Bristow Helicopters is pushing ahead with a further round of restructuring as demand for helicopters to support the UK offshore oil industry continues to diminish.
Bristow chief executive Keith Chanter says: "The reduction of oil exploration in the North Sea and the increasing automation of oil platforms have reduced the need for our services." Bristow's flying hours have been slashed by 20%, he says "and we will be flying fewer aircraft in the North Sea at the end of 2003 compared with 2002".
At the same time as demand is decreasing in the North Sea, he says, the marketplace is becoming increasingly crowded. "Bond Helicopters will be operating up to six helicopters in the North Sea from August 2004, in an already declining market," he says.
Bristow began the process of restructuring three years ago with the creation of standalone business units for its European operations, international operations and Technical Services division - each responsible for its own profitability and business development.
The latest round of restructuring, scheduled for completion in June 2004, will continue along these lines, with responsibility continuing to shift from Bristow's corporate headquarters in Redhill, Surrey, to its individual business units in the UK.
The Aberdeen unit will focus on the European oil and gas market, while its 12 overseas bases will work more closely with Bristow's US parent company Air Logistics, "with operations being managed according to geographic area", Chanter says.
"We need to be more cost effective or we will not retain our customers, win new ones or obtain the capital investment we need for new aircraft," he says.
Source: Flight International
