Erickson extends lucrative Greece contract

June 01--MEDFORD -- The Greek government and the nation's currency might be in flux, but aerial firefighting services supplied by Erickson Air-Crane will remain in place there.

Erickson said this week it has secured a three-year deal with a two-year option that could add up to $44.4 million. The contract was signed with the NATO Maintenance and Supply Agency, which has assumed responsibility for the debt-ridden Mediterranean nation's wildland firefighting needs.

The Portland-based heavy-lift helicopter company makes and maintains its fleet at its Willow Springs Road plant in Central Point. Erickson's long-term relationship with Greece was threatened last year when the country's Hellenic Fire Brigade defaulted on $5.8 million owed on its previous contract with Erickson.

Erickson President and Chief Executive Officer Udo Rieder said the company was pleased it could continue "protecting the people, property and natural resources of Greece from the dangers of fire."

The firm will supply the NATO agency with three heavy-lift Aircrane helicopters that are already deployed in Europe. The contract runs through the 2014 fire season and includes a two-year renewal option. "I can't say anything has really changed significantly from our Greek contracts of the last 10 years," said Ed Rizzuti, Erickson's general counsel and corporate secretary. "It's a real positive for us, but it doesn't drastically change anything for better or worse."

Without shedding additional operational insight stemming from the contract, Rizzuti said the deal was a "morale builder" for the hundreds of employees in Central Point.

The contract goes into effect early this month and could be worth more than the announced figure depending on how many flight hours Erickson flight crews log. Aircraft will continue to be based in locations used in the past.

Erickson also supplies firefighting services in Italy and ships its helicopters from Australia to Europe when the Southern Hemisphere wildfire season comes to an end.

At the end of 2011, Erickson said it had approximately $213.8 million of backlog work -- $106 million in signed contracts and $108 million in customer extension options. Then the Helenic Fire Brigade contract went into default and expected South American contracts fell off.

Erickson shares went public in April and have traded as high as $8.50 and as low as $6.70. The stock gained 7 cents on Thursday to close at $6.88.

Copyright 2012 - Mail Tribune, Medford, Ore.