Aerospatiale

"On the upside, Dobbin’s pioneering move provided leverage in his negotiations to purchase the Super Pumas. Aerospatiale needed a breakthrough in the North American market, dominated by homegrown competitors Bell and Sikorsky. Aerospatiale were prepared to accommodate the first serious purchaser of Super Pumas with attractive deals, and they did, after Sealand received an injection of capital from Louisiana-based Petroleum Helicopters. Cash acquired in exchange for 22 per cent equity in Sealand enabled Dobbin to place a down payment on a fleet of Super Pumas for delivery in 1982."

"Bidding goodbye to his astonished co-workers at Okanagan, Jones departed for St. John’s. Within a few days of arriving at. Sealand, he began doubting the wisdom of his decision. He may have wangled a good deal out of Dobbin, but its value was worthless if Sealand was unable to meet its financial obligations to him. That was a distinct possibility, since the company was having difficulty meeting its financial obligation to almost everyone else. Among Sealand’s most vocal creditors was Aerospatiale, awaiting payments for its fleet of multimillion-dollar Super Pumas plus spare parts and servicing equipment in Sealand’s possession. The chances of settling the debt quickly were minimal. Sealand’s revenue was about $20 million annually, but overhead costs were absorbing so much of its income that little was left over. Much of Jones’s effort, he soon realized, would consist of juggling one dollar in the bank with every three or four dollars the company owed. Sealand’s immense debt was disconcerting to him and every staff member aware of the situation. But not to Craig Dobbin."

"But the Sikorskys were old technology, and the Bells were limited in size and application. The finest large helicopter in the world, capable of carrying up to twenty-three workers clad in survival suits over the North Atlantic in safety and comfort, was the new AS 332 Super Puma built by European manufacturer Aerospatiale (today Eurocopter). Originally designed for military use, the as 332 incorporated a number of design features that enhanced its reliability, including run-dry transmissions, redundant electrical and hydraulic systems, thermal de-icing of the main rotor blades, and an advanced radar system providing all-weather flight capabilities."

"All attempts to present Sealand’s case were made by Jones. Craig 64 Dobbin sat quiet and unsmiling. He let the Sealand president absorb the verbal abuse during several minutes of Aerospatiale’s harangue, then interrupted another of the lawyer's diatribes by standing up and raising his hand. “I’ve had it up to here with you people,” he said when the lawyer sputtered to silence. “You want your helicopters back, here’s where they are.” He began waving his arms, directing the Aerospatiale’s team towards appropriate points of the compass. “There are three parked deep in the Amazon jungle, two more up on Baffin Island, two in St. John’s and three in Africa. You want ‘em, you go and get ’em. But I’m cutting off the insurance on them, bringing my pilots home, moving the helicopters out of the hangars, and you can forget about maintenance. So go get your helicopters. We're going home. Let’s go, J.C.” Without even a glance back, Dobbin stalked out of the board room, J.C. Jones at his heels."

"Responding to a direct summons, Dobbin and Jones travelled south to Aerospatiale’s North American office, expecting to negotiate terms for future payments in a businesslike atmosphere. Instead, they encountered a herd of hostile executives and angry lawyers determined to wring money from Sealand with all the finesse of a Texas posse in pursuit of outlaws. “They talked to us like we were a couple of schoolboys catching hell in the principal's office,” Jones remembers. “They weren't polite, they weren’t accommodating, they weren’t even businesslike. They considered us a couple of dummies from Canada who owed them money and weren’t paying them.” One lawyer repeatedly challenged Jones, growing ruder with every effort Jones made to explain the situation. Referring to Jones and Dobbin as idiots and crooks, the lawyer interrupted every utterance from Jones with a fresh insult and accusation."

"The people at Aerospatiale had a different view. For several months the company had tolerated Sealand’s neglect of its debt in exchange for Sealand’s showcasing its Super Puma fleet in North America. U.S.’helicopter firms had long favoured domestic manufacturers, notably Sikorsky and Bell. The Super Pumas were foreign and highly advanced. How reliable could they be, and how good was French engineering and quality control? Whenever those questions arose, Aerospatiale pointed to Sealand’s success in servicing oil platforms off the coast of Atlantic Canada, high in the Arctic and down in the South American jungle. There was a limit to Aerospatiale’s tolerance, however."

"In 1985 yet another crisis arose to challenge Craig Dobbin’s determination to succeed. In a perfect storm of adversity, offshore petroleum exploration and production around the world plummeted, and the federal government cancelled a package of incentive programs. Both events occurred just after Sealand placed an order committing it to accept delivery of six new Super Puma craft from Aerospatiale and purchase an additional six in the near future. Almost overnight, too many helicopter service operations began chasing too few contracts, creating an unprecedented buyer’s market. Less than two years earlier, Sealand was winning bids of $240,000 per month to supply one Super Puma and crew; now they were being asked to provide the same service at $99,000, with a second Super Puma as backup."

"In Dobbin’s eyes, the risk of Aerospatiale shutting down Sealand was nil. The machines were about to sit uninsured and unprotected in locations around the world without pilots to ferry them to France or Texas. The prospect of Aerospatiale selling the machines at better than fire-sale prices to anyone else within a short time was not good; in exchange for taking Sealand’s debts off its books, Aerospatiale would acquire an inventory of a dozen used machines, perhaps with operational problems and with no immediate buyers. Dobbin’s decision to walk was hardly risk-free, however. Without the Super Pumas, Sealand was certain to lose its offshore petroleum contracts, and Aerospatiale could apply sufficient legal pressure to shut down Sealand entirely if it chose."

"that it couldn’t ignore Aerospatiale’s concern about continuing to provide parts and support without payment, especially when so much money remained outstanding for the purchase of the Super Pumas. The two sides agreed on a plan of repayment that met both their needs, and Sealand continued its operations. It was classic Craig Dobbin, this rolling the dice with everything on the table, and he would repeat the action over and over again in the coming years."