Inside Logistics

Canadian company extends US military logistics contract

HNZ Group continues Afghanistan work

November 2, 2012
by MM&D staff

MONTREAL, Quebec—HNZ Group, an Quebec-based helicopter company that provides cargo and personnel transportation services, will continue to work in Afghanistan on behalf of the US military.

The company extended an existing contract with the United States Transportation Command (USTRANSCOM) to move passengers and supplies to military forward operating locations in the military’s area of operations. HNZ will use two fully crewed and supported Sikorsky S-61 heavy-category helicopters and four Bell 212 medium-category helicopters to accomplish it missions.

The contract runs until October 31, 2013, with two optional, one-year renewal periods and one eight-month renewal period. If all the options are renewed, the contact can run until June 30, 2016. HNZ began offering support services to the US military in Afghanistan in 2009. At the time the company was known under the Canadian Helicopters Group brand.

Full financial details were not disclosed, but the company reports it expects to receive revenues (based on a fixed monthly rate and variable hourly revenues components) that are similar to earlier USTRANSCOM contracts. In 2010, when the company extended its original contract from 2008, HNZ said it expected to make in excess of US$35 million. That was for a period (including options) that ran from Q2 2010 to November 30, 2011.