Offshore Logistics' Gulf of Mexico Helicopter Fleet Escapes Damage
Offshore Logistics says that its helicopter fleet operating in the U.S. Gulf of Mexico did not sustain any damage from hurricanes Katrina and Rita. Prior to landfall for both hurricanes, the Company moved its helicopters out of the path of the storms. This is standard operating procedure when any significant tropical storm or hurricane approaches the Company's operating facilities located along the Gulf Coast. In addition, there were no employee injuries or fatalities from the hurricanes.
However, Hurricane Katrina caused a total loss of the Company's shorebase facility located at Venice, Louisiana. Hurricane Rita severely damaged the Company's shorebase facility located at Creole, Louisiana. In addition, Hurricane Rita caused extensive flooding at the Company's shorebase facility located at Intracoastal City, Louisiana. Some minor storm damage occurred at other facilities, but all are operational. While a thorough damage assessment of the facilities is currently under way, it is expected that losses will be covered by insurance, net of deductibles, and therefore will not have a material effect on the Company's financial results. At this time, the Company is in the process of evaluating what actions will be taken with regard to the Venice and Creole bases. The Company intends to repair the damage at the Intracoastal City base as well as the minor damage at its other facilities.
In response to the hurricane damage, the Company has increased
flight activities from its operations headquarters located at Acadiana
Regional Airport in New Iberia, Louisiana and consolidated flight
activities at its remaining shorebase facilities. In addition, the
Company is expanding its shorebase facility located at Galliano,
Louisiana in response to the unavailability of the Venice facility.
Despite the disruption caused by the hurricanes, the Company is
currently meeting all of its customers' needs for flight services from
its remaining facilities.