Sikorsky and Bristow Group Sign Long-Term Agreement Supporting World's Largest S-92® Helicopter Fleet

Rhea-AI Summary

Sikorsky and Bristow Group (NYSE: VTOL) have announced a significant long-term agreement to enhance support for Bristow's fleet of over 60 S-92® helicopters. The deal includes Sikorsky's Total Assurance Program (TAP), providing aftermarket support and predictable operating costs.

The comprehensive package includes:

• Power-by-the-Hour agreement for offshore energy and search/rescue operations
• Coverage for over 90% of replacement parts costs
• Enhanced global fleet support through Sikorsky's worldwide network
• Access to Sikorsky360 customer portal

Sikorsky has also unveiled the S-92 Phase IV main gearbox with an auxiliary lubrication system, pending FAA certification in 2025. The company has increased inspection intervals and offered a one-time life extension for specific main gearbox housings, potentially adding 12-24 months of service life for operators.

Positive

• Long-term service agreement reduces risk of unplanned maintenance costs
• 90% coverage for replacement parts costs
• New gearbox technology extends service life by 12-24 months
• High fleet availability rate of over 90%
• Enhanced operational efficiency through comprehensive support package

Negative

• Supply chain disruptions and inflation affecting costs
• Heavy reliance on helicopter manufacturers and suppliers
• Significant delays in S92 fleet parts delivery
• Potential cybersecurity risks affecting operations

Insights

Aviation Industry Analyst

Bristow's multi-year S-92 support agreement with Sikorsky significantly reduces maintenance costs, extends aircraft availability, and improves operational efficiency.

This long-term support agreement between Bristow and Sikorsky represents a strategic win for the world's largest S-92 operator. With over 60 S-92 aircraft in its global fleet, Bristow has secured crucial operational predictability through the Total Assurance Program (TAP).

The agreement's Power-by-the-Hour component transforms unpredictable maintenance events into manageable fixed costs, while covering over 90% of replacement costs for critical components including airframes, drive trains, gearboxes and avionics. This dramatically reduces financial volatility from unplanned maintenance.

Perhaps most significant are the technical enhancements to the S-92 platform that will directly impact Bristow's bottom line. The increased inspection intervals and one-time life extension for main gearbox housings eliminate more than a full year of cumulative downtime across the fleet. For offshore operators, this translates to an additional 12-18 months of revenue-generating service per aircraft - a substantial improvement in asset utilization.

The new S-92 Phase IV main gearbox with its auxiliary lubrication system also enhances operational safety by eliminating the need for immediate landing if primary oil pressure is lost. Once FAA certification is secured in 2025, this will further reduce service interruptions.

In the competitive offshore energy helicopter market, where the S-92's 90%+ availability rate and capacity for 1,500+ flight hours annually are crucial differentiators, this agreement strengthens Bristow's position as the industry leader in vertical flight solutions.

Financial Analyst

Bristow's agreement with Sikorsky provides cost stability, extends asset life, and significantly improves fleet economics through reduced maintenance downtime.

This comprehensive support package provides Bristow with substantial financial benefits by addressing several key cost drivers in helicopter operations. The Total Assurance Program effectively converts unpredictable maintenance expenses into stable, budgetable costs - critical for financial planning in the volatile offshore energy sector.

The agreement's coverage of over 90% of replacement costs serves as an effective hedge against supply chain disruptions and inflation, which Bristow specifically identified as risks in its forward-looking statements. By securing these terms "into the next decade," Bristow has locked in favorable maintenance economics during a period of inflationary pressure.

The operational enhancements deliver compelling economic advantages. By eliminating over one year of inspection-related downtime and extending service life by 12-18 months per aircraft, Bristow stands to capture significant additional revenue from its existing asset base. For a fleet of 60+ S-92 helicopters operating in high-value sectors like offshore energy and search and rescue, this represents substantial revenue potential without additional capital investment.

While specific financial terms aren't disclosed, the agreement creates a competitive advantage through improved fleet economics. The S-92's lifetime availability average over 90% and annual utilization of 1,500+ flight hours per aircraft in offshore operations indicate these helicopters are core revenue generators for Bristow. The enhanced support package protects and extends this revenue stream while providing better visibility into maintenance costs.

This agreement effectively addresses several operational and financial challenges facing Bristow, supporting improved margins and asset utilization metrics.

Industry leaders look to the future with multi-year deal

STRATFORD, Conn. and HOUSTON, April 24, 2025 /PRNewswire/ -- Sikorsky, a Lockheed Martin company (NYSE: LMT), and Bristow Group Inc. (NYSE: VTOL), the global leader in innovative and sustainable vertical flight solutions, today announced a long-term agreement to provide enhanced support for Bristow's S-92^® helicopter fleet.

This agreement deepens the decades-long collaboration between the two companies and provides enhanced support for Bristow's more than 60 S-92 aircraft operating in key markets around the world, including offshore energy and search and rescue (SAR). The long-term package extending into the next decade includes Sikorsky's Total Assurance Program (TAP), which provides Bristow with continued aftermarket support to operate its S-92 fleet within a known budget, reducing the risk of unplanned costs.

"We are proud to continue our long-standing relationship with Bristow, one of the world's leading providers of helicopter services to the offshore energy industry," said Leon Silva, vice president of Global Commercial and Military Systems at Sikorsky. "We are committed to providing exceptional support to our customers and ensuring the continued success of the S-92 helicopter, which has a lifetime availability average of over 90% and many aircraft achieve more than 1,500 flight hours per year on average in the demanding offshore energy industry."

"Bristow is the largest operator of the S-92 globally," said Stu Stavley, Bristow's Chief Operating Officer, Offshore Energy Services. "This long-term support agreement will enable us to maintain our high level of service to our customers, while also controlling our operational costs and improving our overall efficiency."

The TAP package includes the following support provisions for Bristow's global fleet:

• Power-by-the-Hour (PBH) agreement for offshore energy services and search and rescue helicopters;
• Coverage for over 90 percent of replacement costs for parts including airframe, drive train, gearboxes, avionics and consumable parts;
• Enhanced global fleet support with access to Sikorsky's worldwide network of forward stocking locations (FSL) and field service representatives (FSR); and
• Access to Sikorsky360 customer portal, providing Bristow with the ability to place orders, check parts status, access services and financial information, and view aircraft data.

This agreement reflects Sikorsky's continued commitment to the commercial market and investment in the S-92 platform, which is well-positioned to support the increasing demands of deepwater operations. Sikorsky recently unveiled the S-92 Phase IV main gearbox featuring an auxiliary lubrication system that automatically engages in the event of primary oil pressure loss, eliminating the need for immediate landing and allowing operators to safely reach their destination. This revolutionary solution has been validated through more than 800 hours of rigorous testing, and Federal Aviation Administration (FAA) certification is anticipated in 2025.

Sikorsky also increased scheduled inspection intervals for the S-92 helicopter and offered a one-time life extension for specific main gearbox housings. These enhancements eliminate more than a full year of downtime caused by inspections and allow operators to safely keep their aircraft in service and generating revenues longer. The earned life credit is up to 1,200 hours / 3,600 ground-air-ground cycles, representing an additional 12 to 18 months for an average S-92 offshore oil operator and more than 24 months for others.

For additional information, visit our website: https://www.lockheedmartin.com/s92

Forward-Looking Statements Disclosure
This press release contains "forward-looking statements." Forward-looking statements represent Bristow Group Inc.'s ("Bristow") current expectations or forecasts of future events. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "project," or "continue," or other similar words, and include statements regarding the expected benefits of the fleet support and training agreements disclosed herein. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, reflect management's current views with respect to future events and therefore are subject to significant risks and uncertainties, both known and unknown. Bristow's actual results may vary materially from those anticipated in forward-looking statements. Bristow cautions investors not to place undue reliance on any forward-looking statements.

Forward-looking statements speak only as of the date of the document in which they are made. Bristow disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in Bristow's expectations or any change in events, conditions or circumstances on which the forward-looking statement is based that occur after the date hereof, except as may be required by applicable law.

Risks that may affect forward-looking statements include, but are not necessarily limited to, those relating to: the impact of supply chain disruptions and inflation and our ability to recoup rising costs in the rates we charge to our customers; our reliance on a limited number of helicopter manufacturers and suppliers and the impact of a shortfall in availability of aircraft components and parts required for maintenance and repairs of our helicopters, including significant delays in the delivery of parts for our S92 fleet; our reliance on a limited number of customers and the reduction of our customer base as a result of consolidation and/or the energy transition; public health crises, such as pandemics (including COVID-19) and epidemics, and any related government policies and actions; our inability to execute our business strategy for diversification efforts related to government services and advanced air mobility; the potential for cyberattacks or security breaches that could disrupt operations, compromise confidential or sensitive information, damage reputation, expose to legal liability, or cause financial losses; the possibility that we may be unable to maintain compliance with covenants in our financing agreements; global and regional changes in the demand, supply, prices or other market conditions affecting oil and gas, including changes resulting from a public health crisis or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries (OPEC) and other producing countries; fluctuations in the demand for our services; the possibility of significant changes in foreign exchange rates and controls; potential effects of increased competition and the introduction of alternative modes of transportation and solutions; the possibility that portions of our fleet may be grounded for extended periods of time or indefinitely (including due to severe weather events); the possibility of political instability, civil unrest, war or acts of terrorism in any of the countries where we operate or elsewhere; the possibility that we may be unable to re-deploy our aircraft to regions with greater demand; the existence of operating risks inherent in our business, including the possibility of declining safety performance; the possibility of changes in tax, environmental and other laws and regulations and policies, including, without limitation, actions of the governments that impact oil and gas operations, favor renewable energy projects or address climate change; any failure to effectively manage, and receive anticipated returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions; the possibility that we may be unable to dispose of older aircraft through sales into the aftermarket; the possibility that we may impair our long-lived assets and other assets, including inventory, property and equipment and investments in unconsolidated affiliates; general economic conditions, including interest rates or uncertainty in the capital and credit markets; the possibility that reductions in spending on aviation services by governmental agencies where we are seeking contracts could adversely affect or lead to modifications of the procurement process or that such reductions in spending could adversely affect search and rescue ("SAR") contract terms or otherwise delay service or the receipt of payments under such contracts; and the effectiveness of our environmental, social and governance initiatives.

If one or more of the foregoing risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on our forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based on the information currently available to us and speak only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for us to predict these matters or how they may affect us. We have included important factors in the section entitled "Risk Factors" in Bristow's Annual Report on Form 10-K for the year ended December 31, 2024 which we believe over time, could cause our actual results, performance or achievements to differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements. You should consider all risks and uncertainties disclosed in the Annual Report and in our filings with the United States Securities and Exchange Commission (the "SEC"), all of which are accessible on the SEC's website at www.sec.gov.

About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at lockheedmartin.com. 

About Bristow Group
Bristow Group Inc. is the leading global provider of innovative and sustainable vertical flight solutions. Bristow primarily provides aviation services to a broad base of offshore energy companies and government entities. Our aviation services include personnel transportation, search and rescue ("SAR"), medevac, fixed wing transportation, unmanned systems and ad-hoc helicopter services. Our business is comprised of three operating segments: Offshore Energy Services, Government Services and Other Services. Our energy customers charter our helicopters primarily to transport personnel to, from and between onshore bases and offshore production platforms, drilling rigs and other installations. Our government customers primarily outsource SAR activities whereby we operate specialized helicopters and provide highly trained personnel. Our other services include fixed wing transportation services through a regional airline and dry-leasing aircraft to third-party operators in support of other industries and geographic markets.

Bristow currently has customers in Australia, Brazil, Canada, Chile, the Dutch Caribbean, the Falkland Islands, India, Ireland, the Kingdom of Saudi Arabia, Mexico, the Netherlands, Nigeria, Norway, Spain, Suriname, Trinidad, the United Kingdom ("UK") and the United States ("U.S."). More information at bristowgroup.com.

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SOURCE Bristow Group

FAQ

What are the key benefits of the Sikorsky-Bristow VTOL agreement for S-92 helicopter fleet?

The agreement includes Power-by-the-Hour support, 90% parts replacement coverage, global fleet support network access, and Sikorsky360 portal access, helping Bristow control operational costs while maintaining high service levels.

How many S-92 helicopters does Bristow VTOL operate globally?

Bristow operates more than 60 S-92 helicopters globally, making it the largest operator of the S-92 fleet worldwide.

What is the expected FAA certification date for Sikorsky's S-92 Phase IV main gearbox?

The S-92 Phase IV main gearbox is anticipated to receive FAA certification in 2025.

How much additional service life can S-92 operators gain from the new gearbox housing extension?

Operators can gain 1,200 hours or 3,600 ground-air-ground cycles, equivalent to 12-18 months for offshore operators and over 24 months for others.

What is the average availability rate of S-92 helicopters in service?

S-92 helicopters maintain a lifetime availability average of over 90%, with many aircraft achieving more than 1,500 flight hours annually in offshore energy operations.