If they paid nothing for these aircraft why is the following such a troubling statement in the quarterly returns from the Bristow Group...
- Loss on impairment of $117.2 million($101.1 million net of tax), or $2.83 per share, including:
- $20.8 million impairment of Eastern Airways assets including $17.5 million for aircraft and equipment, $3.0 million for intangible assets and $0.3 millionfor inventory.
Im sure someone will be along who knows more but those figures don’t really add up.
Bristow did not buy Eastern as a feeder service, it couldn’t care less how we make our way to Aberdeen, it bought Eastern because at the time the Integrated services (ABZ to Scatsta and onward heli for IAC etc) were expanding and Bristow needed a way to ensure it had dedicated aircraft and a Flightline scenario would never be repeated. Now of course Babcock and CHC have a similar offering with Loganair, how Bristow now must look back and wish it did similar where the costs were fixed. I’m told Eastern lost nothing in the FlyBe price war but rising EU compensation, and falling passenger numbers on the East Coast routes must not be helping.
Thing is Bristow will continue to take a hit on it because it needs the aircraft