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CHC LLC purchases Babcock

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CHC LLC purchases Babcock

Old 18th Nov 2021, 15:25
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“The CMA is concerned that the loss of one of these four suppliers could lead to higher prices and lower quality services for customers.”

or conversely higher prices and better services as the operators may no longer be scraping by on the dregs?
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Old 19th Nov 2021, 00:02
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Originally Posted by PlasticCabDriver View Post
“The CMA is concerned that the loss of one of these four suppliers could lead to higher prices and lower quality services for customers.”

or conversely higher prices and better services as the operators may no longer be scraping by on the dregs?
Exactly and obvious. I wonder if the CMA actually has a clue what is going on.

Last edited by ericferret; 19th Nov 2021 at 00:38.
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Old 19th Nov 2021, 09:52
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“The CMA is concerned that the loss of one of these four suppliers could lead to higher prices and lower quality services for customers.”
3 Operators seemed to work pretty well for a couple of decades!
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Old 19th Nov 2021, 11:44
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Originally Posted by Mitchaa View Post
I am sure that it will happen but suspect it will be a good 2yrs or so now before Babcock machines are flying with CHC colours.
LOL! Babcock are still flying in Avincis' colours!!!
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Old 19th Nov 2021, 15:29
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Originally Posted by Mitchaa View Post
Either that or there has been an objection made by Bristows or NHV where the merge may impact on their business models. A little like council planning permission, if a neighbour(s) object then it can be a right PITA to get approval.

I am sure that it will happen but suspect it will be a good 2yrs or so now before Babcock machines are flying with CHC colours. (6 month delay, 12-18 months amalgamation, training, procedures, infrastructure, staffing and so on)
What would be the reason for an objection from the other operators, the CMA says that this merger will lead to higher contract prices?
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Old 19th Nov 2021, 16:34
  #226 (permalink)  
 
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Originally Posted by finalchecksplease View Post
What would be the reason for an objection from the other operators, the CMA says that this merger will lead to higher contract prices?
More likely to be the O&G companies complaining.

They have tried to maintain four operators since the late 70's hence the following additions since Bristow bought B.E.A.S.
British Caledonian, KLM E.R.A, New Bond/Babcock, N.H.V.

Without checking I believe we have had four operators for most of the time from the late 70's onwards.

Four operators is no longer sustainable in a declining market.

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Old 20th Nov 2021, 08:07
  #227 (permalink)  
 
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I Think it has typically been three. Or certainly felt like three -

Bristow -
Bond / Babcock -
British International / CHC.

For a while there was two. Now there is four, all struggling to keep their heads above water.

The market has shrunk for sure. There are less flights and less passengers than there used to be.

The cost of running a helicopter operation has grown considerably. Aircraft, technology, training, overheads, vast departments having to collate stats for similar departments in Oil company offices. Safety Management systems, when in the old days it would be one guy in an office full of cigarette smoke who would be the crewing manager, safety manager, facilities chap, toilet roll orderer.

It is difficult to see with the current overheads of a modern airline, how four companies can compete for an ever decreasing pool of work. I am sure this is what the oil companies might want, but this isn't the boom years of the 1970's any more. I would agree that if anyone has put a stop to this, it will be the clients - I expect the heli operators would all want the merger to go ahead.

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Old 20th Nov 2021, 16:54
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Originally Posted by Special 25 View Post
I Think it has typically been three. Or certainly felt like three -

Bristow -
Bond / Babcock -
British International / CHC.

For a while there was two. Now there is four, all struggling to keep their heads above water.

The market has shrunk for sure. There are less flights and less passengers than there used to be.

The cost of running a helicopter operation has grown considerably. Aircraft, technology, training, overheads, vast departments having to collate stats for similar departments in Oil company offices. Safety Management systems, when in the old days it would be one guy in an office full of cigarette smoke who would be the crewing manager, safety manager, facilities chap, toilet roll orderer.

It is difficult to see with the current overheads of a modern airline, how four companies can compete for an ever decreasing pool of work. I am sure this is what the oil companies might want, but this isn't the boom years of the 1970's any more. I would agree that if anyone has put a stop to this, it will be the clients - I expect the heli operators would all want the merger to go ahead.
Taking a longer look there have been three operators consistantly from from the early 70's except for a short period betwwen approx 1999-2001. This gap was filled smartish by the resurrection of the Bond which became Babcock.
Minor operators filling the fourth operator gap. Times with only three operators appear to be 1986-1993, 1998-2010.

So in the last 45 years approx we had two operators for two years and three operators for seventeen years and now back to four operators with the market at a deep low.
Something has to give.
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Old 20th Nov 2021, 19:15
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Originally Posted by ericferret View Post
Taking a longer look there have been three operators consistantly from from the early 70's except for a short period betwwen approx 1999-2001. This gap was filled smartish by the resurrection of the Bond which became Babcock.
Minor operators filling the fourth operator gap. Times with only three operators appear to be 1986-1993, 1998-2010.

So in the last 45 years approx we had two operators for two years and three operators for seventeen years and now back to four operators with the market at a deep low.
Something has to give.
That's a great summary, however Bond Helicopters Mk.2 came on the scene in 2004. The Bond brothers had a 5 year "no-compete" clause when they sold in 1999, which resulted in only 2 operators from 1999-2004.
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Old 20th Nov 2021, 19:52
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If the O&G market is shrinking, what could be the reason that Bristow are on a recruitment drive for newly qualified pilots for their O&G division?
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Old 20th Nov 2021, 21:15
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The management is so weak that people are continually leaving?

LZ
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Old 20th Nov 2021, 21:37
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Originally Posted by Nineteen84 View Post
If the O&G market is shrinking, what could be the reason that Bristow are on a recruitment drive for newly qualified pilots for their O&G division?
The clock stops for no man and the zimmer frame parking is limited.
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Old 20th Nov 2021, 21:41
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Originally Posted by Apate View Post
That's a great summary, however Bond Helicopters Mk.2 came on the scene in 2004. The Bond brothers had a 5 year "no-compete" clause when they sold in 1999, which resulted in only 2 operators from 1999-2004.
Thanks for the correction. To be truly accurate I would have to trawl back through endless copies of Helicopter International.

Remarkable how long we have been doing this now. A pal of mine started in the offshore business flying out from Tetney in a single engined Whirlwind during the 60's with Bristow...

Last edited by ericferret; 20th Nov 2021 at 21:42. Reason: addition
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Old 21st Nov 2021, 19:48
  #234 (permalink)  
 
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Don't forget NHV

Don't forget NHV, they are busy in the skies above the north sea too.
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Old 22nd Nov 2021, 05:04
  #235 (permalink)  
 
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Between 1981 and 1987 there were 4 in Aberdeen

BA / BIH
Bristow
Bond
B-Cal
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Old 27th Nov 2021, 10:37
  #236 (permalink)  
 
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The current 4 operator model, in Aberdeen, suggests the 'competition question' is ABZ-centric.



If 'energy' includes other than Oil/Gas, then other companies do also exist in the UK market area.



Wiking have single a/c bases at Wick and Beccles.


Uni-fly(partnered with CHC) operate out of Humberside.

Babcock(onshore) do operate offshore.



Ad-hoc wise, HeliService International have been operating off Cork, Bel-Air put in occasional appearances, as do Atlantic Airways, PGD and even British International.
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Old 30th Nov 2021, 14:00
  #237 (permalink)  
 
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Interresting!
Spoiler
 

UK competition authority moves CHC-Babcock to Phase 2
Source: HeliHub.com

The UK Government’s Competition and Mergers Authority (“CMA”) has referred the completed acquisition by CHC Group LLC of Offshore Helicopter Services UK Limited (“OHS”), Offshore Services Australasia Pty Ltd and Offshore Helicopter Services Denmark A/S for an in-depth investigation.

The latter three companies were previously named Babcock Mission Critical Services Offshore Limited, Babcock Offshore Services Australasia Pty Ltd, and Babcock Denmark A/S respectively. The date of reference for the inquiry is today, 29 November 2021, and the inquiry has a statutory deadline of 15 May 2022.
The CMA has appointed a board to investigate the situation consisting of the following:- Kip Meek (Chair), Juliet Lazarus, Cyrus Mehta, and Karthik Subramanya. The current situation continues to be that CHC and OHS have to continue trading at arms length, and thus cannot interfere in the running of each other’s businesses, even though CHC has technically bought OHS.
This situation has to continue until Phase 2 of the inquiry has reported its findings. On 18th November we reported that the CMA had raised concerns at the deal and given CHC five working days to respond to particular matters. It is HeliHub’s understanding that CHC did not respond in the required timescale, thus moving the inquiry to Phase 2. While the official line is that this creates a further period of nearly six months for the inquiry team to investigate and report, this also creates a longer period for CHC to come up with a plan with which they would hope to sidestep the Inquiry recommendations.
This could, for example, see some aspects of the merged operation being passed to another operator (other than their current competitors, Bristow and NHV) in order to maintain the CMA’s seemingly preferred model of four offshore operators in the UK. In their own words:- “The CMA has decided, on the information currently available to it, that it is or may be the case that this merger may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom.” Read more at
https://helihub.com/2021/11/29/uk-co...ck-to-phase-2/
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Old 1st Dec 2021, 14:33
  #238 (permalink)  
 
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Originally Posted by BTC8183 View Post
Babcock(onshore) do operate offshore.
Not any longer.
  • The wind contract at Barrow for two 135s was terminated - reduced to one a/c in Nov20 and to zero in May21
  • The wind contract from Lowestoft ended a while back (at least by summer 2018)
  • The rig support contract off southern Ireland has stopped as the Kinsale field has been decomissioned
If Babcock do anything offshore, it's very much in your "ad hoc" list
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Old 1st Dec 2021, 14:55
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Helihub , so what if any aviation support is now supporting the Walney Wind Farm operation - an amount was spent building a dedicated hangar and helipad up in the Barrow area to support the offshore wind farm , is that now officially defunct or is another operator using it on ad hoc basis as required, Is the offshore operation served by just " walk to work" vessels out of the Barrow in Furness docks.

I suppose Orsted could always "hustle" the existing Uni Fly contract support from Humberside with a 60 minute transit if winch transfer is required


Last edited by dustycraphopper; 1st Dec 2021 at 15:26. Reason: update
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Old 1st Dec 2021, 19:49
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Originally Posted by dustycraphopper View Post
Helihub , so what if any aviation support is now supporting the Walney Wind Farm operation - an amount was spent building a dedicated hangar and helipad up in the Barrow area to support the offshore wind farm , is that now officially defunct or is another operator using it on ad hoc basis as required, Is the offshore operation served by just " walk to work" vessels out of the Barrow in Furness docks.

I suppose Orsted could always "hustle" the existing Uni Fly contract support from Humberside with a 60 minute transit if winch transfer is required
The new occupants at Blackpool occasionally support the windfarm vessels.
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