New horizons for Era's helicopters.

• Author: Baker, Allen
• Position: Era Aviation Inc. Era Helicopters - Access the World

China's new open-door policy for business means expansion for this Anchorage-based helicopter company.

Alaska's oil-business expertise and its strategic location could be big pluses for companies that want to tap the booming Chinese economy, says Chuck Johnson, president of Era Aviation Inc. Era Helicopters, a division of his Anchorage-based company, just won a $17-million, three-year contract to transport workers and supplies to oil rigs in the South China Sea. Johnson sees it as just the beginning of a long-term business relationship in China.

"I think there are going to be a lot of opportunities for Alaskans, especially for people in the oil field service industry," says Johnson.

Dealing with the Chinese takes some special care, say both Johnson and Bryan Blixhavn, the company's marketing vice president.

"The Chinese have been doing business for a long time -- it's a lot different from dealing with the Russians," Johnson says. "Chinese are tough negotiators -- in that regard, they really know what they're doing."

But there are some major differences.

"They are just not used to a competitive bidding process as we know it," says Blixhavn. "They have pretty much been accustomed to telling customers what they are going to get, rather than asking what they want. It's sometimes challenging to get that message across so it's not taken as an affront to how they are used to doing their work."

A respectful approach is vital, Era executives say. "Just like in any other country, you need to have respect for the culture of the people you're dealing with -- that's true whether you're talking about China, Russia, Germany, Thailand," says Johnson. "That should be a rule at the very front of any business dealing -- you're in their country, after all."

But the bureaucracy in China's communist government is even more cumbersome than in capitalist societies, and patience is in order, according to Johnson.

"I'd say a big difference (in China) is that things happen a lot more slowly," he says.

One important part of doing business in China is finding a Chinese partner. That's necessary in just about any business undertaking in the country.

Era's current deal is with China Southern Airlines (CSA) Zhuhai Helicopter Co. It's part of a major regional carrier, China Southern, which has a fleet of more than a hundred commercial jets.

Era is essentially a subcontractor, which means the Chinese company takes care of a lot of the nuts and bolts on the ground in China...