Adelaide-based Cobham Aviation Services could be sold as a ‘strategic review’ kicks off
The boss of Adelaide-based Cobham Aviation Services says the future is bright as a strategic review into the business is announced.
- From the archives: Massive resources win boosts Cobham
- Cobham launches cadet program for aspiring pilots
Australia’s third largest aviation group, Adelaide-headquartered Cobham Aviation Services, looks likely to be spun off into a stand-alone entity as a takeover bid is launched for its parent.
UK-based aerospace and defence supplier Cobham has announced private equity company Advent International has made a £4bn ($7.2 billion) buyout offer for the company, which has been accepted.
But the Australian arm, which turned over $386 million in 2018 and has increased revenues 10 per cent this year is subject to a “strategic review”, meaning it could be spun off as a separate entity.
Whether this would remain headquartered in Adelaide, or what shape the new business might take, is uncertain at this stage.
“CAvS is Australia’s third largest aviation group after Qantas and Virgin, employing over 1300 staff and operating more than 50 aircraft for blue chip customers including Qantas, the Australian Border Force, the Australian Maritime Safety Authority and Chevron,’’ the company said in a statement.
“Operating across all states and territories, CAvS is the largest provider of contract aviation services in Australia. This includes aerial border surveillance and search-and-rescue operations under contract to the Australian Government; closed charter (fly-in, fly-out) passenger and freight services to remote sites in support of mining, oil and gas projects; and outsourced
passenger and freight services for Qantas.’’
Cobham’s local chief executive Ryan Both said the company was entering an exciting new phase with the delivery of its first Q400 Bombardier aircraft next week.
“Modern aircraft like the Q400 and the recently introduced Embraer 190 are expensive,’’ he told staff.
“They are transforming our business but we need more capital to drive our growth so we can realise our full potential. I think the potential of our business is an untold story.
“We have 1300 people, operate more than 50 aircraft, blue chip customers and a national footprint. Cobham plc has high expectations for our business and remains committed to the success of CAvS in Australia during this process.’’
cameron.england@news.com.au