Vietnam Helicopters and the Falling Oil Prices
Same as the rest of the companies servicing offshore oil and gas production, the sharp fall in prices brings a challenging present for VNH
VNH, May 31, 2016 - Founded on 1st June 1989, Vietnam Helicopter Corporation (VNH) has a history closely attached to the development of the Vietnam Oil & Gas industry.
Starting with only 2 aircrews and 2 Russian Mi-8 helicopters, serving Vietsopetro in oil and gas exploration and exploitation, VNH now possesses nearly 30 helicopters diverse in types, including the world’s most modern types like AW-189, EC-225, EC-155B1 aircraft.
VNH also has a staff of over 100 pilots, many of whom flew more than 15,000 hours and many aviation technicians who have been well trained abroad. Up to now, VNH has performed over 400,000 safe flying hours to many areas of the country: from offshore flights for oil & gas customers to government leadership flights, helicopter tourism, pilot training and US Missing in Action program.
After 27 years of development, VNH has become one of the leading helicopter service providers locally and regionally.
Due to the sharp fall in oil price in recent years, VNH, has severely suffered from the reduction in oil & gas customers’ demands. The flying hours have been remarkably reduced from 16,000 hours in 2014 to 12,000 hours in 2015 and likely to be 9,000 hours in 2016. VNH’s 2016 revenue is expected to plunge 40% compared to 2015; while average salary drop 60%.
VNH has responsively carried out many appropriate measures to cut costs and many flexible solutions to share this hard time with customers. However, safety is always our top priority and considered as key point in general aviation industry. VNH leadership takes this difficulty as a good opportunity for the company to comprehensively restructure as well as finding chances to develop other kinds of flight services domestically and internationally. VNH has been implementing diversification projects such as onshore helicopter tourism service project; exporting services overseas, especially SAR, EMS, fire fighting services etc.; developing helicopter maintenance, repair, overhaul services; pilot training services for local and international clients.
With a strong sense of solidarity, great creativity spirit and high determination, VNH has a firm conviction that we will overcome this difficult time, securing the leading position in the helicopter service industry locally and regionally.