Global Vectra caught in a tailspin

MUMBAI: Offshore helicopter company Global Vectra Helicorp India’s largest offshore air logistics provider is flying through rough weather.

More than 30% of the pilots on the company’s rolls have walked out in the past four months to join a rival startup. Among those who quit are senior pilots and engineers, including the chief pilot and chief engineer and technicians.

Faced with the exodus, operations of the company that charters helicopters to oil companies such as ONGC, Reliance and British Gas for their daily offshore work have been impacted, industry sources confirmed.

The number of ‘aircraft on ground’ incidents have gone up substantially because of the shortage of pilots for which Global Vectra has to pay liquidated damages to the oil companies. The company’s share price has fallen 42 % on the BSE in the four months, since the crew began leaving.

The company’s stock on the BSE has lost ground from its Rs 239.85 levels as on July 2, 2007 to its current levels of Rs 139.95 levels.It is now well below the IPO price of Rs 185, when the company raised Rs 67 crore.

Responding to questions on the situation, the Global Vectra CEO Allan Brown said, “Several changes have taken place in the aviation industry, therefore pilots and engineers have various options today. It is quite natural that crew members and engineers would want to look at more lucrative alternatives. We wish them well. However, we have taken care that our clients are not facing a problem due of this because we serve our clients with complete commitment. We have recruited some more competent personnel in our crews, which is taking care of the situation.”

Helicopter pilots and engineers, a rare commodity in India, are even more difficult to find now because of a boom in the oil industry. Global Vectra which has grown rapidly to a fleet of 22 helicopters had about 54 pilots on its rolls, of which about 17 have quit.

Getting foreign pilots to fill the gap is a long process that involves elaborate clearances from the Indian regulatory authorities. ONGC is one of Global Vectra’s biggest clients, with about nine machines being chartered to them. The remaining are hired out to clients like RIL, GSPC, Transocean and British Gas.

Global Vectra and other helicopter companies have also been involved in a tussle with ONGC on the issue of liquidated damages for the delayed mobilization of helicopters. Latest reports from ONGC indicate that the company has decided that the amount of Rs 18 crore, imposed on Global Vectra as liquidated damages will not be waived.

Responding to the question, Mr Allan Brown said, “Subject of LD’s is still under negotiation with ONGC, and is a confidential matter between the contracting parties.”