Valdez, AK – After 16 years of providing Alaskan skiing experiences, Valdez Heli-Camps (VHC) has canceled its 2012 ski season, and the prospects for future operations appear bleak.
“After a trying last few weeks and months seeking alternatives to the complete cancellation of the 2012 season, we are left with no viable option,” says VHC owner A. Matt White. “We had hoped to prep for opening this week for a limited season with guests coming in mid-March and salvage a short season for 2012.”
Last year was the worst snow season on record in Valdez, resulting in numerous cancelled reservations that impacted the company’s bottom line. At the same time, company officials had significant financial outlays for equipment upgrades and other financial commitments. Plans for year-round diversification and a consequent financial recovery fell apart over the summer.
“I began to look for long term solutions for VHC to continue operations over the summer and fall,” says White. “We laid off staff and ceased active marketing and sales operations until which time we could be reassured of viability. Ultimately, I was unable to develop such an opportunity.
“In the end I could not justify further investment maintaining our organization’s standards with its commitment to safe and legal operations in the unregulated market without good solutions to current and ongoing challenges in place,” White says, expressing frustration over the way helicopter skiing operations in Alaska are regulated. “Essentially, these combined setbacks caused me to reflect that I am 16 years into a 10-year plan and as yet unable to bring effectual change to the way the State of Alaska incentivizes recreational land use for heli-skiing to gain needed equity for real investment. Current incentives are set not to encourage business to invest to create and gain real equity in the resource and to the community but rather, reward a more bare-bones approach to operations to offset risk.
“I have been so far over these many years unable to show the value of equity based management, as is done in Canada, over the non-equity based management alternative in place in Alaska while continuing to compete at a substantial disadvantage in maintaining the standards we have at VHC,” White concluded.
White says that this spring he will again seek alternatives for reorganization or liquidation of the company.
After 16 years of providing safe and fun Alaskan skiing experiences, for the first time Valdez Heli-Camps is cancelling a ski season. After a trying last few weeks and months seeking alternatives to the complete cancellation of the 2012 season, we are left with no viable option. We had hoped to prep for opening this week for a limited season with guests coming in mid-March and salvage a short season for 2012.
As many of you know, we had our very worst season for skiing conditions during the 2011 season in our history and on record in Valdez producing many cancellations and altered plans for our guests as well as severe financial impacts to maintaining quality ski operations with low guest numbers through that time. That setback coupled with our outlays for equipment upgrades and the restoration and reopening of the defunct restaurant for the Best Western hotel owner not being honored compounded our downturn with the weather and our outlook for year-round diversification and a summer recovery as hoped.
After our projections were inexorably curtailed by the combined events of the 2011 season, I began to look for long term solutions for VHC to continue operations over the summer and fall. We laid off staff and ceased active marketing and sales operations until which time we could be reassured of viability. Ultimately, I was unable to develop such an opportunity.
After considering all the challenges in continuing VHC in the Alaska operating environment, in the end I could not justify further investment maintaining our organization’s standards with its commitment to safe and legal operations in the unregulated market without good solutions to current and ongoing challenges in place. Essentially, these combine setbacks caused me to reflect that I am 16 years into a 10 year plan and as yet unable to bring effectual change to the way the State of Alaska incentivizes recreational land use for heliskiing to gain needed equity for real investment. Current incentives are set not to encourage business to invest to create and gain real equity in the resource and to the community but rather, reward a more barebones approach to operations to offset risk. I have been so far over these many years unable to show the value of equity based management (as is done in Canada) over the non-equity based management alternative in place in Alaska while continuing to compete at a substantial disadvantage in maintaining the standards we have at VHC.
I would like to thank all of the wonderful people that have participated in Valdez Heli-Camps as guests, employees and supporters of all kinds over the last nearly two decades I have worked on this project which has been a labor of love. I am deeply saddened by this situation and sincerely apologize to any who are adversely affected by our late cancellation.
This spring I will again seek alternatives for reorganization or liquidation in the coming year and prior to the 2013 season to meet outstanding commitments. All customer commitments scheduled to expire in the 2012 will be extended concurrently until a solution is found or the company is reorganized, sold, or dissolved.
Again I would like to thank and apologize to all effected. I wish you all the best for a safe and fun ski season and 2012.
Very Sincerely,
A. Matt White