CHC Supplies UN with Choppers for Iraq

As a major supplier to the United Nations for more than a decade, CHC Helicopters has learned the ropes about doing business with the large and diverse organization. One of its biggest UN-funded projects was a $14-million contract to transport weapons inspectors between Baghdad and various locations within Iraq.

CHC Helicopters is the world's leading provider of heavy and medium helicopter services to the offshore oil and gas industry. The company—which also operates air ambulances, search and rescue services and police helicopters—has extensive experience working with the UN in places such as Angola, Bosnia, Burundi, Cambodia, Kuwait, Mozambique, Rwanda, Somalia and the Western Sahara region.

The CHC's business with the UN peaked in 1993 and 1994 with the sale of about 50 aircraft, but then tapered off to one or two helicopters a year. In December 2002, however, CHC was awarded a contract by the UN Monitoring, Verification and Inspection Commission to transport its weapons inspectors. "Our biggest challenge was to swiftly organize the mobilization of four Bell 212 helicopters, which were located at the time in South Africa, Thailand and Vancouver, for deployment in Iraq," says Chris Krajewski, Vice-President, Business Development. The contract terminated early, upon the start of the Iraq war in mid-March 2003.

CHC down under
In another challenging project with the UN, CHC's Australia division successfully carried out an evacuation mission in Timor-Leste in late 1999, helping to save the lives of UN international and local staff. The major commercial helicopter operator in Australia, CHC currently has four aircraft on contract to the UN in Timor-Leste.

In October 2003, CHC Australia won a five-year contract to provide a new dedicated Bell 412 EP aircraft to the Western Australia Government Fire and Emergency Services Authority, with anticipated revenues of approximately $15.2 million.

Acting as an adviser to the UN
In order to maintain its high profile with the UN, CHC has always made a point of keeping in contact with key officials. "One of our important strategies is to stay in touch with the aviation specialists at the UN," explains Krajewski. "We almost act like a consultant by keeping them up to date on developments such as new operating standards. Talking to them on a regular basis can really give you an edge." A word of caution, however, for other Canadian companies interested in doing business with the UN: "Because it is such a large and diverse organization, the UN can have different interpretations of certain contract definitions, so it is very important to study contracts carefully," adds Krajewski.

A major player in the North Sea
CHC has become a leading helicopter operator around the globe, particularly in the North Sea, the world's largest area of offshore oil and gas development. "We estimate that our Scotia division holds a market share of approximately 65 percent in the combined Danish, Norwegian and U.K. sectors of the North Sea," says Krajewski. "Several years ago, the Canadian Embassy in London approached the U.K. government in support of CHC's bid for the acquisition of a large Norwegian helicopter operator. As a result of this intervention, CHC has since become one of Europe's largest helicopter operators."

Spanning seven continents and 11 seas
With aircraft operating in more than 30 countries and a team of approximately 3,400 professionals worldwide, CHC has eight distinct business units headquartered in Australia, Canada, Norway, South Africa and the U.K. Besides the UN, key customers include the Arabian Oil Company, Arco, BP, Chevron, Eni-Agip, ExxonMobil, Premier, Shell, TotalFinaElf and Triton. Its early presence in markets such as Azerbaijan, which possesses one of the largest oil reserves in the world, offers CHC excellent potential for further growth.

For more information, contact:

International Financing Division, DFAIT
Tel.: (613) 995-7251
E-mail: ifinet@international.gc.ca

or

Chris Krajewski
Vice-President, Business Development
CHC Helicopters
Tel.: (604) 276-7500
E-mail: ckrajewski@intl.chc.ca
Internet: www.chc.ca