I agree with the G.E. thing.
As for no-one's fault..I disagree...While the IT platforms has caused additional financial burden with no end game (Bill Amelio)...The blame falls squarely on First Reserve for Leveraging the Company way too hard and relying 100% on growth to pull it's way through.....
Here is just one example of why dip****'s like First Reserve should not get involved in Aviation.....CHC OWNED... NOT leased a Company called Sarquip in Darwin Australia. They serviced Life rafts, Jackets ETC. First reserve sold it!! So you have 2 life rafts in each Aircraft, that need servicing every year.
Each Life Raft weighs around 45KG...so on just one Base alone you have 8 Rafts that now get sent all the way around the world each year. Mutiply this by all the other bases and you can see how this one little thing costs the Company hundreds of thousand of Dollars more in Freight alone.
The turn around time when they owned Sarquip was 1 WEEK..This blew out to 6 MONTHS....They thought there **** didn't stink when they reduced it to 3 Months....Talk about not see the forest for the trees.
The Global Platforms like Heli-One are only good for Heli-One and come at a massive expensive to the overall Company. They do this I believe to largely to reduce there Company tax bill....Heli-One charges Australia far more for Parts and Overhauls than they are worth....I still have proof of this....Companies like Apple are currently in the **** with the ATO for this very behaviour.
109 Million in Admin Costs...This equates to 4 Office staff for each and every Aircraft, or 8 Office staff for Aircraft on Contract. If the new CEO was even half the Man Jack Welsh was ( Read the Book "Winning") then the next head to roll will be RAY BENNETT. Followed by a 50% reduction in office Staff,,,,,But no they want to Retrench the people who actually make them Money...10 Engineers & 20 Pilots are going to go from Australia..They don't have enough now to cover Annual Leave, Sick Leave & Training let alone keeping some on the books for when things turns around.....But no mention of culling the 9 Safety and Quality People we have. Why do you need 2 People in Recruitment when you are not Hiring!!
When the next results come in you will see the overall net loss become bigger not smaller...you can't rack up another $40 + Million interest bill P.A. (CD & R) an not have effect on the Net Loss.... Compounding interest works both ways.
Apart from the massive amount of debt the largest problem is leasing fees for around 30% of Aircraft not producing any income.
Last post I forgot to post the Link to the Form 10K
CHC Group Ltd. (Form: 10-K, Received: 07/10/2014 17:09:01)