Arrow Leasing widens options for Canadian helicopter operators

Arrow Leasing provides dry leasing options to Canadian operators of single-engine and light twin helicopters. Arrow Leasing Photo

A new firm based in Québec City is seeking to provide helicopter operators in Canada with additional methods to expand their fleets. Launched in November, Arrow Leasing provides dry leases (also known as operating leases) with a current fleet of 11 helicopters and plans to add a number of other aircraft during 2015. The fleet is made up of Airbus AS350 B2/B3s, EC130s and EC120s. The company is focused on single-engine helicopters, with plans to expand into light twin-engine variants in the near future.

President Pierre Lalancette explained to Vertical why founder Stephan Huot decided the time was right to reorganize his existing helicopter businesses into Groupe Aviation Inc., which includes Arrow Leasing, Airmédic and Complexe Capitale Hélicoptère at Jean-Lesage International Airport (TQB). Huot could see the growth potential — five to six percent of the global helicopter fleet is under leasing agreements now, and the experts are projecting that number to increase to 20 percent within the next decade, Lalancette noted.

One of Arrow Leasing’s clients is Access Helicopters, which provides helicopter services to remote locations. Access Helicopters Photo

“We saw a good opportunity to be in the market right now,” he said, after seeing the expansion of the global helicopter financing industry with large-scale players like Milestone Aviation Group, Lease Corporation International (LCI) and Waypoint Leasing opening the door for the expansion of leasing to smaller operators. Once activity picked up in the sector, the company “realized that certain segments of the Canadian market were not as well-served, so we decided that now’s the time to get in,” Lalancette remarked.

An operating lease “is not something we have to convince operators about any more. So we’re just there to provide them with the right aircraft,” Lalancette added. “We feel like there will be more and more demand for this type of contract lease,” he continued. “In the short-term, we are looking into acquiring more light-twin helicopters.”

Airmédic is another subsidiary under Groupe Aviation, which is also the parent company of Arrow Leasing. Arrow Leasing Photo

Arrow is also looking into opportunities in the United States, but is initially “establishing a foothold” in Canada, according to Lalancette. He said that customer service is going to be a differentiator in the highly competitive market space, which features a new entrants and existing companies such as Amur HFS, Eagle Copters, Element Financial Corp., Infinity Helicopter Leasing and GE Capital Aviation Services (which has reached a $1.7-billion agreement to acquire Milestone).

“To be successful, you need to be able to work with your customer,” Lalancette explained. “This is where Arrow is focusing initially. We work with operators, help them decide on what they want, and it makes it easier.” With a 20-year history as a military helicopter pilot, Lalancette has a unique insight into how operators think.

Lalancette feels the rapid growth of the rotorcraft leasing sector is due to a number of factors, including the high residual value of the helicopter, the rising price of equipment and the demand for more reliable and safer aircraft. Leasing provides a number of advantages for operators, he continued, chief among them flexibility — “the fact that your money can do something else or be used to go after new contracts, that helps operators a lot.”