Milestone and Leonardo Launch Helicopter Leasing Efficiency Pact

Milestone Aviation and Leonardo Helicopters: A New Chapter in Helicopter Leasing

The global aviation industry is undergoing a significant shift, particularly in the specialized domain of helicopter leasing. This transformation is driven by rising demand for offshore energy support, emergency medical services (EMS), and environmentally sustainable aviation solutions. At the forefront of this evolution is a newly announced framework agreement between Milestone Aviation Group and Leonardo Helicopters, revealed on July 2, 2025, that could redefine how operational efficiency and cost predictability are managed in the sector.

Milestone, the world’s leading helicopter leasing firm and a subsidiary of AerCap, has signed a Power-by-the-Hour (PBH) agreement with Leonardo, a globally recognized manufacturer known for models like the AW139, AW169, and AW189. This agreement encompasses over 100 helicopters from Milestone’s Leonardo fleet and introduces a streamlined PBH transition solution aimed at reducing maintenance costs and increasing uptime for operators worldwide.

This collaboration marks a pivotal point in aviation asset management, reflecting nearly 15 years of cooperation between the two companies. It also aligns with broader industry trends such as digitalization, predictive maintenance, and the shift toward renewable energy support missions.

Evolution of a Strategic Partnership

From Initial Collaborations to a Global Framework

The relationship between Milestone and Leonardo dates back to 2010, with their first major transaction occurring in 2013. At that time, Milestone placed an order for 22 helicopters valued at $682 million, marking one of the largest civilian helicopter sales in AgustaWestland’s history, the predecessor to Leonardo. This procurement strategy allowed Milestone to lease Leonardo helicopters to operators worldwide, forming the foundation of a mutually beneficial partnership.

Fast forward to 2025, and Milestone now operates a Leonardo fleet of over 100 helicopters, including AW169s, AW139s, and AW189s. These aircraft are deployed across a range of missions such as offshore oil and gas transport, search and rescue (SAR), EMS, and renewable energy operations. The current agreement builds on this history by introducing a standardized PBH model applicable across Milestone’s global customer base.

This development is more than a contract, it’s a strategic alignment. According to Francesco Bellardi, VP of Customer Support and Services at Leonardo, the agreement “lays the groundwork across Leonardo’s global operations” and is the result of months of collaboration between the two entities.

“This agreement not only solidifies the foundation of mutual trust and cooperation but also lays the groundwork across Leonardo’s global operations.”

, Francesco Bellardi, VP Customer Support and Services, Leonardo S.p.A.

The Rise of Power-by-the-Hour Models

The PBH model represents a shift from traditional leasing structures toward performance-based contracts. Instead of fixed lease payments, operators pay based on actual flight hours, allowing for better alignment between cost and usage. This model gained traction during economic downturns, particularly the COVID-19 pandemic, when operators sought to reduce fixed costs and preserve cash flow.

Leonardo has been a pioneer in PBH agreements, previously signing a similar deal with PHI Aviation in 2023. That agreement included predictive maintenance tools and global support coverage. The new framework with Milestone takes this a step further by applying PBH across a diverse fleet and multiple operators, effectively creating a standardized maintenance ecosystem.

Fleet Capabilities and Mission Diversity

The agreement covers three primary helicopter models, each tailored to specific mission profiles. The AW139 is a versatile 15-seat twin-engine helicopter used for offshore transport, EMS, and law enforcement. With over 1,200 units produced, it is one of the most widely adopted medium-lift helicopters globally.

The AW169, a smaller 10-seat model, is optimized for EMS and utility missions. It features advanced avionics and night vision compatibility, making it suitable for complex operations. The AW189, a super-medium helicopter designed for offshore work, offers a 50-minute run-dry gearbox and has logged over 155,000 flight hours in offshore missions alone.

This fleet diversity enables Milestone to support approximately 50 customers in 35 countries, addressing mission-critical needs from oil and gas to firefighting and police surveillance.

Market Dynamics and Strategic Implications

Offshore Energy and Renewable Transition

The agreement is particularly timely given the dual expansion of the offshore energy sector, traditional oil and gas and the burgeoning offshore wind industry. Leonardo currently operates nearly 500 helicopters globally in offshore roles, and the AW189 is a preferred platform for such missions thanks to its endurance and payload capabilities.

As countries invest in offshore wind infrastructure, the need for reliable air transport to remote installations increases. Helicopters like the AW189 play a crucial role in construction, maintenance, and emergency response. This trend is evident in recent deals, such as GD Helicopter Finance’s acquisition of 20 H175 helicopters for energy and SAR missions.

Milestone’s positioning in this sector is strategic, as the PBH model enhances operational reliability, an essential factor in offshore environments where aircraft availability must exceed 85-90%.

Growth of the Helicopter Leasing Market

The global helicopter leasing market is projected to grow from $4.99 billion in 2024 to $10.13 billion by 2032, reflecting a 9.3% compound annual growth rate. North America is expected to hold a 36.04% market share. Leasing offers operators a way to reduce capital expenditures and mitigate risks associated with asset ownership.

Milestone, backed by AerCap, signed 21 lease agreements in Q2 2024 alone, reinforcing its leadership position. The PBH model further differentiates Milestone by offering bundled financial and technical services, from engine leasing to fleet advisory.

This integrated approach is increasingly vital as operators demand mission-specific configurations and predictable cost structures. The Leonardo-Milestone agreement addresses these needs while enhancing asset lifecycle value for both parties.

Digitalization and Predictive Maintenance

One of the most forward-looking aspects of the agreement is its emphasis on digital infrastructure. Leonardo’s Diagnostic Services Tower in Sesto Calende, Italy, provides real-time fleet monitoring and predictive maintenance capabilities. These tools allow for early detection of potential issues, reducing unscheduled downtime by an estimated 30-40%.

Data from Milestone’s diverse operations will feed into Leonardo’s algorithms, creating a feedback loop that improves maintenance accuracy over time. This is particularly beneficial for high-intensity missions such as offshore transport and firefighting, where reliability is paramount.

As the aviation industry embraces digital transformation, the integration of predictive tools into leasing frameworks could become a standard practice, offering both operational and economic advantages.

“Milestone and Leonardo have worked closely together for almost 15 years… This agreement underscores our ongoing commitment to delivering their aircraft to our customers across a diverse range of missions.”

, Kieran Hannan, Head of Fleet & Technical Operations, Milestone Aviation

Conclusion and Future Outlook

The framework agreement between Milestone Aviation and Leonardo Helicopters represents more than just a business transaction, it’s a strategic evolution in helicopter leasing. By standardizing PBH implementation across a diverse fleet and customer base, the partnership enhances operational efficiency, cost predictability, and maintenance reliability.

Looking ahead, this model could serve as a blueprint for future OEM-lessor collaborations. As the industry continues to digitalize and shift toward sustainable operations, integrated service models like this will likely become the norm. The emphasis on renewable energy missions also positions both companies to play a key role in the global energy transition, ensuring that aviation remains a critical enabler of progress.

FAQ

What is Power-by-the-Hour (PBH)?
PBH is a maintenance contract model where operators pay based on actual flight hours instead of fixed lease payments, offering predictable costs and improved service reliability.

Which helicopter models are included in the Milestone-Leonardo agreement?
The agreement covers the AW169, AW139, and AW189 models, used in missions ranging from offshore energy to EMS and law enforcement.

How does this agreement benefit operators?
Operators gain access to standardized maintenance protocols, predictive analytics, and reduced operational costs, improving aircraft availability and mission readiness.

Sources: Milestone Aviation, Leonardo Helicopters, Fortune Business Insights, FlightGlobal