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Airnorth future? Bristow in financial trouble
https://www.flightglobal.com/news/ar...on-fut-457523/ US-headquartered offshore helicopter specialist Bristow Group has issued a stark warning that the company faces insolvency unless it is able to implement a financial turnaround. "If we are unable to execute transactions to improve our financial condition, we do not believe we will have sufficient liquidity to conduct our business operations based on existing conditions and estimates during the next 12 months." So where does this leave Airnorth? They are a wholly owned subsidiary of Bristow and if Bristow goes under, Airnorth will go with them. Anyone want to buy a regional? |
Fairly flat business but not losing or making much at all. Remove the currency headwind which seems to be wiping the profit each year, and its an attractive business for a local. I highly doubt Virgin wants anything to do with Embrear again so I’d actually expect QF or Alliance to pick this up considering they do have a small relationship with them at the moment. It wouldn’t be worth much. Tiger was 60 million flat profit with a dozen airbus so 10-20mill max. |
Airnorth’s EBITDA was US $-1.2million in the Dec18 qtr. (last reported) Bristow Group Inc. - News Release Darwin’s economy is crunching. NT government’s debt is spiralling. https://www.abc.net.au/news/2018-12-...-debt/10632654 QF have adjusted their own and their subsidiaries services and bases. Anyone want to buy this regional? |
Unfortunately it'd be a lot easier for a competitor looking at entering (or expanding) the Darwin market to wait until the entity folded and then pick up the routes and crew left behind for nix.
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What competitor would that be? Theres no point fighting over the last couple of sips in an empty good bag. |
Maybe the previous owners will buy it back at a bargain price |
With QF’s stake in Alliance, Airnorth might be a good investment for Virgin. It’s would allow them to secure a wholly owned subsidiary that can operate ejets profitably for its QLD operations taking away its reliance on Alliance. |
Originally Posted by davidclarke
(Post 10453603)
With QF’s stake in Alliance, Airnorth might be a good investment for Virgin. It’s would allow them to secure a wholly owned subsidiary that can operate ejets profitably for its QLD operations taking away its reliance on Alliance. |
Originally Posted by Mr Google Head
(Post 10453586)
Maybe the previous owners will buy it back at a bargain price Small fortunes in aviation and all. I don’t think the previous directors would be keen to spend that war chest keeping it afloat until theres only air in the piggy bank. The last thing Virgin need to do is buy another regional airline. If Airnorth go dodo, someone else will pick up the pieces. I’d imagine those Alliance F70s would be a pretty good machine up there too. |
Its a horrible aircraft to fly on with little leg room. The only problem with this statement is that its not operating the E Jet profitably. |
Embraer E170/190 is probably one of the nicest aircraft to ride in, lot more appeal than the the Fokker 70, Dash8 400, ATR series and the CRJ. If you want cramp Pavement, try the QLink B 717 on a 2.5 hour sector. |
Originally Posted by Stationair8
(Post 10453693)
Embraer E170/190 is probably one of the nicest aircraft to ride in, lot more appeal than the the Fokker 70, Dash8 400, ATR series and the CRJ. If you want cramp Pavement, try the QLink B 717 on a 2.5 hour sector. Not ‘the vibe’ , just read a lot. |
Leg room (or pitch if others want to be pedantic) was very average. |
Originally Posted by Icarus2001
(Post 10453788)
Understood and I don't doubt your experience but you cannot judge an entire line of aircraft based on experience with one operator. Each sets the pitch according to their business model. So you could get very different experiences depending on which aircraft you are on. How was the noise level? Seat comfort? Air conditioning?
Airnorth has a good service on their longer routes but I, personally, thought the space was a bit below par. |
Originally Posted by Pavement
(Post 10453831)
Ok got your point. I’ve travelled the E series in other parts of the world and enjoyed the experience. The Delta layout with some extra legroom seats (E190) is particularly good. Alitalia was also good despite the Italian service. Airnorth has a good service on their longer routes but I, personally, thought the space was a bit below par. |
Originally Posted by VH DSJ
(Post 10454268)
one of VA's leased Ejets will be returning to Australia to be flown by Cobham.
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Rubbish!! I flew the E-Jet for 4 years and the pax loved it. No middle seat and plenty of leg room, very quiet as well.
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DF agree - have flown on BA E-jets many times and prefer them to the Airbus for sure. And they perform pretty well out of LCY. |
VH-DSJ look no further than a dapper looking Italian chap who had a dose of ‘these things weren’t my idea and I want them gone’ Same bloke ordered the 330’s at great expense (don’t get me wrong they are a great aeroplane - just not at the price they paid). The VA ejet was extremely popular, though a little binary, some people hated them, the majority though I think loved them. |
The VA ejet was extremely popular, though a little binary, some people hated them, the majority though I think loved them. |
Delta has got a 35’ pitch in its Economy X Cabin on the ex Virgin 170s it took. From experience it’s certainly the most comfortable ride in the states. Very private Jet like. Virgin’s X product would have been a very nice ride should they have kept them. |
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12 irrelevant posts waffling on about seat pitch etc. Usual Pprune ADHD in action.
But thanks to Belly Tank, back on topic. If Bristow do unload non performing 'asset' Airnorth at the right price, the AOC could be of use to Pionair, with their recently announced deal in Kiribati. Bristow's problems may also go some way to explaining why Kiribati did not select Airnorth for the contract. |
Further to belly tank's story link above.
Happy Landings :ok: |
It is probably safe to say a few things - Airnorth was not a smart financial investment for Bristow and they paid way too much for it.
Is it smart for a rotary specialist company now to off load it's two "odd men out" fixed wing operations - probably yes. But what losses will they accept and more importantly who might buy it or even be interested? I very much doubt MB, RL & JG would throw money at it in a buy back, but you never know. I am not sure JH would want to own it again even with sons. I think NP has lost enough with PA not to want to try that type of aviation again. The other Darwin based operators I doubt could or would wish to make an offer. Qantas and Virgin I doubt would have an interest, the main contracts of these two I also doubt would have much interest in an offer. A foolish territory government (they are common) may put in a offer as a vote winner but that would be bad in the long run for everyone. So an Asian offer is a possibility - Darwin head office as base, but all crew and maintenance offshore bases. Silk air for a song? |
Where’s the NT government going to get the dollars from when they are literally broke now? Having said that nothing would not surprise me. Just hope they don’t end up doing an Ansett style collapse if the rug is pulled from under them. |
Bristow is one thing however i think you'll find Air North is profitable within its own operation.
My concern would be the engines for the 170 since they arent made anymore |
The fleet is probably worth not much at all. An astute buyer would not want most of it. Any value would be in the AOC, should a need be identified. Obtaining a start up AOC from CASA is a monumental undertaking, so what is that piece of paper worth? More than a few beat up old airframes. |
Originally Posted by Duck Pilot
(Post 10456103)
Where’s the NT government going to get the dollars from when they are literally broke now? Having said that nothing would not surprise me. Just hope they don’t end up doing an Ansett style collapse if the rug is pulled from under them. The unions do not even support the Gunner government in any real way - as a delegate I was informed they are a joke and hate to deal with them. |
So an Asian offer is a possibility - Darwin head office as base, but all crew and maintenance offshore bases. |
Cloudy, Icarus but dependant on political donations and environment - as always.
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Originally Posted by Mach E Avelli
(Post 10456135)
The fleet is probably worth not much at all. An astute buyer would not want most of it. Any value would be in the AOC, should a need be identified. Obtaining a start up AOC from CASA is a monumental undertaking, so what is that piece of paper worth? More than a few beat up old airframes. |
Lots of monopoly routes that someone would likely step in to service if they do go under. Link between Broome Kununurra and Darwin, Gove and Cairns and the Timor route then the stuff closer to Darwin that is probably less profitable but a vital link for those communities. Perhaps QF or VA would pick up the jet routes and one of the GA outfits to do the turboprop work. Maybe QLink open up their 717 base again ? |
They also service Darwin - Truscott airbase using the Bras and Metro for the offshore helicopter operator Babcock.
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Yes and McArthur river so a fair bit of charter work up for grabs too could see Alliance basing an F100 or two up there |
Originally Posted by belly tank
(Post 10456924)
They also service Darwin - Truscott airbase using the Bras and Metro for the offshore helicopter operator Babcock.
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Originally Posted by Pavement
(Post 10453609)
The only problem with this statement is that its not operating the E Jet profitably. Its a horrible aircraft to fly on with little leg room. In the Australian environment its only suitable for niche routes with no competition.
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Originally Posted by Flyboy1987
(Post 10457076)
i don’t think they operate metros anymore? |
onehitwonder
Bristow is one thing however i think you'll find Air North is profitable within its own operation. |
As predicted Airnorth is on the chopping block.
https://www.flightglobal.com/news/ar...ow-res-457851/ |
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