Story ID: 441 Helicidade.doc
Helicidade Weathers Brazil’s Economic Storm
By: Ian Sheppard
Caption: Heliport operator confident of better times despite drop in activity.
Word Count: 328
Now participating in its sixth consecutive LABACE, Helicidade (Outside Exhibit 5102) has previously shown off what it offers in its heliport, just across the Pinheiros River from São Paulo’s newest, shiniest skyscrapers. The facility consists of a landing pad, space for 11 helicopters to park outside, 4,500 sq m (48,439 sq ft) of hangarage with capacity for nearly 80 aircraft, a maintenance hangar, a weather station and a soundproofed FBO. The fully-insured heliport has spotless safety record in 13 years of existence and more than 270,00 operations.

This year’s expanded show presence, with a chalet in the static area and four helicopters for sale, is not a sign of a business boom, though. Helicidade director Edson Pedroso painted a picture of hard times. He told AIN he’s seen a 30 percent drop in operations in 2015, and his competitors have experienced similar reductions. An economic recovery, he feels, will only come “in the medium term, in two, two-and-a-half years at the earliest.”

One big problem is that aviation fuel has gotten more expensive in Brazil, even though crude oil prices have dropped internationally. This has protected the balance sheet of oil giant Petrobras, but has raised the cost of flying. At the same time, the semi-public company, which is engulfed in a scandal over alleged bribery of Brazilian politicians, has delayed payments to suppliers to protect its cash flow.

While Helicidade is not a direct Petrobras supplier, some of its customers were. “They don’t get paid, and they close down and put their aircraft up for sale. The four aircraft we’re exhibiting are all for sale,” said Pedroso.

He predicts that 2015 will end with a smaller helicopter fleet in Brazil, or at least in São Paulo, as owners take advantage of a strong dollar to sell aircraft overseas, converting a dollar-valued asset into local currency. His long-range view, beyond the current economic storms, is simply: “We’ll be here tomorrow!”