JV with experience pilot/manager in helicopter utility market in S.E. Asia

JV with experience pilot/manager in helicopter utility market in S.E. Asia

As an investment and profitable business opportunity, certain sectors of the aviation industry are good to be involved in. The sector that this proposal concentrates on is the helicopter utility market with the current areas of operation requiring helicopters in greater numbers. The utility area e.g., fire fighting, mining, logging, seismic and oil support etc., are where the shortage of suitable heavy lift machines is at a premium. Due to the specific nature and often remote areas of operations high end contract rates are able to be negotiated.

CURRENT STATUS

The Company has signed a four year contract for the supply of three (3) helicopters to satisfy a Turkish Forestry Ministry requirement and is currently finalising contract details for a fourth helicopter to be placed in Malaysia on a helicopter logging operation.

Existing annual revenue is between USD 96 000 to 125 000. With funds received the projected five year revenue is:

Projected revenue for the fire fighting contract, based on contracted guaranteed flying hours, is US$17.2mil.
Projected revenue for ad-hoc construction work (based on twenty (20) hours per machine per month, is USD 2.204m) giving projected revenue for the Turkish operations of US$10.4mil
Projected revenue for the logging operation is US$42.4mil
Total projected five year income is US$70mil.

To service this contract as well as place the company in the recovering South East Asia market a company and office will be established in Singapore to support growth in SE Asia.

THE COMPANY

The owner/director has been in the aviation industry for thirty four years, with twenty years experience as a pilot/manager and ten years as a consultant to the helicopter industry, the bulk of it being in the international utility field. As a pilot he has logged over 6 800 hours in various and often diverse sectors. He has managed contracts while in the employ of various companies and has been involved with negotiation and procurement for helicopters to service contracts on both short and long term periods. He has been the owner/director of a company in South Africa (which no longer trades) and a company – xxxx Sdn Bhd – in Malaysia, a company being allied to the expansion of operations contained in this proposal.

FUNDING REQUIREMENT

The company is seeking to raise US$23.7 million fund the purchase and operational management of helicopters for their contracted work through direct equity and debt/leasing facilities. This will fund the helicopters required for the contract – including maintenance and modifications that are needed prior to shipping them from Canada and the US – as well essential specialist equipment. Included in this amount is a figure for operational costs and any possible underestimation and/or price rises.

The Company is offering 25% shareholding for US$6,000,000, with the balance of the investment amount to be in either structured leasing, or preferably, a debt facility, with the helicopters purchased as the asset backing.

Nevertheless, the Company will be flexible subject to funder’s requirements.

Use of proceeds (projected) US$
Capex for purchase of aircraft $21,704,152
Working capital; contracting personnel $1,995,848
Total Equity funds Required $23,700,000

CAPITAL.MY