The offshore oil and gas company formerly known as the Rotorcraft Leasing Co. is forging a new identity for itself without sacrificing its core business.

RLC believes that its single-engine Bell helicopters are ideally suited for the shallow-water production work that makes up the companys key market. RLC Photo

A major player in the Gulf of Mexicos offshore oil and gas industry has taken on a new identity, with new owners, new management, a new name and a new approach to doing business.

RLC, formerly known as the Rotorcraft Leasing Co., announced in September that it had secured a strategic investment from Sankaty Advisors, said to be one of the leading private managers of fixed income and credit instruments in the United States. At the same time, it announced a new chief executive officer industry veteran Dru Milke and a complete rebranding under the name RLC. 

According to Milke, Rotorcraft Leasings rebranding reflects a redefined, re-energized company that is eager to solidify its position in the Gulf of Mexico and take advantage of potential growth opportunities. He told Vertical, I think that with the changes in ownership, the new branding, some of the recognition were starting to see from the industry . . . the organization is really poised to take advantage of opportunities in the marketplace.

Headquartered in Broussard, La., RLC employs around 300 people, including approximately 100 pilots and 70 mechanics. It provides complete helicopter services to the oil and gas industry throughout the Gulf region, as well as full-service helicopter maintenance for its own and its customers fleets. 

Established in the early 1990s primarily as a leasing company, RLC expanded into helicopter operations and grew rapidly through various acquisitions. Unfortunately, that rapid expansion was not without growing pains, namely accidents and incidents that somewhat tarnished its reputation.

Despite these past problems, Sankaty and RLCs new management team are confident in the companys potential. The people at the company are committed to success, said Milke, adding, A lot of the challenges had to do with the growth of the company. . . . When you go from one size of business to a larger operation, the organization cant keep up thats true of any business.

Milke, former president of Air Logistics, is familiar with the challenges of rapid expansion. He witnessed many of the same issues during his 20-year tenure with Air Logistics parent company, Offshore Logistics (which is now known as the Bristow Group), a period over which that company grew from less than $100 million US to greater than $600 million in annual revenue. Milke said RLC is now focusing on twin strategies for improving its position: one financial, the other operational.

On the financial side, Sankatys investment provides RLC with helpful stability. In a company press release, RLC president Rodger Bagwell said, This funding milestone gives RLC the financial stability necessary to allow the company to excel at providing the service our customers have come to rely upon. Sankatys strategic, long-term approach to investing will be invaluable as we pursue our goals and work to realize our potential.

RLC is also divesting itself of around 70 of the aircraft in its fleet to help pay down its debt. Through its corporate acquisitions, RLC came into possession of 140 aircraft, but only around 70 of those are currently flying to support contracts. We bought a lot of aircraft in three major acquisitions, explained Milke in his interview with Vertical. We didnt have the need for the number of the aircraft that we had. . . . Were going to use those assets to reduce that debt, in order to provide a very solid base to run the company on.

Although its streamlining its aircraft holdings, RLC is not changing the general makeup of its fleet. At a time when many offshore oil and gas providers are transitioning to heavy helicopters like the Sikorsky S-92 to chase deepwater contracts, RLC is honing in on its key market: shallow-water production work. There arent nearly as many deepwater platforms as there are platforms on the [Gulfs] continental shelf, said Milke. We like the [shallow-water] production work. Its 365 days a year; its a steady revenue stream. . . . The production business is a good niche for us. Milke said RLCs cost-effective light helicopters are well suited for this type of work: Its a different mission, therefore you have a different aircraft type to service that mission.

On the operational side, RLC is making a concerted effort to improve the safety of its flight and maintenance operations. According to Milke, the company conducted a thorough analysis of its past safety-related events with the goal of improving quality, and is now putting more effort into both maintenance oversight and pilot training. New-hire pilots now spend more time in the classroom learning systems before they transition into the field. The company is also taking advantage of the flight training devices (FTDs) at FlightSafetys Lafayette Learning Center for initial and recurrent pilot training. Weve really integrated our training and oversight procedures with the utilization of [FlightSafetys] equipment, said Milke. We can really utilize FTDs to better drive home areas such as systems understanding and operational awareness.

Those efforts seem to be paying off. RLC logged more than 72,000 accident-free flight hours in 2010, for which it received Helicopter Association Internationals Operator Safety Award, an honor bestowed upon helicopter operators who fly without an accident during a calendar year. RLC can take great pride in the fact that they have met the requirements for this award, said Matt Zuccaro, president of HAI, in a press release. RLCs dedication to reducing accident risk and upholding the highest safety standards reflects well on their organization, as well as the entire international helicopter community.

Additionally, RLCs Santa Maria, Calif., base operations received PXPs 2010 California Offshore Safety Excellence Award. The award recognizes PXP (Plains Exploration & Production Co.) suppliers who have met the highest levels of safety in their respective divisions. RLCs Santa Maria base won based on its outstanding performance during day-to-day operations, resulting in no lost-time accidents or incidents, throughout 2010.

To help ensure more such accomplishments, as well as stable future growth, RLC is focused on further strengthening its existing operations. I think our first order of business is to really get our hands around our present Gulf operations, said Milke, adding, however, that the long-term goal is to grow the company. Accordingly, he said RLC will consider any opportunities that meet certain economic criteria, including prospects outside the Gulf of Mexico and the offshore oil and gas market. We will look at different opportunities for expansion, including operations outside our geographic region and sector.