Strategic Analysis of Bristow Group

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INTERNATIONAL STRATEGIC ANALYSIS-BRISTOW
Matthew Tyler Harman
MBAA 635
Embry-Riddle Aeronautical University

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Table of Contents
EXECUTIVE REVIEW.................................................................................................................
HISTORY OF THE FIRM ............................................................................................................
FINANCIAL OVERVIEW ............................................................................................................
CORPORATE GOVERNANCE ...................................................................................................
MISSION AND VISION STATEMENTS....................................................................................
ANALYSES OF KEY STRATEGIES ..........................................................................................
SWOT ANALYSIS .........................................................................................................................
TOWS ANALYSIS .........................................................................................................................
CONCLUSIONS .............................................................................................................................
APPENDICES.................................................................................................................................
REFERENCES................................................................................................................................

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HISTORY OF THE FIRM
Bristow Group, Inc. has had a very interesting and diverse historical experience. With
established market experience in a large portion of the offshore transportation industry, this
company has found opportunities in new and developed technologies. Bristow originally began
serving the offshore markets in 1969, under the name Offshore Logistics, Inc. The company
began with transportation using watercraft but in 1972, the company began using helicopters.
According to a publication, “in 1997, the current CEO had retired and OLOG increased the size
of its helicopter fleet, purchasing 23 new aircraft, 18 of which it bought outright” ("Offshore
logistics, Inc.”). It was at this point that OLOG had started to rebrand itself as the strong
offshore transportation company known as Bristow. Helicopters are the primary tool used in
Bristow’s transportation fleet today. Accordingly, “Bristow Group Inc. provides helicopter
services to the offshore energy industry primarily in Europe, West Africa, North America, and
Australia” ("Bristow Group Inc.," ). This company is also known for its versatility and the
ability to work in several market sectors at once. While the company was first formed as an
offshore transportation company focused heavily on the natural resource sectors, the company
has grown into a profitable entity.

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In 1987, the company formed a smaller niche targeted service known as Search and
Rescue (SAR). According to the company, “Specially outfitted SAR helicopters operated by
highly trained Bristow pilots have rescued more than 7,000 people in the U.K. alone”
("Helicopter search and,”) In addition to the SAR business unit, Bristow has also formed several
other business units. These include, “Oil & Gas Transportation, Industry Air Support, Search
and Rescue, Training, Maintenance and Modifications, and Helicopter Sales” ("Helicopter
transportation services,”). By covering all facets of the rotorcraft marketplace, the company has
positioned itself for a successful future.

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FINANCIAL OVERVIEW
The Bristow Group has developed a dynamic financial plan in order to meet competition
and maintain financial success. The fiscal year-end for Bristow is in March which is congruent to
many of the companies in the industry. They have indicated that their credit score is a, “low risk
prescreen” ("2012 annual report," 2012). Bristow is traded on the New York Stock Exchange
under the stock symbol BRS. According to the CEO, "The strong operating performance we
experienced in our fiscal 2012 fourth quarter continued in the first quarter of fiscal 2013,"
("Bristow group reports," 2012). The market is also indicating that there will be a rise in activity
in the North Sea Region which will allow Bristow to position itself for maximum profits with the
addition of new, larger helicopters in that area.
Bristow’s historical current ratio can be seen below in Graph 1. The historical trend has
been generally upward with the exception of 2009 and 2012. These can be explained by the
acquisition of new aircraft to remain competitive. This acquisition has been completed through
Milestone Aviation Group. This group recently commented on the situation saying, “The
companies completed operating leases in December 2011 for two Eurocopter EC225s deliverable
in mid-2012 and anticipates closing the leases for three 2011 Sikorsky S-92 helicopters later this
quarter” ("Milestone aviation group," 2012).

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In comparison with the market averages for 2012, Bristow is positioned well against the
competitors in the Gulf of Mexico region. This will allow for continued revenue within this
market. The average current ratios for the Gulf of Mexico region can be seen below in Graph 2.
Accordingly, “the current ratio shows a firm’s ability to pay current liabilities using assets that
can be converted to cash in the near term” (Thompson, et al.).
2.9
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
2008 2009 2010 2011 2012
Graph 1. Historical Current Ratio
0
1
2
3
4
5
6
7
Bristow Group
Inc.
SEACOR
Holdings Inc.
PHI, Inc. Industry Market
Graph 2. Industry Current Ratio 2012

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Another financial tool that can be used to analyze a company’s financial status is known
as the days of sales outstanding ratio, also known as the average collection period. This ratio,
“indicates the average length of time the firm must wait after making a sale to receive cash
payment” The industry average can be seen below in Graph 3” (Thompson, et al.). By analyzing
the record below, Bristow could maximize their profitability by decreasing the number of days
that it takes to receive payments. As shown in the diagram below, the leader in this field is
approximately 44% lower than Bristow.
According to the text, “the inventory turnover ratio measures the number of inventory
turns per year” (Thompson, et al.). With this measure, it is important for researchers to
remember that the higher the number, the better the result is. The industry results can be seen
below in Graph 4. In the Gulf of Mexico, the market leader in this characteristic is
approximately 396% higher than Bristow. However, Bristow is higher than the industry average
by 14%. In the rotorcraft transportation industry, the amount of inventory turns per year is
crucial because of the fast-paced environment.
0
10
20
30
40
50
60
70
80
Bristow Group Inc. SEACOR Holdings
Inc.
Graph 3. Industry Days of Sales Outstanding
2012

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When measuring publically traded companies in the same market, a useful ratio is the
price-to-sales ratio. According to a recent article, “ this ratio is used for valuing a stock relative
to its own past performance, other companies, or the market itself”("Price-to-sales ratio -," ). As
it can be seen below in Graph 5, there is a very close correlation between the large operators in
the Gulf of Mexico region. This signifies that the companies have similar profitability with
relation to their stock options.
0
5
10
15
20
25
Bristow Group
Inc.
SEACOR
Holdings Inc.
Graph 4. Industry Inventory Turnover
2012
0
5
10
15
20
25
30
Bristow Group
Inc.
SEACOR
Holdings Inc.
Graph 5. Industry Price/Sales Ratio
2012

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One of the most essential ratio tools that are used in the rotorcraft transportation industry
is the gross profit margin ratio. This ratio, “shows the percentage of revenues available to cover
operating expenses and yield a profit” (Thompson, et al.). The gross profit ratio allows
researchers to identify the company’s ability to maintain profitability over their operating
expenses. Graph 6 shows Bristow’s results along with the direct competitive leaders. As seen in
this graph, Bristow is the leader in this region with approximately 14% over the industry
average. This number indicates that Bristow has a very high level of ability to cover the expense
costs with their revenue.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Bristow Group
Inc.
SEACOR
Holdings Inc.
Graph 6. Industry Gross Profit
Margin 2012

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A final observation that can be made in this region with regards to financial obligations is the
number of employees within each company. The market leaders in this region have a direct
obligation to maintain positions for these individuals. The amount of revenue that can be
generated from a similar number of employees can give investors an overview of the company’s
effectiveness; the totals for the market leaders in the Gulf of Mexico region can be seen below in
Graph 7.
0
1000
2000
3000
4000
5000
6000
7000
Bristow Group Inc. SEACOR Holdings Inc. PHI, Inc.
Graph 7. Competitor Number of
Employees 2012

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CORPORATE GOVERNANCE
Bristow has a very diverse group of individuals in the executive leadership team.
Bristow is governed by a board of directors who in turn oversee the selection of members within
the upper executive level. Bristow has outlined a strategic set of guidelines that provides an
overview including the role of the board, independence of directors, composition of the board,
director compensation, equity ownership, responsibilities of the board, and functions of the
board. Accordingly, the board is self-governed and provides a self-evaluation at least once a
year. This group is then further evaluated by the Corporate Governance and Nominating
Committee which conducts a presentation of their findings at the annual meeting of stockholders
under the captions, “Corporate Governance,” “Committees of the Board of Directors” ("2012
annual report," 2012). According to the Corporate Governance Plan, “The Corporate Governance
and Nominating Committee shall also review the performance, preparation and contribution of
individual Directors when considering whether to recommend nominating Directors for annual
reelection.” ("Bristow Group Inc.,”).
Along with the Corporate Governance Committee, this group is also governed by several
other committees. These committees include the audit committee, compensation committee, and
the Corporate Governance Committee. According to the Corporate Governance Plan, “At least
once each year, the Board, together with senior management, devotes an extended meeting to
discussing and providing direction for the corporate strategic plan” ("Bristow group Inc.”).
In addition to the pay allocated for the board of directors, they are also eligible for a
continuing education program. According to the Continuing Education Policy, “In order to
encourage continuing director education, the Company will reimburse directors for all costs of
attending one director education program each year” ("Bristow group Inc.”). This addition

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allows the executive board to gain knowledge of the practices involved within the Bristow
Group. In addition to this continuing education policy, the board of directors is required to attend
an FCPA educational program which continues the recognition involved within the company.
The leadership team is comprised of a CEO, along with several senior vice presidents,
directors, and vice presidents. Each of these individuals is carefully selected by their knowledge
of the market and their direct experience within the industry. This combined with the education
experience of the individual is used to evaluate their projected performance with the company.

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MISSION AND VISION STATEMENTS
Bristow has created a diverse collection of strong points that emphasize their direct
mission. Bristow has stated their vision statement as, “One global team setting the standard for
excellence, growing and succeeding together…soaring above the competition.” ("Values,”). This
statement of vision was formed by the board of directors and serves as a guideline for those
under the Bristow umbrella.
Bristow has also formed a mission statement that states, “Our mission is to provide the
safest and most efficient helicopter services and aviation support worldwide.” ("Values,”). This
mission statement emphasizes the dedication that has been established by this global leader in
helicopter transportation. It also provides consumers with the knowledge that the company can
operate in a variety of different fields. According to a recent article, “The Company has major
operations in the North Sea, Nigeria, and the U.S. Gulf of Mexico, as well as most of the other
major offshore oil and gas producing regions of the world; including Alaska, Australia, Brazil,
Russia, and Trinidad” ("Bristow CEO Bill," 2012). This company has been able to conform to
several different environments and wants their mission statement to reflect this dedication.
Accordingly, the executive team has decided to present the public with a mission statement that
fully grasps the concept of flexibility.
Bristow has recently reorganized their structure which will eliminate the division of the
company by geographic location. The company wants to be recognized as a whole company and
these statements seem to parallel that change. By stating that the company is a “global team”
they suggest that the union of the company will no longer divide the internal workings. In
summary, these statements have clearly established the perspective that the company is
extremely diverse and can operate safely in challenging environments. With the rise of predicted

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oil exploration in remote areas, these statements will position the company as a market leader for
this industry.
ANALYSES OF KEY STRATEGIES
Bristow has worked to develop several strategies that include all of the company’s
strategy-making hierarchy. By establishing new business practices and policies, the company
hopes to generate awareness for the areas of needed improvement. Bristow has developed
policies that affect the operating, functional, and business strategy. Because Bristow is a single
business group, the business and corporate strategy can be considered as one unit under the
business strategy (Thompson, et al.).
Bristow has clearly shown that their current strategy in the operation of their offshore
transportation business unit is to increase the number of “large aircraft” in their fleet. The
company states in their annual report that, “Our aim is for leased aircraft to account for 25 to 30
percent of our Large Aircraft Equivalent (“LACE”) aircraft once the strategy is fully
implemented” ("2012 annual report," 2012). By financing these aircraft through Milestone
Aviation, the company will reduce their capital needed to continue growth. This action will also
secure their credit rating with the leasing group. Milestone identifies that, “Today, helicopter
operators are utilizing operating leases more frequently to diversify their capital structure, take
advantage of the low capital requirements, improve cash flow, reduce risk and increase
operational flexibility” ("Milestone aviation group," 2012). This strategy is further identified in
the annual report which states, “Our strategy will involve funding our short-term liquidity
requirements with borrowings under our amended and restated revolving credit and term loan
agreement (“Amended and Restated Credit Agreement”), which consists of a $200 million
revolving credit facility (“Revolving Credit Facility”) and a $250 million term loan (“Term

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Loan”) (together referred to as our “Credit Facilities”), and funding our long-term financing
needs, while maintaining a prudent capital structure, among the following alternatives: a)
operating and capital leases, b) bank debt, c) public debt and/or equity placements and d)private
and export credit agency-supported financings” ("2012 annual report," 2012).
Bristow is currently engaged in a fierce competition for a European search and rescue
contract. According to a recent article, “The winner will provide about 20 to 25 helicopters under
a 10-year service provision contract to provide search-and-rescue services across the U.K. and
within 250 nautical miles offshore”("Bond Aviation, Bristow,," 2012).On the corporate level,
Bristow has recently acquired Cougar from competitor VIH Aviation Group. According to an
outside source, “Bristow will pay $250 million for the unit, with an additional three year earn out
of $40 million, depending upon performance targets. The acquisition includes eight Sikorsky S-
92 helicopters and passenger, maintenance and SAR facilities at different locations” ("Bristow
group," 2012). This acquisition will further support the strategy provided by Bristow as a need
for “large aircraft”. The acquisition of this large aircraft fleet may have been in response to the
to this SAR contract. Thomas has indicated that, “the key focus on the business strategy is thon
crafting responses to changing market circumstances and initiating actions to develop strong
competitive capabilities, build competitive advantage, strengthen market position, and enhance
performance” (Thompson, et al.).
In alignment with the acquisition of new aircraft through the use of financial techniques
and leasing strategies, Bristow as also announced that they have , “sold seven aircraft for $147.8
million and entered into seven separate agreements to lease back these aircraft” ("2012 annual
report," 2012). This will generate capital funds that can be used as a leasing strategy to obtain a
greater number of aircraft. This set lease will be used to the extent and then new aircraft can be
purchased in order to maintain Bristow’s fleet as one of the most technologically advanced.

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The major affect in the business strategy is the reaction to the previous downturn in the
rotorcraft operations market. According to recent market statistics, “the helicopter industry is
forecasted to reach approximately 13,186 from 2012-2022, while in 2023-2033 there is an
estimated 20,711 units” ("Global civil helicopter," 2012). This prediction is approximately 12%
higher than the 2000-2010 results. This forecast can be seen as an opportunity for both rotorcraft
manufacturers and operators as the forecast shows a significant growth. In an effort to improve
the company’s image, the executive team has placed several new procedures and policies into
action over the past few years. These changes have recently been recognized by the Helicopter
Association International, a recognized industry backbone. Several members of the Bristow
team including flight operations, engineering, quality, and management received awards for their
safety practices at the annual helicopter exposition led by the Helicopter Association
International ("Bristow employees receive," 2012).
The functional area strategies have become an area of dedicated focus in Bristow’s
organization. The company has diverted corporate strategies to improving the image of the
company with regard to customer service and marketing. This need is the direct result of new
competition and the introduction of increased consumer safety needs. Because of the historical
value placed on safety in the market, Bristow is a strong competitor in these fields. With the
application of their core competencies, Bristow can increase their market shares in these new
locations.
According to Thompson the function area strategies, “concern the actions an approaches
employed in managing particular functions within a business like R&D, production, strategy,
sales, and marketing” (Thompson, et al.). This focus has been heavily in the South American
region. Bristow is relatively new to this region and does not have a large market share.

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According to Bristow, “While growth is forecast in all of the major offshore oil and gas markets,
35 percent of the growth opportunities projected over the next five years are in Latin America,
where large helicopter demand is expected to almost double next year and again by 2020” ("2012
annual report," 2012). New contracts are constantly being researched and sought after while
current contracts are also being maintained. Bristow has identified that, “Contracts are generally
awarded based on a number of factors, including price, quality of service, operational
experience, record of safety, quality and type of equipment, client relationship and professional
reputation” ("2012 annual report," 2012). In order for Bristow to maintain a healthy flow of new
contracts, they must continue to promote these areas of concentration. Bristow has also stated
that, “As a result of significant competition, we must continue to provide safe and efficient
service or we will lose market share, which could have a material adverse effect on our business,
financial condition and results of operations due to the loss of a significant number of our clients
or termination of a significant number of our contracts” ("2012 annual report," 2012).
On an operating level strategy, Bristow has provided that in the next year they will,
“position our business to be the preferred provider of helicopter services by maintaining strong
relationships with our clients and providing safe and high-quality service” ("2012 annual report,"
2012). Bristow will continue to focus on their “Target Zero” program in order to further promote
their excellent safety standards as a company. This combined with the effort to maintain a close
relationship with their business partners will serve as a strong framework for the upcoming
position.
Bristow’s global strategy based upon historical actions within the market. Bristow is one
of the top operators for harsh environments and continues delivery services in new locations.
The majority of business is reflected in the offshore transportation industry. This industry has
high levels of variation. Bristow has stated that, Global demand for medium and large

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helicopters is driven by drilling, development and production activity levels in deep-water
locations throughout the world, as the medium and large aircraft are able to travel to these deep-
water locations” ("2012 annual report," 2012). Thompson has defined the operating strategies as,
“relatively narrow strategic initiatives and approaches for managing key operating units such as
plants, distribution centers, purchasing centers, and specific operating activities with strategic
significance” (Thompson, et al.).
One challenge that Bristow faces as part of the international marketplace are the rules and
regulations of that country. Being an air transportation company, Bristow needs to meet the
requirements of the host aviation authority, environmental authority, and local regulations. An
example of this is stated in Bristow’s Annual Report, “We conduct some of our operations
through entities in which citizens of such countries own a majority interest and we hold a
noncontrolling interest, or under contracts which provide that we operate assets for the local
companies and conduct their flight operations. Such contracts are used for our operations in
Russia and Turkmenistan” ("2012 annual report," 2012). Another example of the effect of local
regulations is observed in Nigeria with reference to the Nigerian Content Act. This act, “which
requires that oil and gas contracts be awarded to a company that is seen or perceived to have
more "local content" than a “Foreign” competitor even if such company’s services are up to 10%
more expensive” ("2012 annual report," 2012). This requires Bristow to make a considerable
effort to become active in the local environment in order to maintain the high-profile contract.
Because of these international environments it is essential for Bristow to become completely
familiar with the policies and procedures in that country to remain profitable.
Bristow faces another challenge in some of the countries that it operates in.
Approximately 52% of the total employees are represented by a labor union or collective
bargaining unit ("2012 annual report," 2012). These employees are located in the U.K., Norway,

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Nigeria, the U.S. and Australia. If Bristow does not maintain a healthy relationship with their
employees and dedicate a serious effort to act within the needs of these organizations, there can
be serious consequences.
Bristow has developed a new slogan stating, “Confidence in Flight, Worldwide”
("Bristow group Inc.,”). This slogan has helped the company to identify its image in the
consumer market as one company. In the past, the geographic locations of the company
throughout the world became a challenge as they had become very independent. The executive
team at Bristow is working to improve this relationship and re-brand the company as a single
operating unit.
SWOT ANALAYSIS
Bristow has developed a very attractive strategic plan in the market. There are several
elements both internally and externally that affect the profitability of the aviation marketplace.
Bristow typically exceeds the market averages in several fields and has remained strong in all of
the key areas.
There are several external factors that affect Bristow in the international marketplace.
Each of the arenas in which Bristow operates in can offer a specific set of problems and
challenges. Bristow has had to become extremely adaptable to changing environments in new
marketplaces where competitors may have already begun operations. Graph 8 shows the
adjusted EBITDAR, or net income from continuing operations before income taxes broken down
into the major business units.

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In North America, Bristow identifies that, “Among our strengths in this region, in
addition to our ten operating facilities, are our advanced flight-following systems and our
widespread and strategically located offshore fuel stations” ("2012 annual report," 2012).
Operating in the Gulf of Mexico offshore transportation sector has remained a competitive field
but Bristow has been successfully adjusting to maintain profits. This area has provided a
relatively consistent level of revenue over the past three years with a variance of 3.63. The
European market continues to grow with a slight increase of .06%. This market is made up of
the three bases that utilize a large percentage of the “large” aircraft fleet. Bristow has just
established a contract which will require, “SAR services starting July 2013, using four Sikorsky
S-92 helicopters based in the Scottish bases of Stornoway and Sumburgh” ("2012 annual report,"
2012). The Australian business unit has seen a decrease in revenue of approximately 20.5%
despite a 1.5% increase in operating revenue. This decline is associated to, “an increase in
salaries and benefits due to annual salary increases and an increase in training costs resulting
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
Graph 8. Historical Adjusted EBITDAR
2010
2011
2012

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from their introduction of a new aircraft type into this market. ("2012 annual report," 2012).
These new aircraft were introduced to offer a sufficient negotiating to a potential contract.
Internally, there were some issues within the business management operations. Bristow
accrued $800,000 worth of expenses associated with dividend inclusion as a result of internal
realignment. This alignment is seen as a weakness in the balance sheet for 2011 but will
ultimately reduce the costs in the next five years due to the procedure for calculated taxes.
Another $5.3 million was recorded as a loss on the 2011 records because of software
depreciation costs associated with an abandoned project. These types of transactions promote a
negative impact on investor opinions and should be minimized. In the 2011 fiscal year, Bristow
had the lowest debt-to-equity ratio among other competitors in the market which can be seen in
Graph 9. Thompson suggests that, “a higher ratio signals excessive debt, lower creditworthiness,
and a weaker balance sheet strength” (Thompson, et al.). Bristow has opted to establish an
outside provider for new large aircraft in order to increase the availability of capital funds. This
directly affected the company’s debt-to-equity.
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Bristow SEACOR PHI Industry Market
Graph 9. Debt-to-Equity Ratio

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Internally, Bristow had one of the lowest values with respect to asset turnover in 2011.
However, with the relatively close ratio of the top competitors and the industry average this ratio
is a good example of the company’s ability to converting its assets to revenue and the high level
of competition associated with this industry. The summary of asset turnover in 2011 is shown in
Graph 10.
Bristow is extremely unique with regard to the wide range of markets that the company is
involved in. The company has recently changed the structure of the company in order to better
relay this message to customers. Operating under one common name instead of by geographic
locations is a clear message related to the overall power of the company. Bristow has effectively
utilized the aircraft available in the fleet to maximize their effectiveness at the international
locations. As stated above, Bristow has recently acquired several large helicopters from the
acquisition of VIH helicopters. This acquisition will place them as a strong competitor in the
offshore transportation marketplace. The allocation of aircraft in Bristow’s flee is showing in
Graph 11.
0.5
0.6 0.6
0.8
0.3
Bristow Group SEACOR
Holdings Inc
PHI Industry Market
Graph 10. Asset Turnover

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In 2011, there were several events that occurred to both Bristow and the aviation industry
as a whole. These factors had positive and negative effects Bristow’s financial report.
According to the annual report, “Changes in foreign currency exchange rates decreased operating
income, net income and diluted earnings per share in fiscal year 2012 by $5.5 million, $4.5
million and $0.12, respectively, compared to fiscal year 2011” ("2012 annual report," 2012).
The tax rates for the market are shown in Graph 12 where Bristow is shown to have a lower
percentage with relation to the top competitors and the industry average.
0
10
20
30
40
50
60
70
80
Graph 11. Helicopter Allocation
Small Helicopter
Medium Helicopter
Large Helicopter
17%
39% 40%
30%
28%
Bristow Group SEACOR
Holdings Inc
PHI Industry Market
Graph 12. Effective Tax Rate

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The past few years have been financially difficult with respect to the offshore market and
helicopter transportation. Graph 13 shows the relationship between the 36 month net incomes
with relation to overall revenue.
As shown above, both of the top competitors with Bristow also realized a negative
net income growth despite a positive revenue growth. Bristow has shown that it is financially
sound and has an equal balance between the overall net income and total revenue. In summary,
the ten most vital points to the SWOT analysis are list below. These items are critical in the
overall future of the company.
 Pending contact in Australia/introduction of new aircraft in that region.
 Increased profit margins in the European and other international theatres
 Reduction of abandoned projects
 Low debt-to-equity ratio
 Increase the asset turnover ratio
 Proper aircraft allocation
 Negative impact of exchange rates
-20.05%
-43.17% -40.91%
5.78%
8.96%
1.97%
Bristow Group SEACOR Holdings Inc PHI
Graph 13. 36 Month Net
Income/Revenue
36- Month Net Income Growth 36- Month Revenue Growth

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 Positive maintenance of the realized tax rate
 Positive revenue growth
 Negative net income
The factors above are examples of the current strengths, weaknesses, opportunities, and
threats. Bristow has identified several of these factors in the company’s most recent annual
report. Within this extremely competitive marketplace, Bristow needs to concentrate on future
procedures. Overall, this SWOT analysis has identified the key factors involved with the
corporate business structure.
TOWS ANALYSIS
Bristow is positioned to develop their current operating procedures into a more
competitive model. There are several outside factors that will influence the profitability of the
company that rely heavily on the offshore energy market.
The offshore energy market is forecasted to decline in the upcoming years. Bristow has
indicated that, “35 percent of the growth opportunities projected over the next five years are in
Latin America, where large helicopter demand is expected to almost double next year and again
by 2020” ("2012 annual report," 2012). According to a recent article, “global demand is
expected to peak in 2010, then drop through 2015” (Duncan & Frank, 2007). Graph 14 shows
this individual’s research regarding the global helicopter demand.

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As operators continue to exhaust the shallow reserves in today’s marketplace, it will
become vital to introduce an increased number of larger aircraft into the marketplace. This fact
will drive the demand of large aircraft while reducing the demand for smaller aircraft.
Therefore, Bristow has begun to shift their concentration to purchasing larger aircraft to prepare
for this increased demand. Bristow identifies in their annual report that, “medium and large
helicopters have historically been preferred in international markets, where the offshore facilities
tend to be larger, the drilling locations tend to be more remote and the onshore infrastructure
tends to be more limited” ("2012 annual report," 2012). By acquiring a considerable amount of
larger aircraft from VIH as identified above, Bristow has identified a unique method to outfitting
their fleet with larger aircraft. In North America, Bristow must continue to introduce larger
aircraft to their business unit in the Gulf of Mexico. The major competition in this area is PHI,
Inc. who is currently operating twenty Sikorsky S-92s, a large aircraft capable of seating up to 19
passengers ("Annual report,"). However, as seen above in Graph 8, there is an opportunity to
increase their market share in this region.
1220
1240
1260
1280
1300
1320
1340
1360
1380
1400
1420
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Graph 14. Helicopter Market
Prediction

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Airframe manufactures in the helicopter industry feel increased pressure from a large
number of customers. This competition allows for manufacturers to offer their products at a
premium because of the increased demand. This characteristic of the marketplace is a relevant
threat to Bristow’s business plan. As indicated on their annual report, “Our dependence on a
small number of helicopter manufacturers poses a significant risk to our business and prospects,
including our ability to execute our growth strategy” ("2012 annual report," 2012). By
broadening their aircraft suppliers, Bristow may be able to generate additional revenue that can
be used in their growth strategy. However, this may be offset by the cost associated with
maintaining another airframe.
With the predicted increase in the business forecast from Latin America, Bristow has the
opportunity to increase the number of aircraft in this sector. Accordingly, Bristow recently used
a recent acquisition to introduce the use of new aircraft in this region. According to Bristow,
“Lider Aviacao Holding S.A., a Brazilian affiliate in which Bristow owns a 42.5% interest, was
awarded three new incremental five-year contracts by Petrobras for three large helicopters
commencing on or before June 30, 2010” ("Bristow group announces," ) This new contract will
promote Bristow in the local area. In order to significantly pursue holdings in Latin America,
Bristow should continue to maintain a positive relationship with this local provider. This should
continue to lead to advanced contracts with larger aircraft. According to the annual report,
“Brazil continues to represent a significant part of our positive growth outlook” ("2012 annual
report," 2012).
Bristow has a very unique opportunity within the helicopter market to train its own
personnel. According to a recent article, “many helicopter pilots and engineers entered the
offshore business from the military following experience in Vietnam and are now approaching

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retirement” (Duncan & Frank, 2007). Bristow’s annual report identifies that. “We hired 24
graduates as instructors at Bristow Academy and 18 graduates as pilots (mostly former
instructors) into our other business units” ("2012 annual report," 2012). By training helicopter
pilots for revenue and then having they placed into one of Bristow’s flight programs, the
company can ultimately reduce the effect felt by the reduction of experienced pilots. This unique
perspective allows the company to focus on recruiting upcoming graduates for direct placement
into Bristow’s pilot pool.
As seen in Graph 10 above, Bristow has the lowest asset turnover rate when compared to the
other leading operators. This ratio identifies that Bristow has made an excellent effort to utilize
the resources available to them. Graph 13 shows that while Bristow had a smaller 36-month
revenue growth, they had a smaller loss in 36-month net income. This shows that even as some
of the larger operators continue to build their fleet, they may not be fully prepared for the
demand in larger helicopters.
Finally, with the combination of new pilots being introduced to Bristow’s fleet, a large
aircraft training program may be necessary at the Bristow Academy. This program may aid in
the transition from medium to large aircraft in the coming years. Overall, Bristow has the
opportunity to focus on Latin America while building a fleet that consists largely of higher
capacity rotorcraft.

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CONCLUSIONS
Bristow has become a very serious competitor within many of the most challenging
markets. By establishing a solid corporate image within the industry and maintaining their high
safety standard, Bristow has made excellent investments for future growth. Bristow serves as a
market leader in several operating environments around the world because of their dedication to
their strong business model.
With regards to the financial status of the company, Bristow has maintained on of the
lowest current ratios in the industry indicating a strong ability to pay current liabilities by
converting their assets into cash. Bristow has also accomplished an industry high by minimizing
their days of sales outstanding. This factor indicates that Bristow has utilized their customer
payment method and continued to reduce the payment duration. This financial model has also
been improved by Bristow’s fleet allocation. The inventory turnover model above shows that
Bristow has posted the lowest turnover rate indicating that their fleet has been positioned to fully
maximize their potential usage.
Corporate governance within the company is depicted as a strong collection of
individuals from varying work experience. This team actively assumes responsibilities for their
business units, now under one common company distinction. The executive team is overseen by
a board of directors which is subdivided into several committees that govern the operating
characteristics within the company. This group has come together to develop a new set of
statements that promote the unity within the company focusing on safety and diversity. These

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new statements have been developed as a direct response to the company’s reconstruction which
collected all of the individual geographic markets into one group divided into certain business
units.
Bristow has developed several current strategies to maintain their market share within the
international marketplace. The company’s overall strategy to introduce “large” aircraft into the
current fleet has derived from the decreasing amount of shallow water transportation services.
This has been partially achieved by the recent acquisition of VIH Aviation which will introduce
several large aircraft into the Bristow fleet. The remaining aircraft will be acquired from a recent
business contract between Bristow and Milestone Aviation Group. This will allow for Bristow to
obtain financing for the purchase of additional “large” aircraft while building their short-term
liquidity through financing. Helicopter operations within Latin America are forecasted to rise in
the upcoming years. Bristow has become established within the market by securing local
contracts. These relationships are vital to the success in this market as they will likely determine
the growth potential for Bristow in this marketplace. However, as seen in other markets, the host
country’s rules and regulations can become very challenging. These implications will limit
profitability but will also show a trust in these countries with the introduction of investment.
Bristow has captured the versatility of the international marketplace by serving within
several theatres. This tactic allows for limited incomes and the strategy is typically dictated by
the host countries regulations. Bristow has an opportunity within the North American business
unit to develop the current fleet and introduce “large” aircraft to compete within the Gulf of
Mexico region. The company also has the chance to improve their financial gain by improving
their internal project management and approval process. The historical financial records indicate

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that there have been significant revenue losses due to the cancellation of projects that were
already being implemented.
With the decline in the shallow water offshore market, Bristow has begun to focus on the
replacement of the “small-medium” aircraft with “large” category aircraft. This is a direct result
of the increased market demand for deep water contracts. Bristow has a very unique ability to
train their own pilots by utilizing their training academy. This strategy allows for the company
to generate revenue while training future pilots.
In conclusion, Bristow has presented a very competitive strategy that will secure the
company’s future. Bristow needs to focus on the competitors and work to illustrate to consumers
that they can provide a diverse fleet for a variety of mission types. With the changing trend in
offshore transportation, Bristow has the opportunity to directly introduce new aircraft into these
fields for optimization. This deep water trend combined with the increase in opportunity within
Latin America will offer a few new possible strategies in this highly competitive market.

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newsArticle&ID=1404891&highlight=

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