Airnorth Sale
https://www.afr.com/street-talk/auct...0190805-p52dulAuction underway for bankrupt Bristow Group's Australian airline
Sarah Thompson and
Anthony MacdonaldAug 5, 2019 — 9.32pm
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ShareThere's further shake-up in Australia's aviation industry.
Regional airline operator Airnorth, which operates flights across Western Australia, Queensland and the Northern Territory, is up for sale with first round bids due this week. Airnorth's owner, US-based Bristow Group, has had boutique corporate adviser Allier Capital pitching the business to potential buyers in Australia and offshore in recent weeks, spruiking its $100 million or so a year revenue and potential to be part of a bigger network. Perhaps the most logical acquirer is ASX-listed independent regional airline Regional Express Holdings Ltd, which is considering a move into the Northern Territory.
Sources said Regional Express had approached Airnorth about a deal late last year, but has since moved on. Another potential buyer is UK-based Cobham Group, which owns the country's third largest aviation business Cobham Aviation Services. Interestingly, Cobham has bankered up and is considering a sale of its own Australian arm. However it is also understood to be mulling a bid for Airnorth and combining it with its own business.
[Cobham has hired Bank of America Merrill Lynch's local team, as Street Talk revealed last week.]
There are also believed to be a handful of financial investors circling Airnorth, who are likely to consider Airnorth as a platform to a bigger move into the Australian skies. Bids are believed to be due this week with a second round slated to commence in the coming fortnight. The auction comes soon after Airnorth's owner, Houston-based Bristow Group, entered chapter 11 bankruptcy in the United States in May. It is understood prospective acquirers have been told the Australian business is ringfenced and its auction is slated to proceed as planned.
When Bristow last reported earnings for the quarter ended September 30, 2018, it said Airnorth recorded $47 million operating revenue and a $3 million loss in terms of adjusted EBITDA.