CHC - what will the future hold

[rotor-rooter]

It appears that wherever you go and whomever you speak to within CHC, the main subject of discussion is the future of this fine organisation.

Most of the chatter is focused on the influence of the Dobbin heirs and their effective control of the company. This debate appears fuelled by the effect that any attempt to cash out might have on the company.

Various internal sources suggest that following the failed attempt to sell last year, that various other suitors have been courted with varying degrees of interest. As the original buyer walked away, having completed their due diligence, this raised considerable interest in the markeplace, as they certainly knew what they were looking at.

Anyone with any further insight into this? Will the Company continue to exist as it it, or be sold as a single unit, or mybe split into more saleable assets - as it is certainly would appear to be a very desirable business in the current market and with its position in the worldwide helicopter industry.

[High Nr]

A once great Company, now just a good company - Pity there're Canadains thou.:}
There maybe a sell off, particularly the more isolated elements of the company.
And in Australia, that sell off will come before the first big contract is up for renewal. An insider would guess the RAAF is that contract.
We can only smile as to who would put their hand in their pocket for the "Picking's".

[Very_Low_and_Fast]

Anything is possible. But I hope CHC will last longer. In order to support its FW operation. Isn’t that what helicopters are for anyway?

[Mama Mangrove]

It'll probably fragment soon as in many parts of the world it goes down the tubes with falling standards and mismanagement. Here in UK it'll probably survive as it's in a regulated environment and with a unionised workforce. Elsewhere, it's trying to stop its workforce organising, and there's too much Canadian old-boy cronyism in the management. It has taken over many fine companies which were high on standards but low on cash and changed them into entities rich in cash but low on standards.

[unstable load]

The previous buyout never happened because the company was not SOX compliant mainly. As a NYSE listed company the Sarbanes-Oxley investigation into Enron and the others that imploded made certain things compulsory and CHC at the time was only starting to set it all up.

They have subsequently gained their SOX compliance and that makes them a very attractive target, especially seeing as getting the compliance cost over $20 mil that the new buyers don't need to fork out.

I believe that CHC will be sold at sme point in the future either in-toto or piecemeal, which will be sad in many ways, but seeing as flying these days is all about the bottom line and not about the people, it really does not matter who you work for anymore, rather what you are getting out for that work.


www.sarbanes-oxley.com

[quichemech]

Why would a break up be bad? There were lots of good things about the old Helikopter services group, most of the problems I've heard about seem to come either from the amalagation of the 2 uk companies or from the way the north americans like to work a hire/fire policy.

Mind you, who really gives a hoot anyway as long as people stay employed and get paid.

[Tynecastle]

Mama M.
Think you are out to lunch on a couple of your comments.
How many ex- CHC Intl management are still in place in the company, not too many, think you could say there is a strong European influence there nowadays, so don't think you can call that the Canadian old-boy network ?
I am sure some of the companies that they took over had and still do have high standards, but some off them did not, many horror stories about the way some of the bases that were taken over by CHC were run previously, needing huge influx of personnel, tools and equipment and lots of money to get them up to scratch.

[SirVivr]

Chaps:
What happens when AirLog(Bristow), does the buyout?
Stirring the pot.
SirVivr
Charles Alexander

[unstable load]

Quiche,
you make a good point. HS in many ways were better to work for than the now version of CHC, but as an employee of both, CHC pays WAY better, Trains more (hell, TRAINS!) and the scope of places you can see in the course of your career is vast by comparison.

Tynecastle,
True! There are more ex Air Canada folk in Vancouver than CHC International folk, not counting the Norwegians, Dutch, Brits the list goes on, but FEW of the old boys.

[rotor-rooter]

Preparing the way for some potentially bad news?

You can't think of everything (http://communities.canada.com/nationalpost/blogs/tradingdesk/archive/2007/11/20/chc-earnings-estimate-lowered-by-strong-loonie.aspx)

[unstable load]

It's funny how that cuts both ways. If the CAD keeps on going the way it is then I will keep getting paid more:D, but the earnings of the people paying me will go down, so I will probably end up getting sold at some point.:{

[wde]

On another front, I heard a "rumour" yesterday that CHC is dealing with their staffing issues by changing the tours for their Canadian based pilots from 6 -6 to 6 - 5. Any truth to this? I have also heard that the change is not appreciated and that some pilots have started to look elsewhere.

Any substantiation?

[Perro Rojo]

They (YVR) tried going to 6 and 4 in the mid-90s with the subsequent loss of a large number of their more experienced crew. When you think about it, who has the most options? The plan didn't even last a year and they were back to even time tours.

In addition 6 and 5 would be almost impossible to schedule, especially on a one machine, one crew job.

[unstable load]

I agree with Perro Rojo, any uneven roster on a single crew posting will be impossible unless they get the guys ALL to do ET for a week, which puts them right back at 6/6 and at a higher cost at the end of the day.

[Tynecastle]

For the guys that have to travel a significant distance to the job site, 6x6 actually equates to 42 days on, and around 37 days off, mind you that is better than the early 80's when it was 8x4.
Offcourse a lot of the coin operated guys are working half their time off on ET, good luck to them, but what p***** a lot of guys off is that you get the same ET rate working out of a 5 star resort in Asia as you do in one of Africa's prime locations.
Think Nigeria and Angola should be $ 600 p/d ET at least.
TC

[Outwest]

ET is $300/day everywhere except Nigeria where it is $450/day.