Leading helicopter transportation services provider CHC recently inked a multi-year contract with Sikorsky Aircraft Corp., a subsidiary of diversified business conglomerate United Technologies Corp. (UTX), to extend its fleet of S-92 copters. In accordance with the deal, CHC will now purchase nine S-92 helicopters for an undisclosed amount. It also has the option to acquire an additional 15 helicopters sometime later.
Based in Vancouver, Canada, CHC is one of the world’s largest helicopter transportation services companies operating in about 30 countries worldwide. Almost half of its current fleet of 240 aircraft is manufactured by Sikorsky, including 38 S-92 and 67 S-76 aircraft.
The S-92 helicopter is a blend of a flaw-tolerant design and numerous safety features to be a perfect fit for multi-mission programs, including commercial off-shore oil operations, search and rescue (SAR) operations, and various transportation missions for utility and airline passengers. Since it first entered into service in Sep 2004, the S-92 copters have logged over 600,000 flight hours.
Sikorsky had delivered the industry's 200th S-92 helicopter in August this year and the fresh CHC order further augments this tally. The first five new S-92 helicopters are scheduled to be delivered in 2015 and the remaining in the following year. Additional deliveries, if exercised by CHC, are expected to occur between 2015 and 2018.
Sikorsky is one of the world’s largest manufacturers of military and commercial helicopters. It also provides aftermarket helicopter and aircraft parts and services for its parent company United Technologies.
At present, major production programs at Sikorsky include the UH-60M Black Hawk medium-transport helicopters and HH-60M Medevac helicopters for the U.S. and foreign governments, the S-70 Black Hawk for foreign governments, the MH-60S and MH-60R helicopters for the U.S. Navy, the International Naval Hawk for multiple naval missions, and the S-76 and S-92 helicopters for commercial operations.
Based in Hartford, CT, United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company is a diversified business conglomerate serving various end markets such as aerospace, defense and commercial construction. The business diversification allows United Technologies to remain profitable amid tough economic times.
The operations of the company are primarily classified into two principal businesses: commercial and aerospace. Under its commercial business, the company has Otis and the UTC Climate, Controls & Security division, which combined the former Carrier and UTC Fire & Security divisions. The aerospace business of the company consists of Sikorsky aircraft and the UTC Propulsion & Aerospace Systems, which includes UTC Aerospace Systems and Pratt & Whitney divisions.
United Technologies presently has a Zacks Rank #3 (Hold). Other notable companies in the industry include ITT Corp. (ITT), Hutchison Whampoa Ltd. (HUWHY), and Tyco International Ltd. (TYC), each carrying a Zacks Rank #2 (Buy).