Eastern Airways-2
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I could be wrong but I suspect that much has been going on behind the scenes to separate Eastern away from Bristow. I heard a few months back that the ownership structure has changed and I’ve not heard anything since to contradict that.
I don’t share the doom, I’m pretty convinced that if everything bar the east coast routes are binned a lean EA focused on its lucrative oil support work, sports charters and other long term charter and lease work could turn a profit if they get the aircraft mix right, hard decisions I suppose to get to that point.
My only worry is that BRS seemed incapable of making those reasonably obvious decisions so what chance anyone else?
I don’t share the doom, I’m pretty convinced that if everything bar the east coast routes are binned a lean EA focused on its lucrative oil support work, sports charters and other long term charter and lease work could turn a profit if they get the aircraft mix right, hard decisions I suppose to get to that point.
My only worry is that BRS seemed incapable of making those reasonably obvious decisions so what chance anyone else?
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CH3CH2OH
GVIC recommended that Bristow take immediate steps to improve its performance, including the sale of underperforming assets. While GVIC did not name those assets specifically, they are believed to include Bristow’s perennial money-losing fixed-wing operations Eastern Airways and Airnorth. GVIC also recommended replacing Bristow’s senior executives. “GVIC believes that others familiar with Bristow’s operations are prepared and waiting to assume key management positions immediately.”
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When Bristows bought into Eastern a few years ago they were not a loss-making airline; mismanagement (which also includes a complete lack of oversight) by Bristows and a completely daft tie-up to Flybe are what's caused recent losses.
I'm with LesPretend and think that if Eastern breakaway from Bristows, they'll be fine.
I'm with LesPretend and think that if Eastern breakaway from Bristows, they'll be fine.
Last edited by RAFAT; 24th Apr 2019 at 10:52. Reason: Punctuation
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Originally Posted by SWBKCB
Isn't the lucrative oil support work via Bristow's - isn't that why Bristows bought them in the first place?
Bristow thought at the time that the route into contracts for the expanding northern sector was to offer an integrated service for their clients (this had worked very well for the IAC) and buying EA was a protection (ironically) against fixed wing operators going bust such as Flightline. I’ve no evidence for this statement but I’ve heard many times that the parent company drove the acquisition.
What I suppose wasn’t for-seen at the time was the perfect storm around the corner of these type of contracts disappearing, the downturn in the oil industry and years of pain for many regional airlines particularly with an ageing fleet. Anyone who has observed the recent Columbia Helicopters debacle will question the parent companies ability to perform due diligence!!
My personal view like others is that BRS should have taken control right from the start with their own people to get it to what they wanted it to be. Instead it was allowed to meander down various different roads never seeming to be that joined up. Not an issue when the money taps are on tho.
There is a lot of negativity over in Rotorheads about BRS but that mainly stems from the recent horrendous track record of the Houston parent company. I can only say it as I see it on a daily basis but BRS in the north sea have a decent rep for service delivery. I’m not sure there is a consensus that has been improved by the acquisition of EA. In fact quite the opposite.
Yes, BRS contract EA to Scatsta work, but at the moment BP have a stand alone agreement on Sumburgh as it feeds Babcock flights (I assume that’s changing) and I can’t imagine for one moment BRS looking elsewhere if it needed fixed wing support so several years of guaranteed revenue there.
BRS are under immense pressure to get rid of anything not making money and the money taps have been well and truly switched off. A stand alone EA with no ties to BRS would also be free (it may always have been) to pick up other work with the other operators.
Of course it’s all just hypothetical speculation and I await being shot down in flames but I am convinced a stand alone EA would do better on its own if it sticks to what’s it’s good at with people who (despite what anyone thinks of them) managed to run a profitable airline through some pretty hard times.
Last edited by LesPretend; 13th May 2019 at 17:38. Reason: Spelling
Flight - Airnorth and Eastern could be sold under Bristow rescue plan
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Key assets for disposal include Airnorth and Eastern Airways, based in Australia and the UK respectively, which are both forecast to be negative on an earnings before interest, taxes, depreciation and amortisation (EBITDA) basis this year. Bristow acquired both carriers to feed its helicopter operations, with limited success. GVIC believes it can attract buyers for the pair, to transform them into "regular scheduled airlines rather than running them on an industrial helicopter aviation model", says J P Geygan, GVIC vice-president. "We have had conversations with a fixed-wing operator that was bewildered how inefficiently these airlines have been operated,” says Jeff Geygan, president and chief executive of GVIC.
To be fair, Eastern was a shambles before Bristow took over, it’s just that the expected improvement with a “mature” company taking over never happened.
I cant see any place for an independent Eastern in today’s world sufficient to make a credible business and make money. Loganair have stepped up to meet most of the sub 50 seat UK regional flying.
With a dying/old fleet, there needs to be huge capital investment to move forward which I just can’t see happening.
I cant see any place for an independent Eastern in today’s world sufficient to make a credible business and make money. Loganair have stepped up to meet most of the sub 50 seat UK regional flying.
With a dying/old fleet, there needs to be huge capital investment to move forward which I just can’t see happening.
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Originally Posted by Atlantic Explorer
To be fair, Eastern was a shambles before Bristow took over, it’s just that the expected improvement with a “mature” company taking over never happened.
I cant see any place for an independent Eastern in today’s world sufficient to make a credible business and make money. Loganair have stepped up to meet most of the sub 50 seat UK regional flying.
With a dying/old fleet, there needs to be huge capital investment to move forward which I just can’t see happening.
I cant see any place for an independent Eastern in today’s world sufficient to make a credible business and make money. Loganair have stepped up to meet most of the sub 50 seat UK regional flying.
With a dying/old fleet, there needs to be huge capital investment to move forward which I just can’t see happening.
If what I read on here is correct most appear to be. I’m never sure if that’s because they are a shambles or if it’s because most are run on a shoestring to return a profit to their owners at the detriment to the welfare of their staff. There isn’t much dispute that EA made money pre Bristow tho.
Last edited by LesPretend; 13th May 2019 at 14:36.
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Up to a point I do feel sorry for Eastern (and all the other airlines, or in this case mainly former airlines) that try / tried to operate planes that size. They've all tried hard, but the economic environment means it's increasingly pretty impossible.
My sympathy in this case is of course lessened by their attitudes towards staff. The planes don't seem to be flying themselves yet, do they? Maybe they needed to keep hold of pilots a bit longer...
My sympathy in this case is of course lessened by their attitudes towards staff. The planes don't seem to be flying themselves yet, do they? Maybe they needed to keep hold of pilots a bit longer...
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Sold ???
the flight global article reporting the Chapter 11 filing of some of the Bristows businesses in the US on the 11th May has the following statement at the bottom
Eastern Airways has since been sold, in a deal completed on 10 May, Bristow confirms
https://www.flightglobal.com/news/ar...ter-11-458120/
Eastern Airways has since been sold, in a deal completed on 10 May, Bristow confirms
https://www.flightglobal.com/news/ar...ter-11-458120/
And on a lighter note...
Statement from Eastern Airways
Following on from recent announcements by Loganair on their new route launches and in this day and age of high stress and concern about everything from Brexit to the environment, it was good to see some comedy introduced by our friends at Loganair which lightened the mood somewhat.
From a post on Rotorheads:
Bristows retain ownership of Humberside airport
BHL completed the sale of all of the shares of Eastern Airways International Limited (“EAIL”) to Orient Industrial Holdings Limited (“OIHL”), an entity affiliated with Mr. Richard Lake,
Given the current demand for oil/gas related flying at Aberdeen how much is Eastern really worth without the asset that is HUY ? I imagine that Richard Lake would have had to put in a sizeable chunk of equity if he borrowed any money from a bank to finance this acquisition. I am wondering if buying Eastern back from Bristow was driven more by emotion than anything else
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Originally Posted by SWBKCB
It’s good to see ‘Scotland’s favourite airline’ with the English owners and senior management team, putting to good use its manipulated position on being unencumbered with the debt of its sister company following the planned merger with flybmi by recreating the same operating environment again, curious planning for sure but cause for a celebratory chuckle all the same.
