Era Says Petrobras Helicopter Tender Process Expected To Be Canceled

(RTTNews) - Era Group Inc. (ERA), a US-based helicopter transport operator, announced that Aeróleo Taxi Aero S/A, its Brazilian joint venture, received notification from Petroleo Brasileiro S.A. or Petrobras that Petrobras would cancel the ongoing tender process for heavy and medium helicopters.

According to Petrobras, it does not have a need to contract for additional helicopters after a review of its aviation needs in light of the ongoing challenges in the macroeconomic environment and continued low price of oil.

As a result, Petrobras noticed cancelation of the pending awards for heavy and medium helicopters following the bids submitted in January, including 4 EC225 heavy helicopters and 4 AW139 medium helicopters for which Aeroleo was the identified low bidder.

Aeroleo had been awaiting execution of the contracts and targeting launch of the heavy helicopter services before the end of 2015 and the medium helicopter services during the first quarter of 2016.

Aeroleo has 10 aircraft on contract with Petrobras, including contracts for 3 EC225 heavy helicopters scheduled to expire in November and contracts for 7 AW139 medium helicopters scheduled to expire between December 2019 and May 2020.

If an extension is not secured for the existing EC225 contracts, Aeroleo will need to evaluate potential headcount reductions of pilots and shore-based personnel.