CHC for Sale ?

[NorthSeaTiger]

Heard a rumour today that CHC Scotia is for sale , any truth to the rumour ?

NST

[Horror box]

Great rumour, and I wouldn't be at all surprised. I think we will see all of CHC sold off piecemeal in the next couple of years, so I guess it has started, at least I hope so!

[rotor-rooter]

There have certainly been strong rumours about various parts of the organisation being sold, spun-off or shut down. Activities since the sale include two major operations being shut down, Heli-One in the UK and Heli-Dyne in the US. Most recently 120 employees of their composite manufacturing operation in Newfoundland were laid-off, in addition to the 250 earlier in the year.

The new owners appear to have taken a very practical business approach to evaluating their businesses and personnel resulting in a number of high level senior managers quietly disappearing from both CHC and Heli-One.

Talking to any of the exhausted and stressed out managers from the company, few appear to have confidence in even their own future. A new management team hired from outside has replaced most of the exisiting structure, and they have laid off and cut out many levels of expensive management.

They have struggled with business goals versus the aviation regulatory environment they operate under, and made decisions that have resulted in people getting laid off then hired back immediately. As a result the fixed wing side of the business is apparently in disarray.

Although they have talked growth for some parts of the business, there is no investment and the employees appear very concerned that their future is extremely uncertain. The internal view is that the company is trying to encourage people to leave of their own free will by fueling uncertainty and appearing non-commital toward the future.

The greatest realization is that they bought a large corporation with some extremely valuable components, some moderately valuable operations that can be grown and some complete disasters that have the potential to severely impede the viability for short to medium term growth - many of which have been discussed here - including Nigeria, fixed wing, excess inventory and Heli-One Vancouver. The new owners are very successful with their business ventures and have extremely well defined business goals and models to draw from - there certainly appears to be no reason that they will not be very successful with CHC.

The internal management message is growth and investment, including further acquisition; but the belief of a growing number of managers seems to be more major internal restructuring and divestment of non performers - both business and people!

[chcoffshore]

Interesting rumour! Anymore thoughts on this? Is it the start of the breakup.............:eek:

[slyguy]

The sale rumour has probably been started by FR, to take the heat away from pay and conditions, if people are worried that the business is for sale, they will be less worried about pay and conditions, more smoke and mirrors, i would say.

But at the end of their playing they mat find themselves with nothing less to sell.

They have a strong committed workforce, just give rid of the losers that mis-manage it, and that would solve half of their problems.

It will be interesting to see if the pilots and engineers make a stand against them.

sly

[bleepup]

Well, as everybody knows companies change hands and managers come and go but pilots, techs and ground staff are always required. It would just be a change in colour scheme for most!:)

[per ulv]

Both Heli-One and CHC.

Regards from a CHC alumni

[quichemech]

Does that mean Mr Calvert has moved on?

[SafetyCase]

Nope, and still going strong...

[SafetyCase]

Talking to any of the exhausted and stressed out managers from the company, few appear to have confidence in even their own future. A new management team hired from outside has replaced most of the exisiting structure, and they have laid off and cut out many levels of expensive management.


Although they have talked growth for some parts of the business, there is no investment and the employees appear very concerned that their future is extremely uncertain.


Are you from the tabloid press, or a wannabe sensationalist reporter , trying to provoke answers that fits your picture of the business? You obviously have no idea of what you are talking about. Or maybe you have been talking to those people that should not be in their jobs in the first place.
There are no big changes in the management of the different CHC E companies; Changing an MD is no big deal as long as the rest of the organisation with all the experience stays!

The closing of the H1 facility in Aberdeen was IMHO a good business decision. They were never as good as H1 Norway on quality and on time delivery. And for the volume of work, it was not sufficient work for both entities in Europe. For the other facilities, I don't think they should have been there in the first place.

CHC Europe, especially CHC Norway is doing fine, they signed the possibly largest ever(worldwide!) offshore contract some time ago. They are building up to that now with 14 new machines, 92's and 225's. (even full AWSAR 225's) NO INVESTMENTS????

UK interim SAR with a bunch of 92's and 139's - NO INVESTMENTS???

Of course this is a rumour network, but do not fall for any cheap shots at a company that actually does quite well. I am not talking about the present UK HR issues here, mind you, but from previous experience through 30 years+, it is a good company to work for.

[Horror box]

Well said that man:ok: It is a very good place to work I would say, and so does my family.

[SafetyCase]

Thank you, appreciate it

[Hoppit]

I am not talking about the present UK HR issues here, mind you, but from previous experience through 30 years+, it is a good company to work for.

Well not anymore it isn't! Well certainly not if you're in the UK.

CHC Norway may be doing well but CHC Scotia (UK) is certainly NOT. :ugh:

And its a far bigger mess than just HR issues in the UK. The company is being mismanaged right from the top.

[Horror box]

Well not anymore it isn't! Well certainly not if you're in the UK.

It is certainly a hell of a lot better than the last company I worked for. I spent a lot more time away from home, didn't get paid overtime, got sent to places where people didn't want me and they expressed their opinions by firing various projectiles at me varying in size from 7.62 to much bigger, and occasionally hitting. I actually know when I am working, and I get to use my leave every year, and generally I get home every night. My wife doesn't worry as much, and I get a lot more money for her to spend on handbags and shoes.
I know CHC isn't perfect, and I will agree there are problems, but they will be worked out, and we have good working conditions because we have fought for them (and long may it stay), but keep it in perspective and be careful about choosing your battles. There is far worse out there, and it is still a business and has to make money, otherwise none of us will have a job. The nature of the business is that it can be a unpredictable. We are in the private sector and at the mercy of our owners, whoever that may be - like it or not. I do agree that the business in Scotia has been very badly handled, and I hope the union can enter decent dialogue to get long term agreements in place that can be incorporated into working law to prevent this happening again. It will get sorted though, and it will happen again.

[coning angel]

Horror Box, you obviously have no idea about the CHC Scotia issues right now. Good terms and conditions? On the decline. Wait till the southern bases go out on strike. The reasons behind this? Terms and conditions being attacked, and that word is not used lightly. It'll get a lot worse before it gets better for the folks down south.

[thecontroller]

The problem is.. for all the pilots who are rightly upset over the way terms and conditions are being eroded, there are no other jobs available right now. Other north sea operators aren't hiring, bugger all police/EMS/VIP charter jobs around. The alternative? Go earn £18,000 a year as an R22 instructor, yeah right. Any job is better than no job, and the employers probably know this.

[chcoffshore]

Interesting, i am lead to believe that Bond, NHV and Bristows are recruiting or are about too. But unfortunately for those who have never worked offshore it is harder to get a foot in the door, once you have the offshore experience it is easier to get a job offshore because you already tick most of the boxes!

[Wizzard]

"Wait till the southern bases go out on strike"

There's more chance of the Taliban wrapping their hand in:E

[The Governor]

Come on someone, that's some great goading by the wizzard. Someone must want to tell him what they feel about sensitive issues regarding employees conditions and rosters on an open forum.

I'm almost tempted myself...

Nope, as the great man, Inspector Clouseau used to say to Kato, now is not the time or the place.

[coning angel]

Wizzard, I heard tonight that the Taliban have indeed thrown their towels in. Unwrapped from their heads, no less.

Ok, so maybe that isn't quite strictly true, but on the other subject of which you speak, a certain gentleman has made it clear that he doesn't believe the Southern Base pilot workforce have the bottle for Industrial Action. I believe this may be one of the most foolish assumptions he has made to date. As The Guvernor has posted, not the time and place for an employee to post, but for a relative of an employee, who is actually directly affected, who is more than happy to post without fear of a job loss, it appears that 100% of the Union members in the Southern North Sea have said they will agree to Industrial Action should the company implement their new proposed roster.
That's not 45%, or 50% or even 75%. That's 100%. Let's see what happens then Mr Wizzard.??:E The strike may not actually ever happen but those guys 'sure are pissed' at the way management are riding roughshod over their terms and conditions!

[Droopystop]

Coning Angel,

You have been promising strikes for some time, but still no stoppages.......

[slyguy]

As has been said before,

the guys in the south are all talk and no action, how many times have we heard this, and how many times has it been followed through.

there is no good just moaning about the situation, if you think you have 100% backing do something about it, its the only way they will learn.

[Hoppit]

"It is certainly a hell of a lot better than the last company I worked for. .....expressed their opinions by firing various projectiles at me..."

Erm, if the best comparison you can come up with for expressing your opinion that CHC is a good company to work for involves a war zone, then that pretty much sums it up.

The employment market may be slim at the moment, but some companies are recruiting and want experienced offshore pilots. CHC on the other hand is doing its utter best to encourage people to walk. Look to the future and when the market picks up, CHC will struggle to retain and recruit staff.

The Terms and Conditions and benefits that most of us joined under are been eroded by the consultation company that has been employed by First Reserve to rapidly improve the financial situation, because we all know now that the interim contract is sucking CHC dry.

Personally it has a significant effect on my life. The roster that allowed me to commute and see my family has gone. The replacment that is being offered is a poor substitute that means if I'm lucky I'll get to see them once every 3 weeks.

Although the consultation company thinks it is making progress in it goals, it has gone about much of it in completely the wrong way and the pilots have had enough of loosing their terms and conditions.

I hope my colleagues vote no to the poor roster that is being suggested and that the Southern bases vote for action too, so that as a united force we can sit the company down and work out improved terms and conditions of employment for all of us.

The companies future looks bleak, but without engineers and pilots it won't be much of an aviation company.

[Horror box]

Erm, if the best comparison you can come up with for expressing your opinion that CHC is a good company to work for involves a war zone, then that pretty much sums it up.


Ah.... but I don't work in Scotia! If you read my my post you will see I have sympathy for our colleagues in Scotia, and I genuinely hope they can sort this out, because frankly it is a mess and an embarrassment to an otherwise good company. The reason other areas of CHC are better off is largely due to the effectiveness of Unions and near 100% membership. This has enabled good conditions for the workforce, which has produced productive pilots and engineers who are happy and importantly prepared to be flexible when required, and the companies do need a large degree of goodwill from pilots and engineers at times. Unfortunately once you piss them off this is the first thing to go. Flexibility disappears and the spiral begins.

[The Governor]

Slyguy:

Historically speaking, how many days revenue flying have been lost to strike action in the Northern NS?

[slyguy]

i am guessing that would also be around the zero mark

it never happens, they would lose contracts and therefore jobs

[Pink Panther]

I understand CHC might have lost a contract to Bond in Ireland, not SAR related.:{

[coning angel]

CHC have lost the Blackpool contract to Bond.

[365GUY]

Says Who??

[Brilliant Stuff]

On Wednesday Blackpool should have been told who has got the contract but the announcement has been delayed. Everything else was rumour for which the customer I am told was not happy.

[Helioil]

Dear SafetyCase.

I think you have to explain this one for me:

"CHC Europe, especially CHC Norway is doing fine, they signed the possibly largest ever(worldwide!) offshore contract some time ago. They are building up to that now with 14 new machines, 92's and 225's. (even full AWSAR 225's) NO INVESTMENTS????"

The facts for CHC Norway is:

Year 2006: -63561000 nok
Year 2007: -88752000 nok
Year 2008: -50567000 nok

Are we doing fine or what????? :{

[Torcher]

Helioil

Thats just the point, is it not? Getting multiple aircraft on line, in addition to recruiting and training scores of new pilots, does show up in the numbers. You might even say they are investing for the future! The company has since 2006 hired approx 30+ pilots per year, with an average typerating cost of NOK 700,000+. That said, the new owners (FRC) are making their presence felt, even in Norway.

T

[SafetyCase]

Helioil
Torcher sums it up nicely.

From CHC webpages:

The company believes the award represents the largest bundle of helicopter service contracts ever awarded, with a total value of approximately $1.1 billion (all figures in Canadian dollars)

I am not with CHC but for Norway winning that very long term contract, adding 14 new aircraft and a large number of pilots and I would expect engineers as well, yeah, I think you are doing fine, better than most.

I would think those numbers you refer to will change the next couple of years. :ok:

I admit that the story in Aberdeen is different.:{

[Epiphany]

And when will you be awarding the contract to CHC Mitchaa?

[slyguy]

Hi Guys,

any update on the CHC saga, still no news on blackpool, but more for sale rumours are afoot.

also rumours of BIH making a return to the south what have you heard??

Big red, Bristow , CHC , NHV , BIH, just like old times!

[[email protected]]

Mitchaa - there are various elements in the SARH bid which have to be satisfied and financial scrutiny of the 2 remaining bidders is one element - there is no point in awarding a contract to a company with inadequate finacial backing who may go bust or come crying to the taxpayer for more money in a couple of years time.

I have no detailed knowledge of the fiscal requirements for this bid but would suggest that the CHC part of the Scotia bid seems something of a weakness given they are being drained of cash by their owners.

If all the SARHIPT claims that we won't get the cheapest bidder just because they are cheapest are not true, then Scotia might well be in with a chance:(

[northseaguy]

Has anyone got any clear facts that the rumour is true?

The suggestion that a break-up and asset strip will be conducted by First Reserve has been with us since the take-over.

NSG

[SARBlade]

Did this thread get Hijacked?:=

[unstable load]

There's a rumour doing the rounds where I work that the CHC Halifax base is for sale/has been sold (depending on who you talk to).

northseaguy,
I would say that the asset strip, break-up and sale is a given. FR is an investment company, not an aviation company and all CHC is to them is a means to an end. You or I might buy a house to flip or a car to turn over, FR bought CHC. As an entity CHC is not profitable to the extent that FR wants and after a little massaging from them the various companies that were once purchased by Mr Dobbin to add to the group will probably be sold off or scrapped in order to create a company/companies that are financially valuable and attractive to buyers.

[[email protected]]

Sarblade - no just questioning mitchaa's assertion about CHC being a shoe-in for the contract.