I've been watching this thread for a while. I suspect that one of the reasons you can make a small fortune in aviation (having started with a large one!) is the way in which some people in aviation have a an interesting view of business.
Mitchaa has fixated on revenue. Which in the grand scheme of things is not even half the equation. The scary thing is that some of the management team are saying things like;
"
William Amelio, CHC president and chief executive officer:
Long-term trends for oil-and-gas investments in deep and ultra-deep discovery and production where the need for our services is greatest remain robust. We are pursuing our financial priorities by focusing on disciplined capital allocation, reduced leverage and positive free cash flow with safety leadership in the air and on the ground.
Joan Hooper, CHC chief financial officer:
The changes we are making to CHC are further enhancing safety, service and efficiency. We are applying the same resolve to financial discipline as we do to operating standards. Our financial priorities profitable growth, expanding adjusted EBITDAR margins and strengthening the balance sheet are guiding all of our decisions and actions.
Over the next 2 to 4 years there will be virtually NO investment in deep and ultra deep discovery and production by the oil majors - so scratch that revenue stream.
However to be fair the management are controlling costs. The quarterly losses (NOT revenue) are creditably no greater in 2014 than 2013 and given the pressure on contracts that is creditable. And between 2015 and 2016 the year to date loss figures reduced slightly (around 15% to $54M).
But this is a business which has been losing money for over 3 years (as far back as I could be bothered to look). Which of course is why the share price is rock bottom. Putting money into CHC shares simply means you lose it.
Substantial restructuring, Chapter 11, walking away from leased and idle aircraft, unwanted aircrew - that would be a pretty obvious 'fix'. The management team have a real job on their hands and I wish them every success - I have friends who work for CHC! But it is taking quite some time and the money is running out.