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CHC LLC purchases Babcock

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CHC LLC purchases Babcock

Old 11th Mar 2021, 23:04
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Australian fleet is 10 machines:

2 x EC175B
2 x S-92A
6 x AW139s
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Old 12th Mar 2021, 00:04
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Originally Posted by rrekn View Post
Australian fleet is 10 machines:

2 x EC175B
2 x S-92A
6 x AW139s
And CHC’s contribution. (“On contract” machines)
2 x S-92
2 x AW139
2 x AW189
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Old 12th Mar 2021, 02:41
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Originally Posted by Twist & Shout View Post
And CHC’s contribution. (“On contract” machines)
2 x S-92
2 x AW139
2 x AW189
Don’t forget the RAAF SAR 139’s
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Old 12th Mar 2021, 09:19
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Originally Posted by Medevac999 View Post
Thanks Ned. I thought they had some contracts in Africa
Yes, they have. Mozambique. Used to have Ghana as well but not sure they still do.
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Old 12th Mar 2021, 09:32
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Originally Posted by SNI View Post
Yes, they have. Mozambique. Used to have Ghana as well but not sure they still do.
Those are Babcock Italia contracts. Nothing to do with Babcock Offshore/MCSOff.
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Old 12th Mar 2021, 11:37
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Originally Posted by Evil Twin View Post
Don’t forget the RAAF SAR 139’s
Quite right.
I was just comparing Babcock Off Shore machines with CHC Off Shore machines.

It seems the Babcock OS fleet will be added to the CHC OS fleet, and the CHC onshore - as you point out.
RAAF SAR AW139s
A Navy SAR AW139?
An EMS B412 in WA
Did they have a B412 with the Army in Darwin?

They, the new CHC/Babcock entity, will:
Dominate OS in OZ, at least for a little while.
Have the military contracts almost exclusively. Must “erk” Babcock a little, being their core business in a way.
Have one EMS contract?

A lot of people wondering what the structure will be. All in the same uniform, flying red and blue machines, or....?
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Old 12th Mar 2021, 14:16
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In Aberdeen, it doesn’t really help that Babcock and CHC are at opposite sides of the runway
Sounds like Deja vu from 2004 when CHC bought HS Group (including Bond)
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Old 12th Mar 2021, 15:24
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Originally Posted by Mitchaa View Post
... ... In Aberdeen, it doesn’t really help that Babcock and CHC are at opposite sides of the runway. There are obviously two check in areas and theres not enough room for all the Babcock staff to move into CHC’s existing infrastructure so not sure how they are going to work all that. Looks like it will be a logistical nightmare to manage to be honest, too many aircraft and not enough hangar space on either side so they will have to either work from both locations or start expanding on the CHC side of the runway.
Well, lets see. Easy walking distance from a railway station, hotels, B&B and shops on the East side. I always found it a far simpler experience, not least because of Bond's superior communication skills.
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Old 12th Mar 2021, 15:42
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Originally Posted by jimf671 View Post
Well, lets see. Easy walking distance from a railway station, hotels, B&B and shops on the East side. I always found it a far simpler experience, not least because of Bond's superior communication skills.
I think on which side the airport main terminal is far more important than whether it has a crappy BNB/hotel and Asda closer by 🤣. Also, way more hotels and better bus connections on the other side than Babcock side... Not to mention superior facilities over at CHC. Everything shiny new and more spacious, but definitely not big enough to house all of Babcock.

Let's see how this plays out, could go anywhere. If it's merely a share purchase, nothing much will change, neither will Tupe apply (the easiest way). The difficult way would be to have bought it entirely, in which case it's all a very complex endeavour: rebranding, repainting, Tupe, T&C's, re-alignment of OPS (will take a very long time seeing CHC operates in a completely different way than Babcock) etc etc.

Last edited by SNI; 12th Mar 2021 at 15:53.
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Old 12th Mar 2021, 16:03
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Originally Posted by jimf671 View Post
Well, lets see. Easy walking distance from a railway station, hotels, B&B and shops on the East side. I always found it a far simpler experience, not least because of Bond's superior communication skills.
Bond's superior communication skills?!!! I laughed so hard a bit of wee-wee came out.
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Old 12th Mar 2021, 16:12
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Means financing two facilities if viable , alignment of policies and operating procedures ( a lengthy process - just throw one set in the shredder and keep the simplest ) , ref IT - keep it simple



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Old 12th Mar 2021, 16:39
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Originally Posted by PPI Zulu View Post
Unfortunately there will always be some casualties. Senior management, finance, HR will be in the firing line immediately. Unless, as you say, they intend to run BMCS as a separate entity. Can't see that myself though.
There will be a consultation which will affect both existing CHC staff and new or previous Babcock staff. CHC will use this as an opportunity to pick the cream from both groups.
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Old 12th Mar 2021, 16:49
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Originally Posted by Mitchaa View Post
CHC have 3 x AW139 and 2 x AW189 contracted out of Karratha and then another 6 dotted around Australia for the RAAF SAR.

In answer to the last part, CHC are gaining around 30 aircraft to the 100+ they have operating already so suspect everything will become CHC. Be that the aircraft colours, uniforms, IT, procedures and policies etc etc

In Aberdeen, it doesn’t really help that Babcock and CHC are at opposite sides of the runway. There are obviously two check in areas and theres not enough room for all the Babcock staff to move into CHC’s existing infrastructure so not sure how they are going to work all that. Looks like it will be a logistical nightmare to manage to be honest, too many aircraft and not enough hangar space on either side so they will have to either work from both locations or start expanding on the CHC side of the runway.
The existing Babcock model will very likely be left untouched in the short to medium term. The transition of systems, policies, branding and of course consultation of people on both fronts will take many many months, if not at least 2 years. In essence, expect a stand alone AOC x 2 (UK) with minimal changes for a good while. Perhaps some changes to top management and support functions but even that will be minimised short/medium term to facilitate existing operations and reduce safety risk. The regulator will be watching very closely, including the change management strategy. Slow and steady.
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Old 12th Mar 2021, 19:22
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Of these 500 being quoted, a large amount are going to be necessary to take across.

its unfortunately going to be admin and management that bear the brunt of it.
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Old 12th Mar 2021, 19:25
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Originally Posted by Mitchaa View Post
Depends on whether TUPE is applicable and whether Babcock will be forced into a reduction in numbers before the takeover. I can’t see CHC taking on 500 additional staff when they have just stripped their own company to the bare bones (Where Babcock presumably haven’t and are themselves bloated)

It would be very harsh on CHC employees to be at risk in this case especially having just survived numerous rounds of redundancies over the last few years themselves. CHC’s staff will already be the cream of what they had.

The fact that it’s CHC LLC (Based in the Cayman Islands) I would say that TUPE is probably not applicable here as it has no obligation to honour U.K TUPE.

I think it’s more likely Babcock will be told to cut their numbers to bare bones before the “official” takeover. If CHC have had to do it recently then it would be only fair that Babcock too were stripped to the bare bones.

Saying that, I am sure that this will be one of the very first questions asked when Mark Abbey has his regular town halls. CHC Employees will naturally be concerned if they are having to go through yet another round of redundancies to possibly make way for Babcock employees to replace them. Naturally the Babcock guys could be seen at a disadvantage in consultations as they wouldn’t have the same level of “CHC know how” as their CHC counterparts will have moving forward.

Lots of unknowns.
j

Hello. Wrong. “I can’t see CHC taking on 500 additional staff when they have just stripped their own company to the bare bones (Where Babcock presumably haven’t and are themselves bloated”

You clearly know little facts. Babcock have as much fat as an anorexic butcher’s pencil. CHC are equally skinny. To make this work there will be casualties and gains in both sides. CHC for example have virtually zero 175 capability or experience and their facilities are only shiny and new in part. Wisdom will be required to make this work. To suggest CHC employees have been treated worse that Babcock is preposterous. All parties deserve a break and I hope that happens. TW.
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Old 12th Mar 2021, 19:45
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More likely Scotia will die on the vine (no more 51% bleed) and CHC Babcock flourish. Taking on whatever pilots or admin it requires from Scotia, of course.
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Old 12th Mar 2021, 19:49
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I'm sure the 'eye' will be further off the ball than it already has been, with all this now unfolding. This leaving further opportunity for competitors to get a piece of the action. As is already happening on a number of babcocks contracts.

Sometimes you can just simply take on too much!
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Old 12th Mar 2021, 20:15
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Originally Posted by Mitchaa View Post
Sure, the main bulk will be Pilots and Engineering staff. CHC will have a Pilot/Engineer/Aircraft ratio they will need to maintain. That will just be a natural transition and not much real thought needs to be put into that.

The rest however will be the “Duplicate staff” that make up an AOC.

CHC would do well to take time and consider the experience and tenacity of the Babcock/Ex Bond team. It’s takes more than engineers and pilots to make business work. And let’s face it, those two factions are somewhat less than optimal when it comes to loyalty, especially in Aberdeen where endless demands of more money is king. Money driven mini despots. CHC bought their way back, Babcock survived and prospered through endless nights of hard graft, despite being owned by a parent company who had no interest in oil & gas and treated there staff in this area with contempt.
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Old 12th Mar 2021, 20:22
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Does this mean in a few years time we'll see some red helicopters with Bond written on the side reappear?
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Old 12th Mar 2021, 21:10
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Originally Posted by Mitchaa View Post
Clearly the top heavy management structures in Dallas and Houston are to blame for both CHC and Bristow’s demise, no doubt about that. The profits made in the regions are used to fund extortionate salaries for clueless senior managers/directors and upto the CEO’s.

It would be an interesting prospect to ditch the Yanks and leave the companies to people that actually understand front line aviation. One or two UK/European super aviation companies I’m sure would do a lot better.

It looks like CHC are doing well to thin that structure out and going by the Apache news above, Bristows cost structure is still far too high to compete. (Couldn’t match CHC’s costs)

Time to adapt and cut the fat. Managers don’t need managers that then need senior managers that then need directors that then need Assistant Chiefs that then report to the CEO. Cut out the waste in the middle and these companies should start turning profits.

Cut out soulless pilots and engineers who have clearly demonstrated a lack of humanity only previously seen in the dark ages. A good manager is gold dust. A greedy pilot is well a pilot. Buy a mirror and look deep. Both CHC and Babcock have shocking morale issues brought on by greed by core staff and terrible leadership at corporate level and in some aspects local level. Babcock’s safety performance and OTD over the past few years is the top drawer. CHC’s not so much. ABZ is a hellhole of a workplace, not caused by managers, rather damn right greed. I hope for better days.
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