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Airnorth future? Bristow in financial trouble

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Airnorth future? Bristow in financial trouble

Old 3rd May 2019, 13:00
  #41 (permalink)  
 
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As predicted Airnorth is on the chopping block.

https://www.flightglobal.com/news/ar...ow-res-457851/
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Old 3rd May 2019, 15:00
  #42 (permalink)  
 
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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 earnings before (EBTIDA)
Well there is the answer to the statement above that Air North is profitable. Negative earnings even before tax and interest.
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Old 3rd May 2019, 15:22
  #43 (permalink)  
 
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Bristow is about to close it’s Broome base next week as it has finished flying for Inpex after the contract was terminated. In terms of 2014 levels of aircraft (30 now 3) pilots and engineers (140 now 16 each) it’s now 10% of its 2014 size.
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Old 3rd May 2019, 21:22
  #44 (permalink)  
 
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How do you know this? Air North makes a small profit, do you have a source? Or is it "the vibe"?[/QUOTE]

Will Bristows own statement suffice? The vibe about this operation has been around for a while.
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Old 4th May 2019, 06:18
  #45 (permalink)  
 
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3 S92 are about to turn up for a contract in Port Hedland WA, they were marking the taxi ways out 2 weeks ago
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Old 4th May 2019, 06:39
  #46 (permalink)  
rep
 
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I think the thing to remember here is that Airnorth has been very profitable in the past. They have only started loosing money since Bristow came on board. I have no doubt money has been shifted overseas. At the end of the day, they are a helicopter company attempting to run a fixed wing business - it was never going to work. The sooner they get MB back onboard, the better. Together we try.
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Old 4th May 2019, 06:43
  #47 (permalink)  
 
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Pretty sure any contract with an oil and gas producer will have clauses in it to ensure the client doesn’t loose out.
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Old 4th May 2019, 07:20
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Word on the street is that MB, is about to go on the board of CASA.
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Old 4th May 2019, 07:21
  #49 (permalink)  
 
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Watch Qantas Link make a move !
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Old 4th May 2019, 08:42
  #50 (permalink)  
 
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Originally Posted by ersa View Post
3 S92 are about to turn up for a contract in Port Hedland WA, they were marking the taxi ways out 2 weeks ago
Its only short term contract 6-9 months.
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Old 4th May 2019, 11:50
  #51 (permalink)  
 
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QantasLink move in with what? Their own fleet or take the existing TL fleet over?

Last edited by Duck Pilot; 4th May 2019 at 21:59.
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Old 5th May 2019, 11:23
  #52 (permalink)  
 
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ersa

3 S92 are about to turn up for a contract in Port Hedland WA, they were marking the taxi ways out 2 weeks ago
Same Santos drilling contract they have been supporting contract as Bristow has been supporting from Karratha, 2x S-92s. Bristow has 5 in country now, 3 are heading to the North Sea.

Pavement

The recent Bristow 10Q flings have shown Air North to be making a small loss, profit or loss is highly dependent on the fuel price.

The whole idea was to buy airlines (Eastern in the UK and Air North in Australia) and to control the whole travel supply chain for the offshore oil and gas workforce. But in Australia, Bristow customers didn't buy it, in fact, they are very adverse to having one logistics transport supplier. Bristow canvassed their customers and the reaction was negative.

But one or two management types in Bristow had delusions of grandeur and with the cash rolling in at that time from helicopter operations, they went ahead and did it anyway. After the purchase, Bristow didn't actually try to make the tie up with the helicopter contracts so Air North was always going to be a stepchild. They installed a "tea bag and toilet paper sheet counting" finance type as Air North CEO who had briefly held a position in Bristow as Service Delivery Manager. He was moved to Air North because the Bristow Helicopter customers neither liked the service nor the Manager.
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Old 5th May 2019, 20:19
  #53 (permalink)  
 
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Originally Posted by industry insider View Post
They installed a "tea bag and toilet paper sheet counting" finance type as Air North CEO who had briefly held a position in Bristow as Service Delivery Manager. He was moved to Air North because the Bristow Helicopter customers neither liked the service nor the Manager.
If it's the person that is still CEO at AN now, then that individual is also CEO of Bristow Australia.
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Old 6th May 2019, 05:43
  #54 (permalink)  
 
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Originally Posted by Stationair8 View Post
Word on the street is that MB, is about to go on the board of CASA.
Good I've got photos!
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Old 7th May 2019, 00:40
  #55 (permalink)  
 
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Originally Posted by Stationair8 View Post
Word on the street is that MB, is about to go on the board of CASA.
CASA website says:

Mr Michael Bridge

First appointed: 1 October 2018

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Old 7th May 2019, 09:46
  #56 (permalink)  
 
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WaanBeBiggles

If it's the person that is still CEO at AN now, then that individual is also CEO of Bristow Australia.
Same one. Ex Finance Manager Bristow, Head of Bristow Travel where he honed his tea bag counting and toilet paper rationing skills. After a brief spell as Bristow Service Delivery Manager, a new concept introduced by the then Bristow Australia CEO but which lasted only weeks, the purchase of Air North provided a promotion opportunity which also conveniently moved him away from the important oil and gas clients.

The Bristow Financial Year ends in April. Between April 2017 and April 2018 (latest figures not yet available) Bristow (mostly) and Air North lost $31,776,293 between them in Australia alone.
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Old 7th May 2019, 21:04
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Originally Posted by industry insider View Post
The Bristow Financial Year ends in April. Between April 2017 and April 2018 (latest figures not yet available) Bristow (mostly) and Air North lost $31,776,293 between them in Australia alone.
From memory AirNorth accounted for less than $2mil of that loss, roughly the cost of only one second hand CF34-8E from the sandpit. How many new engines did AN need in the last FY? So if it weren't for that, it wouldn't be a stretch to argue the company is a profitable entity..

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Old 8th May 2019, 17:01
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Originally Posted by WannaBeBiggles View Post
From memory AirNorth accounted for less than $2mil of that loss, roughly the cost of only one second hand CF34-8E from the sandpit. How many new engines did AN need in the last FY? So if it weren't for that, it wouldn't be a stretch to argue the company is a profitable entity..
Quite right Biggles, a quick perusal of Bristows reports reveals the following “Historical Fixed-Wing Performance” for AirNorth:

FY15: EBITDA $0.7m (1Q Only)
FY16: EBITDA $12.4m (No Loss Making Qs)
FY17: EBITDA $8.9m (No Loss Making Qs)
FY18: EBITDA $7.2m (Q4 Loss of $1.4m)
FY19: EBITDA -$1.6m (Q1 Profit of $0.2m)
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Old 8th May 2019, 23:14
  #59 (permalink)  
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As I said previously, Airnorth has been a very profitable company. It's just being run by monkeys at the moment.
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Old 9th May 2019, 03:25
  #60 (permalink)  
 
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Great, their EBITDA figures are not too bad. What about after they have paid their bills? My earnings before tax are pretty good too but those dollars are useless in the real world as I cannot spend them.

EBITDA. Earnings BEFORE interest, tax, depreciation and amortisation.
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