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2006

HAI SURVEY OF OPERATING PERFORMANCE

Conducted by:

ECONOMICS COMMITTEE
HELICOPTER ASSOCIATION INTERNATIONAL
1635 PRINCE STREET
ALEXANDRIA, 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
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.

1
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.

2
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

3
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.

4
2006 Survey Results

5
2006 Questions 1, 2 & 4

Respondent Profile
Type of Operator

Commercial
51% Corporate/Private
37%

Size of Operator
8+ Helo
18%
1 Helo
45%

Public
Service
12%
4-7 Helo
14%

Location of Operator

Outside U.S.
U.S. - West 10%
28%
2-3 Helo
U.S. - North East 23%
14%

U.S. 90%
U.S. - South East Canada 1%
U.S. - 22%
Central Latin America 1%
16% Europe 4%
Africa
U.S. - South West Asia 4%
10%
Australia
6 06-001
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 –

60
50
40
Percent

30 Comm
20 Corp/Priv
10
Publ Serv
0
2003 2004 2005
Prior-Year Surveys

Size of Operator –

40
35
30
Percent

25 1 Helicopter
20
15 2 to 3
10 4 to 7
5
8 or more
0
2003 2004 2005
Prior-Year Surveys

Location of Operator –

80
Percent

60
40 U.S
20 Non U.S.
0
2003 2004 2005
Prior-Year Surveys

7
2006 Questions 1, 2 &4

Fleet Profile - By Type and Size of Operator


Type of Operator
Public
Corporate/ Service
Private 4%
6%
Commercial
90%

U.S. Non-U.S.
Comm 90% 96%

Corp/Priv 6% 4%

Public 4% -%

Size of Operator
1 Helicopter
5%
2-3 Helicopters
7%
4-7 Helicopters
8%

U.S. Non-U.S.
1 Helicopter 6% 2%

2-3 6% 11%

4-7 7% 23%

8+ 81% 64%
8+ Helicopters
80%

8 06-002
Questions 1, 2, and 4 (Question 1 and 2 stated on page 7.)

4. How many helicopters did you operate in 2005:

2005 Qty
Pistons
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 -

100
80
Percent

60
Comm
40
Corp/Priv
20
Publ Serv
0
2003 2004 2005
Prior-Year Surveys

Fleet Profile by Size of Operator –

80

60
Percent

1 Helicopter
40
2 to 3
20 4 to 7
0 8 or more
2003 2004 2005
Prior-Year Surveys

9
2006 Questions 1 & 4

Respondent Profile - By Fleet Size


Commercial Operator
Fleet Size in Sample

1 Helicopter Average Largest


8+ Helicopters 25% Comm 15.1 316
33%
Corp/Priv 1.3 5

P/S 3.0 9

Corporate/Private Operator
4-7
Helicopters
4% 1 Helicopter
79%
2-3 Helicopters
4-7 21%
Helicopters
21% 2-3 Helicopters
17%

Public Service Operator


8+ Helicopters
6%
1 Helicopter
4-7 22%
Helicopters
17%

2-3 Helicopters
55%

10 06-003
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 –

40

30
Percent

1 Helicopter
20
2 to 3
10 4 to 7
0 8 or more
2003 2004 2005
Prior-Year Surveys

Corporate/Private Operators –

70
60
50
Percent

40 1 Helicopter
30 2 to 3
20
10 4 to 7
0 8 or more
2003 2004 2005
Prior-Year Surveys

Public Service Operators –

50
40
Percent

30 1 Helicopter
20 2 to 3
10 4 to 7
0 8 or more
2003 2004 2005
Prior-Year Surveys

11
2006 Question 4
Fleet - Category of Helicopter
All Operators
Heavy Twin Piston
9% 10%
Total Number
of Helicopters
Light - Medium
Twins 1,388
35% Light - Single
Turbine
44%

Medium -Heavy
Single
2%
By Type of Operator
PST LST MHS LMT HT
Commercial 9% 44% 1% 36% 10%
Corporate/Private 38% 36% -% 26% -%
Public Service 2% 65% 24% 9% -%

By Size of Operator
PST LST MHS LMT HT
1 Helicopter 36% 43% 1% 20% -%
2-3 27% 44% 3% 23% 3%
4-7 22% 32% 3% 39% 4%
8+ 6% 45% 2% 36% 11%

By Location
PST LST MHS LMT HT
U.S. 11% 46% 2% 32% 9%
Non-U.S. 4% 17% 3% 70% 6%

12 06-004
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 –

60
50
40 Piston
Percent

30 LST
20 MHS
10
LMT
0
2003 2004 2005 HT

Prior-Year Surveys

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.

13
2006 Question 4, Part 2
Trend for Number of Helicopters
Prior Year Compared to 2005
All Operators
80
72%
70

60

50

40

30
22%
20

10 6%

0
Decreased Remained Increased
the Same

By Type of Operator
Decreased Same Increased
Commercial 10% 59% 31%
Corporate/Private 2% 88% 10%
Public Service -% 83% 17%

By Size of Operator

1 Helicopter 6% 90% 4%
2-3 6% 72% 22%
4-7 9% 68% 23%
8+ 4% 29% 67%

By Location

U.S. 4% 76% 20%


Non-U.S. 18% 44% 38%

14 06-004A
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

80
70
60
Percent

50
40 Decrease
30 Same
20
Increase
10
0
2003 2004 2005
Prior-Year Surveys

Commercial Operators, By Size of Operation – 2006 Survey

100
90
80
70
Percent

60 1 Helicopter
50
40 2 to 3
30 4 to 7
20
10 8 or more
0
Decrease Same Increase
2006 Survey

Commercial Operators, By Location of Operation – 2006 Survey

100
90
80
70
Percent

60
50
40 U.S
30 Non U.S.
20
10
0
Decrease Same Increase
2006 Survey

15
2006 Question 5

Fleet Acquisition
All Operators

Used New
38% 31%

Both
31%

Operator by Type Operator by Size


New Used Both New Used Both
Commercial 16% 43% 41% 1 Helicopter 44% 43% 13%

Corp / Private 52% 29% 19% 2-3 22% 39% 39%

Public Service 33% 45% 22% 4-7 18% 27% 55%

8+ 22% 30% 48%

Location
New Used Both
U.S. 31% 41% 28%

Non-U.S. 31% 13% 56%

16 06-017
Question 5

5. When you acquire helicopters, do you acquire?

New ___ Used ___ Both ____

All Operators –

50
40
Percent

30
New
20
Both
10
Used
0
2003 2004 2005
Prior-Year Surveys

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

80
70
60
Percent

50
1 Helicopter
40
30 2 to 3
20 4 to 7
10 8 or more
0
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.

17
2006 Question 6

Flight Hours - Type of Operator


Flight Hours
HT PST
9% 8%
All
PST = Piston
LST = Light-Single Turbine
LMT MHS = Medium/Heavy Single
31% LMT = Light/Medium Twin
LST
HT = Heavy Twin
51%
Oth = Other

697,659 Total Hours

MHS Location of Operator


1%
U.S. Non-U.S.
HT PST PST 9% 3%
9% 8% LST 54% 13%
Commercial MHS 1% 1%
LMT
LMT 27% 74%
31%
HT 9% 9%
Total Flt. Hrs. 640,445 57,214

LST
51%

659,588 Total Hours

MHS
1%

PST LMT
26% 9%
Corporate/Private MHS
Public Service
7%

LST
39% LST
84%

16,256 Total Hours 21,815 Total Hours


LMT
35%
18 06-005
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

60
50
40 Piston
Percent

30 LST
20 MHS
10 LMT
0
2003 2004 2005 HT

Prior-Year Surveys

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

70
60
50 Piston
Percent

40
LST
30
20 MHS
10 LMT
0
2003 2004 2005 HT

Prior-Year Surveys

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

60
50
40 Piston
Percent

30 LST
20 MHS
10 LMT
0
2003 2004 2005 HT

Prior-Year Surveys

19
2006 Question 6

Flight Hours - Size of Operator


2005 Total Flight Hours PST = Piston
LST = Light-Single Turbine
1-Helo 14,976 MHS = Medium/Heavy Single
2-3 35,246 LMT = Light/Medium Twin
4-7 47,553 HT = Heavy Twin
8+ 599,884 Oth = Other

1 Helicopter 2-3 Helicopters


HT
3%
PST
LMT
PST 18%
25% LMT
25%
25%

MHS
3%

LST
47%
LST
54%

4-7 Helicopters 8+ Helicopters


HT PST HT PST
3% 11% 10% 7%

LMT
50% LMT
29%

LST
53%

LST
34%

MHS
MHS 1%
2%

20 06-006
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

70
60
50
Percent

40 1 Helicopter
30 2 to 3
20 4 to 7
10 8 or more

0
PST LST MHS LMT HT
2005 Survey

21
2006 Question 6, Part 2
Trend for Number of Flight Hours
Prior Year Compared to 2005
All Operators
50%
44%

40% 37%

30%

20% 19%

10%

0%
Decreased Remained Increased
the Same

By Type of Operator
Decreased Same Increased
Commercial 15% 25% 60%
Corporate/Private 19% 55% 26%
Public Service 33% 33% 34%

By Size of Operator

1 Helicopter 20% 54% 26%


2-3 29% 23% 48%
4-7 18% 36% 46%
8+ 4% 11% 85%

By Location

U.S. 17% 41% 42%


Non-U.S. 31% 6% 63%

22 06-006B
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

80
70
60
Percent

50
40 Decrease
30 Same
20
Increase
10
0
2003 2004 2005
Prior-Year Surveys

Commercial Operators, By Size of Operation – 2006 Survey

60
50
40
Percent

1 Helicopter
30
2 to 3
20
4 to 7
10
8 or more
0
Decrease Same Increase
2006 Survey

Commercial Operators, By Location of Operation – 2006 Survey

70
60
50
Percent

40
30 U.S
20 Non U.S.
10
0
Decrease Same Increase
2006 Survey

23
2006 Question 4 & 6
Flight Hours per Helicopter

All Operators Type of Operator

600 600 576


521
500 500
Hrs / Helicopter

404
400 400

300 300
214
200 200

100 100

0 0
Comm. Corp/Priv Public Service

Size of Operator Location of Operator


600 562 600 561
518
500 500
428
Hrs / Helicopter

396
400 400

300 300
214
200 200

100 100

0 0
1 Helo 2-3 4-7 8+ U.S. Non-U.S.

24 06-006A
Questions 4 and 6 (Question 4 stated on page 9 and Question 6 on page 21.)

All Operators – Prior-Year Surveys


573
600 548
550 499
Flt Hrs per Hel.

500
450
400 FH/Helicopter
350
300
2003 2004 2005
Prior-Year Surveys

Type of Operator – Prior-Year Surveys

700
Flt Hrs per Hel.

600
500
Comm
400
Corp/Priv
300
Publ Serv
200
2003 2004 2005
Prior-Year Surveys

Size of Operator – Prior-Year Surveys

650
Flt Hrs per Hel.

550
1 Helicopter
450
2 to 3
350 4 to 7
250 8 or more
2003 2004 2005
Prior-Year Surveys

Location of Operator - Prior-Year Surveys

600
Flt Hrs per Hel.

550
500
450 U.S
400 Non U.S.
350
2003 2004 2005
Prior-Year Surveys

25
2006 Question 4 & 6
Flight Hours per Helicopter - Type of Operator
PST = Piston
LST = Light-Single Turbine
MHS = Medium/Heavy Single
LMT = Light/Medium Twin
Commercial HT = Heavy Twin
800
700 633
Hrs / Helicopter

576
600
499 512
500
469

400 364
300
200
100
0
Pis LST MHS LMT HT ALL

Corporate/Private
350 318
300
Hrs / Helicopter

250
209 214
200
147
150

100

50
- -
0
Pis LST MHS LMT HT ALL

Public Service
600
522
500
Hrs / Helicopter

394 404
400

300

200
119
100
- -
0
Pis LST MHS LMT HT ALL

26 06-006C
Questions 4 and 6 (continued)

All Operators – 2006 Survey

700
600

Flt Hrs per Hel.


500
400
300
200 2006 Survey
100
0
PST LST MHS LMT HT
Helicopter Category

Location of Operator – 2006 Survey

1000
Flt Hrs per Hel.

800
600
400 U.S.
200 Non-U.S.
0
PST LST MHS LMT HT
Helicopter Category

Commercial Operators – Prior-Year Surveys

1000
Flt Hrs per Hel.

PST
800
LST
600
MHS
400 LMT
200 HT
2003 2004 2005
Helicopter Category

Corporate/Private Operators – Prior-Year Surveys

600
Flt Hrs per Hel.

PST
400
LST
200 MHS
LMT
0
2003 2004 2005 HT

Helicopter Category

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.

27
2006 Question 4 & 6
Flight Hours per Helicopter - Size of Operator

1 Helicopter 2-3 Helicopters


300 500 486
272
439
250 236 396
400
214
Hrs / Helicopter

200
300
267
149
150

200
100

100
50

- - - -
0 0
Pis LST MHS LMT HT ALL Pis LST MHS LMT HT ALL

4-7 Helicopters 8+ Helicopters


600 568 800

700 663
500 652
447
428 600 562
Hrs / Helicopter

524
400
500 459
300
300 400

216 284
300
200
200
100
100
-
0 0
Pis LST MHS LMT HT ALL Pis LST MHS LMT HT ALL

28 06-006D
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

500
Flt Hrs per Hel.

400
300
200
1 Helicopter
100
0
PST LST MHS LMT HT All
Helicopter Category

Commercial Operators by Size of Operator – 2006 Survey

600
Flt Hrs per Hel.

500
400
300
2-3
200
100
PST LST MHS LMT HT All
Helicopter Category

Commercial Operators by Size of Operator – 2006 Survey

600
Flt Hrs per Hel.

500
400
300 4-7

200
PST LST MHS LMT HT All
Helicopter Category

Commercial Operators by Size of Operator – 2006 Survey

700
Flt Hrs per Hel.

600
500
400
8+
300
200
PST LST MHS LMT HT All
Helicopter Category

29
2006 Questions 4 & 6

Annual Utilization per Helicopter


All Operators

40%
40

30%
30
% of Operators

20

14%

10 7%
3% 3% 3%

0
0- 201 - 401 - 601 - 801 - 1001 - 1201 +
200 Hrs 400 Hrs 600 Hrs 800 Hrs 1000 Hrs 1200 Hrs

Type and Size of Operators

0- 201 - 401 - 601 - 801 - 1001 - 1201 +


200 Hrs 400 Hrs 600 Hrs 800 Hrs 1000 Hrs 1200 Hrs Hrs

Commercial 24% 33% 19% 10% 3% 5% 6%

Corp/Private 62% 27% 7% 4% -% -% -%

Publ Service 38% 22% 17% 6% 17% -% -%

All Operators 40% 30% 14% 7% 3% 3% 3%

1 Helicopter 61% 29% 4% 2% 2% -% 2%

2-3 28% 33% 20% 8% 8% -% 3%

4-7 27% 36% 18% 9% 5% 5% -%

8+ 7% 22% 30% 19% -% 11% 11%

30 06-008
Questions 4 and 6 (Question 4 stated on page 9 and Question 6 on page 21)

All Operators – Prior-Year Surveys

50

40
Percent

30
2003
20 2004
10 2005

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

Location of Operator – 2006 Survey

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.

31
2006 Questions 7
Employee Categories - Relationships
Maintenance Technicians per Pilot
All By Type By Size 1.17
By Location
1.2 1.10
.99
1.0
.87 .85 .83
.77
0.8 .75
.69

0.6 .49

0.4

0.2

0.0
All Comm Corp/Priv Publ Serv (1) (2-3) (4-7) (8+) U. S. Non-U. S.

Admin + Support Personnel per Pilot


All By Type By Size By Location
1.5
1.25
1.2
.98
.92
.88
0.9 .79 .75
.71 .68
.59
0.6 .52

0.3

0.0
All Comm Corp/Priv Publ Serv (1) (2-3) (4-7) (8+) U. S. Non-U. S.

Admin + Support Personnel per Maintenance Technician


All By Type By Size By Location
1.5
1.27
1.22 1.19
1.2 1.08
1.13
1.05 1.02

0.9 .83
.78

.60
0.6

0.3

0.0
All Comm Corp/Priv Publ Serv (1) (2-3) (4-7) (8+) U. S. Non-U. S.

32 06-106
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.

33
2006 Questions 7 and 4
Employees per Light-Single Turbine
Pilots per Light-Single Turbine
All By Type By Size By Location
2.0
1.76
1.56
1.5 1.31
1.37 1.38 1.32
1.21 1.22
1.05
1.0

0.5

-
0.0
All Comm Corp/Priv Publ Serv (1) (2-3) (4-7) (8+) U. S. Non-U. S.

Maintenance Technicians per Light-Single Turbine


All By Type By Size 1.18 By Location
1.2
1.04
1.00
1.0 .91
.94
.91

0.8 .69
.64
0.6

0.4 .33

0.2
-
0.0
All Comm Corp/Priv Publ Serv (1) (2-3) (4-7) (8+) U. S. Non-U. S.

Admin + Support Personnel per Light-Single Turbine


All By Type By Size By Location
2.0 1.82 1.87

1.46 1.45
1.5 1.40
1.20

1.0
.75

0.5 .33

- -
0.0
All Comm Corp/Priv Publ Serv (1) (2-3) (4-7) (8+) U. S. Non-U. S.

34 06-107
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

35
2006 Question 7, Part 2
Trend for Number of Employees
Prior Year Compared to 2005
All Operators
80%
72%
70%

60%

50%

40%

30% 25%
20%

10%
3%
0%
Decreased Remained Increased
the Same

By Type of Operator
Decreased Same Increased
Commercial 5% 56% 39%
Corporate/Private -% 91% 9%
Public Service 6% 76% 18%

By Size of Operator

1 Helicopter -% 90% 10%


2-3 3% 75% 22%
4-7 10% 62% 28%
8+ 7% 67% 26%

By Location

U.S. 2% 73% 25%


Non-U.S. 13% 62% 25%

36 06-011
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

80
70
60
Percent

50
40 Decrease
30 Same
20
Increase
10
0
2003 2004 2005
Prior-Year Surveys

Commercial Operators, By Size of Operation – 2006 Survey

100
90
80
70
Percent

60 1 Helicopter
50
40 2 to 3
30 4 to 7
20
10 8 or more
0
Decrease Same Increase
2006 Survey

Commercial Operators, By Location of Operation – 2006 Survey

70
60
50
Percent

40
30 U.S
20 Non U.S.
10
0
Decrease Same Increase
2006 Survey

37
2006 Questions 4, 6, & 7

Productivity - Operations
Total Pilots per Helicopter - All Operators Comm
3.00
By Type By Size 1 Helicopter 1.55

2.25
1.99 2 -3 1.36
1.79 1.68
1.65 1.63 1.57 1.58 1.65 4-7 1.83
1.50
8+ 1.72

0.75
U.S. 1.58 Non U.S. 2.20

0.00
All Comm Corp/ Publ 1 2-3 4-7 8+
Priv Serv

Flight Hours per Pilot - All Operators


500
454 Comm

400 1 Helicopter 197


341
300 300 2 -3 328
300 270
215 4-7 339
176
200 162
8+ 465
100
U.S. 278 Non U.S. 206
0
All Comm Corp/ Publ 1 2-3 4-7 8+
Priv Serv

Flight Hours per Helicopter - All Operators


700 Comm
627
600 1 Helicopter 314
500 459 2 -3 385
394 403 393
400 358 4-7 416
300 8+ 648
217
201
200
U.S. 350 Non U.S. 425
100
All Comm Corp/ Publ 1 2-3 4-7 8+
Priv Serv

38 06-032
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

650
600
Flt Hrs per Hel.

550
500
Comm
450
400 Corp/Priv
350 Publ Serv
300
2003 2004 2005
Prior-Year Surveys

39
2006 Questions 4, 6, 7, & 14

Productivity - Revenue
Revenue per Helicopter (x000)
$978 (x000)
1000
2005 All U.S. Non-U.S.
900
$774 1 Helo. 445 445 -
800 $733
700 2-3 484 475 -
600 4-7 808 640 1,425
500 8+ 1,210 1,280 985
400
300
200
100
0
All U.S. Only Non-U.S.

Revenue per Flight Hour


$1,944
2000 2005 All U.S. Non-U.S.
$1,781 $1,752
1 Helo. 837 839 -
1500 2-3 2,452 2,453 -
4-7 1,905 1,749 2,584
1000 8+ 2,093 2,301 1,385

500

0
All U.S. Only Non-U.S.

Revenue per Pilot (x000)


(x000)
500 $462 $467 2005 All U.S. Non-U.S.
$437
1 Helo. 216 216 -
400
2-3 392 359 -
300 4-7 442 437 460
8+ 720 834 379
200

100

0
All U.S. Only Non-U.S.

40 06-012
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

1100
1000 All
Rev. per Hel.

900
800 1
(x000)

700
600 2-3
500 4-7
400
300 8+
200 U.S.
2003 2004 2005
Non-U.S.
Prior-Year Surveys

Revenue per Flight Hour – Prior-Year Surveys

2200
2000
Rev. per Flt. Hr.

All
1800
1
1600
2-3
1400
4-7
1200
1000 8+
800 U.S.
2003 2004 2005 Non-U.S.
Prior-Year Surveys

Revenue per Pilot – 2005 Survey

700
Rev. per Pilot

600
500
1
400
300 2-3
200 4-7
100 8+
All U.S. Non-U.S.
2005 Survey

41
2006 Question 8

Amount Budgeted for Training - Pilots


<$1,000
12% All Operators
>$5,000 $1,000-1,999
47% 9%

$2,000-2,999
17%

$3,000-3,999
10%
$4,000-4,999
5%

<$1,000 $1,000- $2,000- $3,000- $4,000- >$5,000


1,999 2,999 3,999 4,999
Comm 9% 8% 24% 12% 8% 39%
Corp/Priv 14% 14% 10% 7% 4% 51% Type of
Operator
Publ Serv 20% -% 7% 13% -% 60%
1 Helicopter 18% 12% 22% 10% 5% 33%
2-3 12% 3% 12% 9% 3% 61%
4-7 6% 6% 17% 22% 6% 43% Size of
8+ -% 13% 10% -% 10% 67% Operator

U.S. 13% 10% 17% 10% 6% 44%


Location
Non - U.S. 7% -% 14% 7% -% 72%

42 06-013
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

60
50
40
Percent

30 2003
20 2004
10 2005
0
<1.0 1.0-1.9 2.0-2.9 3.0-3.9 4.0-4.9 >5.0
Dollars (x000)

43
2006 Question 8

Amount Budgeted for Training - Maintenance


<$1,000
13%
All Operators
>$5,000
35%

$1,000-1,999
23%

$4,000-
4,999
6% $3,000- $2,000-2,999
3,999 14%
9%

<$1,000 $1,000- $2,000- $3,000- $4,000- >$5,000


1,999 2,999 3,999 4,999
Comm 17% 26% 17% 10% 4% 26%
Corp/Priv 10% 19% -% 10% 10% 51% Type of
Operator
Publ Serv Insufficient Number of Responses

1 Helicopter 13% 35% 4% 9% 4% 35%


2-3 6% 6% 17% 6% 6% 59% Size of
4-7 17% 28% 22% 11% 11% 11% Operator
8+ 16% 21% 16% 5% 5% 37%

U.S. 12% 25% 12% 10% 7% 34%


Location
Non - U.S. Insufficient Number of Responses

44 06-013A
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

35
30
25
Percent

20
2003
15
2004
10
5 2005
0
<1.0 1.0-1.9 2.0-2.9 3.0-3.9 4.0-4.9 >5.0
Dollars (x000)

45
2006 Question 8

Amount Budgeted for Training


Management/Financial -
>$5,000 <$1,000
24% 21%
All Operators

$4,000-
4,999
3%

$3,000-
3,999
8% $1,000-1,999
26%

$2,000-
2,999
18%

<$1,000 $1,000- $2,000- $3,000- $4,000- >$5,000


1,999 2,999 3,999 4,999
Comm 20% 28% 20% 8% -% 24%
Corp/Priv Insufficient Number of Responses Type of
Operator
Publ Serv Insufficient Number of Responses
All Operators
1 Helicopter
2-3 Size of
4-7 Insufficient Number of Responses Operator
8+

U.S. 25% 23% 23% 3% 3% 23%


Location
Non - U.S. Insufficient Number of Responses

46 06-013B
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

50
40
Percent

30
2003
20
2004
10
2005
0
<1.0 1.0-1.9 2.0-2.9 3.0-3.9 4.0-4.9 >5.0
Dollars (x000)

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

47
2006 Question 9

Costs of Operation
Fuel All Operators
Personnel Exp 15%
19%

Training
4%
Other
2%
Maintenance
Lease 25%
Payment
5%
Gen & Admin
5%
Interest
3%
Depreciation
4%
Insurance
18%
Operators by Type and Size
Lease Payments

Personnel Exp
Maintenance

Depreciation
Insurance

Training
Interest

G&A

Other
Fuel

Comm 22% 15% 13% 4% 5% 6% 23% 3% 7% 2%


Corp/Priv 27% 27% 19% 2% 3% 3% 11% 4% 3% 1% Type of
Operator
Publ Serv 30% 11% 12% -% 9% 1% 27% 5% 5% -%

1 Helicopter 26% 26% 19% 2% 3% 3% 12% 4% 4% 1%


2-3 25% 15% 11% 3% 5% 6% 24% 5% 5% 1% Size of
4-7 23% 13% 11% 3% 6% 5% 26% 4% 8% 1% Operator
8+ 19% 10% 12% 2% 7% 7% 27% 3% 9% 4%

U.S. 25% 19% 15% 3% 4% 4% 19% 4% 5% 2%


Location
Non - U.S. 23% 10% 10% 3% 10% 8% 22% 4% 8% 2%

48 06-018
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%.)

% of 2005 Most Concern


Type of Cost Expenses (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

30
25
20
Percent

15 2003
10 2004
5 2005
0
Fuel Maint Ins Person Depr Other
Cost Category
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

49
2006 Question 9
Commercial
Operating Cost Concerns Corp./Priv

By Type of Operators Public Serv.

50
44 43
41
40
33
30
Percent

29
30 25
20
20
7 9
10
3 4
2 3 2 - 2 3
0
Maintenance Insurance Fuel Personnel Exp Training Lease Pmts,
G&A, Other

1 Helo 4-7 Helo


By Size of Operators 2-3 Helo 8+ Helo
50
42
40 36 34 34 35
31 31
Percent

30
24 25
20 18 19
20
14
10
10 8
5
2 3 2 3 3
1 - -
0
Maintenance Insurance Fuel Personel Exp Training Lease Pmts,
G&A, Other

By Location of Operators U.S. Non-U.S.


34
35
31
30 27
25
25
Percent

19 19 19
20
15 12
10
4 6
5 2 2
0
Maintenance Insurance Fuel Personel Exp Training Lease Pmts,
G&S, Other
50 06-031
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


40
35
30
Percent

25
20
15
10
5
0
Fuel Maint Ins Person Training Other
Cost Category
Other includes Depr., Lease Payment, Interest, G&A, and Other

Type of Operator – 2005 Survey


50
40
Percent

30
Comm
20
Corp/Priv
10
Publ Serv
0
Fuel Maint Ins Person Training Other
Cost Category
Other includes Depr., Lease Payment, Interest, G&A, and Other

Size of Operator – 2005 Survey


50
40
Percent

30 1

20 2-2
10 4-7
0 8+
Fuel Maint Ins Person Training Other
Cost Category
Other includes Depr., Lease Payment, Interest, G&A, and Other

Location of Operator – 2005 Survey


50
40
Percent

30
20 U.S.
10 Non-U.S.
0
Fuel Maint Ins Person Training Other
Cost Category
Other includes Depr., Lease Payment, Interest, G&A, and Other

51
2006 Question 10

Types of Operation - Sources of Revenue


Industrial
Support All Operators
17%
Personnel
Transport
35%

EMS/Safety
24%

Other
Information 11%
Gathering Training
6% 7% Operators by . . .
Type All Size Location
Non
Personnel Transport Comm. Corp. Publ. 1 Helo 2-3 4-7 8+ U.S. U.S.
Charter/FAR 135 8% 6% -% 6% 2% 11% 6% 10% 3% 22%
Corporate/FAR 91 4% 63% -% 24% 48% 8% 6% 2% 26% 12%
Tour Operators 10% -% -% 5% 3% 4% 1% 15% 6% 2%
Industrial Support
Agriculture 12% -% -% 6% 3% 14% 4% 6% 7% -%
Logging/Lumber 1% -% -% 1% -% 1% -% 3% -% 3%
Utility Support 6% 2% 2% 4% 3% 6% 7% 5% 5% -%
Oil & Gas Support 8% 2% -% 5% 2% -% 10% 15% 3% 23%
Construction -% 2% -% 1% 2% -% -% 1% 1% -%
EMS/Safety
Fire Fighting 7% -% 8% 5% 2% 6% 11% 6% 5% 3%
Public Service/Safety 3% 1% 50% 9% 3% 12% 14% 5% 8% 5%
EMS 14% 2% 18% 10% 5% 14% 19% 13% 11% 9%
Information Gathering
ENG/Traffic/Photo 9% 4% -% 6% 10% 2% 2% 5% 7% 1%
Training 11% 4% -% 7% 5% 8% 16% 6% 7% 6%
Other/Gov't Contracts 7% 14% 22% 11% 12% 14% 4% 8% 11% 14%

52 06-019
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.

All Operators – Prior-Year Surveys


35

30

25
Percent

20
2003
15
2004
10
2005
5

0
Pers Supp Ind Supp EMS/Safe Info Gath Training Other

Type of Mission

Summary of Other Revenue Sources – Page 55 contains a summary of the respondents


other revenue sources.

53
2006 Questions 6 & 10

Types of Operation - Flight Hours


Other/Gov't Personnel
Contracts Transport
4% 15% All Operators
Industrial
Support
33%
Training
7%

Information
Gathering
7%

EMS/Safety
34%

Operators by . . .
Type All Size Location

Personnel Transport Comm. Corp. Publ. 1 Helo 2-3 4-7 8+ U.S. Non-U.S.
Charter/FAR 135 4% 9% -% 4% 2% 6% 3% 3% 2% 17%
Corporate/FAR 91 -% 55% -% 1% 40% 6% 3% -% 2% 1%
Tour Operators 11% -% -% 10% 3% 10% -% 12% 11% 1%
Sub Total 15% 64% -% 15% 45% 22% 6% 15% 15% 19%
Industrial Support
Agriculture 2% -% -% 1% 3% 8% 1% 1% 1% -%
Logging/Lumber 3% -% -% 3% -% 1% -% 3% 3% 1%
Utility Support 3% 1% 4% 3% 3% 6% 4% 3% 3% -%
Oil & Gas Support 27% -% -% 26% 1% -% 17% 29% 24% 47%
Construction -% 1% -% -% 1% -% -% -% -% 1%
Sub Total 35% 2% 4% 33% 8% 15% 22% 36% 31% 49%

EMS/Safety
Fire Fighting 3% -% 6% 3% 2% 4% 15% 2% 3% 2%
Public Service/Safety 3% -% 68% 5% 3% 20% 17% 3% 5% 5%
EMS 27% 9% 10% 26% 9% 18% 25% 27% 28% 11%
Sub Total 33% 9% 84% 34% 14% 42% 57% 32% 36% 18%

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

Training 7% 7% 1% 7% 3% 6% 10% 7% 7% 1%
Other/Gov't Contracts 3% 14% 11% 4% 11% 13% 3% 3% 4% 13%

54 06-020
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

60

50

40
Percent

30 2003
20 2004
10 2005
0
Pers Supp Ind Supp EMS/Safe Info Gath Training Other

Type of Mission

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 rides
81 Maintenance, Experimental & Completion

55
Revenues - Sources 2006 Questions 10 & 14

All Commercial Operators


Industrial Personnel
Support Transport
50% 5%
Other/Gov't Contracts
3%
Training
1%

Information
Gathering
1%

EMS/Safety
40%

Commercial Operators by Location


U.S. Operators All Non-U.S. Operators
Oper.

Personnel Transport
Charter/FAR 135 1% 1% 8%
Corporate/FAR 91 -% -% -%
Tour Operators 4% 4% -%
Sub Total 5% 5% 8%
Industrial Support
Agriculture 1% 1% -%
Logging/Lumber -% -% -%
Utility Support 5% 5% -%
Oil & Gas Support 43% 44% 61%
Construction -% -% 1%
Sub Total 49% 50% 62%
EMS/Safety
Fire Fighting 3% 3% 2%
Public Service/Safety 6% 6% 1%
EMS 32% 31% 16%
Sub Total 41% 40% 19%
Information Gathering
ENG/Traffic/Photo 2% 1% -%
Training 1% 1% -%
Other/Gov't Contracts 2% 3% 11%

56 06-021
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

80

70

60

50
Percent

40 2003
30 2004
20 2005
10

0
Pers Supp Ind Supp EMS/Safe Info Gath Training Other

Type of Mission

57
2006 Question 11
Quarterly Distribution of Flight Hours

All Operators Type of Operator


Comm. Corp.

29.4%
28.6%
Public Serv.

27.6%
27.4%
27.5%
27.0%
30 30

25.0%
27.4% 27.7%

22.9%

22.6%
22.1%
25 25

21.0%
23.0%
21.9%

18.9%
20 20

15 15

10 10

5 5

0 0
1ST 2ND 3RD 4TH
1ST 2ND 3RD 4TH
Quarter Quarter

Size of Operator Location of Operator U.S.

28.9%
Non-U.S.
27.9%

27.6%
31.6%

35 30
30.2%

25.8%
29.8%
28.5%

23.7%
27.4%
27.2%
27.1%

22.6%
26.0%

21.9%

30
21.6%

25
24.2%
23.3%

23.0%
22.4%
22.2%

21.0%

25
20
18.5%

17.6%

20
15
15
10
10

5 5

0 0
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Quarter Quarter
1 Helo. 2 - 3 Helo. 4 - 7 Helo.

8+ Helo.

58 06-022
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

35

30

25
Percent

20
2003
15
2004
10
2005
5

0
1st 2nd 3rd 4th

Quarter

59
2006 Question 11
Quarterly Distribution of Days Flown

All Operators Type of Operator


Comm. Corp.
Public Serv.
60 80
52

67
48 70

64
50

62
61
46

59
56
42 60

55
53
Number of Days

Number of Days
40
50

30 40

32
28
30

26
20

21
20
10
10

0 0
1ST 2ND 3RD 4TH
1ST 2ND 3RD 4TH
Quarter Quarter

Size of Operator Location of Operator U.S.


Non-U.S.
100 80
85
83

83

70
65
79

61

80

60
58
72

60
69

65
Number of Days

Number of Days
65

50
60

47
59

50
56

60
44
54

40

40
40 30
33
29

26
22

20
20
10

0 0
1ST 2ND 3RD 4TH 1ST 2ND 3RD 4TH
Quarter Quarter
1 Helo. 2 - 3 Helo. 4 - 7 Helo.

8+ Helo.

60 06-022A
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

3.5
3.3
3.1
2.9
FH/Day/Helo.

2.7 1st Qtr


2.5
2nd
2.3
2.1 3rd
1.9
4th
1.7
1.5
Comm Corp/Priv Publ Serv

Type of Operator

Size of Operator – Hours Flown per Day per Helicopter – 2006 Survey
2.9
2.7
FH/Day/Helo.

2.5
2.3 1st Qtr
2.1 2nd
1.9
3rd
1.7
4th
1.5
1 Helo 2-3 4-7 8+

Type of Operator

Location of Operator – Hours Flown per Day per Helicopter – 2006 Survey
4
3.9
3.8
3.7
3.6
FH/Day/Helo.

3.5
3.4 1st Qtr
3.3
3.2
3.1 2nd
3
2.9 3rd
2.8
2.7
2.6 4th
2.5
U.S. Non-U.S.

Location of Operator

61
2006 Question 12

Inventory Value - Per Helicopter


All Operators
x(000)
$724
$800
$700
$600
$500
$333
$400
$325 $239
$300
$200
$85
$100
$0
1 Helicopter 2-3 4-7 8+ All

x(000)
Commercial
$751
$800
$632
$700
$600
$480
$500
$400
$285
$300
$200
$75
$100
$0
1 Helicopter 2-3 4-7 8+ All

Corporate / Private
x(000)
$150
$132 $113
$120
$76
$90

$60

$30 N/A N/A


$0
1 Helicopter 2-3 4-7 8+ All

Public Service
x(000)
$120
$105 $94
$100
$80
$60
$40
$20
N/A N/A N/A
$0
1 Helicopter 2-3 4-7 8+ All

62 06-023
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


300

250
$ (x000)/Hel.

200

150 2003
100 2004
2005
50

0
1 2-3 4-7 8+ All

Number of Helicopters

63
2006 Question 13

Labor Rates for Outside Services


U.S. Operators Non-U.S. Operators

$80
80 100
$72 $75
$70
70 $81 $74
$76
80
60 $72

50 60

40

30 40

20
20
10

0 Avionics Engine Service Airframe 0 Avionics Engine Service Airframe


Manufacturer Facility Repairs Manufacturer Facility Repairs

U.S. Operators by Region


NE SE SW C West

Avionics $75 $71 $73 $72 $73


Engine Manufacturer $84 $77 $68 $85 $78
Approved Service Fac $88 $75 $81 $70 $71
Airframe Repairs $70 $69 $66 $68 $73

64 06-024
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


80
Cost per Hr

70

60
2003
50
2004
40
2005
30
Avionics Eng Mfg Serv Fac A/F Rep
Category

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


80
70
Cost per Hr

60
50
40 2003
30
20 2004
10
2005
0
Avionics Eng Mfg Serv Fac A/F Rep
Category

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

65
2006 Question 15

Profitability
All Commercial Operators
40
32%
30
25%

20 18%
14%
11%
10

0 Not Somewhat Very


Profitable Profitable Profitable
Breakeven Profitable

Operators by Size

1 Helo 30% 25% 20% 15% 10%


2-3 24% 12% 28% 18% 18%
4-7 -% 12% 29% 18% 41%
8+ 4% 8% 16% 56% 16%
Somewhat Profitable

Very Profitable
Not Profitable

Breakeven

Profitable

Operators by Location

U.S. 17% 13% 26% 32% 12%

Non- 23% 15% 23% 31% 8%


U.S.

66 06-025
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

40
35
30
Percent

25
20 2003
15
10
2004
5 2005
0
Not Prof Breakeven Somewhat Profitable Very

Level of Profitability

All Commercial Operators by Size of Operation – 2005 Survey

40
35
30
Percent

25 1
20
15 2-3
10
4-7
5
0 8+
Not Prof Breakeven Somewhat Profitable Very

Level of Profitability

All Commercial Operators by Location of Operation – 2005 Survey

45
40
35
30
Percent

25
20 U.S.
15
10 Non-U.S.
5
0
Not Prof Breakeven Somewhat Profitable Very

Level of Profitability

67
2006 Questions 6 & 15
Profitability Vs. Utilization
NP = Not Profitable
All Commercial Operators BE = Break Even
SP = Somewhat Profitable
P = Profitable
VP = Very Profitable

50%
50% 50%
0 - 249 Hrs/Yr 250 - 499 Hrs/Yr
43%
40% 40%

30% 30%
29%
25%

20% 17% 20%


14% 14%
10% 8% 10%
-% -%
0% 0%
NP BE SP P VP NP BE SP P VP

50% 500 - 749 Hrs/Yr 50%


750+ Hrs/Yr

40% 40% 38%

30% 31% 30%


30% 30%
23%
20% 20%
13%
11%
10% 8% 8% 10% 8%

0% 0%
NP BE SP P VP NP BE SP P VP

68 06-026
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

45
40
35
30
Percent

25 0-249 Flt Hrs


20 250-499
15
10
500-749
5 750+
0
Not Prof Breakeven Somewhat Profitable Very

Level of Profitability

All Commercial Operators – 2004 Survey

45
40
35
30
Percent

25 0-249 Flt Hrs


20 250-499
15
10 500-749
5 750+
0
Not Prof Breakeven Somewhat Profitable Very

Level of Profitability

All Commercial Operators – 2003 Survey

45
40
35
30
Percent

25 0-249 Flt Hrs


20 250-499
15
500-749
10
5 750+
0
Not Prof Breakeven Somewhat Profitable Very

Level of Profitability

69
2006 Questions 16
Factors Preventing Growth 1) Economic Issues
2) Regulatory Issues
3) Non-Growth Market
4) Insurance Issues
By Type of Operator 35%
5) Limited Financial Resources
6) Limited Source of Pilots or Technicians
35 7) Helicopter Price
8) Other, Environment, Spares Price,
Commercial
Infrastructure
30 Corp/Priv. 27%
Public Serv. 24%
25
21%
20 19%
17% 17%
14% 14%
15 12% 13% 13%
10% 10%
9%
10 7% 7% 7%
6% 6% 6%
5 3%
-%
3%

0
(1) (2) (3) (4) (5) (6) (7) (8)

By Size of Operator
30 29%

1 Helicopter
25 23% 2-3
22% 22%
4-7 20%
20 19%
17% 8+
16%
15% 15% 15%
14% 14%
15 13%
12%
13%

10% 10% 10% 10% 10%


10 8%
7%
8% 8% 8% 8% 8%
6%
4%
5 3% 3%

0
(1) (2) (3) (4) (5) (6) (7) (8)

By Location of Operator
40
36%
35 U. S.

30 Non-U. S.

25 23%
20%
20 17%
15% 15%
15 13%
10%
10 7% 6% 7% 7% 6%
8%
7%

5 3%

0
(1) (2) (3) (4) (5) (6) (7) (8)

70 06-027
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

71
2006 Questions 19
Guaranteed Maintenance Programs
Air Frame
All By Type By Size By Location
100% 92%

80%

60%
46%
40%
40% 33%
28%
24%
21%
20% 15%
8% 8%

0%
All Comm Corp/Priv Publ Serv (1) (2-3) (4-7) (8+) U. S. Non-U. S.

Engine
All By Type By Size By Location
100%
84%

80%

60% 50%

40% 34% 34%


29%
24% 21%
16% 16% 16%
20%

0%
All Comm Corp/Priv Publ Serv (1) (2-3) (4-7) (8+) U. S. Non-U. S.

Avionics
All By Type By Size By Location
100%
85%

80%

60%
45%
40%
40% 35%
30%
20%
20% 15% 15% 15%
13%

0%
All Comm Corp/Priv Publ Serv (1) (2-3) (4-7) (8+) U. S. Non-U. S.

72 06-108
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

55
50
45
40
35
Percent

30
25
20
15
10
5
0
Cost Predictability Improved Support Cost Reduction Other

Reason to Use GMP

73
2006 Question 8
Idle or Parked Helicopters
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.

Reasons For Not Operating


All Operators
Excess
Other Capacity
8% 5%

Damaged
17%

Insurance
Costs
7%

Seasonal Spares Source


Market 15%
48%

74 06-029
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 ___________________

All Operators – Prior-Year Surveys

50
45
40
35
Percent

30
25 2003
20
2004
15
10 2005
5
0
Excess Spares Damaged Ins Season Other

Reason for Idle Helicopter

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

75
2006 Question 14, Part 2
Trend for Revenue
Prior Year Compared to 2005
Commercial Operators
80%
70%
70%

60%

50%

40%

30%

20% 15% 15%


10%

0%
Decreased Remained Increased
the Same

By Size of Operator
Decreased Same Increased
1 Helicopter 22% 22% 56%
2-3 18% 18% 64%
4-7 24% 18% 58%
8+ 4% 8% 88%

By Location

U.S. 14% 17% 69%


Non-U.S. 23% 8% 69%

76 06-030
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

50

40
Percent

30
2003
20
2004
10
2005
0
Decrease Same Increase

Trend of Revenue

All Commercial Operators by Size of Operator – 2005 Survey Results

65
60
55
50
45
Percent

40
35 1 Helicopter
30
25
2-3
20
15
4-7
10 8+
5
0
Decrease Same Increase

Trend of Revenue

All Commercial Operators by Location of Operator – 2005 Survey Results

60
50
Percent

40
30
U.S.
20
10 Non-U.S.
0
Decrease Same Increase

Trend of Revenue

77
2006 Questions 17
Computer Systems - Flight Management

All Operators Type of Operator

Do Not Use Developed In-House Purchased 60%


60% 60%
52%
50%
50% 50% 48%

40% 40% 38%

30% 26% 30% 28%


24%
22% 22%
20% 20% 18%
12%
10% 10%

0% 0%
Comm. Corp/Priv. Public Service

Size of Operator Location of Operator

80% 60% 56%


70%
70%
50% 47%
60%
51% 40%
50%
44% 33%
40% 36% 30%
32% 32% 32% 25%
30% 26% 19% 20%
23% 24% 20%
20% 15%15%
10%
10%

0% 0%
1 Helo 2-3 4-7 8+ U.S. Non-U.S.

78 06-033
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

70

60

50
Percent

40
1991
30
2004
20
2005
10

0
Not Use In-House Purchased

Use of Computers

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

79
2006 Questions 17
Computer Systems - Maintenance Management

All Operators Type of Operator

Do Not Use Developed In-House Purchased


50%
50% 50%

41% 41%
40% 40% 38%
36% 36%
33%
31% 31%
30% 30%
26%

20% 20% 19% 18%

10% 10%

0% 0%
Comm. Corp/Priv. Public Service

Size of Operator Location of Operator

60% 56%
80%
52%
70% 66%
50%
43% 44% 60%
40% 38%
34% 34% 50%
32%
40%
30% 40%
23% 31% 29%
21% 30% 27%
20% 19%

20%
10%
4% 10% 7%

0% 0%
1 Helo 2-3 4-7 8+ U.S. Non-U.S.

80 06-034
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

60

50

40
Percent

30 1991
20 2004
10 2005

0
Not Use In-House Purchased

Use of Computers

81
2006 Questions 17
Computer Systems - Inventory Management

All Operators Type of Operator

Do Not Use Developed In-House Purchased


50% 80%
43% 70% 66%
40% 62%
35% 60%

30% 50%

40% 37% 38%


22% 34%
20% 30%
29%

21%
20%
10% 13%
10%
-%
0% 0%
Comm. Corp/Priv. Public Service

Size of Operator Location of Operator

80% 50%
45% 46%
72%
70%
59%
40%
60% 58% 35%
31%
50% 30%
40%
40% 35%
38% 23%
32% 20%
30% 20%
25%
18%
20%
10%
10% 9%
10% 4%

0% 0%
1 Helo 2-3 4-7 8+ U.S. Non-U.S.

82 06-035
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

60

50

40
Percent

30 1991
20 2004
10 2005

0
Not Use In-House Purchased

Use of Computers

83
2006 Questions 17
Computer Systems - Financial Management

All Operators Type of Operator

Do Not Use Developed In-House Purchased


59%
50% 60%

40% 50% 48% 47%


40%
36%
41%
40%
30%
24% 30% 29%

23% 24%
20%
20% 17%
12%
10%
10%

0% 0%
Comm. Corp/Priv. Public Service

Size of Operator Location of Operator

80% 80%

70% 67% 70%


61% 61%
60% 60%

50% 47% 50%


41% 43%
40% 38% 40%
33%
29% 31%
29%
30% 25% 30%
24% 24%
21%
20% 20%
14%

10% 10% 8%
4%

0% 0%
1 Helo 2-3 4-7 8+ U.S. Non-U.S.

84 06-036
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

60

50

40
Percent

30 1991
20 2004

10
2005

0
Not Use In-House Purchased

Use of Computers

85
2006 Question 20, Part 1
Trend for Insurance Rates
Quote Compared to Existing Rate
All Operators
50%
50%

40%

32%
30%

20% 18%

10%

0%
Decreased Remained Increased
the Same

By Type of Operator
Decreased Same Increased
Commercial 22% 46% 32%
Corporate/Private 16% 55% 29%
Public Service 6% 53% 41%

By Size of Operator

1 Helicopter 15% 59% 26%


2-3 15% 44% 41%
4-7 18% 46% 36%
8+ 30% 40% 30%

By Location of Operator

U.S. 15% 51% 34%


Non-U.S. 47% 40% 13%

86 06-100
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

90
80
70
60
Percent

50
40
2003
30 2004
20 2005
10
0
Decreased Same Increased
Prior-Year Surveys

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.

87
2006 Questions 20, Part 2
Steps Taken to Control Insurance Rates
1) Reduce Liability Coverage
Commercial 2) Assume More Risk on Hull
By Type of Operator 3) Increased Training
4) Eliminate Types of Flying
Corp./Priv.
35 5) Changed Approach to Safety
6) Switched Ins. Carriers 32%
Public Serv.
7) Did Not Change Anything
30 28% 8) Other (incl ceased operations)
27% 27%
24%
25

20
17%
14%
15 13%
11% 11% 11%
10%
9% 9% 9% 9% 9%
10 8%
5% 5% 5% 4%
5 3%
-%
0
(1) (2) (3) (4) (5) (6) (7) (8)

By Size of Operator
30 28%
1 Helicopter 4-7
25 23% 2-3 23% 8+
22%
21% 26%
20%
20
17% 17%
15% 15%
15 13%
12%
9% 10% 10% 10% 10% 10% 10% 10%
10 9%
8% 8%
9% 9%

6% 6%
5% 5%
5
2% 2%

0
(1) (2) (3) (4) (5) (6) (7) (8)

By Location of Operator
30
27%
24% U. S.
25 23%
Non-U. S.
20 18%

14%
15 13% 14%

10% 10% 10%


9%
10 8%
7%
5% 5%
5 3%

0
(1) (2) (3) (4) (5) (6) (7) (8)

88 06-101
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


30
25
Percent

20
15
10
5
0
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

89
2006 Question 21, Part 1
Vehicle - Liability
Comparison to Prior Year

All Operators
50%
47%
45%

40%

30%

20%

10% 8%

0%
Decreased Remained Increased
the Same

By Type of Operator
Decreased Same Increased
Commercial 12% 44% 44%
Corporate/Private 4% 50% 46%
Public Service -% 50% 50%

By Size of Operator

1 Helicopter 10% 40% 50%


2-3 3% 47% 50%
4-7 18% 35% 47%
8+ 5% 36% 59%

By Location of Operator

U.S. 8% 42% 50%


Non-U.S. 8% 69% 23%

90 06-102A
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%

91
2006 Question 21, Part 2
Trend for Health / Dental / Vision Insurance
Comparison to Prior Year

All Operators
80%

70% 67%

60%

50%

40%
30%
30%

20%

10%
3%
0%
Decreased Remained Increased
the Same

By Type of Operator
Decreased Same Increased
Commercial 3% 30% 67%
Corporate/Private -% 37% 63%
Public Service 8% 8% 84%

By Size of Operator

1 Helicopter -% 34% 66%


2-3 -% 39% 61%
4-7 13% 13% 74%
8+ 4% 22% 74%

By Location of Operator

U.S. 2% 27% 71%


Non-U.S. 8% 54% 38%

92 06-102
Question 21 (continued) – Health/Dental/Vision

All Operators – Prior-Year Surveys


70
60
50
Percent
40
2003
30
20 2004
10
2005
0
Decrease Same Increase

Prior-Year Surveys

Type of Operator – 2005 Survey


80
70
60
Percent

50
40 Comm
30
20 Corp/Priv
10 Publ Serv
0
Decrease Same Increase

2005 Survey

Size of Operator – 2005 Survey


80
70
60
Percent

50 1 Helo
40
30 2-3
20 4-7
10
0
8+
Decrease Same Increase

2005 Survey

Location of Operator – 2005 Survey


80
70
60
Percent

50
40
30
U.S.
20 Non-U.S.
10
0
Decrease Same Increase

2005 Survey

93
2006 Question 21, Part 3
Trend for Worker's Comp Insurance
Comparison to Prior Year
All Operators
50%
46% 45%

40%

30%

20%

10% 9%

0%
Decreased Remained Increased
the Same

By Type of Operator
Decreased Same Increased
Commercial 12% 44% 44%
Corporate/Private 3% 47% 50%
Public Service 20% 50% 30%

By Size of Operator

1 Helicopter 3% 52% 45%


2-3 3% 40% 57%
4-7 27% 27% 46%
8+ 17% 35% 48%

By Location of Operator

U.S. 8% 44% 48%


Non-U.S. 18% 64% 18%

94 06-103
Question 21 (continued) Worker’s Comp

All Operators – Prior-Year Surveys


60

Percent 50
40
30 2003
20 2004
10 2005
0
Decrease Same Increase

Prior-Year Surveys

Type of Operator – 2005 Survey


80
70
60
Percent

50
40 Comm
30
20 Corp/Priv
10 Publ Serv
0
Decrease Same Increase

2005 Survey

Size of Operator – 2005 Survey


80
70
60
Percent

50 1 Helo
40
30 2-3
20 4-7
10
0
8+
Decrease Same Increase

2005 Survey

Location of Operator – 2005 Survey


60

50

40
Percent

30
U.S.
20
Non-U.S.
10

0
Decrease Same Increase

2005 Survey

95
2006 Question 21, Part 4
Trend for Disability Insurance
Comparison to Prior Year
All Operators
80%
70%
70%

60%

50%

40%

30% 28%

20%

10%
2%
0%
Decreased Remained Increased
the Same

By Type of Operator
Decreased Same Increased
Commercial 2% 73% 25%
Corporate/Private -% 68% 32%
Public Service 9% 64% 27%

By Size of Operator

1 Helicopter -% 69% 31%


2-3 -% 71% 29%
4-7 7% 73% 20%
8+ 5% 69% 26%

By Location of Operator

U.S. 1% 69% 30%


Non-U.S. 9% 82% 9%

96 06-104
Question 21 (continued) Disability Insurance

All Operators – Prior-Year Surveys


60
50
Percent
40
30 2003
20 2004
10
2005
0
Decrease Same Increase

Prior-Year Surveys

Type of Operator – 2005 Survey


80
70
60
Percent

50
40 Comm
30
20
Corp/Priv
10 Publ Serv
0
Decrease Same Increase

2005 Survey

Size of Operator – 2005 Survey


80
70
60
Percent

50 1 Helo
40
30 2-3
20 4-7
10
0
8+
Decrease Same Increase

2005 Survey

Location of Operator – 2005 Survey


60

50

40
Percent

30
U.S.
20
Non-U.S.
10

0
Decrease Same Increase

2005 Survey

97
2006 Question 21, Part 5
Trend for Facilities Insurance
Comparison to Prior Year
All Operators
60%

51%
50%
44%

40%

30%

20%

10%
5%

0%
Decreased Remained the Same Increased

By Type of Operator
Decreased Same Increased
Commercial 3% 56% 41%
Corporate/Private 3% 52% 45%
Public Service 20% 60% 20%

By Size of Operator

1 Helicopter 5% 54% 41%


2-3 -% 45% 55%
4-7 13% 67% 20%
8+ 5% 45% 50%

By Location of Operator

U.S. 5% 50% 45%


Non-U.S. -% 66% 34%

98 06-105
Question 21 (continued) Facilities Insurance

All Operators – Prior-Year Surveys


60
50
Percent
40
30 2003
20 2004
10
2005
0
Decrease Same Increase

Prior-Year Surveys

Type of Operator – 2005 Survey


70
60
50
Percent

40
Comm
30
20 Corp/Priv
10 Publ Serv
0
Decrease Same Increase

2005 Survey

Size of Operator – 2005 Survey


80
70
60
Percent

50 1 Helo
40
30 2-3
20 4-7
10
0
8+
Decrease Same Increase

2005 Survey

Location of Operator – 2005 Survey


60

50

40
Percent

30
U.S.
20
Non-U.S.
10

0
Decrease Same Increase

2005 Survey

99
2006 Question 21, Part 6
Trend for War and Expro Insurance
Comparison to Prior Year
All Operators
80%

70% 67%

60%

50%

40%

30% 28%

20%

10% 5%
0%
Decreased Remained Increased
the Same

By Type of Operator
Decreased Same Increased
Commercial 8% 71% 21%
Corporate/Private -% 62% 38%
Public Service -% -% -%

By Size of Operator

1 Helicopter -% 68% 32%


2-3 -% 81% 19%
4-7 17% 58% 25%
8+ 11% 57% 32%

By Location of Operator

U.S. 3% 65% 32%


Non-U.S. 20% 80% -%

100 06-105A
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

101
Appendix A
2006 HAI Survey of Operating Performance

(This appendix contains the questionnaire to which operators responded


for the 2006 Survey of Operating Performance)
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

Attach business card with completed questionnaire for eligibility in drawing.

1
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.)

____ Decreased ____ Remained the Same ____ Increased

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.)

____ Decreased ____ Remained the Same ____ Increased

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 _____________________

Attach business card with completed questionnaire for eligibility in drawing.

2
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%.)

% of 2005
Type of Cost Expenses
(Round to nearest Most Concern
whole number) (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%

Attach business card with completed questionnaire for eligibility in drawing.

3
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.)

____ Decreased ____ Remained the Same ____ Increased

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%)

Attach business card with completed questionnaire for eligibility in drawing.

4
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 ________________

Attach business card with completed questionnaire for eligibility in drawing.

5
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 ____%

Attach business card with completed questionnaire for eligibility in drawing.

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