HI Uplift: GDHF’s busy month with H160 financing

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by Mike Stones

20 December 2024

GDHF has delivered the first of two Airbus H160s to Chipsan Aviation.

It’s been a busy month for helicopter lessor GD Helicopter Finance and its Airbus H160s super-medium aircraft. This week the new leasing specialist delivered the first of two Airbus H160s to helicopter operator Chipsan Aviation, based in New Delhi.

The first to operate in India, the new H160s will fly onshore missions servicing government and corporate contracts.

Earlier this month, the lessor agreed a finance deal worth more than €77m ($81.34m) with Bank of China, London Branch and German bank Helaba Landesbank Hessen-Thüringen to acquire “multiple” new Airbus H160 helicopters.

Bank of China

GDHF will use the proceeds of the loan agreement, supported by Bpifrance Assurance Export (Bpifrance), to acquire the H160s for delivery over the next two years. The Bank of China acted as arranger, facility agent and security trustee.

The initial GDHF financing facility covers the 2024 and 2025 H160 order book, Michael York, CEO, GDHF tells Helicopter Investor. “GDHF will go out to market in 2025 for additional bank financing for 2026 and beyond orders. The GDHF order book of 50 x H160 helicopters will enable us to deliver this excellent aircraft to customers over the next decade,” he says.

‘Clear cost savings’

So, what made the H160 the aircraft of choice for both deals? The aircraft is designed to be a multi-mission platform capable of passenger transport, corporate flights, emergency medical services (EMS) and search and rescue (SAR) missions in addition to offshore crew transport work, according to the lessor. “This multi-role nature makes it an attractive proposition for leasing, along with the clear cost savings in both acquisition and operating costs, compared with competitor types in the medium class,” adds York.

GDHF’s investment plan for the H160 is based on what the lessor terms “deep analysis” of the helicopter market. It contends both operators and lessees need to transition away from the current fleets of either obsolete helicopters – such as the Sikorsky S-76, Bell 412 and Eurocopter AS 365N3 Dauphin aircraft – or ageing medium helicopters like the early model AW139. In their place, the lessor prefers new technology, cost efficient, multi-mission helicopters.

‘50 on order’

“GDHF feels that the best factory-new medium helicopter solution is the Airbus H160, of which GDHF has 50 on order,” says York.

The timing of the €77m finance deal was influenced by feedback from several lenders, banks and institutions, which have traditionally financed commercial aircraft. During the past five to 10 years, returns have fallen and the sector has grown more competitive, they told GDHF. “Several banks are now showing strong interest in the returns on offer in the helicopter space, which are attractive compared with traditional fixed wing lending,” York tells us.

Also, the medium, super-medium and heavy helicopter market served by GDHF has the added benefit of operator leases being backed by long-term contracts, says the lessor. Plus, the sector focuses on creditworthy end users operating in mission critical roles such as government or offshore sectors.

Sources of capital

Banks have a limited pool of customers in the helicopter space, as some of the existing market participants in the rotary leasing space have pre-existing sources of capital from parent companies, says GDHF. By contrast, GDHF has provided a new lessor platform for banks to participate in the helicopter market, especially financing factory new orders, it adds.

Such factors, coupled with two other things have enabled the lessor to attract high-high-quality bank finance, it claims. These are said to be GDHF’s value proposition – spanning large order books, near-term availability of newest technology and multi- mission helicopters – and what it describes as “bank’s faith in the high quality GDHF team’s ability to execute”.

First operator in Latin America

Meanwhile, last month the lessor agreed a deal with Omni Helicopters International Group (OHI) to secure the Latin American operator’s first H160. OHI subsidiary Omni Táxi Aéreo will be the first operator in Latin America to offer the Airbus H160 to offshore energy sector customers.

Sustainability played a key role in the aircraft’s selection, according to Duncan Moore, chief operating officer, OHI Group. “Through our environmental impact assessments, an integral part of our sustainability strategy, we’ve identified that optimising seat utilisation is one key element in minimising overall CO2 emissions,” said Moore. “In this regard, the Airbus H160 will more efficiently address the needs of some of our existing missions.”

So, with H160 leasing agreements in place in Latin America and, after this week, in India, GDHF is on its way to supply next generation helicopters worldwide. If you enjoy reading this article, please sign up for our newsletter. Thanks.

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