It carries out missions for Irish Coast Guard, but it lost out on the new 10-year contract
New accounts show that CHC Ireland DAC, the current operator of the SAR contract for the Irish Coast Guard, saw a 30pc increase in pre-tax losses as revenues dipped from €55.59m to €55.38m in the 12 months to the end of last April.
CHC Ireland bid for the new 10-year contract, but it lost out to Bristow, a US group. Earlier this year it took a High Court action against Bristow over the new contract.
Rob Tatten, its director of operations, stated that the company had taken the action to provide “certainty and clarity” for its staff as Bristow prepared to take over the search-and-rescue service.
In the new accounts, the CHC directors says that flying hours for SAR operations were 2,850 in the financial year compared with 3,190 in the previous year.
Will explore any potential avenues on which to continue operations safely and effectively
They point out that as the current Irish Coast Guard contract has not been renewed, and will terminate next June, at that time “there will be no continuous revenue streams for the company”.
The directors add that CHC Ireland “will explore any potential avenues on which to continue operations safely and effectively in the region”.
As part of the transitioning process to the new operator, Bristow commenced operations from Shannon Airport in recent days. Shannon is one of four Irish bases it will use.
CHC Ireland had a shareholders’ deficit of €5.19m at the end of April. The accounts also disclose that in a post-balance sheet event, CHC Ireland received a capital contribution of €10m on October 31 from its parent firm, EEA Helicopter Operations BV.
The directors describe the capital contribution as “part of an equity cure”, and say that as a result of it the company has returned to a net assets position.
Numbers employed by the company remained at the same level of 150, made up of 128 in operations and 22 in administration.
The accounts show that €19.84m was paid out in wages and salaries this year, which works out an average pay of €132,286. Staff costs totalled €24.2m after taking into account pensions and social welfare. Pay to directors totalled €351,000 in the year.
A risk that our competitors bid below market rates in order to increase their market share
On the company’s future developments, the directors state that they expect the company “to continue to explore new sustainable-contract opportunities and generate positive results in future years”.
On the competitive risks facing CHC Ireland the directors say “there is a risk that our competitors bid below market rates in order to increase their market share”.
Plans by the operator of Dublin Weston Airport to allow Bristow to locate a SAR base at the facility continue to face local opposition.
Currently, a Co Kildare stud farm operator is one of three parties holding up plans for a new helicopter base at Weston, after it lodged a planning appeal with An Bord Pleanála.
The facility would comprise a hangar with capacity for two helicopters along with supporting infrastructure.
According to the original planning report by KPMG Future Analytics, it would “further enhance the commercial viability and effectiveness of the airport with a specialised services offering that will not result in any intensification or material change”.