Supporting the region’s EMS sector with Oceania Aviation

Thanks for joining us Liv! To start, can you give us some background around rotary EMS operations in New Zealand, and how Oceania is working to support these operations?

Air ambulance and rescue services are of high importance in New Zealand, due to several factors. Our low population density, coupled with significant distances between major hospitals, means that emergency air travel is often vital to deliver critical patients to primary hospital care as quickly as possible. New Zealand’s geography boasts world-famous mountains, dense bushland and beautiful, expansive coastlines. Couple that with the “Kiwi adventure” spirit, and that means that many rescues are better or only accessed by air operators. New Zealand’s air ambulance service, funded by the national health service as well as corporate sponsors, uses EMS operations for pre-hospital (emergency) as well as inter-hospital transfers. These services often make a clinically significant difference to New Zealand’s patient outcomes, especially since a lot of patients are transported from New Zealand’s vast rural areas.

EMS operations have a particularly high demand for MRO work, needing to be available to fly 24 hours, seven days a week to attend emergencies. The requirements for EMS providers set out by the New Zealand government set a high standard to ensure the quality of service provided by EMS operators promote safety, consistency and have patient care at the centre. Being a turnkey full-service provider, Oceania’s teams are able to provide a range of support services for various operators who carry out EMS work – from scheduled maintenance, through to piston and turbine engine overhauls, blade repair, component overhauls, avionics and even reconfigurations to or from EMS-capability. Some EMS operators carry out a large proportion of their MRO work in-house, given the around-the-clock requirements for airworthiness. In these cases, Oceania often performs more specialised repair and overhaul work when required such as urgent helicopter blade repairs or turbine engine overhaul work. Some EMS operators do engage in maintenance contracts with specialist MRO providers like Oceania to carry out all scheduled and non-scheduled maintenance, with these aircraft seen regularly both in hangars and out in the field. Regardless, Oceania’s teams across New Zealand are always on hand to support their EMS customers, providing both urgent and regular servicing as required.

In light of the COVID pandemic, what does the current state of EMS operations look like in New Zealand and what are the different ways in which Oceania is working to support rotary operators in the current environment?

As discussed already, New Zealand has a high requirement for air-based EMS operations due to its topography and population. Currently, there are around 17 EMS-configured turbine helicopters in the country. These aircraft are based throughout both the North and South Island and are operated by a mix of businesses that are either EMS-specific or those that perform a range of commercial operations in addition to EMS.

In terms of Oceania’s work with EMS (and other) operators in the current environment, the primary consideration is around being available to support its customers at all times. During the ongoing COVID-19 lockdowns throughout New Zealand, Oceania Aviation has remained operational via its accreditation as an “essential service provider” (also supporting essential aerial agriculture operations). Oceania’s maintenance and overhaul workshops have been fully staffed and managed throughout the pandemic, thanks to the dedicated work of its engineering teams and support staff. Of course, extra measures have been put in place to keep both staff and customers safe – from PPE use and mandatory social distancing to sanitisation procedures carried out on each aircraft serviced by the various divisions throughout the business.

Are there other ways in which Oceania Aviation is working with EMS providers, either here or internationally?

For almost 30 years, Oceania Aviation has had a strong Aircraft Sales division, which provides a range of services to the global market including aircraft sales, sourcing, inspections, shipping and logistics for buyers and sellers. As a result of our strong reputation, in mid-2020, Oceania (via parent company Salus Aviation) was chosen to partner with leading US-based EMS operator Air Methods Corporation (AMC) via a new fleet management agreement. This strategic agreement has positioned the Salus group (with sales and MRO services based in both New Zealand and the USA) as AMC’s preferred provider of fleet services including aircraft assessment, refurbishment and divestment of legacy aircraft and inventory. Oceania also provides AMC with strategic sourcing and procurement support for their aircraft and parts.

Tell us a little more about your work with Air Methods.

This fleet management partnership was a first for AMC, having previously sourced aircraft in-house and having worked with a number of aircraft brokers globally to divest of legacy aircraft. This new strategy is one that benefits both parties significantly, with AMC relying on Oceania’s team of experts to fetch the best prices for aircraft they no longer require for their operations. It also provides Oceania Aviation’s aircraft sales team a steady stream of quality, diverse helicopter types to offer to their global client bases. The partnership also provides Oceania’s helicopter upgrades division (based in Auckland, New Zealand) ongoing opportunities to import, refurbish and reconfigure legacy AMC aircraft – before reselling them in a “like new” state on the global market. This is where Oceania’s turnkey services come into play, with their turbines, component overhaul, avionics, and even their airborne systems (aka role equipment manufacturing) divisions all able to contribute to the upgrade of each aircraft as required – adding further value to aircraft that go on the market.

Which aircraft do Oceania engage with most often within the EMS sector?

There is actually a significant mix of aircraft types that the business sees in terms of legacy aircraft divestments, and again a different range of aircraft which Oceania Aviation and the teams up in the US business are tasked to procure. The initial tranche of AMC aircraft delivered to Salus Aviation’s US base, which the Oceania sales team have since sold or parted out, consisted mainly of AS350s (aka the “A-Star” in the States) – a mix of B2s, B3s and B3+s. Since then, there have been a number of AgustaWestland aircraft divested, and the group has recently procured another group of helicopters including a significant number of Bell JetRangers as well as several other types. On the other hand, the newer Eurocopter models seem to be the most ‘in demand’ in terms of aircraft procurements. Of course, there are particular helicopter types that are much more common in EMS operations (the AS350, B206 and the AW 119 being examples of these), which means that the Oceania team are continuing to deal with a high proportion of these types.

Regarding MRO work, this is really based on two factors: (a) the aircraft types common within the New Zealand EMS sector, and (b) the aircraft which Oceania has capability to service and support. Like in the States, the Airbus-Eurocopter range are popular in EMS rotary operations in New Zealand and given there is an OEM-owned Airbus facility in the region, a lot of the MRO work goes there. However, Oceania is able to provide support to operators of these aircraft, primarily via their specialised blade repair facility in Auckland, as well as some avionics and component repair work. The BK117 is also popular in New Zealand for rescue helicopters, which the Oceania teams have serviced throughout some of their specialist divisions.

How does it work with Air Methods being based in the US and Oceania being in New Zealand? Can you support other operators overseas?

With Oceania’s parent brand Salus Aviation owning a global group of aviation companies comes the benefit of having a significant footprint in the US market to support AMC, as well as global reach via their partner and support networks. Much of AMC’s involvement surrounding fleet management is up in the States, with legacy aircraft being delivered to the Salus group’s Nevada base before being inspected and prepared for sale, part-out or shipping to New Zealand for comprehensive refurbishment. It’s an arrangement that works very well for all parties involved, especially given a large representation of the aircraft sales market lies in the USA. Given this global reach, it is certainly possible to support other EMS operators around the world. In fact, the Salus team are currently working on a partnership with a significant Europe-based operator who requires global fleet support. Many of both Oceania and HPN’s customers (EMS and otherwise) are located around the world – it’s very much a global industry!

What are Oceania’s future plans for expansion in its support of EMS operators?

Fleet management, particularly for EMS and other critical civilian-service based operators, is a significant opportunity for Oceania Aviation and the wider Salus group. As the group establishes further partnerships with operators around the world and closer to home, there are likely to be opportunities to also expand their facilities into other international regions (especially once borders open further). There are already plans for Oceania to expand its physical footprint up into the USA in the near future, where HPN currently carries out scheduled and heavy maintenance for EMS fleets based there. This expansion will allow the group to offer further specialised MRO services that Oceania currently offer in New Zealand, such as blade repairs, turbine engine overhaul, composites manufacturing, dynamic component overhaul and more. EMS support is something that requires significant infrastructure, manpower and experience and it is something that the Salus group (and Oceania in particular) are looking to expand on and strengthen as they execute their growth plans.

What do you see as the future of aerial EMS capabilities?

There are clearly very exciting things to come, as advanced air mobility (AAM) technology leaps ahead in the coming decade. Already, the types of aircraft being used are evolving, alongside better technologies. Significant investments and ongoing research in urban air mobility (UAM) are seeing the development of a new class of advanced aircraft and automation technologies that are likely to provide both utilisation and cost benefits to Air EMS operations as well as other sectors.

Do you think that eVTOL aircraft and/or AAM technology will replace more traditional aircraft within EMS in the near future?

While the flight range limitations of current eVTOL aircraft developments mean that they may be less suitable for EMS missions in the short term, it is possible that eSTOL (electric short take-off and landing) or hybrid-powered aircraft could prove viable alternatives – both of which may be able to take advantage of lower operating costs, decreased cabin noise and AAM technologies designed to decrease the intensity of resources required within aircraft operations. Furthermore, increased safety measures offered by emerging automation technology have the potential to reduce Air EMS operating costs in various ways.

What do you see as some of the key problems and challenges currently impacting the EMS space?

The high cost of operating aerial EMS is a well-known challenge, much of which relies on funding from the public, corporate sponsorships and patients. Much of this cost comes from having a large fixed-operating cost around sustaining 24/7 staffing. Hopefully, advancements in AAM will help alleviate these cost challenges and may even allow a scenario whereby more EMS aircraft can be used in a multi-mission way, increasing utilisation while using technology and systems to ensure that EMS operations are always available for their primary purpose.

Also addressing the elephant in the room – of course, COVID-19 is placing huge strains on the aviation industry as a whole, as well as having significant impacts on EMS operations. Continuing “waves” of infection around the world are challenging EMS providers in a range of ways, from increased patient demand (not just from COVID), to border (both domestic and international) closures, heavy restrictions around distancing and “bubbles”, increased sanitisation requirements and a range of other complications. These all make planning aerial operations and being able to predict or forecast activity extremely challenging for operators, especially those providing EMS support.