Cobham - Going, Going, Gone
Finally some light at the end of the tunnel for my friends at Cobham!
https://apple.news/AzzFaIvRNSeub1q9qb6oTxw
https://apple.news/AzzFaIvRNSeub1q9qb6oTxw
This is historically true in some cases.
On a side note, I wonder if the Jetstar issues will potentially benefit Cobham? Could they end up being used as a cheap option to service destinations/flights being cancelled longer term if Qantas was to extend or amend their current contract and Cobham end up some of these 220s or lease some more E-jets? (there are a bunch of ex Virgin 190s sitting around) - Pure curiosity on my part and no idea what the cost/profit margin is like between the two... but seeing how the money always flows back to Qantas would it matter who actually operated the flight at the end of the day?
On a side note, I wonder if the Jetstar issues will potentially benefit Cobham? Could they end up being used as a cheap option to service destinations/flights being cancelled longer term if Qantas was to extend or amend their current contract and Cobham end up some of these 220s or lease some more E-jets? (there are a bunch of ex Virgin 190s sitting around) - Pure curiosity on my part and no idea what the cost/profit margin is like between the two... but seeing how the money always flows back to Qantas would it matter who actually operated the flight at the end of the day?
People need to remember that the Cobham's Australian ops rely exclusively on contract work, some of which extends as far as the middle of the next decade. It wouldn't be in Advent's best interest to shut shop as they would ultimately be responsible for any termination clauses in Cobham's contracts. It will be sold and more than likely folded into another airline, but shut down? Not if Advent wants to make money from it.
People need to remember that the Cobham's Australian ops rely exclusively on contract work, some of which extends as far as the middle of the next decade. It wouldn't be in Advent's best interest to shut shop as they would ultimately be responsible for any termination clauses in Cobham's contracts. It will be sold and more than likely folded into another airline, but shut down? Not if Advent wants to make money from it.
Advent is going to hold Cobham Australia for long - the sale was announced at the same time as Advent made their takeover offer,
I think may you be mixing up the two issues.
There are several parts to Cobham Australia, I would suggest Advent will hold onto the profitable part(s) and let the rest go. Surveillance and SAR are government contracts (pretty safe), the Regional operation seems to be self sustaining (also pretty safe). That leaves Airline, QF won’t let that go without significant oversight of its operation. Take that however you like.
I imagine that splitting up Cobham along the government and defence against airline lines would make the most sense. Advent could keep the juicy defence contracts - which include supporting Predator UAVs and spin off the civil stuff. Problem is, what value is inherent in just the regional services and Qantas work? FIFO probably pays its way, as would the night freight ops, but the 717 contract has been changed so many times that surely it just gets by. How does any potential investor come in and see how to grow the operation or strip out any further costs with the environment the way it is? I can't see it, but perhaps others can.
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Private equity company = asset stripper = closure
I'm well aware of when it was announced, as I'm one of the many that any decision they make will affect. As much as we can read between the lines, the pedant in me would like to point out that Cobham has never referred to it as a "sale", they've carefully stuck to their story of "strategic review".
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There are several parts to Cobham Australia, I would suggest Advent will hold onto the profitable part(s) and let the rest go. Surveillance and SAR are government contracts (pretty safe), the Regional operation seems to be self sustaining (also pretty safe). That leaves Airline, QF won’t let that go without significant oversight of its operation. Take that however you like.
Border Force ending in 2 years, SAR loss making as the bid was half everyone else's, rumours Qantas is looking for people to develop B717 courses with only limited life left in em anyway and regional only very small. Be great to understand why Border Force or SAR would be retained? Safe for staff yes, safe from sale.....no.
Border Force is the reason Cobham bought National Jet in the first place. I’d be surprised if it was put up for sale, particularly if other Australian business units were retained.
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What part of Cobham Australia do you suggest is profitable?
Border Force ending in 2 years, SAR loss making as the bid was half everyone else's, rumours Qantas is looking for people to develop B717 courses with only limited life left in em anyway and regional only very small. Be great to understand why Border Force or SAR would be retained? Safe for staff yes, safe from sale.....no.
Border Force ending in 2 years, SAR loss making as the bid was half everyone else's, rumours Qantas is looking for people to develop B717 courses with only limited life left in em anyway and regional only very small. Be great to understand why Border Force or SAR would be retained? Safe for staff yes, safe from sale.....no.
A real glass half full kind of guy aren’t you.
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3rd Q400 arrives this week with upto 6 by the end of the year. As for the EJet, sounds like the current one will be returned but not before another arrives in its place. But hearing there could be 3-5 EJets by the end of the year.