Survey.

- Sixteen percent of the operators flew more than 600 flight hours per year.

- Flight hours per helicopter varied according to the size of the operator. Operators

with one helicopter averaged 214 per helicopter per year, while operators with eight or more helicopters flew 562. This trend was similar to the 2005 Survey.

- The number of helicopters, flight hours, and employees remained mostly unchanged

when compared to the prior year. While 72 percent of the operators remained at the same number of helicopters, 22 percent increased their fleet size. Also, 72 percent of the operators kept their employment level the same. For flight hours, operators indicated that 44 percent experienced an increase, while 37 percent remained the same. The flight-hour trend is the only measure of the three that differed from the 2005 Survey.

- The average amount budgeted for training of pilots was $6,900, for maintenance

personnel was $5,400, and for management/financial personnel was $3,900. While

4

While pilots remained the same, the amount budgeted for maintenance and management personnel increased when compared to the 2005 Survey.

- When operators look to acquire aircraft, 38 percent will purchase used helicopters, 31

percent will buy new, and the remaining 31 percent will consider both new and used. The types of operator that are most likely to purchase new helicopters are Corporate/Private (52 percent) and Public Service (33 percent).

- Maintenance (25 percent), Personnel (19 percent), Insurance (18 percent), and Fuel

(15 percent) represent the largest categories of expenses for operators. Insurance increased from 15 percent in the 2005 Survey and moved past fuel as the third largest category of expense.

- To the new question for the 2006 Survey, 15 percent of the operators used an

airframe guaranteed maintenance program. That percentage increased to 24 percent for engine programs. The reason mentioned most frequently for using a guaranteed maintenance program was cost predictability.

- Insurance costs associated with helicopters continued to improve. Operators

reporting an increase have dropped from 81 in the 2003 Survey to 32 percent in the 2006 Survey. The average increase also decreased to 12 percent. However, insurance costs associated with the business (i.e. health, facilities, vehicle, worker’s compensation) continue to increase.

- To control insurance costs, operators identified many methods. The most frequent

methods mentioned were to assume more risk on hull insurance and/or increase training. For the first time, operators that did not make changes received significant mention.

- For the Commercial operators, 68 percent of the operators experienced a profit.

- The Industrial Support operators (Agriculture, Oil & Gas, Construction, Utility

Support, and Logging/Lumber) generated 50 percent. The EMS/Safety operators (Fire Fighting, Public Service/Safety, and EMS) generated 40 percent of the revenue.

- On average an operator will carry $333,000 of inventory per helicopter. This was a

significant increase over the 2005 Survey amount of $123,000.

- Utilization seems to have a correlation with profitability for Commercial operators. Thirty-five percent of the operators that flew 250 hours or less per helicopter in a year are profitable, while 79 percent that fly more than 750 hours per helicopter are profitable.

- Eighty-five percent of the Commercial operators said their revenues either remained

the same or increased when compared to the prior year.

5

2006 Survey Results

2006 Questions 1, 2 & 4

Respondent Profile

Commercial51% Corporate/Private

37%

PublicService12%

Type of Operator

8+ Helo18%

4-7 Helo14%

1 Helo45%

2-3 Helo23%

Size of Operator

U.S. - South East22%

U.S. - South West10%

U.S. - West28%

U.S. -Central16%

Outside U.S.10%

U.S. - North East14%

Location of Operator

06-0016

U.S.CanadaLatin AmericaEuropeAfricaAsiaAustralia

90%1%1%4%

4%

7

Questions 1, 2, and 4 (Question 4 stated on page 9.) 1. Please describe your helicopter flight operation.

__ Commercial/For Profit __ Corporate/Private __ Public Service 2. In what state and country are your headquarters?

________________________________________________________ Comments: The analysis on page 6 shows the results to the 2006 Survey. The analysis on this page illustrates the responses for the past 3 surveys beginning with the 2003 Survey. Type of Operator –

0102030405060

Per

cent

2003 2004 2005

Prior-Year Surveys

CommCorp/PrivPubl Serv

Size of Operator –

05

10152025303540

Per

cent

2003 2004 2005

Prior-Year Surveys

1 Helicopter2 to 34 to 78 or more

Location of Operator –

020406080

Per

cent

2003 2004 2005

Prior-Year Surveys

U.SNon U.S.

Fleet Profile - By Type and Size of Operator

Commercial90%

Corporate/Private

6%

PublicService

4%

2006 Questions 1, 2 &4

8+ Helicopters80%

1 Helicopter5%

2-3 Helicopters7%

4-7 Helicopters8%

06-0028

Comm

Corp/Priv

Public

90%

6%

4%

96%

4%

- %

Non-U.S.U.S.

1 Helicopter

2-3

4-7

8 +

6%

6%

7%

81%

2%

11%

23%

64%

U.S. Non-U.S.

Type of Operator

Size of Operator

9

Questions 1, 2, and 4 (Question 1 and 2 stated on page 7.) 4. How many helicopters did you operate in 2005:

2005 QtyPistons

Light Single Turbines

Medium/Heavy Singles

Light/Medium Twins

Heavy Twins

Other: ________________________

TOTAL

Comments: For the charts and analysis on pages 8 and 9, each helicopter counts as one. This differs from the analysis on pages 6 and 7, where each respondent counted as one. Overall, 92 percent of the fleet is operated by U.S. operators, which is higher than the 78 percent in the 2004 Survey and 88 percent in the 2005 Survey. A further breakdown of U.S./Non-US. fleet is offered in the tables on page 8. Fleet Profile by Type of Operator -

020406080

100

Per

cent

2003 2004 2005

Prior-Year Surveys


Fleet Profile by Size of Operator –

0

20

40

60

80

Per

cent

2003 2004 2005

Prior-Year Surveys


Respondent Profile - By Fleet Size

1 Helicopter25%8+ Helicopters

33%

2-3 Helicopters21%

2006 Questions 1 & 4

Commercial Operator

1 Helicopter79%

4-7Helicopters

4%

Corporate/Private Operator

4-7Helicopters

17%

8+ Helicopters6%

2-3 Helicopters55%

06-003

Public Service Operator

10

2-3 Helicopters17%

Comm

Corp/Priv

P/S

Average

15.1

1.3

3.0

4-7Helicopters

21%

Largest

316

5

9

Fleet Size in Sample

1 Helicopter22%

11

Questions 1 and 4 (Question 1 stated on page 7 and Question 4 stated on page 9.) Comments: The 2006 Survey asked for the number of helicopters for the most recently-completed year, which in this case was 2005. Each pie chart groups all of the operators according to their type and fleet size. Each operator (respondent) is counted as one. The charts on this page summarize the responses to the previous three surveys. Commercial Operators –

0

10

20

30

40

Per

cent

2003 2004 2005

Prior-Year Surveys


Corporate/Private Operators –

010203040506070

Per

cent

2003 2004 2005

Prior-Year Surveys


Public Service Operators –

01020304050

Per

cent

2003 2004 2005

Prior-Year Surveys


Fleet - Category of Helicopter

Light - SingleTurbine

44%

All Operators

Light - MediumTwins35%

Commercial

Corporate/Private

Public Service

PST

9%

38%

2%

LST

44%

36%

65%

MHS

1%

- %

24%

2006 Question 4

06-004

By Type of Operator

12

Piston10%

Heavy Twin9%

Medium -HeavySingle

2%

Total Numberof Helicopters

1,388

LMT

36%

26%

9%

HT

10%

- %

- %

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

36%

27%

22%

6%

43%

44%

32%

45%

1%

3%

3%

2%

20%

23%

39%

36%

- %

3%

4%

11%

PST LST MHS LMT HT

U.S.

Non-U.S.

PST

11%

4%

LST

46%

17%

MHS

2%

3%

By Location

LMT

32%

70%

HT

9%

6%

13

Question 4 (Question 4 stated on page 9.) Comments: The total number of helicopters (1,338) is five percent lower than the 2005 Survey. All Operators –

0102030405060

Per

cent

2003 2004 2005

Prior-Year Surveys

PistonLSTMHSLMTHT

When comparing the results of the 2006 Survey to the 2005 Survey, the following was observed. Size of Operator –

- The One-Helicopter operators more closely reflect the 2004 Survey. The Piston category increased from 31 to 36 percent. The Light-Single Turbines decreased from 53 to 43 percent, and the Light/Medium-Twins increased from 13 to 20 percent.

- The Two-to-Three-Helicopter operators also more closely reflect the 2004 Survey. The Piston category decreased from 34 to 27 percent. The Light-Single Turbines increased from 29 to 44 percent. Light/Medium-Twins in essence remained unchanged.

- The Four-to-Seven-Helicopter operators decreased in the Piston category from 27 to 22 percent. The Light-Single Turbines decreased from 39 to 32 percent. The Light/Medium-Twins increased from 31 to 39 percent.

- Eight-or-More-Helicopter operators that operate Light/Medium-Twins increased from 31 to 36 percent while the Light-Single Turbines operators decreased from 56 to 45 percent. Heavy-Twins increased from three to 11 percent.

Location of Operator –

- U.S. operators that operate Light-Single Turbines decreased from 54 to 46 percent, while Light/Medium-Twins increased from 27 to 32 percent. Heavy-Twins increased from two to nine percent.

- Non-U.S. Light-Single Turbine operators decreased from 41 to 17 percent, while Light/Medium-Twins increased from 46 to 70 percent.

Trend for Number of Helicopters

6%

72%

22%

Prior Year Compared to 2005

Commercial

Corporate/Private

Public Service

Decreased

10%

2%

- %

Same

59%

88%

83%

2006 Question 4, Part 2

06-004A

By Type of Operator

14

All Operators

Increased

31%

10%

17%

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

6%

6%

9%

4%

90%

72%

68%

29%

4%

22%

23%

67%

U.S.

Non-U.S.

4%

18%

76%

44%

By Location

20%

38%

0

10

20

30

40

50

60

70

80

IncreasedRemained

the Same

Decreased

15

Part 2 of Question 4 How does your number of helicopters in 2005 compare to the prior year? ____ Decreased ____ Remained the Same ___ Increased All Operators – Prior-Year Surveys

01020304050607080

Per

cent

2003 2004 2005

Prior-Year Surveys

DecreaseSameIncrease

Commercial Operators, By Size of Operation – 2006 Survey

0102030405060708090

100

Per

cent

Decrease Same Increase

2006 Survey


Commercial Operators, By Location of Operation – 2006 Survey

0102030405060708090

100

Perc

ent


2006 Survey

U.SNon U.S.

Fleet Acquisition

Used38%

New31%

Both31%

2006 Question 5

06-01716

Operator by Type

Commercial

Corp / Private

Public Service

16%

52%

33%

43%

29%

45%

New Used

41%

19%

22%

Both

All Operators

Location

U.S.

Non-U.S.

31%

31%

41%

13%

New Used

28%

56%

Both

Operator by Size

1 Helicopter

2-3

4-7

8 +

44%

22%

18%

22%

43%

39%

27%

30%

New Used

13%

39%

55%

48%

Both

17

Question 5 5. When you acquire helicopters, do you acquire? New ___ Used ___ Both ____ All Operators –

01020304050

Per

cent

2003 2004 2005

Prior-Year Surveys

NewBothUsed

Comment: The chart below shows a further breakdown for Commercial operators, which represent the largest category of respondents. Commercial Operators, Size of Operation – 2006 Survey

01020304050607080

Per

cent

New Both Used

2006 Survey


Comment: A trend that has remained consistent throughout the surveys is the low percentage of Commercial operators that will purchase only new helicopters (16 percent as reflected in table on page 16). The low percentage is highlighted further when compared to the respective percentages for Corporate/Private (52 percent) and Public Service (33 percent) operators.

Flight Hours - Type of Operator

PST8%

2006 Question 6

06-00518

Flight Hours

LST51%

MHS1%

LMT31%

HT9% All

LST51%

MHS1%

LMT31%

HT9% Commercial

697,659 Total Hours

659,588 Total Hours

LST39%

LMT35%

PST26%

Corporate/Private

16,256 Total Hours

PSTLST MHSLMTHT Oth

======

PistonLight-Single TurbineMedium/Heavy SingleLight/Medium TwinHeavy TwinOther

PSTLST MHSLMT

HT

9%54%1%

27%9%

3%13%1%

74%9%


U.S. Non-U.S.

Total Flt. Hrs. 640,445 57,214

PST8%

LST84%

MHS7%

LMT9% Public Service

21,815 Total Hours

19

Question 6 (Question 6 stated on page 21.) Comments: The pie charts and table on page 18 show flight hours by type and location of operator. The charts on page 20 show flight hours by size of operator. All Operators – Prior-Year Surveys

0102030405060

Per

cent

2003 2004 2005

Prior-Year Surveys

PistonLSTMHSLMTHT

Location of Operator – Prior-year surveys displayed flight-hour information by location in a tabular format. The following charts display the same information for prior years in a format that should make comparisons easier. U.S. Operators – Prior-Year Surveys

010203040506070

Per

cent

2003 2004 2005

Prior-Year Surveys

PistonLSTMHSLMTHT

Non-U.S. Operators – Prior-Year Surveys

0102030405060

Per

cent

2003 2004 2005

Prior-Year Surveys

PistonLSTMHSLMTHT

Flight Hours - Size of Operator

PST

25%

2006 Question 6

06-00620

1 Helicopter

2005 Total Flight Hours

LST

47%

MHS

3%

LMT

25%

1-Helo2 - 34 - 78 +

14,97635,24647,553

599,884

PST

18%

HT

3%

HT

3%

LST

54%

LMT

25%

2-3 Helicopters

PST

LST

MHS

LMT

HT

Oth

=

=

=

=

=

=

Piston

Light-Single Turbine

Medium/Heavy Single

Light/Medium Twin

Heavy Twin

Other

PST

11%

4-7 Helicopters

LST

34%

MHS

2%

LMT

50%

LST

53%

LMT

29%

8+ Helicopters

MHS

1%

HT

10%

PST

7%

21

Question 6 (continued) 6. How many helicopter hours did your operation fly in 2005:

2005 Flt Hrs

Pistons

Light Single Turbines

Medium/Heavy Singles

Light/Medium Twins

Heavy Twins

Other:

TOTAL

Comments: The pie charts and table on page 18 show flight hours by type and location of operator. The pie charts on page 20 show flight hours by size of operator. The chart shown below displays the information from the 2006 Survey for operators by category of helicopter and size of operation. Flight Hours by Category of Helicopter and Size of Operator – 2005 Survey

010203040506070

Per

cent

PST LST MHS LMT HT2005 Survey


0%

10%

20%

30%

40%

50%

IncreasedRemained

the Same

Decreased

Trend for Number of Flight Hours

19%

37%

44%


Commercial

Corporate/Private

Public Service

Decreased

15%

19%

33%

Same

25%

55%

33%


06-006B

By Type of Operator

22

All Operators

Increased

60%

26%

34%

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

20%

29%

18%

4%

54%

23%

36%

11%

26%

48%

46%

85%

U.S.

Non-U.S.

17%

31%

41%

6%

By Location

42%

63%

23

Part 2 of Question 6 How does the number of flight hours in 2005 compare to the prior year? ____ Decreased ____ Remained the Same ___ Increased All Operators – Prior-Year Surveys

01020304050607080

Per

cent

2003 2004 2005

Prior-Year Surveys



0102030405060

Per

cent


2006 Survey



010203040506070

Per

cent


2006 Survey

U.SNon U.S.

0

100

200

300

400

500

600

Non-U.S.U.S.

0

100

200

300

400

500

600

Public ServiceCorp/PrivComm.

Flight Hours per Helicopter2006 Question 4 & 6

06-006A24

All Operators Type of Operator

Size of Operator Location of Operator

521

396

214

428

562

518

561

576

214

404

Hrs

/ H

elic

op

ter

Hrs

/ H

elic

op

ter

0

100

200

300

400

500

600

0

100

200

300

400

500

600

8+4-72-31 Helo

25

Questions 4 and 6 (Question 4 stated on page 9 and Question 6 on page 21.) All Operators – Prior-Year Surveys

573

499548

300350400450500550600

Flt H

rs p

er H

el.

2003 2004 2005

Prior-Year Surveys

FH/Helicopter

Type of Operator – Prior-Year Surveys

200300400500600700

Flt H

rs p

er H

el.

2003 2004 2005

Prior-Year Surveys


Size of Operator – Prior-Year Surveys

250

350

450

550

650

Flt H

rs p

er H

el.

2003 2004 2005

Prior-Year Surveys


Location of Operator - Prior-Year Surveys

350400450500550600

Flt H

rs p

er H

el.

2003 2004 2005

Prior-Year Surveys

U.SNon U.S.

0

50

100

150

200

250

300

350

ALLHTLMTMHSLSTPis

0

100

200

300

400

500

600

700

800

ALLHTLMTMHSLSTPis

Flight Hours per Helicopter - Type of Operator

499

633

364

469512

576

2006 Question 4 & 6

06-006C26

Commercial

PST

LST

MHS

LMT

HT

=

=

=

=

=

Piston

Light-Single Turbine

Medium/Heavy Single

Light/Medium Twin

Heavy Twin

147

209

-

318

Hrs

/ H

elic

op

ter

Hrs

/ H

elic

op

ter

Hrs

/ H

elic

op

ter

-

214

Corporate/Private

-

522

119

394

-

404

Public Service

0

100

200

300

400

500

600

ALLHTLMTMHSLSTPis

27

Questions 4 and 6 (continued) All Operators – 2006 Survey

0100200300400500600700

Flt H

rs p

er H

el.

PST LST MHS LMT HT

Helicopter Category

2006 Survey

Location of Operator – 2006 Survey

0200400600800

1000

Flt H

rs p

er H

el.

PST LST MHS LMT HT

Helicopter Category

U.S.Non-U.S.

Commercial Operators – Prior-Year Surveys

200

400

600

800

1000

Flt H

rs p

er H

el.

2003 2004 2005

Helicopter Category

PSTLSTMHSLMTHT

Corporate/Private Operators – Prior-Year Surveys

0

200

400

600

Flt H

rs p

er H

el.

2003 2004 2005

Helicopter Category

PSTLSTMHSLMTHT

Public Service – When compared to the 2005 Survey, Light/Single-Turbines increased from 367 to 522 flight hours per helicopter, while Light/Medium-Twins increased from 362 to 394.

0

50

100

150

200

250

300

ALLHTLMTMHSLSTPis

Flight Hours per Helicopter - Size of Operator2006 Question 4 & 6

06-006D28

1 Helicopter 2-3 Helicopters

4-7 Helicopters 8+ Helicopters

Hrs

/ H

elic

op

ter

Hrs

/ H

elic

op

ter

149

236

272

214

- -0

100

200

300

400

500

ALLHTLMTMHSLSTPis

267

486

439

396

- -

0

100

200

300

400

500

600

ALLHTLMTMHSLSTPis

216

447

568

428

-

300

0

100

200

300

400

500

600

700

800

ALLHTLMTMHSLSTPis

663 652

459

562

284

524

29

Questions 4 and 6 (continued) Comments: The charts below do not reflect prior-year information. Rather they show a breakdown of flight hours per helicopter for Commercial operators by size of operation for the 2006 Survey. Commercial Operators by Size of Operator – 2006 Survey

0100200300400500

Flt H

rs p

er H

el.

PST LST MHS LMT HT All

Helicopter Category

1 Helicopter

Commercial Operators by Size of Operator – 2006 Survey

100200300400500600

Flt H

rs p

er H

el.


Helicopter Category

2-3


200

300

400

500

600

Flt H

rs p

er H

el.


Helicopter Category

4-7


200300400500600700

Flt H

rs p

er H

el.


Helicopter Category

8+

0

10

20

30

40

Annual Utilization per Helicopter2006 Questions 4 & 6

06-008

40%

30%

14%

% o

f O

pera

tors

Commercial

Corp/Private

Publ Service

All Operators

1 Helicopter

2 - 3

4 - 7

8 +

24%

62%

38%

40%

61%

28%

27%

7%

0 -200 Hrs

All Operators

Type and Size of Operators

0 -200 Hrs

30

7%

3% 3% 3%

201 -400 Hrs

401 -600 Hrs

601 -800 Hrs

801 -1000 Hrs

1001 -1200 Hrs

1201 +

33%

27%

22%

30%

29%

33%

36%

22%

201 -400 Hrs

19%

7%

17%

14%

4%

20%

18%

30%

401 -600 Hrs

10%

4%

6%

7%

2%

8%

9%

19%

601 -800 Hrs

3%

- %

17%

3%

2%

8%

5%

- %

801 -1000 Hrs

5%

- %

- %

3%

- %

- %

5%

11%

1001 -1200 Hrs

6%

- %

- %

3%

2%

3%

- %

11%

1201 +Hrs

31

Questions 4 and 6 (Question 4 stated on page 9 and Question 6 on page 21) All Operators – Prior-Year Surveys

0

10

20

30

40

50

Perc

ent

0-200 201-400 401-600 601-800 801-1000 > 1000Flight Hours

200320042005


Flight Hours per Helicopter 0-200 201-400 401-600 601-800 801-1000 1001-1200 1201 + U.S. 42% 29% 13% 7% 3% 2% 4% Non-U.S. 19% 38% 25% 6% 6% 6% -% Category of Helicopter – 2006 Survey

Flight Hours per Helicopter 0-200 201-400 401-600 601-800 801-1000 1001-1200 1201 + Piston 55% 31% 10% 4% -% -% -% LST 39% 24% 15% 8% 5% 3% 6% LMT 25% 33% 25% 8% 7% 2% -% Medium/Heavy Singles and Heavy Twins did not have enough observations to show by category of helicopter.

0.0

0.3

0.6

0.9

1.2

1.5

Non-U. S.U. S.(8+)(4-7)(2-3)(1)Publ ServCorp/PrivCommAll

0.0

0.3

0.6

0.9

1.2

1.5


Employee Categories - Relationships2006 Questions 7

06-10632

Maintenance Technicians per PilotAll By Type By Size By Location

All By Type By Size By Location


Admin + Support Personnel per Pilot

Admin + Support Personnel per Maintenance Technician

0.0

0.2

0.4

0.6

0.8

1.0

1.2


.87

.99

.49

.77.69

.85

1.17

.83

1.10

.75

1.081.13

1.05

.83

1.27

1.02

.78

1.22 1.19

.60

.88.98

.71

.52

.79 .75

.59

1.25

.92

.68

33

Question 7 7. How many full-time equivalent employees (pilots, maintenance personnel, support,

administration, etc.) did you have for your helicopter flight operations in 2005:

Number in 2005

Pilots Maintenance Personnel Administrative and Support (Overhead Personnel) Other: (related to helicopter operations) ___________

Comments: This question remained consistent with prior-year surveys, however the analysis changed beginning with the 2004 Survey. Feedback indicated that showing the average number of employees per operator was not very helpful information. As a result, the Committee analyzed the data from a different perspective. The new perspective reveals ratios when comparing different categories of employees. For example in the first chart, the overall ratio of maintenance technicians to each pilot is .87. The second chart shows that overall for every pilot there are .88 administrative and support personnel. The third chart shows that overall there are 1.08 administrative and support personnel for each maintenance technician. If you use this information, please keep in mind that the survey does not reveal the level of maintenance a technician performs for each operator. In one organization, technicians may perform line maintenance only, while in another they may also perform heavy maintenance. However, the ratio should provide a general benchmark when making these comparisons. Summary of Other Comments:

Type of Employee Qty Type of Employee Qty Truck Drivers 5 Photographers 10 Sales, Dispatch 70

Three operators reported a description and quantity of other employees. Those are reflected in the above table. Twenty-three additional operators identified that they had other types of employees but did not offer a description. Those operators are not included in the report.

0.0

0.5

1.0

1.5

2.0


0.0

0.2

0.4

0.6

0.8

1.0

1.2


Employees per Light-Single Turbine2006 Questions 7 and 4

06-10734

Pilots per Light-Single TurbineAll By Type By Size By Location



Maintenance Technicians per Light-Single Turbine

Admin + Support Personnel per Light-Single Turbine

0.0

0.5

1.0

1.5

2.0


1.311.37

1.76

1.21

1.56

1.221.38 1.32

-

1.05

1.46

1.82

-

.75

1.20

1.40

.33

1.87

1.45

-

.91

1.04

.94

.64

1.00

.69

.33

1.18

.91

-

35

Question 7 (continued) Comments: The charts on page 34 show the number of employees per light-single turbine helicopter for each category of employee. The charts include the operators that operate light-single turbines only. For example, the first chart on page 34 shows that, overall, operators that operate only light-single turbine helicopters have 1.31 pilots per helicopter. The second chart reveals .91 maintenance technicians per helicopter and the third chart shows 1.46 administrative and support personnel per helicopter. The tables below show the number of employees per light-single turbine helicopter for each category of employee. Whereas the information on page 34 shows the average value for the respective categories, the tables on this page reflect the minimum, maximum, and median for the same categories. There was not enough information to display the numbers for Non-U.S. operators. Employees per Light-Single Turbine Helicopter Pilots –2006 Survey

Type of Operator Size of Operator All Comm Corp Publ 1 Helo 2-3 4-7 8+ U.S. Min .33 .67 1.0 .33 1 .33 --- .80 .33 Max 2.7 2.5 2.0 2.0 2 2.7 --- 1.67 2.7 Median 1 1.3 1.0 1.50 1 1.5 --- 1.50 1

Maintenance Technicians – 2006 Survey

Type of Operator Size of Operator All Comm Corp Publ 1 Helo 2-3 4-7 8+ U.S. Min .33 .33 0.5 --- 1.0 .33 --- .37 .33 Max 3.2 3.2 1.0 --- 2.0 1.5 --- 3.2 3.2 Median 1.0 1.0 1.0 --- 1.0 .67 --- .1.0 1.0

Administrative and Support Personnel – 2006 Survey

Type of Operator Size of Operator All Comm Corp Publ 1 Helo 2-3 4-7 8+ U.S. Min .07 .07 -- .33 1.0 .33 -- .07 .07 Max 7.3 7.3 -- 2.0 2.0 6.0 -- 7.3 7.3 Median 1.0 1.0 -- .33 1.0 0.5 -- 1.10 1.0

0%

10%

20%

30%

40%

50%

60%

70%

80%

IncreasedRemained

the Same

Decreased

Trend for Number of Employees

3%

72%

25%


Commercial

Corporate/Private

Public Service

Decreased

5%

- %

6%

Same

56%

91%

76%


06-011

By Type of Operator

36

All Operators

Increased

39%

9%

18%

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

- %

3%

10%

7%

90%

75%

62%

67%

10%

22%

28%

26%

U.S.

Non-U.S.

2%

13%

73%

62%

By Location

25%

25%

37

Part 2 of Question 7 How does your number of employees in 2005 compare to the prior year? (Please check one.) ____ Decreased ____ Remained the Same ___ Increased All Operators – Prior-Year Surveys

01020304050607080

Per

cent

2003 2004 2005

Prior-Year Surveys



0102030405060708090

100

Per

cent


2006 Survey



010203040506070

Per

cent


2006 Survey

U.SNon U.S.

0.00

0.75

1.50

2.25

3.00

Productivity - Operations

2006 Questions 4, 6, & 7

06-032

1.631.65

CommAll

1 Helicopter

2 -3

4 - 7

8 +

Total Pilots per Helicopter - All Operators

Flight Hours per Pilot - All Operators

1.57

1.99

Corp/Priv

PublServ

0

100

200

300

400

500

100

200

300

400

500

600

700

Flight Hours per Helicopter - All Operators

270

341

176

394358

459

201

215

1.55

1.36

1.83

1.72

Comm

1 2-3 4-7 8+

CommAll Corp/Priv

PublServ

1 2-3 4-7 8+

CommAll Corp/Priv

PublServ

1 2-3 4-7 8+

By Type By Size

1 Helicopter

2 -3

4 - 7

8 +

197

328

339

465

Comm

U.S. 1.58 Non U.S. 2.20

1.58 1.651.79 1.68

162

300 300

454

1 Helicopter

2 -3

4 - 7

8 +

314

385

416

648

Comm

38

217

403 393

627

U.S. 278 Non U.S. 206

U.S. 350 Non U.S. 425

39

Questions 4, 6 and 7 (Question 4 stated on page 9, Question 6 on page 21, and Question 7 on page 33.) Comments: For each chart on page 38, the analysis included only those operators that answered both questions required to make the chart. For example, Pilots per Helicopter, an operator must have answered question 7 about employees and question 4 about helicopters. Due to the wide range of employees reported in the Other category by each operator, the results displayed in the chart were difficult to compare when Other was included. As a result, the Committee chose to analyze by pilots per helicopter, a measure that should prove to be more meaningful because most operators have pilots. Maintenance Technicians per Helicopter – 2006 Survey The number of maintenance technicians per helicopter for all operators was 1.52. The table shows a further breakdown for maintenance technicians.

Technicians per Helicopter By Type By Size By Location

Comm. Corp./Priv. Publ. Serv. 1 2-3 4-7 8+ U.S. Non-U.S. 1.73 1.30 .84 1.25 1.24 1.58 2.02 1.32 2.68

Flight Hours per Helicopter By Type of Operator – Prior-Year Surveys

300350400450500550600650

Flt H

rs p

er H

el.

2003 2004 2005

Prior-Year Surveys


0

500

1000

1500

2000

Non-U.S.U.S. OnlyAll

0

100

200

300

400

500


0

100

200

300

400

500

600

700

800

900

1000


Productivity - Revenue

06-012

$774$733

$978

$1,781 $1,752

$1,944

$462 $467$437

Revenue per Helicopter (x000)

Revenue per Flight Hour

Revenue per Pilot (x000)

40

2006 Questions 4, 6, 7, & 14

2005(x000)

1 Helo.

2 - 3

4 - 7

8 +

All

445

484

808

1,210

U.S.

445

475

640

1,280

Non-U.S.

-

-

1,425

985

2005

1 Helo.

2 - 3

4 - 7

8 +

All

837

2,452

1,905

2,093

U.S.

839

2,453

1,749

2,301

Non-U.S.

-

-

2,584

1,385

2005(x000)

1 Helo.

2 - 3

4 - 7

8 +

All

216

392

442

720

U.S.

216

359

437

834

Non-U.S.

-

-

460

379

41

Questions 4, 6, 7, and 14 (Question 4 stated on page 9, Question 6 on page 21, and Question 7 on page 33.) 14. What were your total helicopter flight operation’s revenues (in US Dollars) for:

2004 ___________ Comments: By combining the responses from these questions, it is possible to examine three measures of financial productivity. The analysis includes only the operators that answered all four questions. Revenue per Helicopter – Prior-Year Surveys

200300400500600700800900

10001100

Rev

. per

Hel

. (x

000)

2003 2004 2005

Prior-Year Surveys

All12-34-78+U.S.Non-U.S.

Revenue per Flight Hour – Prior-Year Surveys

8001000120014001600180020002200

Rev

. per

Flt.

Hr.

2003 2004 2005

Prior-Year Surveys

All12-34-78+U.S.Non-U.S.

Revenue per Pilot – 2005 Survey

100200300400500600700

Rev

. per

Pilo

t

All U.S. Non-U.S.

2005 Survey

12-34-78+

Amount Budgeted for Training - Pilots

06-013

Comm

Corp/Priv

Publ Serv

1 Helicopter

2-3

4-7

8+

U.S.

Non - U.S.

9%

14%

20%

18%

12%

6%

- %

13%

7%

8%

14%

- %

12%

3%

6%

13%

10%

- %

24%

10%

7%

22%

12%

17%

10%

17%

14%

<$1,000 $1,000-1,999

$2,000-2,999

$3,000-3,999

$4,000-4,999

>$5,000

Type ofOperator

$1,000-1,999

9%

$2,000-2,999

17%

$3,000-3,999

10%$4,000-4,999

5%

>$5,000

47%

12%

7%

13%

10%

9%

22%

- %

10%

7%

39%

51%

60%

33%

61%

43%

67%

44%

72%

All Operators<$1,000

12%

Size ofOperator

42

2006 Question 8

8%

4%

- %

5%

3%

6%

10%

6%

- %Location

43

Question 8 8. On average, what amount did you spend per person in 2005 for training:

(include such costs as travel, lodging, and course training if out-of-house and on-site instructor and helicopter costs if in-house training)

$______ Pilot $_______ Management/ Financial $______ Maintenance $_______Other ______________ Comments: Operators spend on average just over $6,900 per pilot, which is the same as the average in the 2005 Survey. The 2004 Survey showed an average of $6,500. The median for the 2006 Survey was $4,000, again, the same as the 2005 Survey. The mode remained the same as the 2003, 2004, and 2005 surveys at $5,000. Pilot Training for All Operators – Prior-Year Surveys

0102030405060

Perc

ent

<1.0 1.0-1.9 2.0-2.9 3.0-3.9 4.0-4.9 >5.0

Dollars (x000)

200320042005

Amount Budgeted for Training - Maintenance

06-013A

Comm

Corp/Priv

Publ Serv

1 Helicopter

2-3

4-7

8+

U.S.

Non - U.S.

17%

10%

13%

6%

17%

16%

12%

26%

19%

35%

6%

28%

21%

25%

17%

- %

4%

17%

22%

16%

12%

Type ofOperator

$1,000-1,99923%

$2,000-2,99914%

$3,000-3,999

9%

$4,000-4,9996%

>$5,00035%

10%

10%

9%

6%

11%

5%

10%

26%

51%

35%

59%

11%

37%

34%

All Operators<$1,00013%

Size ofOperator

44

2006 Question 8

4%

10%

4%

6%

11%

5%

7% Location

<$1,000 $1,000-1,999

$2,000-2,999

$3,000-3,999

$4,000-4,999

>$5,000

Insufficient Number of Responses


45

Question 8 - Amount Budgeted for Training – Maintenance (continued) Comments: Operators spend on average $5,400, which is an increase when compared to the 2005 Survey average of $4,275. The 2004 Survey showed an average of $4,200 per technician. The median for the 2006 Survey was $2,600, which increased from $2,000 in the 2005 Survey. The mode of $5,000 was a significant increase from the 2005 Survey of $1,000 and $3,000 in the 2004 Survey. Maintenance Technician Training for All Operators – Prior-Year Surveys

05

101520253035

Perc

ent

<1.0 1.0-1.9 2.0-2.9 3.0-3.9 4.0-4.9 >5.0

Dollars (x000)

200320042005

Amount Budgeted for Training

06-013B

Comm

Corp/Priv

Publ Serv

1 Helicopter

2-3

4-7

8+

U.S.

Non - U.S.

20%

25%

28%

23%

20%

23%

All Operators

Type ofOperator

$1,000-1,99926%

$2,000-2,99918%

$3,000-3,999

8%

$4,000-4,9993%

>$5,00024%

8%

3%

24%

23%

Management/Financial - All Operators<$1,000

21%

Size ofOperator

46

2006 Question 8

- %

3% Location

<$1,000





$1,000-1,999

$2,000-2,999

$3,000-3,999

$4,000-4,999

>$5,000

47

Question 8 - Amount Budgeted for Training – Management/Financial (continued) Comments: Operators spend on average just over $3,900, which is less than the $4,300 in the 2005 Survey. The 2004 Survey showed an average of $2,550. The 2003 Survey showed an average of $3,500 per person. The median for the 2006 Survey was $2,000. The mode was $1,000. Management/Financial Personnel Training for All Operators – Prior-Year Surveys

01020304050

Perc

ent

<1.0 1.0-1.9 2.0-2.9 3.0-3.9 4.0-4.9 >5.0

Dollars (x000)

200320042005

Summary of Other Personnel - The following table summarizes the responses to the portion of Question 8 that asked respondents to identify the other personnel that received training. Responses that did not include a description were not included in the table.

Amount Other Personnel Amount Other Personnel $50 Line Service $100 Flight Nurse 500 Fuel Support, Dispatch 500 Medical 500 Safety 2,000 Admin

3,000 Cabin Crew Training 4,000 Fuel, Insurance 5,000 Safety 7,500 EMS 10,000 Support Personnel 11,500 Flight Staff 18,000 Flight Nurse

Costs of Operation

06-018

Comm

Corp/Priv

Publ Serv

1 Helicopter

2-3

4-7

8+

U.S.

Non - U.S.

22%

27%

30%

26%

25%

23%

19%

25%

23%

15%

27%

11%

26%

15%

13%

10%

19%

10%

13%

19%

12%

19%

11%

11%

12%

15%

10%

Mai

nte

nan

ce

Insu

rance

Fuel

Type ofOperator

Maintenance25%

Depreciation4%

Insurance18%

Interest3%

Gen & Admin5%

4%

2%

- %

2%

3%

3%

2%

3%

3%

Inte

rest

6%

3%

1%

3%

6%

5%

7%

4%

8%

Dep

reci

atio

n

All Operators

LeasePayment

5%

Other2%

Personnel Exp19%

Fuel15%

23%

11%

27%

12%

24%

26%

27%

19%

22%

Per

sonnel

Exp

3%

4%

5%

4%

5%

4%

3%

4%

4%

Tra

inin

g

7%

3%

5%

4%

5%

8%

9%

5%

8%

G &

A2%

1%

- %

1%

1%

1%

4%

2%

2%

Oth

er

Size ofOperator

Operators by Type and Size

48

2006 Question 9

Training4%

5%

3%

9%

3%

5%

6%

7%

4%

10%

Lea

se P

aym

ents

Location

49

Question 9 9. For the following categories, please identify the estimated percentage of expenses

related to your 2005 total expenses and the two areas that concern you the most. (If you have another major category of expense, please identify it. Total should equal 100%.)

Type of Cost % of 2005 Expenses

Most Concern (Check Two Areas)

Maintenance % Hull & Liability Insurance % Fuel % Interest % Lease Payments % Depreciation % Personnel Expenses (Salaries,benefits,etc.) % Training % General & Administration % Other Major Category:____________ % 100%

All Operators – Prior-Year Surveys

05

1015202530

Perc

ent

Fuel Maint Ins Person Depr Other

Cost Category

200320042005

Other includes Training, Lease Payment, Interest, G&A, and Other

Summary of Other Major Category: Respondents that did not provide a description of Other Expense are not included in the table. % Other Expense % Other Expense % Other Expense 4 Advertising 5 Fees & Landing 3 Hangar/Office

20 Rent 11 Manufacturing 12 Rent 10 Compliance 2 Hangar 5 Travel 15 Income Taxes 6 Taxes 10 Space Lease 6 Fed Excise Tax 3 Supplies 21 Operational Expenses 3 Hangar

0

5

10

15

20

25

30

35

Non-U.S.U.S.

Lease Pmts,

G&S, Other

TrainingPersonel ExpFuelInsuranceMaintenance

0

10

20

30

40

50

8+ Helo

4-7 Helo

2-3 Helo

1 Helo

Lease Pmts,

G&A, Other

TrainingPersonel ExpFuelInsuranceMaintenance

Operating Cost Concerns

2006 Question 9

By Type of Operators

By Size of Operators

By Location of Operators

0

10

20

30

40

50

Public Serv.

Corp./Priv

Commercial

Lease Pmts,

G&A, Other

TrainingPersonnel ExpFuelInsuranceMaintenance

25

20

2725

31

12

34

19

4

19

2

6

2

19

36

31

24

42

18

31

14

34 34

25

35

1 2

10

19

3 2 - 3-

8

35

20

44

29

41

7

3033

43

9

2 3 3 2 -4

2 3

06-03150

Per

cent

Per

cent

Per

cent

51

Question 9 (continued) - Areas of Concern Overall, fuel is the top concern for all operators, which replaces insurance as the top concern. All Operators from 2006 Survey- Operating Cost Concerns

05

10152025303540

Perc

ent

Fuel Maint Ins Person Training Other

Cost CategoryOther includes Depr., Lease Payment, Interest, G&A, and Other

Type of Operator – 2005 Survey

01020304050

Per

cent


Cost Category


Other includes Depr., Lease Payment, Interest, G&A, and Other Size of Operator – 2005 Survey

01020304050

Per

cent


Cost Category

1

2-2

4-7

8+

Other includes Depr., Lease Payment, Interest, G&A, and Other


01020304050

Per

cent


Cost Category

U.S.Non-U.S.

Other includes Depr., Lease Payment, Interest, G&A, and Other

Types of Operation - Sources of Revenue2006 Question 10

06-019

Charter/FAR 135

Corporate/FAR 91

Tour Operators

Agriculture

Logging/Lumber

Utility Support

Oil & Gas Support

Construction

Fire Fighting

Public Service/Safety

EMS

ENG/Traffic/Photo

8%

4%

10%

12%

1%

6%

8%

- %

7%

3%

14%

9%

11%

7%

Comm.

PersonnelTransport

35%

Training7%

Other11%Information

Gathering6%

All Operators

EMS/Safety24%

IndustrialSupport

17%

6%

63%

- %

- %

- %

2%

2%

2%

- %

1%

2%

4%

4%

14%

Corp.

- %

- %

- %

- %

- %

2%

- %

- %

8%

50%

18%

- %

- %

22%

Publ.

6%

24%

5%

6%

1%

4%

5%

1%

5%

9%

10%

6%

7%

11%

All

2%

48%

3%

3%

- %

3%

2%

2%

2%

3%

5%

10%

5%

12%

1 Helo

11%

8%

4%

14%

1%

6%

- %

- %

6%

12%

14%

2%

8%

14%

2-3

6%

6%

1%

4%

- %

7%

10%

- %

11%

14%

19%

2%

16%

4%

4-7

10%

2%

15%

6%

3%

5%

15%

1%

6%

5%

13%

5%

6%

8%

8+Personnel Transport

Industrial Support

EMS/Safety

Information Gathering

Training

Other/Gov't Contracts

Type Size

Operators by . . .

52

3%

26%

6%

7%

- %

5%

3%

1%

5%

8%

11%

7%

7%

11%

U.S.

22%

12%

2%

- %

3%

- %

23%

- %

3%

5%

9%

1%

6%

14%

NonU.S.

Location

53

Question 10 10. From which category(ies) did you receive your annual helicopter revenues for

flight operations in 2005? If you are public service or a corporate/private operator, which category(ies) make up your flight time?

Agriculture.......................................................…...... _____% Logging/Lumber....................................................... _____% Utility Support/Patrol/Construction.......................... _____% Fire Fighting............................................................. _____% Public Service/Safety............................................... _____% Oil & Gas (Off & On Shore)..................................… _____% News Gathering/Traffic Watch/Photography......… _____% Emergency Medical Service...............................…. _____% Construction........................................................…. _____% Flight Training (For Hire)......................................... _____% Corporate Charter (For Hire)................................... _____% Corporate 91 (Not for Hire).................................…. _____% Government Contracting (Exclude Fire Fighting).. _____% Tour Operations........................................................ _____% Other: (Please describe)_____________________ _____% __________________________________________

Total 100% Comments: This question asked operators to assign percentages to their flight activity. By assigning percentages, the size of the operator becomes immaterial. For example, because the responses were given in percentages, a one-helicopter operator has as much influence as an eight-or-more-helicopter operator. However, the analyses on pages 54 and 56 weight the operators according to their size by considering flight hours and revenues, respectively.


0

5

10

15

20

25

30

35

Per

cent

Pers Supp Ind Supp EMS/Safe Info Gath Training Other

Type of Mission

200320042005

Summary of Other Revenue Sources – Page 55 contains a summary of the respondents other revenue sources.

Types of Operation - Flight Hours2006 Questions 6 & 10

06-020

Comm.

PersonnelTransport

15%

Training7%

InformationGathering

7%

All Operators

EMS/Safety34%

IndustrialSupport

33%

Other/Gov'tContracts

4%

Corp. Publ.

All

2%40%3%

45%

1 Helo 2-3 4-7 8+Personnel Transport

Industrial Support

EMS/Safety


Training


Type Size

Operators by . . .

54

Charter/FAR 135Corporate/FAR 91Tour OperatorsSub Total

6%6%

10%22%

3%3%- %6%

3%- %

12%15%

4%1%

10%15%

4%- %

11%15%

9%55%- %

64%

- %- %- %- %

U.S. Non-U.S.2%2%

11%15%

17%1%1%

19%

3%- %3%1%1%8%

AgricultureLogging/LumberUtility SupportOil & Gas SupportConstructionSub Total

8%1%6%- %- %

15%

1%- %4%

17%- %

22%

1%3%3%

29%- %

36%

1%3%3%

26%- %

33%

2%3%3%

27%- %

35%

- %- %1%- %1%2%

- %- %4%- %- %4%

1%3%3%

24%- %

31%

- %1%- %

47%1%

49%

2%3%9%

14%

Fire FightingPublic Service/SafetyEMSSub Total

4%20%18%42%

15%17%25%57%

2%3%

27%32%

3%5%

26%34%

3%3%

27%33%

- %- %9%9%

6%68%10%84%

3%5%

28%36%

2%5%

11%18%

19%Eng/Traffic/Photo 2% 2% 7%7%7% 4% - % 7% - %

3% 6% 10% 7%7%7% 7% 1% 7% 1%

11% 13% 3% 3%4%3% 14% 11% 4% 13%

Location

55

Questions 6 and 10 (Question 6 stated on page 21 and Question 10 on page 53.) Comments: This analysis weighs the percentages given in Question 10 with the flight hours given in Question 6. This analysis differs from the chart and table on page 56, which weights the percentages given in Question 10 with the revenue amounts from Question 14. All Operators – Prior-Year Surveys

0

10

20

30

40

50

60

Per

cent


Type of Mission

200320042005

Summary of Other Revenue Sources – The following table summarizes the responses to the portion of Question 10 that asked respondents to identify their other sources of revenue. Percent Other Revenue Sources Percent Other Revenue Sources

5 Personal 100 Personal/Travel 1 Survey, Charter 20 Survey, Photo

100 Drug Eradication 100 Mosquito Control 65 Environmental Research 100 Mosquito Control

100 Commute to Work 1 Maintenance 5 Charter 5 Other Instruction

100 Supplemental Job-Site Transportation 10 Scenic Rides 3 Personal 70 Fun

33 Disaster Relief 100 Business/Personal 50 Homeland Security 100 Laser Scan/Mapping 15 Training/Recreation 100 Fun 1 Maintenance Check Flights 31 In-House Training/Admin Flts

20 Lease 6 135 On-Demand Charter 90 Mining 56 Political parties, film shooting, joy rides81 Maintenance, Experimental & Completion

Revenues - Sources 2006 Questions 10 & 14

06-021

Charter/FAR 135

Corporate/FAR 91

Tour Operators

Sub Total

Agriculture

Logging/Lumber

Utility Support

Oil & Gas Support

Construction

Sub Total

Fire Fighting

Public Service/Safety

EMS

Sub Total

ENG/Traffic/Photo

PersonnelTransport

5%

Training1%

InformationGathering1%

Other/Gov't Contracts3%

All Commercial Operators

EMS/Safety40%

IndustrialSupport

50%

1%

- %

4%

5%

1%

- %

5%

44%

- %

50%

3%

6%

31%

40%

1%

1%

3%

AllOper.

Personnel Transport

Industrial Support


Training


U.S. Operators

Commercial Operators by Location

56

Non-U.S. Operators

1%

- %

4%

5%

1%

- %

5%

43%

- %

49%

3%

6%

32%

41%

2%

1%

2%

8%

- %

- %

8%

- %

- %

- %

61%

1%

62%

2%

1%

16%

19%

- %

- %

11%

EMS/Safety

57

Questions 10 and 14 (Question 10 stated on page 53 and Question 14 on page 41.) Comments: Whereas the analysis on page 52 did not consider the size of the operators, this analysis does by factoring in revenues. Because this question incorporates revenue, only commercial operators are reflected in the results. All Commercial Operators – Prior-Year Surveys

0

10

20

30

40

50

60

70

80

Per

cent


Type of Mission

200320042005

0

5

10

15

20

25

30

4TH3RD2ND1ST0

5

10

15

20

25

30

35

4TH3RD2ND1ST

0

5

10

15

20

25

30

4TH3RD2ND1ST

Quarterly Distribution of Flight Hours2006 Question 11



06-02258

0

5

10

15

20

25

30

21.9%

27.4% 27.7%

23.0%

22.1

%

18.9

% 21.0

%

18.5

% 22.2

%17

.6%

22.4

%

27.1

%26

.0%

31.6

%27

.2% 30

.2%

28.5

%29

.8%

27.4

%

24.2

%23

.3%

21.0

%23

.0% 21

.9%

21.6

%

27.9

%

23.7

%

27.6

%

28.9

%

22.6

% 25.8

%

1 Helo.

8+ Helo.

2 - 3 Helo. 4 - 7 Helo.

27.4

%

27.5

%

27.0

%

27.6

%

28.6

%

29.4

%

22.9

% 25.0

%

22.6

%

1ST 2ND 3RD 4THQuarter Quarter

Comm. Corp.

Public Serv.

Quarter Quarter

U.S.

Non-U.S.

59

Question 11 11. What utilization for the year 2005 did you realize in the respective quarters? 2005 Flight Days Hrs. Flown

1st Quarter (Jan., Feb., Mar.) ____% ____ 2nd Quarter (Apr., May, Jun.) ____% ____ 3rd Quarter (Jul., Aug., Sep.) ____% ____ 4th Quarter (Oct., Nov., Dec.) ____% ____

Total 100% Comments: This is the third year the Economics Committee has asked this question. All Operators – Prior-Year Surveys

0

5

10

15

20

25

30

35

Per

cent

1st 2nd 3rd 4th

Quarter

200320042005

0

10

20

30

40

50

60

70

80

4TH3RD2ND1ST0

20

40

60

80

100

4TH3RD2ND1ST

0

10

20

30

40

50

60

70

80

4TH3RD2ND1ST

Quarterly Distribution of Days Flown2006 Question 11



06-022A60

0

10

20

30

40

50

60

42

4852

46

Num

ber

of D

ays

Num

ber

of D

ays

Num

ber

of D

ays

Num

ber

of D

ays

56

21

53

2254

5979

2960

6983

3365

7283

2656

6585

40

61

47

58

50

65

44

60

1 Helo.

8+ Helo.

2 - 3 Helo. 4 - 7 Helo.

61

28

62 64

32

67

59

26

55

1ST 2ND 3RD 4THQuarter Quarter

Comm. Corp.

Public Serv.

Quarter Quarter

U.S.

Non-U.S.

61

Question 11 (continued) - Utilization per Quarter Comment: The charts on page 60 display the results to the operators’ responses. The charts on this page combine the answers to both parts of question 11 and show the average hours flown per day per helicopter. Type of Operator – Hours Flown per Day per Helicopter – 2006 Survey

1.51.71.92.12.32.52.72.93.13.33.5

FH/D

ay/H

elo.

Comm Corp/Priv Publ Serv

Type of Operator

1st Qtr2nd3rd4th

Size of Operator – Hours Flown per Day per Helicopter – 2006 Survey

1.5

1.7

1.9

2.1

2.3

2.5

2.7

2.9

FH/D

ay/H

elo.

1 Helo 2 - 3 4 - 7 8+

Type of Operator

1st Qtr2nd3rd4th

Location of Operator – Hours Flown per Day per Helicopter – 2006 Survey

2.52.62.72.82.9

33.13.23.33.43.53.63.73.83.9

4

FH/D

ay/H

elo.

U.S. Non-U.S.


1st Qtr2nd3rd4th

$0

$30

$60

$90

$120

$150

Inventory Value - Per Helicopter

1 Helicopter

2006 Question 12

Commercial

06-02362

$0$100$200$300$400$500$600$700$800

2 - 3 4 - 7 8 +

$632

$75

$285

$751

1 Helicopter

Corporate / Private

2 - 3 4 - 7 8 +

$132

$76

N/A N/A

1 Helicopter

Public Service

$0

$20

$40

$60

$80

$100

$120

2 - 3 4 - 7 8 +

N/A

$105

N/A N/A

All

$94

1 Helicopter

All Operators

$0$100$200$300$400$500$600$700$800

2 - 3 4 - 7 8 +

$325

$85

$239

$724

$333

x(000)

All

x(000)

$480

All

x(000)

$113

All

x(000)

63

Question 12 12. What is the estimated market value of the helicopter spare parts inventory that

you carry? $_______________ Comments: The table below provides further information about the operators’ inventory based upon the size of the operation. While the average inventory is helpful for the various categories as presented on page 62, inventory can vary widely for each operation for a variety of reasons. Therefore, an average can be somewhat misleading. The table should provide more insight by focusing on four additional measures of inventory. Range of Inventory By Type of Operator – 2006 Survey Minimum Median Maximum Mode One-Helicopter $50 $10,000 $8,640,000 $10,000 Two-to-Three $333 $50,000 $333,333 $50,000 Four-to-Seven $400 $37,500 $3,000,000 $250,000 Eight-or-More $5,600 $105,250 $10,350,000 --- All Operators – Prior-Year Surveys

0

50

100

150

200

250

300

$ (x

000)

/Hel

.

1 2-3 4-7 8+ All

Number of Helicopters

200320042005

Labor Rates for Outside Services

06-024

Avionics

Engine Manufacturer

Approved Service Fac

Airframe Repairs

$75

$84

$88

$70

NE

$72

U.S. Operators

Avionics

64

0

10

20

30

40

50

60

70

80

EngineManufacturer

ServiceFacility

AirframeRepairs

$80

$75$70

$71

$77

$75

$69

SE

$73

$68

$81

$66

SW

$72

$85

$70

$68

C

$73

$78

$71

$73

West

U.S. Operators by Region

$76

Avionics0

20

40

60

80

100

EngineManufacturer

ServiceFacility

AirframeRepairs

$81

$72

$74

Non-U.S. Operators

2006 Question 13

65

Question 13 13. On average, what labor rate (shop rate) do you pay for outside labor services

associated with:

$____ Avionics $____ Engine Manufacturer $____ Manufacturer-Approved Service Facility $____ Airframe Repairs $____ Other _________________________ $____ Other _________________________

All U.S. Operators - Prior-Year Surveys

30

40

50

60

70

80

Cos

t per

Hr

Avionics Eng Mfg Serv Fac A/F Rep

Category

200320042005

All Non-U.S. Operators – Compared to Prior Years

01020304050607080

Cos

t per

Hr

Avionics Eng Mfg Serv Fac A/F Rep

Category

200320042005

Summary of Other Rates – 2006 Survey

Rate Description Rate Description $65 Rework $05 General Maintenance 185 Camera Repairs 50 In-House Maintenance 50 Inspection/Annuals 65 All 25 Cosmetic 85 NDT 95 Avfuel 35 Field Maintenance

0

10

20

30

40

Profitability2006 Question 15

06-025

18%

NotProfitable

1 Helo

2-3

4-7

8+


Operators by Size

14%

32%

SomewhatProfitable

VeryProfitable

30%

24%

- %

4%

Not

Pro

fita

ble

25%

12%

12%

8%

20%

28%

29%

16%

66

25%

11%

Breakeven Profitable

15%

18%

18%

56%

10%

18%

41%

16%

U.S.

Non-U.S.

Operators by Location

17%

23%

13%

15%

26%

23%

32%

31%

12%

8%

Som

ewha

t Pro

fita

ble

Bre

akev

en

Prof

itabl

e

Ver

y Pr

ofita

ble

67

Question 15 15. As a percentage of revenue, what was the level of profitability of your operation in 2005?

____ Not profitable ____ Profitable (6-10%) ____ Breakeven ____ Very Profitable(more than 10%) ____ Somewhat Profitable (1-5%) All Commercial Operators – Prior-Year Surveys

05

10152025303540

Perc

ent

Not Prof Breakeven Somewhat Profitable Very

Level of Profitability

200320042005

All Commercial Operators by Size of Operation – 2005 Survey

05

10152025303540

Perc

ent



12-34-78+

All Commercial Operators by Location of Operation – 2005 Survey

05

1015202530354045

Perc

ent



U.S.Non-U.S.

0%

10%

20%

30%

40%

50%

Profitability Vs. Utilization2006 Questions 6 & 15

06-02668


NP BE SP P VP

0 - 249 Hrs/Yr

NP BE SP P VP

250 - 499 Hrs/Yr

0%

10%

20%

30%

40%

50%

NP BE SP P VP

500 - 749 Hrs/Yr

0%

10%

20%

30%

40%

50%

NP BE SP P VP

750+ Hrs/Yr

0%

10%

20%

30%

40%

50%

NPBESP

PVP

=====

Not ProfitableBreak EvenSomewhat ProfitableProfitableVery Profitable

50%

25%

17%

8%

- % - %

14%

43%

29%

14%

30%

8% 8%

31%

23%

8%

13%

30%

38%

11%

69

Questions 6 and 15 (Question 6 stated on page 21 and Question 15 on page 67.) Comments: Generally, as Commercial operators fly more hours per helicopter, the opportunity to make a profit increases. The charts on this page show the results to the prior year surveys. All Commercial Operators – 2005 Survey

05

1015202530354045

Perc

ent



0-249 Flt Hrs250-499500-749750+

All Commercial Operators – 2004 Survey

05

1015202530354045

Perc

ent



0-249 Flt Hrs250-499500-749750+

All Commercial Operators – 2003 Survey

05

1015202530354045

Perc

ent



0-249 Flt Hrs250-499500-749750+

0

5

10

15

20

25

30

35

40

(8)(7)(6)(5)(4)(3)(2)(1)

0

5

10

15

20

25

30

(8)(7)(6)(5)(4)(3)(2)(1)

0

5

10

15

20

25

30

35

(8)(7)(6)(5)(4)(3)(2)(1)

Factors Preventing Growth2006 Questions 16

06-02770

By Type of Operator

By Size of Operator

By Location of Operator

1) Economic Issues2) Regulatory Issues3) Non-Growth Market4) Insurance Issues5) Limited Financial Resources6) Limited Source of Pilots or Technicians7) Helicopter Price8) Other, Environment, Spares Price, Infrastructure

12%

7% 7%

21%

10%

17%

6%

9%

13%

35%

10%

- % 3%

7%6%

24%

27%

6%

19%

13%14%

3%

17%

15%

7% 6% 7%

17%

23%

13%

3%

15%

7% 6%

10%8%

7%

20%

36%

14%

13%

17%

8%

16%

7%6%

3%

10%

23%

12%

10%

22%

13%14%

15%

4%

14%15% 15%

10%

3%

8%10%

8% 8% 8%10%

8%

19%20%

29%

22%

Commercial

Corp/Priv.

Public Serv.

1 Helicopter

2 - 3

U. S.

Non-U. S.

8+

4 - 7

71

Question 16 16. What would be the primary cause that would prevent your operations from

growing? (Identify up to two.)

____ Environmental Issues ____ Regulatory/Security Issues ____ Non-Growth Market ____ Insurance Issues ____ Limited Financial Resources ____ Economic Issues ____ Limited Source of Pilots or Technicians ____ Acquisition Price of Spare Parts ____ Acquisition Price of Helicopters ____ Limited Helicopter Infrastructure (i.e. heliports, route structure, airport access) ____ Other __________________________________

Comments: Type of Operator – For all types of operators, insurance, the most limiting factor a couple of years ago, continued to become less of an influence in preventing growth. Public Service operators identified Limited Financial Resources as its top impediment by a wide margin. Commercial and Corp/Priv operators identified a variety of factors. For Commercial operators, Environmental Issues and a Limited Helicopter Infrastructure were 13 percent of the Other category. Size of Operator – The most significant single factor for One-Helicopter operators changed from Limited Financial Resources to Non-Growth Markets. Economic Issues were the highest percentage for Two-to-Three-Helicopter operators. Limited Financial Resources remained a top factor for Four-to-Seven-Helicopter operators but Insurance also became a primary factor. While the Eight-or-More-Helicopter operators identified Non-Growth Market as the primary factor other factors gained in significance. Location of Operators – For U.S. and Non-U.S operators, a Non-Growth Market and Other (Environmental Issues and Limited Infrastructure) were the primary factors that limit the opportunity for growth. Summary of Other Reasons:

Other Factors Preventing Growth Other Factors Preventing Growth Personal desire Government encroachment Loss of farmland due to development Lack of FAA support/ neighbor complaints Internal operating practices & policies Fuel costs (3) Interest rates/high cost of helicopters Price performance Limited availability of new helicopters Lack of hours flown Only need 1 helicopter Insurance Competition Bases decide to sell A/C One-owner operator Private Ops/100% of needs fulfilled All helicopters Loss of government contracts

0%

20%

40%

60%

80%

100%


0%

20%

40%

60%

80%

100%


Guaranteed Maintenance Programs2006 Questions 19

06-10872

Air FrameAll By Type By Size By Location



Engine

Avionics

0%

20%

40%

60%

80%

100%


15%

46%

21%

40%

24%

8%

28%

92%

8%

33%

13%

45%40%

15%

35%30%

15%20%

85%

15%

24%

50%

34%

16%

34%29%

21%16%

84%

16%

73

Question 19 19. Does your organization use manufacturers’ or vendors’ guaranteed

maintenance programs for any of the following?

___ Aiframe ___ Engine ___ Avionics ___ Other (Describe) _________________

If you do, what was your primary reason for using the program(s)? ___ Cost Predictability ___ Cost Reduction ___ Improved Support ___ Other (Describe) ____________

Comment: This was a new question for the 2006 Survey. The Economics Committee last asked this question in its first survey in 1991. For the charts on page 72, the All category represents the number of operators that use a guaranteed maintenance program when compared to the total number of respondents. For example, 24 operators or 15 percent indicated that they used an airframe program. The percentages in Type, Size, and Location reflect the number of respondents for the respective categories that use a guaranteed maintenance program divided by the total number of operators using a program. For example, 46 percent of the operators that use an airframe program, are Commercial operators. In the 1991 Survey, percentages were not available for All operators. However, 10 percent of the Public Service operators used airframe programs, while almost seven percent of the Commercial operators used engine programs. Based upon the size of the operator, 18 and 24 percent of the large operators used airframe and engine programs. The following chart summarizes the results to the second part of question 19. All Operators – Reasons for Using Guaranteed Maintenance Programs

05

10152025303540455055

Perc

ent

Cost Predictability Improved Support Cost Reduction Other

Reason to Use GMP

Idle or Parked Helicopters

ExcessCapacity5%

Damaged17%

InsuranceCosts7%

Spares Source15%Seasonal

Market48%

Other8%

Reasons For Not OperatingAll Operators

2006 Question 8

06-02974

22% of the operators have idle or parked helicopters.21% of the U.S. operators have idle or parked helicopters.38% of the Non-U.S. operators have idle or parked helicopters.75 is the number of parked or idle helicopters.88% possessed by U.S. operators.81% possessed by commercial operators.

75

Question 18 18. How many helicopters have you had parked or idled for longer than 6 months

and what is the primary reason the helicopter(s) is parked? (Please indicate number in appropriate category.)

____ Excess Capacity ____ Spares Source

____ Damaged ____ Seasonal Market ____ Insurance Costs ____ Other ___________________


05

101520253035404550

Perc

ent

Excess Spares Damaged Ins Season Other

Reason for Idle Helicopter

200320042005

Summary of Other Reasons - The following table summarizes the responses to the portion of Question 18 that asked respondents to identify the other reasons for idled or parked helicopters. Qty Idled or Parked - Other Reasons Qty Idled or Parked - Other Reasons

1 Overhaul 1 Maintenance – Engine 1 Refurbishment/Paint/Avionics 2 Maintenance 1 Rebuild

0%

10%

20%

30%

40%

50%

60%

70%

80%

IncreasedRemainedthe Same

Decreased

Trend for Revenue

15% 15%

70%


Decreased Same


06-03076

Commercial Operators

IncreasedBy Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

22%

18%

24%

4%

22%

18%

18%

8%

56%

64%

58%

88%

U.S.

Non-U.S.

14%

23%

17%

8%

By Location

69%

69%

77

Part 2 of Question 14 How does the 2005 level of flight operation’s revenue compare to the prior year? (Please check one.) ____ Decreased ____ Remained the Same ___ Increased All Commercial Operators – Prior-Year Surveys

0

10

20

30

40

50

Perc

ent


Trend of Revenue

200320042005

All Commercial Operators by Size of Operator – 2005 Survey Results

05

101520253035404550556065

Perc

ent


Trend of Revenue

1 Helicopter2-34-78+

All Commercial Operators by Location of Operator – 2005 Survey Results

0

10

20

30

40

50

60

Perc

ent


Trend of Revenue

U.S.Non-U.S.

0%

10%

20%

30%

40%

50%

60%

Non-U.S.U.S.0%

10%

20%

30%

40%

50%

60%

70%

80%

8+4-72-31 Helo

0%

10%

20%

30%

40%

50%

60%

Public ServiceCorp/Priv.Comm.

Computer Systems - Flight Management2006 Questions 17

06-03378



52%

26%

0%

10%

20%

30%

40%

50%

60%PurchasedDeveloped In-HouseDo Not Use

22%

48%

28%24%

60%

22%

50%

38%

12%

18%

70%

15%15%

51%

26%23%

32%36%

32%

24%

44%

32%

56%

25%

19% 20%

33%

47%

79

Question 17 17. Does your organization use any of the following computer systems? Do System Not Developed System Use In-House Purchased

Flight Management ____ ____ ____ Maintenance Management ____ ____ ____ Inventory Management ____ ____ ____ Financial Management ____ ____ ____ Other __________________ ____ ____ ____

Comments: The results to the 1991 Survey, the first time the question was asked, are included as a reference. The question was reestablished in 2002. All Operators – Prior-Year Surveys – Flight Management

0

10

20

30

40

50

60

70

Perc

ent

Not Use In-House Purchased

Use of Computers

199120042005

Summary of Other Systems:

Source Other System Source Other System Purchased GPS, Flight Mgmt Purchased Flight Following Purchased Job Tracking Purchased Operation/Schedule Purchased Intranet Purchased EMS Charts In-House Purchasing

0%

10%

20%

30%

40%

50%

60%

70%

80%

Non-U.S.U.S.0%

10%

20%

30%

40%

50%

60%

8+4-72-31 Helo

0%

10%

20%

30%

40%

50%

Public ServiceCorp/Priv.Comm.

Computer Systems - Maintenance Management2006 Questions 17

06-03480



36%31%

33%

0%

10%

20%

30%

40%

50%PurchasedDeveloped In-HouseDo Not Use

26%

36%38%

50%

31%

41% 41%

18%19%

56%

23%21%

34%32%

34%

19%

38%

43%

4%

44%

52%

40%

31% 29%

7%

27%

66%

81

Question 17 Computer Systems (continued) – Maintenance Management Comments: The results to the 1991 Survey, the first time the question was asked, are included as a reference. The question was reestablished in 2002. All Operators – Prior-Year Surveys

0

10

20

30

40

50

60

Perc

ent


Use of Computers

199120042005

0%

10%

20%

30%

40%

50%

Non-U.S.U.S.0%

10%

20%

30%

40%

50%

60%

70%

80%

8+4-72-31 Helo

0%

10%

20%

30%

40%

50%

60%

70%

80%

Public ServiceCorp/Priv.Comm.0%

10%

20%

30%

40%

50%

PurchasedDeveloped In-HouseDo Not Use

Computer Systems - Inventory Management2006 Questions 17

06-03582



43%

35%

22%29%

37%34%

66%

13%

38%

62%

- %

21%

72%

18%

10%

32%

59%

9%

25%

40%35%

4%

38%

58%

45%

35%

20%23%

31%

46%

83

Question 17 Computer Systems (continued) – Inventory Management Comments: The results to the 1991 Survey, the first time the question was asked, are included as a reference. The question was reestablished in 2002. All Operators – Prior-Year Surveys

0

10

20

30

40

50

60

Perc

ent


Use of Computers

199120042005

0%

10%

20%

30%

40%

50%

60%

70%

80%

Non-U.S.U.S.0%

10%

20%

30%

40%

50%

60%

70%

80%

8+4-72-31 Helo

0%

10%

20%

30%

40%

50%

60%

Public ServiceCorp/Priv.Comm.0%

10%

20%

30%

40%

50%

PurchasedDeveloped In-HouseDo Not Use

Computer Systems - Financial Management2006 Questions 17

06-03684



40%

24% 29%

23%

48%

59%

24%

41%

47%

12%

17%

61%

14%

25%

41%38%

21%24%

29%

47%

4%

29%

67%

43%

24%

33%

8%

31%

61%

36%

85

Question 17 Computer Systems (continued) – Financial Management Comments: The results to the 1991 Survey, the first time the question was asked, are included as a reference. The question was reestablished in 2002. All Operators – Prior-Year Surveys

0

10

20

30

40

50

60

Perc

ent


Use of Computers

199120042005

0%

10%

20%

30%

40%

50%

IncreasedRemained

the Same

Decreased

Trend for Insurance Rates

18%

50%

32%

Quote Compared to Existing Rate

Commercial

Corporate/Private

Public Service

Decreased

22%

16%

6%

Same

46%

55%

53%


06-100

By Type of Operator

86

All Operators

Increased

32%

29%

41%

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

15%

15%

18%

30%

59%

44%

46%

40%

26%

41%

36%

30%

U.S.

Non-U.S.

15%

47%

51%

40%


34%

13%

87

Question 20

20. When you most recently renewed your aviation insurance, how did the initial quote compare to your exisitng rate? (Please circle the relevant category and provide a percentage where appropriate.)

Decreased ____% Remained the Same Increased ____%

Comments: This was the third year that the Economics Committee had asked this question. The Committee asked the question due to the recent volatility of insurance coverage and its related costs. Insurance Trend – Prior-Year Surveys

0

10

20

30

40

50

60

70

80

90

Perc

ent

Decreased Same Increased

Prior-Year Surveys

200320042005

Comparison of Percentage of Insurance Increase or Decrease

Decrease Increase Survey Min Avg Max Median Mode Min Avg Max Median Mode

2003 N/A N/A N/A N/A N/A 2% 200% 25% --- --- 2004 1% 17% 100% 10% 10% 2% 22% 400% 10% 10% 2005 1% 12% 95% 16% 2% 1% 25% 300% 25% 10 & 15% 2006 1% 9.5% 50% 5% 10% 1% 12% 50% 10% 10%

Comment: The insurance situation seems to have changed between 2003 and 2006. Eighty-one percent of the operators in the 2003 Survey reported an increase while only 32 percent reported an increase in the 2006 Survey. Also, the percentage of operators experiencing declines has increased during the same period of time. While the number reporting an increase has declined, those experiencing an increase have seen their rates increase an average of 10 percent, as reflected in the table above.

0

5

10

15

20

25

30

(8)(7)(6)(5)(4)(3)(2)(1)

0

5

10

15

20

25

30

(8)(7)(6)(5)(4)(3)(2)(1)

Steps Taken to Control Insurance Rates2006 Questions 20, Part 2

06-10188

By Type of Operator

By Size of Operator


0

5

10

15

20

25

30

35

(8)(7)(6)(5)(4)(3)(2)(1)

1) Reduce Liability Coverage2) Assume More Risk on Hull3) Increased Training4) Eliminate Types of Flying5) Changed Approach to Safety6) Switched Ins. Carriers7) Did Not Change Anything8) Other (incl ceased operations)

11%

24%

28%

13%

10%9% 9%

5%3%

- %

11%9% 9%

17%

27%

9%

5% 4%

32%

11%

27%

14%

8%

10%

5%

24%

27%

13%

18%

10%

5%3%

9% 10%

14%

23%

14%

7%8%

5%

9%

6%

15%

10%

28%

21%22%

23%

10%

17%

15%

17%

9%

13%

8%

10%

2% 2%

8%

5%

10%9%

12%

10%

26%23%

10%

20%

6%

9%10%

5%

Commercial

Corp./Priv.

Public Serv.

1 Helicopter

2 - 3

U. S.

Non-U. S.

8+

4 - 7

89

Part 2 of Question 20 - Insurance Costs What steps has your organization taken to control insurance costs? (Choose all that apply.)

____ Reduced the amount of liability coverage ____ Assumed more of the risk on hull (higher deductible, reduce amount covered

on hull) ____ Increased the amount of training or change training vendor ____ Eliminated certain types of flying ____ Parked all or some of your helicopters, Ceased Operations ____ Changed management philosophy towards safety ____ Switched insurance carriers ____ Could not obtain insurance ____ Did not change anything ____ Other Please Describe _______________

Comment: The results on page 90 represent the results to the second part of question 20. The charts show the results according to type, size, and location of the operator. The chart on this page shows the results for all of the operators. The legend remains the same as that on page 90. No operators identified Could Not Obtain Insurance as a method for controlling insurance costs. All Operators – 2006 Survey

0

5

10

15

20

25

30

Perc

ent

1 2 3 4 5 6 7 8

Steps to Control Insurance Costs

Summary of Other Comments:

Description Changed broker, who would better market risk Increased lay-up period Added coverage Tagged onto management company Started our own 135 operations I do not insure Rely on Pathfinder insurance for Robinson Helicopters Set up personal safety program Called for quote from 2 brokers & underwriter Measured and managed our insurance Lower self risk

0%

10%

20%

30%

40%

50%

IncreasedRemained

the Same

Decreased

Vehicle - Liability

8%

45%47%

Comparison to Prior Year

Commercial

Corporate/Private

Public Service

Decreased

12%

4%

- %

Same

44%

50%

50%


06-102A

By Type of Operator

90

All Operators

Increased

44%

46%

50%

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

10%

3%

18%

5%

40%

47%

35%

36%

50%

50%

47%

59%

U.S.

Non-U.S.

8%

8%

42%

69%


50%

23%

91

Question 21 21. What trends have you seen for other types of insurance for your organization?

(Please circle the relevant category and provide a percentage where appropriate.)

Vehicle – Liability Decreased ____% Same Increased ____% Health/Dental/Vision Decreased ____% Same Increased ____% Worker’s Comp Decreased ____% Same Increased ____% Disability Decreased ____% Same Increased ____% Facilities Decreased ____% Same Increased ____% War and Expro Decreased ____% Same Increased ____% Other ______________ Decreased ____% Same Increased ____%

Vehicle - Liability Comment: The Economics Committee first asked this question in the 2003 Survey. However, the portion of the question that asks about Vehicle Liability, as shown on page 90, was new in the 2004 Survey.

Comparison of Percentage of Insurance Increase or Decrease – 2006 Survey The table below summarizes the second part of qustion 21. It reflects the percentage change for those operators whose insurance increased or decreased.

Decrease Increase

Survey Min Avg Max Median Mode Min Avg Max Median Mode Vehicle Liability

2005 3% 18% 30% 11% 10% 2% 11% 100% 10% 10% Health/Dental/Vision

2005 Insufficient Number of Responses 1% 13% 45% 10% 10% Worker’s Comp

2005 2% 11% 30% 10% 10% 1% 11% 62% 6% 10% Disability

2005 Insufficient Number of Responses 1% 7% 20% 5% 5% Facilities

2005 Insufficient Number of Responses 1% 9% 25% 10% 10% War and Expro

2005 Insufficient Number of Responses 5% 16% 50% 10% 5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

IncreasedRemained

the Same

Decreased

Trend for Health / Dental / Vision Insurance

3%

30%

67%


Commercial

Corporate/Private

Public Service

Decreased

3%

- %

8%

Same

30%

37%

8%


06-102

By Type of Operator

92

All Operators

Increased

67%

63%

84%

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

- %

- %

13%

4%

34%

39%

13%

22%

66%

61%

74%

74%

U.S.

Non-U.S.

2%

8%

27%

54%


71%

38%

93

Question 21 (continued) – Health/Dental/Vision All Operators – Prior-Year Surveys

010203040506070

Perc

ent


Prior-Year Surveys

200320042005


01020304050607080

Perc

ent


2005 Survey


Size of Operator – 2005 Survey

01020304050607080

Perc

ent


2005 Survey

1 Helo2-3 4-78+


01020304050607080

Perc

ent


2005 Survey

U.S.Non-U.S.

0%

10%

20%

30%

40%

50%

IncreasedRemained

the Same

Decreased

Trend for Worker's Comp Insurance

9%

46% 45%


Commercial

Corporate/Private

Public Service

Decreased

12%

3%

20%

Same

44%

47%

50%


06-103

By Type of Operator

94

All Operators

Increased

44%

50%

30%

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

3%

3%

27%

17%

52%

40%

27%

35%

45%

57%

46%

48%

U.S.

Non-U.S.

8%

18%

44%

64%


48%

18%

95

Question 21 (continued) Worker’s Comp All Operators – Prior-Year Surveys

0

10

20

30

40

50

60

Perc

ent


Prior-Year Surveys

200320042005


01020304050607080

Perc

ent


2005 Survey



01020304050607080

Perc

ent


2005 Survey

1 Helo2-3 4-78+


0

10

20

30

40

50

60

Perc

ent


2005 Survey

U.S.Non-U.S.

Trend for Disability Insurance

2%

70%

28%


Commercial

Corporate/Private

Public Service

Decreased

2%

- %

9%

Same

73%

68%

64%


06-104

By Type of Operator

96

All Operators

Increased

25%

32%

27%

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

- %

- %

7%

5%

69%

71%

73%

69%

31%

29%

20%

26%

U.S.

Non-U.S.

1%

9%

69%

82%


30%

9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

IncreasedRemained

the Same

Decreased

97

Question 21 (continued) Disability Insurance All Operators – Prior-Year Surveys

0

10

20

30

40

50

60

Perc

ent


Prior-Year Surveys

200320042005


01020304050607080

Perc

ent


2005 Survey



01020304050607080

Perc

ent


2005 Survey

1 Helo2-3 4-78+


0

10

20

30

40

50

60

Perc

ent


2005 Survey

U.S.Non-U.S.

0%

10%

20%

30%

40%

50%

60%

IncreasedRemained the SameDecreased

Trend for Facilities Insurance

5%

51%

44%


Commercial

Corporate/Private

Public Service

Decreased

3%

3%

20%

Same

56%

52%

60%


06-105

By Type of Operator

98

All Operators

Increased

41%

45%

20%

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

5%

- %

13%

5%

54%

45%

67%

45%

41%

55%

20%

50%

U.S.

Non-U.S.

5%

- %

50%

66%


45%

34%

99

Question 21 (continued) Facilities Insurance All Operators – Prior-Year Surveys

0

10

20

30

40

50

60

Perc

ent


Prior-Year Surveys

200320042005


010203040506070

Perc

ent


2005 Survey



01020304050607080

Perc

ent


2005 Survey

1 Helo2-3 4-78+


0

10

20

30

40

50

60

Perc

ent


2005 Survey

U.S.Non-U.S.

0%

10%

20%

30%

40%

50%

60%

70%

80%

IncreasedRemained

the Same

Decreased

Trend for War and Expro Insurance

5%

67%

28%


Commercial

Corporate/Private

Public Service

Decreased

8%

- %

- %

Same

71%

62%

- %


06-105A

By Type of Operator

100

All Operators

Increased

21%

38%

- %

By Size of Operator

1 Helicopter

2 - 3

4 - 7

8 +

- %

- %

17%

11%

68%

81%

58%

57%

32%

19%

25%

32%

U.S.

Non-U.S.

3%

20%

65%

80%


32%

- %

101

Question 21 (continued) War and Expro Insurance Comment: The Economics Committee first asked this question in the 2003 Survey. However, the portion of the question that asks about War and Expro Insurance, as shown on page 102, was new in the 2004 Survey. Please refer to the table on page 93, for more information on the operators that reported an increase or decrease in their War and Expro insurance. Summary of Other Comments: The following table reflects the answers that operators provided for the Other category to question 21.

Type of Insurance Percent Increased Hangar Keeper 5 Increased Product Liability 10 Increased Products 21 Increased Terrorism 20 Increased Liability 15 Decreased General Aviation 20 Decreased Hull 15

Appendix A 2006 HAI Survey of Operating Performance

(This appendix contains the questionnaire to which operators responded for the 2006 Survey of Operating Performance)

Attach business card with completed questionnaire for eligibility in drawing.

1

2006 HAI SURVEY OF OPERATING PERFORMANCE 1. Please describe your helicopter flight operation.

___ Commercial/For Profit ___ Corporate/Private ___ Public Service

2. In what state and country are your headquarters? ___________________________________________________

3. Are you a member of HAI? ___ Yes ___ No 4. How many helicopters did you operate in 2005:

(For helicopters not listed, please identify as Other.)

2005 Qty Pistons - (Bell 47's, R-22 and 44, Schweizer 269 and 300, Brantly, Enstrom F28 and 280's, Hiller UH-12's)

Light-Single Turbines - (Agusta 119, Bell 206's & 407, Eurocopter 120, 130, 315, 316, 319, 341, 350's, MD500's & 600’s, Hiller FH1100, Schweizer 330's, Enstrom 480’s)

Medium/Heavy Singles - (Bell 204, 205, UH-1s, 214B, K-Max)

Light/Medium Twins - (A-109’s, AB139, MD900’s, Bell 206LT, 427, 222/230/430, 212/412, Eurocopter BO105, BK117, 135, 145, 155, 355, 365, Sikorsky 58T and S-76's)

Heavy Twins - (Bell 214ST, Boeing 107's and 234's, Eurocopter AS330/332, S-61, S-64, S-92)

Other ________________________ TOTAL

How does your number of helicopters in 2005 compare to the prior year? (Please check one.)

____ Decreased ____ Remained the Same ____ Increased

5. When you acquire helicopters, do you acquire? ____ New ____ Used ____ Both


2

6. How many helicopter hours did your operation fly in 2005: (Please classify in the appropriate category.)

2005

Flt Hrs Pistons - Light-Single Turbines - Medium/Heavy Singles - Light/Medium Twins - Heavy Twins - Other TOTAL

How does the number of flight hours in 2005 compare to the prior year? (Please check one.)


7. How many average full-time equivalent employees (pilots, maintenance personnel, support, administration, etc.) did you have for your helicopter flight operations in 2005:

Number in 2005

Pilots Maintenance Personnel Administrative & Support (Overhead Personnel) Other (related to helicopter operations EMS personnel, observers, etc.) _________________________________

TOTAL How does your number of employees in 2005 compare to the prior year? (Please check one.)


8. On average, what amount did you spend per person in 2005 for training? (include such costs as travel, lodging, course training if out-of-house and on-site instructor and helicopter if in-house): (Please answer for each category.)

$______ Pilot $_______ Management/ Financial $______ Maintenance $_______Other _____________________


3

9. For the following categories, please identify the estimated percentage of expenses related to your 2005 total expenses and the two areas that concern you the most. (If you have another major category of expense, please identify it. Total should equal 100%.)

Type of Cost % of 2005 Expenses

(Round to nearest whole number)

Most Concern (Check Two Areas)

Maintenance %

Hull & Liability Insurance %

Fuel %

Interest %

Lease Payments %

Depreciation %

Personnel Exp. (Salaries,benefits,etc) %

Training %

General & Admin. %

Other Major Category:____________ %

TOTAL 100% 10. From which category(ies) did you receive your annual helicopter revenues for flight

operations in 2005? If you are public service or a corporate/private operator, which category(ies) make up your flight time?

Agriculture, Spray, Fertilizer, Seeding............…...... _____% Logging/Lumber....................................................... _____% Utility Support/Patrol/Construction.......................... _____% Fire Fighting............................................................. _____% Public Service/Safety............................................... _____% Oil & Gas (Off & On Shore)..................................… _____% News Gathering/Traffic Watch/Photography......… _____% Emergency Medical Service...............................…. _____% Construction........................................................…. _____% Flight Training (For Hire)......................................... _____% Corporate Charter (For Hire)................................... _____% Corporate 91 (Not for Hire).................................…. _____% Government Contracting (Exclude Fire Fighting).. _____% Tour Operations........................................................ _____% Other (Please describe)_____________________ _____% _______________________________________

Total 100%


4

11 What utilization for the year 2005 did you realize in the respective quarters? 2005 Flight Days Hrs Flown

1st Quarter (Jan., Feb., Mar.) ____ ____ 2nd Quarter (Apr., May, Jun.) ____ ____ 3rd Quarter (Jul., Aug., Sep.) ____ ____ 4th Quarter (Oct., Nov., Dec.) ____ ____

12. What is the estimated market value of the helicopter spare parts inventory that you

carry? U.S. $______________________

13. On average, what labor rate (shop rate) do you pay for outside labor services

associated with:

$____ Avionics $____ Engine Manufacturer $____ Manufacturer-Approved Service Facility $____ Airframe Repairs $____ Other _________________________ $____ Other _________________________

14. What was your total helicopter flight operation’s revenue (in U.S. Dollars) for:

2005 ____________

How does the level of flight operation revenue compare to the prior year? (Please check one.)


15. As a percentage of revenue, what was the level of profitability of your flight

operations? 2005

____ Not profitable ____ Breakeven

____ Somewhat Profitable (1-5%) ____ Profitable (6-10%) ____ Very Profitable (more than 10%)


5

16. What would be the primary cause that would prevent your operations from growing? (Identify up to two.)

____ Environmental Issues ____ Regulatory/Security Issues ____ Non-Growth Market ____ Insurance Issues ____ Limited Financial Resources ____ Economic Issues ____ Limited Source of Pilots or Technicians ____ Acquisition Price of Spare Parts ____ Acquisition Price of Helicopters ____ Limited Helicopter Infrastructure (i.e. heliports, route structure, airport access) ____ Other __________________________________

17. Does your organization use any of the following computer systems? Do System Not Developed System Use In-House Purchased

Flight Management ____ ____ ____ Maintenance Management ____ ____ ____ Inventory Management ____ ____ ____ Financial Management ____ ____ ____ Other ___________________ ____ ____ ____

18. How many helicopters have you had parked or idled for longer than 6 months and

what is the primary reason the helicopter(s) is parked? (Please indicate number in appropriate category.)

____ Excess Capacity ____ Spares Source

____ Damaged ____ Seasonal Market ____ Insurance Costs ____ Other ___________________

19. Does your organization use manufacturers’ or vendors’ guaranteed maintenance

programs for any of the following? ____Airframe ____ Engine ____Avionics

____ Other (Describe) ________________ If you do, what was your primary reason for using the program(s)? ____ Cost Predictability ____ Cost Reduction ____ Improved Support ____ Other Describe Other ________________


6

20. When you most recently renewed your aviation insurance, how did the initial

quote compare to your existing rate? (Please circle the relevant category and provide a percentage where appropriate.)

Decreased ____% Remained the Same Increased ____%

What steps has your organization taken to control insurance costs? (Choose all that apply.)

____ Reduced the amount of liability coverage ____ Assumed more of the risk on hull (higher deductible, reduce amount

covered on hull) ____ Increased the amount of training or changed training vendor ____ Eliminated certain types of flying ____ Parked all or some of your helicopters, Ceased Operations ____ Changed management philosophy towards safety ____ Switched insurance carriers ____ Could not obtain insurance ____ Did not change anything ____ Other (Please Describe)

_____________________________________________ 21. What trends have you seen for other types of insurance for your organization?

(Please circle the relevant category and provide a percentage where appropriate.)

Vehicle - Liability Decreased ____% Same Increased ____% Health/Dental/Vision Decreased ____% Same Increased ____% Workmen’s Comp Decreased ____% Same Increased ____% Disability Decreased ____% Same Increased ____% Facilities Decreased ____% Same Increased ____% War and Expro Decreased ____% Same Increased ____% Other _____________ Decreased ____% Same Increased ____%

hai survey ops performance 2006

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