NORTHWEST TERRITORIES
Great Slave Helicopters has seen business affected by the fall in exploration investment, but the company is still looking to expand and be ready for when the mineral, oil and gas markets in the territory turn around.

Corey Taylor, left, Great Slave Helicopters vice-president of global business and product development, and president Chris Bassett stand in front of a newly-repainted AS350B2 helicopter at the company's maintenance hub in Yellowknife. - Karen K. Ho/NNSL photo

The Mining Association of Canada stated there was $4.5 billion in funds for exploration in the country in the last quarter of 2007. By the fourth quarter of last year, that number had plummeted to $175 million, a decline of 96.2 per cent.

According to Natural Resources Canada, exploration in the territory for this year is expected to be $43.6 million, down from $95.8 million recorded last year.

The Northern aviation company's new president, Chris Bassett, told News/North despite the downturn, the company didn't have to lay any staff off thanks to firefighting contracts in the NWT and B.C.

Great Slave has also recently acquired two BK-117B2 helicopters from the Abu Dhabi police department that will arrive at its Yellowknife base later this year. Bassett said they are slated to be upgraded with new engines. The company expects the first one to arrive in about a week via air transport and the second one to arrive in about six weeks by sea.

This will bring the total number of aircraft to 80.

Helicopters aren't the only part of the company moving great distances.

Great Slave Helicopters recently moved five to six of its support staff to the company's Calgary office.

Bassett said this was done in an effort to acquire more contracts, be closer to parts suppliers and have greater access to the city's transportation hub, including its international airport.

"That's people in accounts payable, accounts receivable, human resources, that type of thing," he said. "The employees who are front line, working on and flying aircraft, working on logistics support, all of them still ... in Yellowknife."

Bassett estimated more than 75 per cent of the company's staff would still be at its front-line locations, including its operational bases in Inuvik, Fort Liard, Fort Simpson, Norman Wells and its maintenance base in Yellowknife.

The depressed market in oil, gas and minerals in and out of the territory has also affected the company's business.

"Our flight volumes are off this year by 25 per cent of what we expected," Bassett said. "And that is down an additional 25 per cent over the last three years."

Bassett considers the oil, gas and mineral industries to be cyclical.

"We expect to have a return to previous volumes and increased volumes," he said, citing various expert opinions about when recovery will happen, anywhere from one to four years.

"I think when they do come back they're going to come back with a roar and we want to be prepared to service the volumes that are going to be requested."

Corey Taylor, vice-president of global business and product development, said the company was hit by many fully-financed mining and exploration projects that were cancelled or truncated.

And Bassett pointed out that during the economic downturn starting in 2009 there was a glut of available aircraft due to record sales numbers between 2005 and 2008 .

"There was tremendous overcapacity," he said, noting the company experienced strong downward pricing pressure in 2014, even from competing companies from as far as Ontario and Quebec.

"We've seen bids 30 per cent cheaper. They were money-losing bids."

Right now, the company is looking to further its partnerships with First Nations groups in the territory, as 14 per cent of its fleet is currently aboriginal-owned.

While the company would like to own as many helicopters as possible, Taylor said it does have to lease due to fluctuating market demand and prefers to do so from those First Nations partnerships rather than seek financing through banks or other traditional means.

Taylor cited the example of a Gwich'in-owned aircraft that is currently being used for a seven-year contract with the Pacific Pilotage Authority on the north coast of British Columbia. The company said it won the contract only a few months ago.

"I think that's pretty exciting," Taylor said.

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