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CHC LLC purchases Babcock

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CHC LLC purchases Babcock

Old 11th Mar 2021, 10:06
  #81 (permalink)  
 
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Can admin change the thread title on this one.

Ned, apologies for my outbursts, I would have believed them had you worded the title correctly mind you
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Old 11th Mar 2021, 10:16
  #82 (permalink)  
 
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Next stop PHI for CHC? Time for some consolidation in the market.
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Old 11th Mar 2021, 10:18
  #83 (permalink)  
 
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And hopefully the “new CHC” grabs TOTAL by the balls and significantly increases their pricing and gets the market heading back in the right direction again.

I guess Babcock onshore will still exist and also any SAR work, this is merely its offshore division.

Last edited by Mitchaa; 11th Mar 2021 at 11:24.
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Old 11th Mar 2021, 10:31
  #84 (permalink)  
 
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Originally Posted by Mitchaa View Post
And hopefully the “new CHC” grabs TOTAL by the balls and significantly increases their pricing and gets the market heading back in the right direction again.
Is that the same CHC that just took the Apache contract from Bristow (mid term) by offering them cheaper rates, with probably very small, no or negative profit margin on it?
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Old 11th Mar 2021, 10:44
  #85 (permalink)  
 
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Originally Posted by finalchecksplease View Post
Is that the same CHC that just took the Apache contract from Bristow (mid term) by offering them cheaper rates, with probably very small, no or negative profit margin on it?
According to Mark Abbey those days are long gone and CHC simply do not want loss making contracts so if they have just taken the Apache contract then I would suspect there must be reasonable profits for them in doing so. Otherwise Mark Abbey’s public financial statements last year were just nonsense.

I guess it depends on how much cost structure in the upper management levels remain? CHC have thinned out a lot, they are even moving their MSC (Maintenance Support Centre) to Poland to save costs. All the support guys in the US being made redundant for cheaper labour in Europe. Although management still remains in Dallas.

4 down to 3 is a blow for the oil giants for sure. Pricing should hopefully start to strengthen.
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Old 11th Mar 2021, 10:45
  #86 (permalink)  
nbl
 
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Originally Posted by finalchecksplease View Post
Is that the same CHC that just took the Apache contract from Bristow (mid term) by offering them cheaper rates, with probably very small, no or negative profit margin on it?
Where did you read that.?
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Old 11th Mar 2021, 11:34
  #87 (permalink)  
 
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Originally Posted by nbl View Post
Where did you read that.?
probably wasn't read anywhere - more likely a conversation inbound on the ABN 056 radial while drinking and eating rig coffee and stickies, based on all the up to date inside information on company financials and contract status that line pilots are fully briefed on.
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Old 11th Mar 2021, 11:39
  #88 (permalink)  
 
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Originally Posted by 212man View Post
probably wasn't read anywhere - more likely a conversation inbound on the ABN 056 radial while drinking and eating rig coffee and stickies, based on all the up to date inside information on company financials and contract status that line pilots are fully briefed on.
So Apache havent given Bristow notice of termination?
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Old 11th Mar 2021, 11:42
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Originally Posted by helicrazi View Post
So Apache havent given Bristow notice of termination?
I was referring to the loss making side of it
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Old 11th Mar 2021, 12:06
  #90 (permalink)  
 
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As said quite some while ago - Oil & Gas is far too volatile an industry for Babcock. When crises happen, the oil industry generally plummets and AA, SAR, Police and MOD assets are at least stable and often fully supported in their ops.
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Old 11th Mar 2021, 12:36
  #91 (permalink)  
 
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Originally Posted by Rigga View Post
As said quite some while ago - Oil & Gas is far too volatile an industry for Babcock. When crises happen, the oil industry generally plummets and AA, SAR, Police and MOD assets are at least stable and often fully supported in their ops.
and with good margins, a steady supply of government money, not overly onerous contract monitoring and when money gets a bit tight, the option to simply ask for more.
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Old 11th Mar 2021, 13:19
  #92 (permalink)  
 
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Originally Posted by 212man View Post
probably wasn't read anywhere - more likely a conversation inbound on the ABN 056 radial while drinking and eating rig coffee and stickies, based on all the up to date inside information on company financials and contract status that line pilots are fully briefed on.
Never said I was briefed on that stuff or that they are making a loss but what I did learn out of Babcock last financial briefing is that they declared a £5.2m impairment for loss-making contracts. Bet they aren't the only company that have loss-making contracts on their books but might be wrong on that.
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Old 11th Mar 2021, 13:21
  #93 (permalink)  
 
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So, presumably, these
European Search and Rescue (SAR) Competition Bonanza: Northern Norway SAR, Netherlands SARHC, Ireland SAR Aviation and UK's UKSAR2G - Aerossurance
remain the domain of Babcock Public Sector Parasite plc?
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Old 11th Mar 2021, 13:42
  #94 (permalink)  
 
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It’s NOT the full picture to say Bristow just lost Apache on cost. There were other factors .... ... apparently.

As someone else pointed out CHC have taken the opportunity to outsource and cut costs. Just before covid came along Bristow were about to be forensically taken apart by ‘streamlining specialists’ from the US. That’s not a rumour, it was stated by senior managers at events this time last year. Needless to say I hear this is yet to happen.

This is the third big contract in a row that has not been renewed and that should have alarm bells ringing in Houston. Repsol are still pontificating and have been for months presumably after this news they will think it strengthens their hand for a further reduction on renewal.

The new CEO basically lost a whole year while others were making themselves more competitive.

Anyone dealing with Bristow from the exterior who are used to the current O&G trends for ‘synergising’ can’t help but wonder how bloated some parts of the business are and how antiquated some of the processes the outside world sees seem. No point blaming the BD guys if what they are selling is a quarter more expensive than anyone else because their costs are higher.

Fingers crossed that job losses from all 3 operators can be kept to a minimum.

Last edited by LesPretend; 11th Mar 2021 at 14:44.
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Old 11th Mar 2021, 14:45
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Will CHC get the Babcock "Onshore" windfarm work out of Barrow in Furness and the Kinsale Gas Field work out of Cork ? Currently utilising EC135s ?????
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Old 11th Mar 2021, 15:09
  #96 (permalink)  
 
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I guess the Babcock staff will become CHC staff under TUPE but what happens if there are a lot of duplications?

HR/Finance/Senior Managers etc? Does everyone from both companies that have duplications go into a potential redundancy pool or only those incoming from the other company? With the way the companies are set up (Legally to run an AOC) then there’s going to be a hell of a lot of duplication? I wonder what then happens with Pay agreements if one set of employees (CHC) are paid differently to the other set (Babcock)

This isn’t going to happen overnight clearly.
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Old 11th Mar 2021, 15:47
  #97 (permalink)  
 
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Is there any connection with the timing of the AerCap/GECAS deal and the CHC/Babcock deal with the Milestone involvement with all these companies? Is this all the consolidation left in the marketplace, or are there more stragglers out there?
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Old 11th Mar 2021, 15:56
  #98 (permalink)  
 
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Originally Posted by dustycraphopper View Post
Will CHC get the Babcock "Onshore" windfarm work out of Barrow in Furness and the Kinsale Gas Field work out of Cork ? Currently utilising EC135s ?????
Babcock Onshore is unaffected so no change there. Kinsale is moving to decommissioning so not long left for that anyway.
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Old 11th Mar 2021, 15:57
  #99 (permalink)  
 
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Originally Posted by Mitchaa View Post
I guess the Babcock staff will become CHC staff under TUPE but what happens if there are a lot of duplications?

HR/Finance/Senior Managers etc? Does everyone from both companies that have duplications go into a potential redundancy pool or only those incoming from the other company? With the way the companies are set up (Legally to run an AOC) then there’s going to be a hell of a lot of duplication? I wonder what then happens with Pay agreements if one set of employees (CHC) are paid differently to the other set (Babcock)

This isn’t going to happen overnight clearly.
Does TUPE apply when you buy a company?
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Old 11th Mar 2021, 16:04
  #100 (permalink)  
 
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CHC taking over Apache was confirmed to staff by Bristow management on Tuesday night. CHC take over on 8 July with rumoured two S-92s. Apache evidently played the 120-day termination of contract game as CHC were cheaper.
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