We will classify this as Breaking News. Evergreen has not had a Call When Needed (CWN) contract for their 20,000-gallon 747 Supertanker for a while, but they will get a new three-year CWN contract beginning July 1, 2013.
When the company had a CWN contract before, the aircraft was very rarely used, making it difficult for the company to justify maintaining the ship and the flight crew in a ready to go state. It will be interesting to see if it sits, or actually drops retardant on fires.
Maybe the U.S. Forest Service, the agency that awarded the contract, is looking for a stop-gap, to fill the void until the all seven “next generation” air tankers that recently received exclusive use contracts become fully certified. Only one of the seven is, the DC-10.
The CWN contract for 10 Tanker’s second DC-10, Tanker 910, will also be renewed for three years on July 1. It was activated Friday morning and flew to Albuquerque.
The other DC-10, Tanker 911, recently got a five-year exclusive use contract. It has been busy for the last two weeks dropping on fires in California, New Mexico, and Colorado
(UPDATE June 15, 2013)
Thanks to John, we have the numbers in the contracts:
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.
The video below which shows dozens of air tanker drops is very interesting. Most of the video was shot from a lead plane, with views rarely seen by most of us. The technical quality of the video is not great — low resolution and a little shaky — but it’s very worth viewing. Occasionally you can see the smoke generated by a BLM lead plane which marks the target for the air tanker.
Some of the aircraft include: P-3, P2V, S2T, DC-10, C-130 MAFFS, and an air tanker that is very rarely seen, Evergreen’s 747.