Cobham to merge with Alliance?
 

Now that Carlyle have secured CAI (Alliance and Airwork), they are rumored to be sniffing around at Cobham. This would make great business sense, with significant cost savings and an effective monopoly on contract work in the Oceanic / Asian region.


Carlyle hovering over another aviation play

11 June 2010 | Jamie Freed and Sarah Thompson | The Australian Financial Review

With contracts exchanged between The Carlyle Group and Contract Aviation Industries (CAI), Street Talk can reveal that the US private equity giant is also giving Cobham Australia a very thorough once-over with a view to slapping it together with CAI.

afr.com - Opinion - The Australian Financial Review

Never in a million years!

For a start Carlyle couldn't afford Cobham and second, I doubt Cobham would sell anyway. Plus Krudd will tax them out of it.

Nice rumour though.:E

It is true the parent can afford it, they are the US Defence contractor Halliburton and they want the coast watch contract. :)

Oh it's happening. Watch this space!!! And just in time for the Qlink 717 renewal.... standby for Fokkers with roos on the tail...

I believe Qantaslink (sunstate/eastern) will use this as an opportunity to bring all WA flying in-house...:D

Rumour has it there is soon to be a large increase in Qantas 737 ops in the coming 18 months ,3-4 new airframes and a heap of crew to be based in Perth, maybe these will replace the 717's with a combination of Dashes. I thought Qantas owned the 717's? Also wouldn't the goverment have a say over who is running the surveillance contract?

Heavy Cargo,
Isn't that why Cobham bought NJS? to get the Coastwatch contract.

No idea,I heard it from a merchant banker/private equity who was involved with the Alliance / Airworks / Helicopter deal?:ok: The coming weeks will tell.

Indeed they do. Cobham provide the cheap crew and engineers.

Indeed it was.

Funny how these rumours surface just before contract renewal talks begin.

"You will have to take a pay cut otherwise will we lose the contract and you will be begging on the street" :=

Standing by. How long should we wait beaver_rotate?

it might all turn a shade of orange...........

Would that be silver and orange, campdoag ;)

Cobham NJS Divided
 

Cobham did buy National Jet for the Coastwatch contract. The other parts were just an associated cost in purchasing the target contract. The charter and airline sections are all now separated and could be sold or retained by Cobham as required. I guess the charter services (mining) of Cobham could sit very nicely with the Alliance opertations. I'm sure the division of the NJS operations onto separate AOC's was done in order to make some sections available for sale if required. Possibly depends on how big and tempting the offer to Cobham is!?

:suspect:

So replacing 717 with 738... wouldn't that flood the market with seats that the 717 can hardly fill as it is?

I also doubt whether replacing the 717s with Q400s would sit very well with the customers given that there are any number of jet operators all over WA that could step up to the plate if a company wanted a jet service for it's contract. They might have low fuel burns but. WA isn't FNQ where there's nothing happening.

Bloggs,
I hear they are looking at the whole box and dice.
:ooh::ooh:

717's on an a lease from QANTAS. Cobham contract with QANTAS due at end of 2011(renewal in early 2012)

Cobham will retain the coast watch contract ( this is the parent company expertise and core business)

Carlyle will pick up charter business and replace 146's with F100's

QANTASLink will take the rpt back in place (business plan already done) with expansion of 737 flying in the west. Cseries to arrive in 2015.

QANTAS wont worry about replacing jets with Q400's look at Rocky, Mackay and Cloncurry (formerley jet runs).

Remember "jet like speeds" with intemediate cruise speeds less abit more because they are still going to fast!!!!

Maybe, but they are certainly looking and COBHAM is showing the whole lot.
Maybe, but replacing 146 with F100's is the customers choice, and don't forget they had the F100 option when they chose the 146 orginally.
Who would really know, I suspect you don't, I knpow I don't.

Again who knows, only time will tell. Stranger things have happened. The average passenger looks at price more than type I suspect. I know I do.

Is this them...The Carlyle Group ?

They have a massive portfolio.

Probably not for Chevron since they specifically needed and wanted a 146 RJ 100 for Barrow Island, that has a few years to run I think.

What are you guys all going to do if NOTHING changes ( most likely) at all?????

Can you name a few that are served by the 717?

Maybe Newman? Surely Port Hedland, Karratha, Kalgoorlie and Broome are fine as the 737 does service them already?