November 20, 2008
US Helicopter temporarily suspends all Wall St. flights
 Update: Struggling US Helicopter discontinued all service in 2009.
The Downtown Heliport near Wall Street has been off limits to US Helicopter since November 1, the date FirstFlight took over managing operations without a certified airport security plan that allows federally required screening for passengers transferring to JFK or Newark, a company official told NewYorkology.
In October, the NYC Economic Development Corporation awarded a 10-year contract to FirstFlight, Inc.to take over management of the heliport from the Port Authority of New York and New Jersey.
Shortly before the changeover on November 1, US Helicopter learned that FirstFlight did not have the proper TSA certification required for flights to land at JFK and Newark airports, US Helicopter’s VP of Marketing Donal McSullivan told NewYorkology in an interview this morning.
“We have been advised it’s a matter of days” before they get certification, he said. “It’s very costly to us.”
In the meantime, US Helicopter has been calling all its scheduled passengers and re-directing them to its East 34th Street heliport, which also serves JFK and Newark. The company provides weekday, 8-minute shuttles to the two airports, allowing passengers to pass through TSA-approved security at the heliport and bypass regular airport security. Flights are about $159 one-way, but there are $45 and $99 deals through December.
NewYorkology has not yet received returned calls from FirstFlight or the EDC, but US Helicopter’s quarterly report filed with the SEC on Wednesday spells out the Downtown Heliport situation in detail:
On or about November 1, 2008, the City of New York transferred management of the Downtown Manhattan Heliport (the “DMH”) from the Port Authority of New York and New Jersey (the “Port Authority”) to FirstFlight, Inc. (“FirstFlight”). Immediately prior to transferring management of the DMH, the Company was advised that FirstFlight did not maintain the approvals required to provide Federal airline security screening at the DMH. As a consequence, we have been unable to provide either scheduled or charter flight services from the DMH since November 1, 2008 due to the lack of TSA-approved security screening services and will not be able to do so until FirstFlight obtains all required TSA approvals. We have been advised that FirstFlight and the TSA are working diligently to ensure that FirstFlight has all required approvals as quickly as possible; however, there can be no assurances that FirstFlight will obtain such approvals on a timely basis or at all. Accordingly, our financial condition and our ability to implement our business plan may suffer in the event that we are unable to conduct our flight operations from the DMH for an extended period of time.
In addition, we are negotiating in good faith with FirstFlight for a new operating agreement with such entity. FirstFlight has agreed to abide by the same terms observed by the Port Authority through November 30, 2008. While our management believes that a mutually acceptable agreement will be entered into prior to such date, there can be no assurances that we will be able to enter into an agreement with FirstFlight on a timely basis or at all.
The 10-Q filing also notes that US Helicopter had an accumulated deficit of $38.5 million as of September 30 and the financial status “raises substantial doubt about our ability to continue as a going concern.”
But the company has secured a series of bridge loans and other financing, the most recent one for $250,000 on November 7.
The quarterly report reitterates earlier plans to add service to new locations, including LaGuardia Airport and West 30th Street in Manhattan within the next 12 months. McSullivan confirmed those plans as viable, noting the company is scheduled to take delivery of another helicopter in the first quarter of next year. “We’re growing our business. We’ve been very methodical in all we’ve done,” he said.
Both US Helicopter (USHP.OB) and First Flight (FFLT.OB) are publicly traded companies.
Picture credits: US Helicopter landing at E. 34th St by Vidiot, and Downtown Heliport in October by Amy Langfield/NewYorkology.
Earlier: Port Authority to handoff Wall St. heliport management
US Helicopter behind on rent at Wall Street heliport
November 20, 2008 11:00 AM in Arrivology
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