VIP HELICOPTERS CJI REPORT
‘Riding the magic carpet’
VIP helicopters are time machines that promise to shave long hours off tedious car journeys. So why aren’t they more popular? Words: Mike Stones
Stepping from jet to VIP helicopter offers speed, convenience and discretion. Photocredit: Castle Air
‘Riding the magic carpet’
VIP helicopters are time machines that promise to shave long hours off tedious car journeys. So why aren’t they more popular? Words: Mike Stones
VIP HELICOPTERS CJI REPORT
Stepping from jet to VIP helicopter offers speed, convenience and discretion. Photocredit: Castle Air
IT WAS A long business meeting in Paris. Followed by an even longer transatlantic flight in the private jet. But, at last, you’ve arrived at Teterboro Airport. It’s the day before Thanksgiving and you’ve planned to enjoy the holidays with the family at that little place on Martha’s Vineyard. How to get there quickly and conveniently?
You have a choice. There’s the limousine. But however luxurious its interior, the car journey is still going to take about five-and-half hours, including the ferry from Woods Hole to the island. And what about the other holiday traffic? Or there’s another solution. It’s one that appears to be growing more popular with a range of high-net worth travellers.
A VIP helicopter will whisk you to the island in about an hour. No traffic jams, no ferries. Just one simple flight in a luxury helicopter. As road traffic becomes ever more congested, the argument for VIP helicopter transport becomes ever more compelling, says Francesco Lazzarini, chief operating officer, HeliFlite.
“The helicopter is a magic carpet – once you try it, it becomes very addictive,” Lazzarini told our Helicopter Investor Town Hall last year. “If we are able to inject that needle [of VIP helicopter transport], people do get addicted. It has worked for us.” The North American operator flies a fleet of Sikorsky S-76, Leonardo AW139 and Bell 429 aircraft.
It’s not just around city locations that the company offers VIP helicopter flights. The operator also operates flights around the Sunshine State and the Caribbean – some to destinations that would otherwise demand lengthy (and perhaps choppy) boat journeys. To boost business, HeliFlite last autumn expanded its south Florida service to the Bahamas and other popular destinations. Using float-equipped helicopters, based in south Florida, it whisks clients to Bimini in a journey of 20 minutes and Bakers Bay in a flight of just over one hour. Access to a landing site near Miami Beach has helped facilitate the new services.
HeliFlite reports a busy early and late summer and autumn last year – in line with 2022. But business was quieter in mid-summer, as many clients travelled to Europe. Overall, flights remained below pre-Covid levels. “We are still 15% below the level of 2019, which was the best-of-all-times year,” says Lazzarini. Plus, the company plans to launch new services in the UK in the second quarter of 2024. This will be in the London area, initially with one S-76. “The pie is growing – even with the challenges,” says Lazzarini.
The choice between luxury limousine or VIP helicopter is made easier for Flexjet clients who travel by Gulfstream G650. They are offered a complimentary rotary shuttle service on both sides of the Atlantic. G650 passengers arriving at New York airports are invited to board free helicopter flights to Manhattan. Complimentary flights are also offered to G650 clients flying from Farnborough Airport, UK to London Heliport, near central London. They qualify too for free helicopter flights to their departure airport.
But not all business jet passengers are happy flying on helicopters. “Some clients still think helicopters are an unexplainable phenomenon operated by magic,” says Will Fanshawe, MD, Flexjet Helicopters. But many are reassured after learning more. “When passengers see it’s a Flexjet-operated aircraft with twin-engines, two qualified crew, wearing the same uniforms as the jet they have just left, and operated to the same standards as corporate jets and airlines, they say: ‘That’s good for me,’” says Fanshawe. “We have seen people who have never flown before, burning through a year’s worth of hours in a month – it’s that addictive.”
Lazzarini, at HeliFlite, also acknowledged some potential clients’ wariness about helicopter safety. But they were reassured to learn HeliFlite operates only twin-engine aircraft with two pilots under Instrument Flight Rules (IFR).
Fanshawe, at Flexjet Helicopters, recognises other factors can deter potential clients from using VIP helicopters. Familiarity with car transport, the relative lack of luggage capacity and weather cancellations all figure here. But many are drawn by the time savings on offer. “The helicopter shuttle-jet flights are proving popular because of the time they save,” he says. “On a typical Manhattan to Mayfair flight, helicopter transfers can save about 25% on clients’ journey times.”
The company’s non G650 fractional owners can transfer their jet hours to time in the company’s S-76 aircraft. It offers a helicopter card of 25 occupied hours for helicopters that can be used in London, New York and Miami.
Leonardo’s AW139 is a popular VIP helicopter.
Flexjet Helicopters in the UK, which rebranded from Halo Aviation last year, reports a busy 2023 for managed and charter aircraft. The European market spiked around key sporting events such as the Le Mans 24-hour car race in France and in the UK, the Royal Ascot horse racing festival and the British Grand Prix motor racing event at Silverstone. This year the company expects growth in US VIP helicopter services, due to the relative strength of the economy, but European activity to stay in line with last year due to worries about the global economy. The UK is its largest twin-engine helicopter market by far.
Another VIP helicopter operator reporting long-term growth for its services is Castle Air, based in the UK. The charter company, which also offers sales and leasing, engineering and flight training, operates a six-minute helicopter shuttle service from London Biggin Hill Airport to London Heliport, located close to central London. “Demand for VIP helicopter flights is probably growing at about 15% a year,” says Michael Jupp, senior pilot at Castle Air, London Biggin Hill told us. “It’s picking up year-after-year, as clients realise they can get off their private jet at Biggin Hill and get onto a AW109 twin engine helicopter for a six-minute flight to central London.” (Last December, Castle Air operated the first Heli Shuttle service in a AW109S powered by Sustainable Aviation Fuel (SAF)).
London Heliport is a six-minute flight from Biggin Hill.
Castle Air at London Biggin Hill Airport operates helicopters fuelled by SAF.
Cruising over cityscapes, like London, beats traffic congestion.
Castle Air offers the on-demand shuttle service from Biggin Hill to London Heliport at prices starting from £2,500 ($3,191) plus tax. But the shuttle service to the capital is not the only VIP helicopter service in demand. In season, the charter firm’s AW109 and AW139 helicopters are just as likely to fly a six-strong shooting party to the North Yorkshire Moors for the start of the grouse shooting in August or fly-fishing enthusiasts to Wales or the West Country. Or major sporting events such as the British Grand Prix or the Wimbledon Tennis Championships.
One recent trend noted by Jupp is that clients offer progressively less notice. “Five years ago, clients used to organise flights months in advance,” he says. “Now people want to take that trip tomorrow. We have absolutely become a Now Society.”
Castle Air’s clients are divided roughly half and half between private individuals and corporate flight departments. The lifting of Covid pandemic restrictions led to a big spike in private flights as clients, reminded of their mortality, became determined to enjoy their wealth, says Jupp.
Since then, company c-suite executives, tired of interminable Zoom meetings, are eager to meet clients in person and charter helicopters to make that happen. “Some of our clients are CEOs who still want to shake the hand and look people in the eye when agreeing big deals,” he tells us. Whether private or corporate clients, many want the same things from VIP helicopter charter flights: a safe, speedy, convenient service, flexibility to change timings, dates and routes at short notice and, not to be underestimated, a discrete service.
“Helicopter flights are exclusively in twin-engine aircraft,” says Jupp. “And two pilots are offered as an option, which is now used on 80% of flights.” Weather cancellations for safety reasons are not unknown but no charges are made when that happens.
In fact, weather-related accidents – often caused by private pilot error – have played a big part in unjustifiably tarnishing the reputation of helicopter flights, according to Castle Air. “A lot of helicopter incidents and accidents will involve single pilot owners flying their own helicopter in weather conditions in which we would never fly,” says Jupp. “Prospective clients’ views are reassured by our policy of offering two pilots, two engines powering a fully IFR aircraft with full flight planning and compliance with strict performances and procedures.”
For some prospective clients, seeing is believing. More than one US business has sent representatives to audit the operator before placing its business with the operator. One of America’s largest insurance companies sent a team to take familiarisation flights with Castle Air. Its assessments included both technical topics with flight crew and a desk audit, conducted in partnership with aviation safety firm Wyvern.
But the Heli Shuttle service is far more than simply a time-saver for travellers, argues London Biggin Hill Airport. It regards the service as a business accelerator that attracts new clients to the airport and deepens its relationship with existing ones. Robert Walters, the airport’s commercial director puts it like this: “The Heli Shuttle service has enabled us to attract existing customers to start using helicopters and to attract customers who may have resided at other airports to now consider Biggin Hill. That’s because our close proximity to London and on-demand helicopter services can save them significant amounts of time and give them the travel flexibility they have never enjoyed before.”
‘There’s a symbiotic relationship between jets and helicopters within our customer base’
Walters sees private jet and helicopter services at Biggin Hill as a symbiotic key that unlocks new profit from a virtuous (and lucrative) circle – in addition to differentiating the airport from competitors in the London area. If there’s a jet movement that generates a helicopter flight, this creates fuel sales, engineering work and a wide range of associated services (cleaning and catering) and employment opportunities. “So, it’s not simply about being a taxi rank,” says Walters. “It’s all about the diversified and vertically integrated aviation experience we can offer at Biggin Hill. Plus, the Heli Shuttle service and having Castle Air based here drives some really important economic benefits, which sits outside the central benefit of giving time back to our customers.”
Castle Air offers the on-demand shuttle service from Biggin Hill to London Heliport at prices starting from £2,500 ($3,191) plus tax. But the shuttle service to the capital is not the only VIP helicopter service in demand. In season, the charter firm’s AW109 and AW139 helicopters are just as likely to fly a six-strong shooting party to the North Yorkshire Moors for the start of the grouse shooting in August or fly-fishing enthusiasts to Wales or the West Country. Or major sporting events such as the British Grand Prix or the Wimbledon Tennis Championships.
One recent trend noted by Jupp is that clients offer progressively less notice. “Five years ago, clients used to organise flights months in advance,” he says. “Now people want to take that trip tomorrow. We have absolutely become a Now Society.”
Castle Air’s clients are divided roughly half and half between private individuals and corporate flight departments. The lifting of Covid pandemic restrictions led to a big spike in private flights as clients, reminded of their mortality, became determined to enjoy their wealth, says Jupp.
Since then, company c-suite executives, tired of interminable Zoom meetings, are eager to meet clients in person and charter helicopters to make that happen. “Some of our clients are CEOs who still want to shake the hand and look people in the eye when agreeing big deals,” he tells us. Whether private or corporate clients, many want the same things from VIP helicopter charter flights: a safe, speedy, convenient service, flexibility to change timings, dates and routes at short notice and, not to be underestimated, a discrete service.
“Helicopter flights are exclusively in twin-engine aircraft,” says Jupp. “And two pilots are offered as an option, which is now used on 80% of flights.” Weather cancellations for safety reasons are not unknown but no charges are made when that happens.
In fact, weather-related accidents – often caused by private pilot error – have played a big part in unjustifiably tarnishing the reputation of helicopter flights, according to Castle Air. “A lot of helicopter incidents and accidents will involve single pilot owners flying their own helicopter in weather conditions in which we would never fly,” says Jupp. “Prospective clients’ views are reassured by our policy of offering two pilots, two engines powering a fully IFR aircraft with full flight planning and compliance with strict performances and procedures.”
For some prospective clients, seeing is believing. More than one US business has sent representatives to audit the operator before placing its business with the operator. One of America’s largest insurance companies sent a team to take familiarisation flights with Castle Air. Its assessments included both technical topics with flight crew and a desk audit, conducted in partnership with aviation safety firm Wyvern.
But the Heli Shuttle service is far more than simply a time-saver for travellers, argues London Biggin Hill Airport. It regards the service as a business accelerator that attracts new clients to the airport and deepens its relationship with existing ones. Robert Walters, the airport’s commercial director puts it like this: “The Heli Shuttle service has enabled us to attract existing customers to start using helicopters and to attract customers who may have resided at other airports to now consider Biggin Hill. That’s because our close proximity to London and on-demand helicopter services can save them significant amounts of time and give them the travel flexibility they have never enjoyed before.”
‘There’s a symbiotic relationship between jets and helicopters within our customer base’
Walters sees private jet and helicopter services at Biggin Hill as a symbiotic key that unlocks new profit from a virtuous (and lucrative) circle – in addition to differentiating the airport from competitors in the London area. If there’s a jet movement that generates a helicopter flight, this creates fuel sales, engineering work and a wide range of associated services (cleaning and catering) and employment opportunities. “So, it’s not simply about being a taxi rank,” says Walters. “It’s all about the diversified and vertically integrated aviation experience we can offer at Biggin Hill. Plus, the Heli Shuttle service and having Castle Air based here drives some really important economic benefits, which sits outside the central benefit of giving time back to our customers.”
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Post-lockdown boom
Blueberry Aviation, from its base in Monaco on the Mediterranean coast, is well placed to take the temperature of the VIP helicopter sector. François Gautier, founder and CEO of the helicopter and commercial aircraft company, tells us: “Since the end of the Covid crisis we have seen huge demand emerging for VIP helicopters which has not waned since.”
The rising number of high-net worth individuals is a key factor. “More helicopters are being bought but moreover, the customer base is growing with more and more individuals accessing high spending power,” says Gautier. “As an example, 573 new billionaires emerged between 2020 and 2022. These individuals aspire to access the effort-free lifestyle of which helicopters are an important element.”
The only limit to the VIP market growth is aircraft availability, he says. “The lack of new assets is a real curb to the market, only partially compensated by the pre-owned market.”
Demand in the pre-owned market is expected to remain strong throughout this year. While some high-value asset markets have been hit by higher interest rates, Blueberry Aviation reports no impact on the spending capacity of its customer base.
“Given that our VIP customer base is heavily focused on the large corporations and UHNWIs, we have a natural focus on the larger aircraft, all of which are twin engine and IFR, such as the Leonardo AW139 and the Airbus H145. Twin engines offer a wider capacity with less restrictions in terms of range, speed and airspace, allowing for freer and longer travel,” he says.
But there are exceptions. For example, when selecting a helicopter for transfers to and from superyachts, the size and weight restrictions of some smaller vessels may limit the choice to single-engine aircraft.
In an ever more congested world, Gautier, like Flexjet Helicopters and HeliFlite, sees a strengthening relationship between HNWIs’ use of private jets and VIP helicopters. “There is a symbiotic relationship between jets and helicopters within our customer base,” he says. “Rather than the two contending, most of our customers see the two going hand-in-hand to render a turnkey travel solution.”
Helicopter sales and market intelligence firm Aero Asset identifies the best performing markets in the VIP helicopter segment as being the light twins – particularly the Leonardo AW109 range, including the Power, Grand, and GrandNew models.
Helicopter sales and prices are slipping – at least in the pre-owned market. “Pre-owned VIP twin sales are down 30% year-on-year [YOY],” according to Valerie Pereira, vice president, Market Research, Aero Asset. “Twin-engine VIP-configured average trading prices are down 11% year-on-year.” For comparison, helicopter values in the Emergency Medical Services (EMS) markets are down 16% YOY and utility-configured helicopter values have climbed 20% over the same period.
This year Pereira doesn’t predict a significant increase in helicopter values, or buyers paying high premiums for most assets. Overall, pre-owned helicopter markets will continue the trend seen last year, with the absorption rate increased slightly for pre-owned twins, due to a slow down in sales. Aero Asset produces four market reports tracking the pre-owned helicopter market – two devoted to single-engine aircraft and two dedicated to twins. Its latest Heli Market Trends report, focusing on singles, was published last month.
So, back at Teterboro, there’s still that choice. Tradewind Aviation offers scheduled and charter flights to Martha’s Vineyard Airport in a Pilatus PC-12 turboprop or a Citation CJ3. Otherwise, it’s a long car journey (plus a ferry crossing) or a short helicopter flight. Which would you choose?
François Gautier, Blueberry Aviation, sees significant growth in the VIP helicopter market as spending power rises worldwide.
Twin-engine heli flights up 10% last year
TWIN-Engine turbine helicopters – the rotary aircraft of choice for high-net worth individuals (HNWIs) – saw a 10.3% rise in global flights last year compared with 2022, according to data tracked by AMSTAT and using flight intelligence from FlightAware. Flights in the fourth quarter (Q4) of 2023 were 10.7% higher than in the same period of 2022, according to Andrew Young, general manager, AMSTAT.
North America led the world with 24.8% of flights, closely followed by Western Europe making up 23.7% of the total. Flights in Asia accounted for 16.8% of global flights with Middle East and Africa contributing 10.8% to worldwide flight hours. South America made up 10.6% of the total.
Prioritised by country, the two nations with the most active twin-engine helicopter fleets last year were the US recording 19.4% of worldwide active flight units and Japan at 5%. Brazil accounted for 4.8% of twin-engine active flight units, Canada contributed 4.3% and Italy made up 3.8%.
Selected by individual airports, the busiest was predictably in Brazil at Aeroporto de Jacarepagua – Roberto Marinho, Rio de Janeiro (SBJR). Also, in the top three were Houma-Terrebonne Airport, Houma, Louisiana (KHUM) and Norwich Airport, Norwich, UK. (EGSH).
The spiralling costs of buying twins
FANCY operating a twin-engine helicopter? Then here’s some handy advice from Jean-Marc Youkhana Ichard, CEO at helicopter consultancy Uplifting Aviation.
He divides the twin-engine helicopter market into four categories: light twin-turbine powered helicopters, medium twins, intermediate twins and heavy twin-turbine powered helicopters. Each has its own operating costs, so now would be a good time to reach for that calculator.
Whatever the type of twin concerned, both the capital expenditure and operational expenditure costs are substantial, says Ichard. For a new light twin-engine helicopter, flying 300 to 400 hours per year, you’d be looking at an annual budget ranging from €1.2m to €1.5m. For a medium light twin, with a similar flight profile, prospective owners could expect an annual budget ranging from €1.35m to €1.8m. That annual budget rises to €1.75m to €2.25m and more for a new heavy twin.
Before that there’s the purchase price to consider. For a new Airbus Helicopters H145 in North America you can expect to pay a basic list price of about €9.25 ($10.04m) – and wait for up to two years for delivery. A new, basic AW139 helicopter could carry a price tag of about $12.5m ($13.57m).
But the potential market for VIP helicopters will continue to be constrained by both manufacturing constraints and supply chain delays. “When you look at all manufacturers, be it Airbus Helicopters, Leonardo, Bell, Sikorsky, MD and Robinson you will know there is a limited annual production, which defines the max potential of the market size,” says Ichard. And that’s at a time when lucrative military contracts are commanding manufacturers’ attention.
Also, some potential buyers remain wary of rotorcraft because they don’t understand how they fly or fear high-profile accidents, he adds.
Meanwhile, Ichard can add to the list of reasons why wealthy people choose VIP helicopter flights. In some locations, its not just that the cost attached to their travel time is well above that of the overall cost of the helicopter throughout the life cycle of ownership, he says. Beyond the quickness, convenience and the gravitas (in clients’ eyes) helicopters can bring to your business, there’s an unexpected safety factor favouring their use.
“Helicopter travel can be a wise choice in locations where your personal safety may be at risk,” he says. “One of the world’s biggest helicopter markets, Brazil is a good example where if you are an ultra-wealthy individual travelling by car, you could face abduction. Never forget that the helicopter market is worldwide but really, it’s a regional business.”
