Investec: Pre-owned heli market rebound fuelled by ‘strong fundamentals’
Pre-owned EMS helicopters are increasing in value. (Photocredit: Shutterstock).
Renewed momentum in the global pre-owned helicopter market is fuelled by “strong fundamentals”, according to financial specialists Investec.
John Shaw, Aviation Finance at Investec said: “The rebound is underpinned by strong fundamentals: rising order books, increased financing activity, and a tightening market for pre-owned inventory – especially in light and super medium categories.”
After nearly a decade of volatility following the 2015–2016 oil crisis, the helicopter industry has stabilised and is entering a new growth phase this year. For evidence, Shaw referenced the Fortune Business Insights report predicting growth in the helicopter services market from $1.16bn last year to $48.06bn by 2032.
“While total pre-owned supply is growing, the market for high-spec, sector-specific aircraft remains tight,” said Shaw. “Well-maintained helicopters entering the market are being absorbed quickly, with demand consistently outpacing supply.”
New helicopter deliveries are slowly making their way into service, hampered by lingering supply chain disruptions, which have pushed operators towards the pre-owned market which has shown resilience.
Twin-engine helicopters, particularly light twins used in emergency medical services (EMS), have seen sharp increases in market value – a signal of strong operational demand amid constrained new aircraft availability, said Shaw.
“Demand is strongest in mission-critical sectors such as EMS, search and rescue, and firefighting, where aircraft turnover remains essential and publicly funded contracts lend stability,” he added. “As competition in these sectors increases, it’s influencing lease rates and driving operators to secure versatile, modern aircrafts given the ongoing need for high-quality aircrafts in mission-critical operations globally.”
Offshore energy operations – both traditional and renewable – are also guiding fleet decisions. “Medium, super medium, and heavy helicopters remain the backbone of offshore transport given their capability for long-range transportation and higher passenger loads,” said Shaw. “However, shifting political dynamics, especially in the US, have introduced uncertainty into long-term renewable energy transition projects.”
Europe, in contrast, is maintaining investment momentum. This is reaffirming the central role helicopters play in renewable offshore infrastructure, he said.
While Europe and North America remain dominant forces in the pre-owned helicopter market however, the Middle East has proven its appetite for new helicopters with large multi-year orders announced to replace and supplement existing fleets. Despite initial concerns that these fleet upgrades might flood the pre-owned market, staggered delivery timelines and ongoing regional demand have mitigated those fears, according to Investec.
In Africa and Asia, fleet expansion is being driven by geography and industrial demands. In Africa, helicopters support mining, conservation, and security efforts are gaining in popularity. In Asia, aerial mobility for transportation and public services are attracting renewed investment.
Meanwhile, last September, law firm Watson Farley & Williams advised Investec Bank on financing 10 Airbus H135 and two Leonardo AW109 helicopters for RIVE Private Investment. The aircraft were deployed on EMS missions in France and Spain.
