Oil Price Plunge Could Leave Helicopters Sputtering

Jan. 15, 2015

Oil and gas industry now accounts for as much as 40 percent of the roughly $6 billion annual sales of helicopters for civil use, making it the biggest non-military segment, according to aerospace research firm Teal Group.

Source Rueters

A Cougar Helicopters Sikorsky S-92 helicopter is seen on the helideck of an offshore oil rig on the Grand Banks of Newfoundland in this undated file picture.

(Reuters) - Tumbling oil prices are starting to ripple through the helicopter industry, which depends on oil companies that shuttle their crews to off-shore sites for a big chunk of its business.

Off-shore oil drilling and production in regions such as the North Sea and Gulf of Mexico have been a key source of demand for helicopter makers including United Technologies' (UTX.N) Sikorsky unit, Finmeccanica's (SIFI.MI) AgustaWestland and Airbus (AIR.PA) Helicopters. Textron's (TXT.N) Bell Helicopter could soon become a bigger player with a new helicopter.

The oil and gas industry now accounts for as much as 40 percent of the roughly $6 billion (4 billion pound) annual sales of helicopters for civil use, making it the biggest non-military segment, according to aerospace research firm Teal Group.

More details here.