Eddie Kim: Got it, thanks for all the color. I’ll turn it back.
Christopher Bradshaw: Thank you.
Operator: The next question is from David Smith from Pickering Energy Partners.
David Smith: Hey good morning and thank you for letting me in to ask a question or two.
Christopher Bradshaw: Good morning.
David Smith: Circling back to that pie chart of the Offshore Energy contracts, the 70% legacy mix, a lot of the relevant questions have been answered, but I wanted to ask if you can give us any color on the relevant contract terms and conditions that might be changing between the legacy contracts and the new contracts you’re considering?
Christopher Bradshaw: Yes. Thank you for the question. I think that is an important aspect of this contracting cycle as well. It’s good that rates are moving up, but there’s also other terms and conditions that are important. And as the industry as a whole has gone through tougher times and in down markets, certainly, our — some of our customers have leveraged that opportunity to affect certain terms and conditions that off-lay risk to the service providers. I think as we get into the current market where, again, demand is there and strong, supply is limited, it presents an opportunity to make enhancements for us as a service provider and some of those, again, non-rate terms and conditions as well. So we’re — we also view that as a positive and an opportunity to enhance and improve in our favor some of the other terms and conditions during this contracting cycle as well.
David Smith: I appreciate it. And a follow-up, if I may. For the multiyear energy contract, how far in advance of contract expiry do you typically enter negotiations for new contracts? So if we had a multiyear contract ending December 2025, when would you typically expect to be negotiating the new contract?
Christopher Bradshaw: Yes, it’s a great question. Unfortunately, there’s not a one clear and reliable rule of thumb. I’d say directionally, we tend to not be quite as long as a lead-up as maybe the offshore rigs are contracted. But within the other spectrum of other oilfield related equipment, we are relatively long cycle, so we do get some notice. Interestingly, perhaps there’s a pretty wide spectrum around the world. You have certain markets and certain customers who give a longer lead time and are more advanced in their planning. Norway is probably the best example for that. So we typically know well in advance and long enough lead time to make sure that you can go to the OEM if you need to, when we’re dealing or responding to a customer tender in Norway.
And then sometimes, challenging in other markets like the U.S. or Nigeria, where perhaps there’s not as much advanced notice and you get a short-term call for someone who’s scrambling to find the aircraft. So it’s a pretty broad spectrum. Again, directionally, I would say not as long a lead time as the offshore drilling rigs, but longer than most other equipment sectors.
David Smith: I really appreciate it. It’s a great long-term outlook. Thanks for sharing it with us.
Christopher Bradshaw: Thank you.
Operator: The next question is from Edison Yu with Deutsche Bank. Your line is now open.
Xin Yu: Hey thanks. I just have one question to follow up on, I guess what progress have you seen or being — or see being made on the AAM front in terms of the various partners you have? Just curious, any latest thoughts on the, especially on the timelines as they seem to have been elongated.
Christopher Bradshaw: Yes. Thank you for the question. So with respect to Advanced Air Mobility, which for the broader audience, Advanced Air Mobility or AAM is a general term to reference the use of new technology and new propulsion systems, whether all electric or hybrid electric, maybe one day, hydrogen, that are going to power new platforms as we see a new generation of aircraft being developed coming into the market. We remain very excited about the prospects. Bristow has been focused on this for really more than five years now. We’re pleased with the partnerships that we signed and are developing with some of the leading companies that are developing those products. As you referenced, the certification timeline is really key.
That will be largely determined by the regulators in the various jurisdictions. It has been a bit extended as referenced, but we think by the end of this year and certainly by 2025, you will likely see the first of these aircraft certified and available in the market in places like Europe, the U.S., the U.K. And at Bristow, where we are and have been the vertical leader, the global leader in vertical flight for the last 75 years, we’re excited about the prospects of incorporating these new technologies into our fleet for the future.
Xin Yu: And just a quick follow-up on that. Have you gotten strong indications from customers that they’d be willing to utilize these newer type of aircraft? And what do you think would be sort of realistic number that you could see in service in the next couple of years?
Christopher Bradshaw: Yes. We have gotten positive indications, and we could talk about some new customers, but I think maybe I’ll point first to even our existing customers, some of the large energy companies that we service. They’ve made some very ambitious Net-Zero targets. And so any time we go to them and can talk about a solution, which will help them reach their carbon reduction initiatives and achieve some of their sustainability goals, it’s really almost like pushing against an open door. They’re very keen to talk about those type of opportunities. In terms of numbers, there are some pretty ambitious estimates out there. I think we tend to be maybe more pragmatic, and we think that with any kind of new technology, fall, walk, run approach is, again maybe a realistic one to take.
So we’re going to take a relatively small number of these aircraft, initially prove out concept, prove out the return potential. But I think if you look out over the next 10 years, we could, again could, have numbers in the fleet with these new technologies that are comparable to our existing fleet.
Xin Yu: Great, thank you.
Operator: Final question comes from Steve Silver from Argus Research. Your line is now open.
