Cobham Aviation up for sale
DAMON KITNEY
Cobham Aviation chief executive Ryan Both at Essendon Fields Airport. Picture: Stuart McEvoy
One of the nation’s biggest aviation groups, Cobham Aviation Services Australia, has been put up for sale by its UK parent after the London Stock *Exchange-*listed company agreed to a £4 billion ($7.2bn) takeover offer from US buyout group Advent International.
Cobham, which turns over almost $400 million annually and is one of the nation’s biggest aviation groups, is the largest provider of contract aviation services in Australia and flies Boeing 717 aircraft for QantasLink.
It also operates search and rescue aircraft for the Australian Maritime Safety Authority (AMSA) and patrols the nation’s coastline for the Australian Border Force.
Delivering the Cobham interim results yesterday, chief executive David Lockwood announced it had started a strategic review of Cobham Australia, *noting it would decide the best way to *optimise value in the interests of the company and its stakeholders.
He said Advent International was “aware and supportive” of the review of the Australian business.
Last year Cobham restructured its Cobham Aviation Services unit into two regional businesses, one focused on Australia and the other on Britain, Europe, the Middle East and Africa.
As a result, 37-year-old Ryan Both, a former Virgin Australia and Melbourne Airport executive, took over as chief executive of the Australian group from Peter Nottage, who had been in the top job with Cobham Australia since 2006.
Mr Both has since pushed to introduce types of aircraft better suited to the demands of FIFO customers, as the industry rides a recovery in the resource sector, including the Q400, the 70-seat Bombardier and the 98-seat Embraer E190.
“We are about to enter an exciting new phase with the arrival of our first Q400 next week, which brings a game-changing, modern, in-production aircraft to the FIFO sector,” Mr Both said yesterday.
“As a progressive and innovative organisation, it’s not surprising that we are taking stock and reviewing where we’re at.
“Modern aircraft, like the Q400 and the recently introduced Embraer 190, are expensive. They are transforming our business but we need more capital to drive our growth so we can realise our full potential.”
He said the potential of *Cob*ham was largely an “untold story”.
“We have 1300 people, operate more than 50 aircraft, blue-chip customers and a national footprint,” Mr Both said. “Cobham Plc has high expectations for our business and remains committed to the success of CAvS (Cobham Aviation Services Australia) in Australia during this process.”