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CHC LLC purchases Babcock

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CHC LLC purchases Babcock

Old 11th Mar 2021, 10:39
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Originally Posted by 212man
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, 10:42
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Originally Posted by helicrazi
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, 11:06
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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, 11:36
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Originally Posted by Rigga
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, 12:19
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Originally Posted by 212man
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, 12:21
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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, 12:42
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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 13:44.
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Old 11th Mar 2021, 13:45
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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, 14:47
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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, 14:56
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Originally Posted by dustycraphopper
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, 14:57
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Originally Posted by Mitchaa
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, 15:04
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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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Old 11th Mar 2021, 15:07
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Originally Posted by tu154
Does TUPE apply when you buy a company?
Yes, it should. It applies to change of ownership or change of service provider.
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Old 11th Mar 2021, 15:24
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Originally Posted by Mitchaa
Using the old Google there I would agree..


https://www.stirling-uk.com/business...e-regulations/

TUPE does not apply when the business transfer occurs by:-
  • share takeover
  • transfers of assets only without the business (e.g. sale of plant and equipment alone)
  • supply of goods or services for clients own use (i.e. no business transfer)
  • transfer outside the UK (check legislation of destination country)
  • some bankruptcy and insolvency situations
Transfer outside the UK, isnt it CHC LLC buying it?

TUPE seems to apply when they want it to apply, seems like a dark art...
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Old 11th Mar 2021, 15:45
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TUPE seems to apply when they want it to apply, seems like a dark art...
No denying that!
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Old 11th Mar 2021, 16:02
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Originally Posted by helicrazi
TUPE seems to apply when they want it to apply, seems like a dark art...
Exactly. It seems to be down to one side or the other deciding whether to contest it or not, and paying the associated costs.
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Old 11th Mar 2021, 17:32
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A full takeover of one business by another is one of the clearest applications of TUPE. It is at the pure core of TUPE. I would be totally shocked if TUPE didn't come into play here.
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Old 11th Mar 2021, 18:48
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Originally Posted by Mitchaa
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.
Not True. The deal with CHC includes Oil & Gas SAR.
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Old 11th Mar 2021, 19:42
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Originally Posted by Mitchaa
Yes I believe 2 x AW139 in Aberdeen.
Indeed....
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Old 11th Mar 2021, 21:04
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I think Babcock Australia will also include the H175s they have operating up in the Timor Sea.
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