Erickson’s warehouse

Erickson to refurbish MH-53E Sea Dragon

Erickson Incorporated has been selected as a subcontractor by Adams Communication & Engineering Technologies (ACET) for the refurbishment of two Sikorsky MH-53E Sea Dragon helicopters in support of the United States Navy Heavy Lift Helicopter Program.

This is the first contract awarded by the U.S. Navy for depot-level maintenance of a MH-53E helicopter to a commercial contractor, according to Kerry Jarandson, Erickson’s Vice President of MRO and Manufacturing.

The MH-53E Sea Dragon is one of the largest helicopters in the United States military. It is a variant of the CH-53E and is used for mine countermeasures. That family of helicopters has a troubling accident history, according to Wikipedia:

Between 1969-1990, more than 200 servicemen had been killed in accidents involving the CH-53A, CH-53D and CH-53E. The MH-53E Sea Dragon is the U.S. Navy’s helicopter most prone to accidents, with 27 deaths from 1984 to 2008. During that timeframe its rate of Class A mishaps, meaning serious damage or loss of life, was 5.96 per 100,000 flight hours, more than twice the Navy helicopter average of 2.26. A 2005 lawsuit alleges that since 1993 there were at least 16 in-flight fires or thermal incidents involving the No. 2 engine on Super Stallion helicopters. The suit claims that proper changes were not made, nor were crews instructed on emergency techniques.

Erickson has been building and operating Sikorsky S-64 Aircranes, which can carry up to 2,650 gallons of water, since 1992.

Aircrane
Aircrane. Erickson photo.

A third Air-Crane is now under contract in Victoria

Erickson Incorporated has been contracted through Australian partner Kestrel Aviation for a third S64E Aircrane helitanker to support firefighting efforts in the State of Victoria, Australia. In total, Erickson has six Aircranes currently working in the country.

Erickson Air-Crane
Photo by Erickson Air-Crane

The third Aircrane, previously stationed in Sydney, New South Wales to fight fires, has been reassigned to Mangalore, Victoria. The Aircrane will be available as required for the remainder of the fire season.

The S64 Aircrane can drop 2,650 gallons (7,500 liters) of water on fires in a single pass. With specialized snorkels, the Aircrane can also refill the tank in nearby bodies of water in less than 30 seconds.

GAO denies protests of Next-Gen air tanker solicitation

GAO logoThe Government Accountability Office has denied two protests over the solicitation for “up to seven” Next-Generation air tankers published by the U.S. Forest Service. Erickson Aero Tanker and Coulson Aviation protested some of the terms of the solicitation process before any announcement was made about awarding contracts. The USFS had hoped to have the air tankers working by May 30, but the protests halted the contracting process. Coulson’s was denied on July 8 and Erickson’s on July 17.

The next step is for the USFS to decide what companies they want to issue contracts to, and then they have to abide by a strange law that requires they notify Congress of their intent, and then wait 30 days before actually awarding any contracts.

At that point, the process will again be vulnerable to an another round of protests over the awards themselves, each of which will take up to 100 days to be adjudicated by the GAO.

Australians impatient to get Air-Cranes into the air

Erickson Elvis in Victoria
File photo of Elvis in Victoria. Erickson photo.

The Australian government has been contracting for Erickson Air-Crane helicopters during their down-under fire seasons since ”Millie” (N223AC) was deployed there in 1997. They seem to have a special fondness for the ships which can carry 2,650 gallons of water, especially since the 2001-2002 bushfire season when ”Georgia Peach” (N154AC) and “Incredible Hulk” (N164AC), were rushed out from the U.S.A on board a Russian Antonov An-124 air freighter to assist with bushfires near Sydney, working with “Elvis” which was already “in the building”.

Their fire season this year has caught the Aussies by surprise, starting in New South Wales weeks earlier than usual — before the contract for the Sky-Cranes begins. While at least two Air-Cranes had already been shipped to the country from Greece by air freighter, not all of the flight crews had arrived when dozens of very large bush fires broke out that so far have burned about 200 homes and caused the death of one person. There is a bit of a controversy going on with some residents not able to understand why the huge helicopters can’t be used to fight fires without a flight crew.

One headline shouted the news:

Critical US water bomber grounded during NSW bushfire crisis

Reports say that by this weekend both Air-Cranes were actively fighting the fires.

Erickson Air-Crane

Erickson to buy Evergreen Helicopters, Inc.

Evergreen helicopter at Custer 2008
An Evergreen helicopter, a Eurocopter AS 350 B3,  at Custer, SD July 9, 2008. Photo by Bill Gabbert

As we reported on Wildfire Today earlier this afternoon, Erickson Air-Crane, Inc. has signed an agreement to purchase Evergreen Helicopters, Inc., a company with approximately 400 employees. This will be the second major acquisition Erickson has made in the last three months. In November they reached an agreement to buy Air Amazonia, a subsidiary of HRT Participacoes in Brazil, along with their 14 helicopters. Both acquisitions are expected to close in the second quarter of this year.

For the $250 million price tag, Erickson will get 52 helicopters and 12 fixed wing aircraft from Evergreen Helicopters. The 64 aircraft are a mix of leased and owned. Evergreen’s 747 “Supertanker”, which can carry up to 20,000 gallons of fire retardant, is not part of the deal and will remain with Evergreen. The 747 is still configured as an air tanker but has not fought fire recently. The company has not been interested in accepting the U.S. Forest Service’s only offer of a call when needed contract.

From Air Amazonia Erickson will receive 14 passenger transport and medium-lift helicopters, (7) S-61, (5) Bell 212, and (2) A350 that have been used in the oil and gas industry. At this time Erickson has no plans to use the Amazonia helicopters for aerial fire suppression.

Erickson Air-Crane, headquartered in Portland, Oregon, for decades has built, operated, and sold Erickson S-64 heavy-lift helicopters, using a license acquired from Sikorsky. Up through 2007 the company concentrated on firefighting (53% of their business) and timber harvesting (38%). With the planned diversification the company expects to add contracts for Department of Defense work amounting to approximately 43% of their revenue, as well as increasing the oil and gas component. They think that about 30% of their work will be in Afghanistan. After the acquisitions, firefighting will provide about 19% of Evergreen’s revenue.

Since the company went public in April 2012 their stock price has risen from $8.00 to $15.11 today. According to Zacks.com:

In 2012, the company generated revenues of $180.8 million, up 18.4% year over year. The increase in revenue was driven by new firefighting contracts, an active fire season and the company’s expansion of infrastructure construction, especially in support of the oil-and-gas market in South America.

Maybe we’re entering a period of merger-mania. As we reported December 12, 2012, Aero Air of Hillsboro, Oregon, purchased the air tanker operations of Butler Aircraft from Travis Garnick. Aero Air acquired Butler’s three DC-7 air tankers, support equipment, and spare parts in Madras, Oregon. Kevin McCullough, now the President of Aero Air, and Jack Erickson, founder and former owner of Erickson Air-Crane, became co-owners of Aero Air in 1998. Aero Air is currently converting some MD-87s into air tankers and hopes to snag a contract for “next-generation” air tankers, when and if the U.S. Forest Service ever issues the contracts. It has been 476 days since the U.S. Forest Service issued a solicitation for next-generation large air tankers, but no contracts have been awarded.

Below are examples of the aircraft Erickson will be acquiring.

–From Evergreen Helicopters:

Evergreen helicopters Evergreen fixed wing

–From Air Amazonia:

Amazonia helicopters

Thanks go out to Kelly

Erickson buys back the Air-Crane it sold to power company

sunbird aircrane
SDG&E’s Sunbird Air-crane helicopter, scooping water at Lake Hodges, shortly after it was delivered in August, 2010. SDG&E photo.

Erickson Air-Crane has bought back an Air-Crane helicopter that it sold two years ago to a power company in California. In 2010 Erickson sold a $30 million S-64F Air-Crane to San Diego Gas and Electric which acquired it to facilitate the construction of a powerline in eastern San Diego County. The company also made it available for fighting wildfires, using the call sign Helicopter 729 when operating on a fire, and “Sunbird” when working on the powerline. The Air-Crane can carry 2,650 gallons of water when suppressing a fire.

Erickson paid SDG&E $21.75 million, according to Portland Business Journal, to purchase the Type 1 helicopter in October.

In conjunction with the aircraft transaction, Erickson entered into an agreement with SDG&E to provide an Air-Crane for fire suppression support in San Diego County this Fall. SDG&E leased the aircraft for a 3-month period from September through November 2012, with an option to renew the lease for the same period each year through 2016.

Erickson added the aircraft to its fleet which now expands to 18 Air-Cranes. The company said it will allow the Company to meet the growing demand for heavy-lift aerial services in the oil-and-gas and powerline construction sectors.

Erickson Air-Crane went public April 11, 20121, selling stock at an initial public offering. Listed as EAC on NASDAC, it sold for about $8 that day, which netted $32 million for the company, about half of what they hoped for a few months earlier. The company used the proceeds to help pay down their debt which as of December 31, 2011 was $130.6 million. Since the IPO the stock price has ranged from $5.35 to $8.50 and closed at $8.03 Friday.

In 2007, ZM Private Equity Fund bought the company, and in 2009 moved the headquarters to Portland. ZM retained 63 percent ownership after it went public with the sale of stock.

Australia to contract for aerial resources

NAFCThe National Aerial Firefighting Centre in Australia intends to award new contracts for helicopters and fixed wing aircraft for fighting wildfires. Over the next few months they will be accepting tenders or requests for proposals for:

  • Type 1 (High Volume) rotary wing firebombing services
  • Type 1, 2, and 3 rotary wing services
  • Type 4 fixed wing firebombing services
  • A number of other specialist aircraft services, including intelligence gathering
  • A small number of conventional light fixed wing aircraft services for reconnaissance
  • Very Large airtankers
  • Type 1 and 2 multi-engine airtankers
  • Scooping or self-filling fixed-wing aircraft
  • Proposals to supply data integration services for AFAMS – the national aircraft tracking and event logging system

The request for proposals for very large air tankers is a little surprising after their experiment during the 2009-2010 fire season. After that trial the Aussies were not entirely pleased with the overall performance of a DC-10, however most of the problems were a result of insufficient skill on the part of the crew, rather than the aircraft — for example dropping far too low or completely missing a target. The first pilots who flew the DC-10 very large air tankers had little or no previous experience flying air tankers when that program began. In the last two to three years they have gained a quite a bit more experience flying low and slow over mountainous terrain and have a good reputation in the United States. The two DC-10s have proven to be a reliable and valuable aviation asset.

Erickson Elvis in Victoria
File photo of Elvis in Victoria. Erickson photo.