Profile: PHI, Inc. (PHII.O)

PHI, Inc.(PHI), incorporated in 1949, is engaged in the transportation of personnel and, parts and equipments, to, from, and among offshore platforms for customers engaged in the oil and gas exploration, development, and production industry, principally in the Gulf of Mexico. The Company is a provider of helicopter transportation services in the Gulf of Mexico. It also provides helicopter services to the oil and gas industry internationally, and to non-oil and gas customers such as health care providers and United States governmental agencies, such as the National Science Foundation. The Company also provides air medical transportation for hospitals and emergency service agencies, and provides helicopter maintenance and repair services to certain customers. The Company operates in three business segments: Oil and Gas, Air Medical, and Technical Services. During the year ended December 31, 2008, the Company operated 249 aircraft domestically and internationally.

Oil and Gas

The Company’s Oil and Gas segment provides helicopter services primarily for the oil and gas production companies transporting personnel and/or equipments to offshore platforms in the Gulf of Mexico, Angola, and the Democratic Republic of Congo. The Company operates 153 aircraft in the Oil and Gas segment. Oil and gas exploration and production companies and other offshore oil service companies use its services primarily for transportation of personnel and equipment, to transport personnel during medical and safety emergencies, and to evacuate personnel during the threat of hurricanes and other adverse weather conditions.

The Company’s oil and gas aircraft are available for hire by any customer. Its helicopters have flight ranges up to 495 miles with a 30-minute fuel reserve and are capable of servicing many of the deepwater oil and gas operations from 50 to 200 miles offshore. Operating revenues from the Oil and Gas segment is derived mainly from fixed-term contracts that include a fixed monthly rate for a particular model of aircraft, plus a variable rate for flight time. Operating costs for the Oil and Gas operations are primarily aircraft operation costs, including costs for pilots and maintenance personnel.

Air Medical

The Company provides air medical transportation services for hospitals and emergency service agencies. It operates as a provider of medical services in 17 states using approximately 90 aircraft at 73 locations. The Company bills for its services on the basis of a flat rate plus a variable charge per loaded mile. The payor categories include Medicaid, Medicare, Insurance, and Self-Pay. The Company also has a limited number of contracts with hospitals, under which it receives a fixed monthly rate for aircraft availability and an hourly rate for flight time.

Technical Services

The Company’s Technical Services segment provides helicopter repair and overhaul services for flight operations customers. Costs associated with these services are primarily labor. It also operates six aircraft for the National Science Foundation in Antarctica under this segment.