The ability to plan, manage and complete aircraft transitions is an integral part of a lessor’s operations.
Over the previous twelve months, the LCI team have been working on a complex but rewarding transition of aviation assets from South America to the UK. These will support the re-launch of Bond Helicopters. LCI and Bond Helicopters have worked together successfully in the past, and we were thrilled to have the opportunity to deliver the first three aircraft for their new fleet.
In January 2024, three Leonardo AW139s will commence operations with Bond Helicopters from their base in Norwich, UK, where they will support Perenco’s gas operations in the North Sea. Getting Bond’s distinct red helicopter livery to market on time and within budget was not something LCI took lightly, and is one we are delighted to have delivered on.
But how was this achieved?
The redelivery project involved many months of advanced planning by the in-house technical, legal and operational teams.
This included the re-negotiation of lease returns, the acceleration of heavy maintenance inspections, and complex redelivery processes and logistics.
Working closely with Bond over many months, both in the UK and South America, LCI’s technical team leveraged significant asset, industry and project management experience to ensure all parties shared the same critical path and timeline.
This was augmented with both physical, in-country staff placements, and also the use of collaborative digital tools across multiple time zones.
We collectively ensured ground and sea logistics came together on time and ready to go.
Naturally, none of this would have been possible without the excellent co-operation and assistance of our operator partners.
Our team is proud to successfully deliver complex, international, multi-aircraft transitions like this one. Faced with a variety of challenges, we leveraged our core competencies of teamwork, innovation, perseverance, flexibility and, most importantly, communication to execute successfully for our customers.
We wish the team at Bond Helicopters many years of successful operations.
To discuss asset ownership, transition and management, contact the LCI technical team at info@lciaviation.com
Aircraft leasing group LCI is looking to accelerate its diversification strategy fueled by a capital injection from the acquisition of a 35 percent stake by Sumitomo Mitsui Finance and Leasing Company (SMFL). Announcing the agreement on March 29, LCI’s parent, Libra Group, said the further support from its Japanese partner will aid efforts to grow LCI’s business by around $1.5 billion, with a significant portion of this expansion coming from taking positions in the fast-emerging advanced air mobility (AAM) sector.
Over the past 12 months, LCI has been one of a handful of leasing groups to make plans to invest in new electric and hybrid-electric aircraft, announcing provisional sales agreements for up to 125 of Beta Technologies’ Alia 250 eVTOL models and up to 40 of Elroy Air’s Chaparral‘s autonomous freighters. The new vehicles will expand a portfolio of assets that already includes multirole helicopters and fixed-wing aircraft.
LCI’s CEO, Jaspal Jandu, has high expectations for the growth potential from new opportunities such as the role helicopters could play in supporting offshore wind-energy infrastructure and also eVTOL applications that could include passenger transportation, emergency medical support, and cargo deliveries. “These developments have put us at the cusp of a J-curve [of growth in demand for leased aircraft], and this also includes all the associated batteries and charging equipment that will be needed,” he told FutureFlight.
“We have two very forward-thinking shareholders in Libra Group and SMFL, so we can create a broad church [diverse organization], including a horizontal axis covering operating and finance leases, as well as trade-ins, and on the vertical axis the opportunity to invest in vehicles, as well as taking industrial positions and making upstream investments,” Jandu explained. LCI believes its potential to exploit wider opportunities across sectors such as energy and transportation is strengthened through its association with Libra Group sister companies including Lomar Shipping, rare earth metals specialist GreenMet, and Euro Energy, which is already using drones to inspect wind turbines.
New types of aircraft and new applications for these will likely require a reboot of the leasing sector itself, Jandu suggested, pointing to possible lessons to be learned from business models such as leases for Tesla’s electric cars and large car rental fleets. In his view, customers will be looking for more than just a lease spelling out their financial commitments for using the assets and will want to benefit from a more holistic service that could include supporting infrastructure and data covering eVTOL fleets that could be much larger in number than current rotorcraft and fixed-wing aircraft fleets.
A MORE HOLISTIC APPROACH TO LEASING IS REQUIRED
“The aviation industry needs to overhaul what it means by leasing and [products such as] the traditional operating lease per unit [asset] may require updating,” Jandu said. “We could offer equipment financing and umbrella agreements with each unit covered by addenda to the documents. Battery leasing could be separate from vehicle leasing, and charging networks could be covered, too.”
Anticipating some initial hurdles to the early launch of passenger-carrying eVTOL air services, Jandu said LCI’s more immediate focus will be finding applications such as cargo and logistics for the new aircraft types in its portfolio. Some in the leasing sector have questioned how the residual values for the new electric vehicles can be assessed as they navigate a type certification and approval process that still has to be finalized in some major markets like the U.S. But Jandu said that LCI’s understanding of the technology is advancing at pace and that new business models such as providing equipment and supporting services on a power-by-the-electron basis in a way that “means we could be slightly agnostic on the residual values.”
Over and above the potential for AAM vehicles to open up new air transportation services, LCI is convinced that the possibility for the new aircraft to significantly reduce the industry’s dependence on fossil fuels will be a compelling driver of demand as operators respond to pressure to accelerate steps toward net zero carbon. As a signatory to the Aircraft Leasing Ireland group’s sustainability pledge, LCI says it is committed to the greening of aviation, and in the short term believes that as much as two-thirds of the potential to cut carbon will result from the increased use of sustainable and synthetic fuels in existing aircraft.
New shareholder SMFL already has skin in the game when it comes to LCI’s current portfolio, having backed the launch of a $230 million leasing joint venture in September 2020 that covered the purchases of 19 helicopters. This partnership has since expanded in scope, resulting in a portfolio that includes more than 50 aircraft with a combined value of $550 million. LCI, which next year will mark its 20th anniversary, has undertaken more than $10 billion in aircraft transactions to date.
Taking encouragement from Airbus’s more recent rotorcraft market forecast, LCI envisages demand for some 16,000 civil and para-public helicopters over the next 20 years, generating some €120 billion in new sales. Recent orders placed by LCI include a pair of Leonardo AW139s and six H175s from Airbus, which is developing its own eVTOL model called the CityAirbus NextGen.
“The aviation industry needs to overhaul what it means by leasing and [products such as] the traditional operating lease per unit [asset] may require updating,” Jandu said. “We could offer equipment financing and umbrella agreements with each unit covered by addenda to the documents. Battery leasing could be separate from vehicle leasing, and charging networks could be covered, too.”
Anticipating some initial hurdles to the early launch of passenger-carrying eVTOL air services, Jandu said LCI’s more immediate focus will be finding applications such as cargo and logistics for the new aircraft types in its portfolio. Some in the leasing sector have questioned how the residual values for the new electric vehicles can be assessed as they navigate a type certification and approval process that still has to be finalized in some major markets like the U.S. But Jandu said that LCI’s understanding of the technology is advancing at pace and that new business models such as providing equipment and supporting services on a power-by-the-electron basis in a way that “means we could be slightly agnostic on the residual values.”
Over and above the potential for AAM vehicles to open up new air transportation services, LCI is convinced that the possibility for the new aircraft to significantly reduce the industry’s dependence on fossil fuels will be a compelling driver of demand as operators respond to pressure to accelerate steps toward net zero carbon. As a signatory to the Aircraft Leasing Ireland group’s sustainability pledge, LCI says it is committed to the greening of aviation, and in the short term believes that as much as two-thirds of the potential to cut carbon will result from the increased use of sustainable and synthetic fuels in existing aircraft.
New shareholder SMFL already has skin in the game when it comes to LCI’s current portfolio, having backed the launch of a $230 million leasing joint venture in September 2020 that covered the purchases of 19 helicopters. This partnership has since expanded in scope, resulting in a portfolio that includes more than 50 aircraft with a combined value of $550 million. LCI, which next year will mark its 20th anniversary, has undertaken more than $10 billion in aircraft transactions to date.
Taking encouragement from Airbus’s more recent rotorcraft market forecast, LCI envisages demand for some 16,000 civil and para-public helicopters over the next 20 years, generating some €120 billion in new sales. Recent orders placed by LCI include a pair of Leonardo AW139s and six H175s from Airbus, which is developing its own eVTOL model called the CityAirbus NextGen.
Operating lessor LCI has set out three top goals to achieve by 2030, after revealing that Sumitomo Mitsui Finance and Leasing Company (SMFL) is to acquire a 35% stake in the business. SMFL and LCI’s parent company Libra Group have pledged to grow LCI’s business by $1.5bn over the coming years with significant capital investment by shareholders. The three main goals are: to drive growth, align the business with the United Nation’s (UN’s) Strategic Development Goals (SDG) and deliver efficiencies, Jaspal Jandu, CEO, LCI tells Helicopter Investor.
Jandu’s top goal is simple: “We want to drive growth.” He says: “We are looking at $1.5bn of fleet growth over the medium term – or the next three to five years.” LCI has the flexibility to adapt to changing circumstances to deliver that growth, he added.
Goal number two is to continue aligning LCI’s business with the interest of the shareholders (SMFL and Libra Group) to the UN’s SDG targets. These are 17 interlinked objectives designed to serve as a “shared blueprint for peace and prosperity for people and the planet, now and into the future”. (The UN’s top two objectives are to end poverty in all its forms and to end hunger and achieve food security).
“The helicopter industry has underplayed its important contribution to these SDG goals,” says Jandu. “We talk a lot about carbon and fuel efficiency but virtually every day, one of our helicopters saves someone’s life.” Also, the fact that helicopters support offshore wind generation is not promoted enough.
The third goal is to achieve the “huge amount” of synergies offered by SMFL acquiring a 35% stake in the business. Chief among these efficiencies will arise from the wider deployment of LCI’s in-house developed custom lease management tool. “LCI is just bringing AI [artificial intelligence] and deep learning to this, so we want to capitalise on the benefits.”
So, how does Jandu plan to achieve the $1.5bn growth ambition set out by shareholders SMFL and Libra Group? The route to accelerated growth includes: harnessing the business’s financing leasing toolbox, supplying burgeoning demand for helicopters and delivering Advanced Aerial Mobility (AAM) solutions.
“The new investment allows the industry access to a financing leasing toolbox that is very broad – including the typical suite of products including operating leases and finance leases,” Jandu tells us. “But now with LCI, Libra Group and SMFL, we can offer PDP [pre-delivery payment] provision/financing, VAT financing, trade-ins, extra equipment financing, battery leasing solutions, network charging and a range of other products which can accelerate our growth greatly. We already provide such products to the market but with Libra Group and SMFL working together, we can provide them in greater depth.”
Supplying rising demand for helicopters – not least replacing ageing aircraft – will also drive significant growth. Many operators want to benefit from new helicopter technology and equipment, with the latest safety standards and the newest EMS interior kits, he says. “We want to support our operators in driving innovation and growth. There’s a replacement cycle that is long past due. The next five-to-10 years will see a number of new innovations and aircraft coming to the market.” He highlights advances in AW169, AW139 and AW189 technology, together with the new Airbus H145s, H160s and H175s. “We intend to say in 2030 that we made a real dent in helping to drive replacement growth,” says Jandu.
And then there are the naked numbers – the sheer scale of demand expected. Jandu highlights the recent Airbus Helicopters forecast, which predicted demand for more than 16,000 units over the next 20 years. This represents about 800 units a year, valued at more than Є120bn ($130.62bn). “No one stakeholder can access that level of capital,” he tells us.
“And if we delay the replacement cycle any longer, we will only be delivering new aircraft solely in lieu of older ones, which will have been moved to other roles or parted out. It leaves no buffer for growth.” It’s a complex picture, he conceded. A lot of extra helicopters will be needed for offshore and onshore support, together with Search and Rescue (SAR) missions and Emergency Medical Services (EMS). Then there are the challenges of supply chain problems and the delayed replacement cycle. “We risk getting to this pinch point where you simply don’t have enough helicopters for growth. If you were to speak to me in 2030, that is a central problem we have to address in the upcoming cycle.”
Part of the solution lies in the industry coming together to agree longer lease terms for end users and removing termination for convenience clauses, says Jandu. “Lessors generally want to help move this business forward, but we do need alignment up and down stream along the value chain.”
By 2030, LCI will be working with clean technology in machines and networks – whether battery powered or hybrid-powered, e-VTOL or c-VTOL. “e-VTOLs are already front of mind for LCI. We have relationships with BETA Technologies and its ALIA-250, and Elroy Air’s Chaparral [autonomous cargo drone]. This enables OEMs access to our operator network. So, some of the early adopters of this technology will be the helicopter operators.”
SMFL’s 35% stake will also enable “deep and meaningful access” to the Asian and Japanese markets, he says. “Cities such as Tokyo, London and Rio are huge metropolises with lots of time poor and wealthy people. Although LCI is primarily focussed on cargo and logistics markets, if you are going to see passenger AAM technology, it’s probably going to be there first.
But it’s not just AAM aircraft that deserve investment and development, it’s the infrastructure – including charging networks – to support them. “We are going to have to evolve our thinking and language here, even within LCI. So maybe, power-by-the-hour turns into power-by-the-electron at some stage.”
Jandu ends with an approach regarding LCI’s journey over the next seven years to 2030 and beyond: “When making plans, think big. When making progress, think small.”
Lessor LCI can “accelerate” its growth path on an “exponential scale” following the acquisition of a substantial stake in the business by a Japanese finance house, its chief executive claims.
Revealed on 29 March, the deal sees Sumitomo Mitsui Finance and Leasing Company (SMFL) purchase a 35% stake in LCI from its parent the Libra Group for an undisclosed figure.
LCI hopes to build eVTOL leasing business alongside rotorcraft operation
Jaspal Jandu, LCI chief executive, sees the deal as transformative, enabling the lessor to take advantage of predicted strong demand for new helicopters and advanced air mobility platforms over the coming decades.
The agreement builds on an existing joint venture between the pair established in 2020 that has grown into a business managing 50 helicopters and worth $550 million.
“I would like to see this relationship accelerate what we have been doing already,” says Jandu.
Previous expansion has been forecast on a linear scale, he says, “but there is nothing wrong thinking on an exponential scale given the [industry’s] requirements over the next 30 years.”
SMFL and Libra Group plan to grow LCI’s business by $1.5 billion over the next three to five years with significant capital investment by the shareholders to be provided on a pro-rata basis.
“A large part” of that $1.5 billion is accounted for by LCI’s existing order book and its deal pipeline, for example for sale-and-leaseback transactions with operators, says Jandu.
LCI has firm orders for two Airbus Helicopters H175 super-mediums, plus four options, alongside commitments for 125 Beta Technologies ALIA electric vertical take-off and landing aircraft and 40 Elroy Air Chaparral unmanned cargo aircraft.
SMFL, which gains representation on LCI’s board as part of the deal, already owns a fixed-wing leasing business, Dublin-based SMBC Aviation Capital.
This has led to speculation that it might eventually seek to acquire the outstanding shares in LCI and bring the aviation leasing units closer together. However, Jandu declines to speculate on SMFL’s intentions in the longer term. “We are just focusing on our business plan,” he says.
“We want to drive efficiencies and combine our talents to help end-users and operators. We are in the mindset to grow; it’s a synergistic deal here.”
Jandu sees the new ownership structure as providing LCI with greater financial firepower allowing it to take advantage of the sector’s predicted growth.
A recent forecast from Airbus Helicopters predicted the industry would take delivery of 16,200 new helicopters over the next 20 years – or more than 800 annually requiring finance of $5-10 billion. “No individual stakeholder has the ability to fund all of that,” he adds.
Lessor LCI is eyeing a future bow-wave of replacement activity in the helicopter market, even as operators struggle to meet their near-term requirements for lift.
Jaspal Jandu, LCI chief executive, says the helicopter market is currently “tight”, with demand largely outstripping supply.
He sees brisk demand from all sectors – including oil and gas, emergency medical services, and offshore wind – combined with a manufacturing sector that is struggling to ramp up production of new helicopters or supply spare parts in a timely fashion as creating a shortage of available aircraft.
“There is a really unique confluence of factors in the helicopter market.
“If an operator is looking at lift in late ’23 or Q1 2024 they are probably already too late – [leasing] discussions need to have already happened or at least be happening,” said Jandu, speaking at the recent Heli-Expo event in Atlanta.
The tight market is manifesting itself in longer lead times needed to secure helicopters for future contracts, multiple bids on each aircraft, and higher lease rates – albeit that the cost of capital has also risen due to soaring interest rates.
Jandu also sees the onset of a widespread replacement cycle, with the industry downturn between 2015 and 2020 having delayed its arrival.
“But at some point older airframes will hit service limits, or safety features will not be sufficiently modern.
“That’s not to say older helicopters don’t have their uses… but they will not be suitable for their primary application. At some point the replacement cycle will keep building up,” he says.
Jandu points to a recent forecast from Airbus Helicopters that predicts the industry will receive 16,200 new helicopters over the next 20 years – over 800 annually – 74% of which are for fleet replacement.
In the short-term, the pace of replacement is being tempered by the ability of helicopter manufacturers to increase output, he argues.
In addition, the industry – manufacturers, lessors and finance houses – “really needs to come together” to help fund those new helicopters, which he estimates will require some $5-10 billion per year.
That could include making better use of export-credit facilities, as well as more financial assistance from airframers: “They want to sell more equipment into the industry,” he notes.
According to LCI CEO Jaspal Jandu, the tight helicopter market requires OEMs, suppliers, owners, and operators to plan well in advance, significantly changing how the rotorcraft community does business. “For operators coming to us, [lead times] are increasing quite dramatically,” the leader of the global helicopter leasing company (Booth B2408) told AIN.
“Operators are speaking to us one, two, even two-and-a-half years in advance” of when they need a helicopter, he said, “looking at capacity requirements in 2024 and 2025.” And the competition for helicopters coming off lease can be intense. “We’re seeing multiple operators and end-users bidding for the same aircraft. There is competition out there for relatively scarce resources.” Scarcity and rising interest rates are propelling lease rates upward, Jandu said.
Jandu believes a fundamental demand pattern shift could subject the market to continuing supply scarcity for some time. During the oil price collapse and the pandemic “new orders and deliveries decreased and operators and end users started using the existing equipment a little bit harder and a little bit longer,” he said. As a result, “The entire replacement cycle got pushed out three or four years to the right. Now it has to be addressed.
“The replacement cycle is upon us and the mathematics are against us,” he said, noting that historic market demand forecasts typically indicated 60 percent for growth and 40 percent for replacement. Those numbers are now inverted, he said, with 60, even 70 percent of the demand for replacement, and the remainder for growth. “You can delay the purchase cycle, but at some point the hull gets too old, you start reaching service limits, or the end-user demands more safety features that the old units can’t accommodate. So I feel like there’s an entire bow wave that has yet to happen on the replacement side.”
Jandu expects these market dynamics will help the overall helicopter market, particularly the super-midsize category, which has been slow to gain traction. “We’re quite bullish on the super-medium category,” he said, while also noting that technological advances are also showing up in smaller helicopters, specifically the Airbus H145.
But none of this comes cheap. “Somebody’s going to pay for it,” Jandu cautioned. “We’re in the business to help end-users and operators and we want to drive this growth. But interest rates are moving up. Capital also has some requirements for ESG [economic, social, and governance compliance]. Ultimately the end user is going to have to come to the table and we’re going to have to arrange these [lease] contracts in a more aligned [fashion],” he said. “All this new equipment doesn’t come for free.”
AviTrader MRO editor recently caught up with Dave Merrill, Chief Executive Officer at Elroy Air to discuss the development of the new VTOL cargo flyer and the case for maintenance support.
The appeal towards vertical take-off and landing (VTOL) aircraft is growing steadily, as with their potential to meet size gaps in the aviation and related sectors. Several different applications for these vehicles are under development with some already in the flight test phase.
Elroy Air, the company developing what it calls the first end-to-end autonomous VTOL aerial cargo system, unveiled its pre-production Chaparral aircraft just over a year ago. “We have seen a lot of demand for our VTOL aircraft, the Chaparral and to date we have demand for more than 900 systems,” declares Dave Merrill, CEO at Elroy. The Chaparral is designed for aerial transport of up to 500 lbs (225 kgs) of goods over a 300 nautical mile range. This is enabled initially by a turbine-based hybrid-electric powertrain with distributed electrical propulsion, and specially designed aerodynamic modular cargo pods.
US regional carrier Mesa Airlines saw a requirement for The Chaparral early in the programme and placed an intent to order 150 aircraft to serve the express parcel and healthcare sectors. Mesa operates large fleets of aircraft for airline partners including United Airlines and DHL. “Mesa Airlines is a significant partner who saw the value of Chaparral early on. They are committed to enabling autonomous VTOL solutions in their network and we’re excited to work with them,” says Merrill, but he was unable to disclose specific delivery dates at the time of this writing.
The most recent order is from LCI Aviation in January this year – a subsidiary of Libra Group and who’s commercial aviation portfolio includes fixed-wing aircraft leases to international carriers. LCI will acquire up to 40 Chaparral units. “Through our agreement with LCI, the Chaparral will be available for financing – enabling much broader access to the aircraft. We are proud that the Chaparral will now be part of LCI’s aviation fleet and look forward to providing aerial cargo transport globally.” The new VTOL aircraft will complement LCI’s existing fleet of helicopters and fixed wing aircraft. In addition, LCI and its parent company, Libra Group, whose subsidiaries own and operate assets in approximately 60 countries, plan to share commercial, financial and end-user expertise with Elroy Air through well-established industry networks.
Speaking on the latest development progress, Merrill says flight testing has now moved to a new facility at Byron Airport in California. In partnership with Urban Air Mobility – a joint-venture between MS Commercial, Inc. and Nearon Enterprises – Elroy Air has leased and prepared a new 7,000 square foot hangar at Byron Airport for its ground and flight test campaigns, to ensure smooth and efficient progress into the next flight test campaign and beyond. The Byron hangar is equipped with a large storage and work area, the first production Chaparral vehicle (C1-1), and due to the Chaparral’s wing stowing mechanism multiple C1 systems this can be housed and maintained in the hangar.
“We have worked with the Contra Costa county airport team to establish a dedicated test area where a helipad has been installed for dedicated flight testing purposes,” he reveals. Elroy Air is using the new facility to support full-scale ground and flight testing. The company will initially be conducting tie-down testing to validate the software and hardware of its Chaparral C1 vehicles to validate safety of flight through a series of ground tests. Elroy Air has moved their Ground Control Station (GCS) to the airport, a custom-built mobile enclosure with engineering stations, weather monitoring, viewport windows, a dedicated network infrastructure, a datalink control and monitoring radio system and a rooftop observation deck. The GCS contains its own uninterruptiblepower supply (UPS), aircraft monitoring computers, and a climate control system. The GCS will be used to support both ground and flight tests.
“We plan to conduct flight testing in 2023 and 2024 and conduct limited demonstrations with customers beginning in 2023 and more in 2024,” Merrill further reveals.
Regarding certifications, Merrill explains that EVTOL aircraft present new configurations to regulators that have not been certified before, but many of the subsystems and materials are familiar to regulators and there is very strong collaboration between OEMs and regulatory authorities like the FAA.
VTOL technologies and propulsions are clearly still in their infancy and developing an aftermarket support network will be a key focus in the years to come. Merrill says delivering on the mission to provide logistics to areas that are difficult or hard to reach using traditional manned aircraft means there is need to build a system and support that system on a regional level. “We have multiple partners who provide MRO services, and we will be building this capability out to regionally support our customers as we deploy systems worldwide.”
Lessor LCI has further broadened its portfolio with an order for up to 40 Elroy Air Chaparrals an autonomous vertical take-off and landing (VTOL) cargo aircraft that uses a hybrid-electric powertrain.
Under the deposit-backed agreement, LCI will initially acquire 20 Chaparral aircraft, with an option for up to 20 more. No details of the transaction value were revealed.
Delivery timelines depend on Elroy Air securing certification for the Chaparral, which will enter flight testing later this year, the company says.
Designed to carry a payload of up to 225kg (500lb) on routes of up to 300nm (555km), the Chaparral uses a turbine-based hybrid-electric powertrain to drive a series of distributed electric motors: eight for lift and four for forward flight.
Goods are carried in a specially-designed modular pod that fits under the fuselage. Better known as a helicopter lessor but with a small interest in the fixed-wing segment LCI has already signalled its interest in the advanced air mobility (AAM) market, last year placing an order for up to 125 BETA Technologies ALIA-250 OVTOL utility aircraft.
“The AAM market forms an integral part of LCI’s future growth, and this marks our second commitment in less than 12 months for these innovative and sustainable new aviation systems,” says chief executive Jaspal Jandu.
“We see their wide range of applications complementing our existing fleet of modern helicopters and fixed-wing aircraft, enabling us to offer even greater value and choice to operators across the globe.”
Jandu says the deal will “strengthen LCI’s position as a leading provider of leasing, financing and investing solutions for this new and exciting market.”
David Merrill, chief executive and co-founder of Elroy Air, adds: “Through our agreement with LCI, the Chaparral will be available for financing enabling much broader access to the aircraft.”
Elroy Air says it has now secured commitments for more than 900 Chaparral systems worth in excess of $2 billion. Disclosed customers include AYR Logistics (up to 100 units), Bristow Group (100), FedEx, and Mesa Airlines (150). The company also holds orders where the buyer has not been revealed.
Ground testing of the Chaparral is to begin shortly at Byron air- port in California, around 45 miles (73km) to the east of Elroy Air’s San Francisco headquarters. Initial tie-down testing will validate the Chaparral’s software and hardware systems before moving to flight tests later this year, Merrill confirms.
Elroy Air intends to launch operations prior to obtaining US Federal Aviation Administration (FAA) validation, in order “to serve missions and uses that do not require full FAA certification”, says Merrill.
“Alongside this early roll-out phase, we are collaborating with the FAA on type certification and expect to secure type certification and operational certification within the next several years,” he adds.
It sees applications for the Chaparral including disaster relief, firefighting and humanitarian missions, plus middle-mile logistics, “without risk to pilots or the need for airport infrastructure”.
LCI says it is working closely with the manufacturer in order to introduce the aircraft to customers “as soon as practical”.
While it does not have operators already lined up for the Chaparral, the lessor says it has “every confidence” the system will prove popular globally.
“This commitment for the pioneering Chaparral system will enable us to efficiently support mission-critical, remote logistical work and socially responsible humanitarian efforts around the world.” says Jandu. “It will do so in complement with the wide-ranging capabilities of our existing aviation fleet.”
Aircraft lessor LCI has further broadened its portfolio with an order for up to 40 Elroy Air Chaparrals – an autonomous vertical take-off and landing (VTOL) cargo aircraft that uses a hybrid-electric powertrain.
Under the deposit-backed agreement, LCI will initially acquire 20 Chaparral aircraft, with an option for up to 20 more. No details of the transaction value were revealed. Delivery timelines depend on Elroy Air securing certification for the Chaparral, which will enter flight testing later this year, the company says.
Designed to carry a payload of up to 225kg (500lb) on routes of up to 300nm (555km), the Chaparral uses a turbine-based hybrid-electric powertrain to drive a series of distributed electric motors: eight for lift and four for forward flight. Goods are carried in a specially-designed modular pod that fits under the fuselage.
Better known as a helicopter lessor but with a small interest in the fixed-wing segment – LCI has already signalled its interest in the advanced air mobility (AAM) market, last year placing an order for up to 125 BETA Technologies ALIA-250 eVTOL utility aircraft. “The AAM market forms an integral part of LCI’s future growth, and this marks our second commitment in less than 12 months for these innovative and sustainable new aviation systems,” says chief executive Jaspal Jandu.
“We see their wide range of applications complementing our existing fleet of modern helicopters and fixed-wing aircraft, enabling us to offer even greater value and choice to operators across the globe.” Jandu says the deal will “strengthen LCI’s position as a leading provider of leasing, financing and investing solutions for this new and exciting market.”
David Merrill, chief executive and co-founder of Elroy Air, adds: “Through our agreement with LCI, the Chaparral will be available for financing enabling much broader access to the aircraft.”
Elroy Air says it has now secured commitments for more than 900 Chaparral systems worth in excess of $2 billion. Disclosed customers include AYR Logistics (up to 100 units), Bristow Group (100), FedEx, and Mesa Airlines (150). They company also holds orders where the buyer has not been revealed.
Ground testing of the Chaparral is to begin shortly at Byron airport in California, around 45 miles (73km) to the east of Elroy Air’s San Francisco headquarters. Initial tie-down testing will validate the Chaparral’s software and hardware systems before moving to flight tests later this year, Merrill confirms.
Elroy Air intends to launch operations prior to obtaining US Federal Aviation Administration (FAA) validation, in order “to serve missions and uses that do not require full FAA certification”, says Merrill.
“Alongside this early roll-out phase, we are collaborating with the FAA on type certification and expect to secure type certification and operational certification within the next several years,” he adds.
It sees applications for the Chaparral including disaster relief, firefighting and humanitarian missions, plus middle-mile logistics, “without risk to pilots or the need for airport infrastructure”.
LCI says it is working closely with the manufacturer in order to introduce the aircraft to customers “as soon as practical”. While it does not have operators already lined up for the Chaparral, the lessor says it has “every confidence” the system will prove popular globally.
“This commitment for the pioneering Chaparral system will enable us to efficiently support mission-critical, remote logistical work and socially responsible humanitarian efforts around the world,” says Jandu.
“It will do so in complement with the wide-ranging capabilities of our existing aviation fleet.”
