CHC IRISH SAR €500m CONTRACT IN FINANCIAL WOES

[EAGLESDARE]

CHC the private Company who provides Helicopter SAR cover in Ireland are suffering from financial woes. After winning a €500m 10 year contract from the Irish Government they claim they still can't make a financial profit:{ Not a good sign, hopefully they get their UK SAR bid right.

[212man]

hopefully they get their UK SAR bid right

Why? I thought Bristow had it in the bag :E

[TorqueOfTheDevil]

Where's Hank Semi when you need him...:oh:

[heli1]

Where is this written officially Eaglesdare or is it just hearsay?

[leopold bloom]

€500m contract company makes new loss of €1.8m - Irish, Business - Independent.ie (http://www.independent.ie/business/irish/500m-contract-company-makes-new-loss-of-18m-3067974.html)

[Need money]

"Accounts just filed for CHC Ireland (http://searchtopics.independent.ie/topic/Ireland) show losses increased at the business last year, the last accounting period before the massive state contract kicks-in in 2012."

I read it that the losses were for the year BEFORE the SAR contract starts... it doesnt say they cant make a profit on the contract itself ?!

[[email protected]]

Maybe this explains the rumour that CHC were sniffing around Wattisham asking AAC pilots how much they would take to fill the co-pilots seat on a SAR aircraft - anything to cut costs (allegedly):( Bodes well for the future of UK SAR if that is the sort of game to be played - not!

[[email protected]]

I think it just shows how much Mil SAR actually costs not quite sure it does anything of the sort, especially as the Irish SAR contract isn't replacing the military. It just shows how much more expensive a SAR contract has to be if you want to make a profit on it rather than run it as a not-for profit organisation.

As you say, they all know how much it costs to run the operation but, when there is a bidding process and all claim the same capability, then the cheapest bidder will most likely get the gig and then have to squeeze some margin out of that.

If CHC have made a loss on their worldwide operations (notably the one they were already running in Ireland) it is even more imperative they make a decent profit out of the new Irish SAR contract- still don't see how that gives best value for money for the cash-strapped Irish taxpayers.

[Bertie Thruster]

Oi, Crab!--- Nothing wrong with ex AAC guys in SAR cabs!:p

[170']

Creative accounting ?

[unstable load]

Not off to a shining start, then.:uhoh:
Mods, feel free to relocate.
Donal O'Donovan – 06 March 2013
Losses at the private helicopter company that has a €500m state contract for offshore search and rescue have increased to €2.78m.




CHC Ireland is the Irish subsidiary of a Canadian firm that is the biggest of its kind anywhere and has a significant operation in Scotland servicing the offshore oil industry.
Here, it is most associated with a €500m-a-year contract to provide offshore search and rescue services that runs from 2012 until 2022.
The contract was controversial when it was signed in 2010 because it was the first time that the Air Corp lost responsibility for offshore rescues. The Air Corp was not allowed to tender for the work.
Accounts just filed with the Companies Registration Office show that CHC Ireland suffered a loss of €2.78m in the 12 months to the end of April 2012, up from €1.8m in 2011. Turnover was up last year to €24m compared to €23m.
Running costs exceeded income by €3m, the accounts show. The rise in losses was driven by updating of the company's Irish fleet with new Sikorsky S-92 that have enhanced rescue technology such as infra-red and low-light cameras, and high-speed rescue hoists.
The first of the new aircraft was delivered in May last year and is stationed in Shannon.
CHC Ireland has suffered losses for the past four years with accumulated losses standing at €6.62m, which is the reason that no corporation tax was paid in the past two years.
Income under the new state contract is likely to see a big step up in income for the business from this year.
Staff costs at CHC were €12.6m, up slightly over the previous year.

Losses widen at air rescue firm - Independent.ie (http://www.independent.ie/business/irish/losses-widen-at-air-rescue-firm-29111772.html)

[roundwego]

CHC Ireland will be deliberately making a loss because it doesn't want to pay Irish tax. All the cash will be being siphoned off to other CHC owned companies based in low or nil tax havens. Take the aircraft for instance. I would bet that they are leased to CHC Ireland by another CHC company elsewhere in the world. If CHC is like many other global companies, they will spend a lot of money avoiding tax. Starbucks comes to mind.

[unstable load]

CHC fleet is owned by Heli-One, as far as I recall.

[industry insider]

Not everywhere U/L, CHC has more than one leasing company to use as a vehicle where required. They also lease from Milestone. The leasing method and vehicle varies depending on country and contract.

[Phoinix]

CHC fleet is owned by Heli-One, as far as I recall.

Heli-One is a division of CHC Helicopter.

[500 Fan]

"CHC Ireland will be deliberately making a loss because it doesn't want to pay Irish tax. All the cash will be being siphoned off to other CHC owned companies based in low or nil tax havens. Take the aircraft for instance. I would bet that they are leased to CHC Ireland by another CHC company elsewhere in the world. If CHC is like many other global companies, they will spend a lot of money avoiding tax. Starbucks comes to mind."

I hope you are wrong, Roundwego. Unfortunately, you are probably correct. The Irish tax payer has been screwed by the banks and our government. I guess there is no reason why CHC shouldn't do the same.

500 Fan.

[Pittsextra]

Not forgetting being screwed by your own, for example:-

Yet another developer files for UK bankruptcy - Independent.ie (http://www.independent.ie/business/irish/yet-another-developer-files-for-uk-bankruptcy-26868257.html)

[Pink Panther]

In my opinion there are quite a few inaccuracies in that Irish Independent article. But don't let that get in the way of a good story. It is certainly not a good place to be, when a company is being lumped in with failed Governments, Banks, property developers and the likes which, by the way are seen as pariahs within Ireland.

This contract is costing the Irish tax payer a lot of readies. It was called things in certain Irish national papers like "controversial" and the likes. It certainly got up the noses of certain vested interests.

If this paper article and others are to be believed, and it is now claimed this large capital state contract,which is tax payers money, is posting losses for the company on a continual bases, then maybe questions need to be asked.

[500 Fan]

Vertical Magazine - The Pulse of the Helicopter Industry (http://www.verticalmag.com/news/article/23329)

[Pink Panther]

CHC HELICOPTER MARKS EIGHT STRAIGHT QUARTER OF REVENUE AND EARNINGS GROWTH.........except it's Irish business unit....Hmmmmmmm.

[heli1]

Note that these losses are under the old contract and operating the S61N.Under the new contract with the S92 it should turn a profit again.

[EAGLESDARE]

Interesting link to our national Broadcaster.
Check out the Para. Shifty Profits
BBC News - Corporate tax avoidance: How do companies do it? (http://m.bbc.co.uk/news/business-20580545)

[EAGLESDARE]

There's a contradiction in this, after all those years still losing money in SARI. It sounds so wonderful under Irish SAR in the below link. I think I can smell the Starbucks coffee:=

http://www.parl.gc.ca/Content/HOC/Committee/411/FINA/WebDoc/WD5138047/411_FINA_PBC2011_Briefs%5CCHC%20Helicopter%20Corporation%20E .pdf

[EAGLESDARE]

There's a contradiction in this. All those years operating in SARI and still not turning a profit:= SARI sounds so wonderful in the below web link.
Can anybody else smell Starbucks Coffee:D

http://www.parl.gc.ca/Content/HOC/Committee/411/FINA/WebDoc/WD5138047/411_FINA_PBC2011_Briefs%5CCHC%20Helicopter%20Corporation%20E .pdf