Bristow to sell Airnorth?

BANKRUPT US-based aviation service provider, Bristow Group, is reviewing the possibility of selling its Australian airline, Airnorth, as part of a restructure.

In a statement responding to reports the group has ringfenced the Australian carrier for auction, the company said it was “reviewing all possible options...to determine the best path forward for both its global parent company and its local operations”, having filed for Chapter 11 bankruptcy in the US in May (TD 07 Jun).

While Bristow did not confirm that the airline is on the market, the Australian Financial Review (AFR) reported mergers and acquisitions consultants, Allier Capital, had been engaged to seek out potential buyers.

Airnorth CEO Daniel Bowden said the airline was “an integral part of the NT”, servicing the region for more than 40 years “never giving up, even when others have come and gone”.

Bristow noted Airnorth holds a leadership position in the northern region of Australia, with strong financial performance and an expanding network with key routes to Perth, Cairins and Dili in Temor Leste, alongside new seasonal services to the Gold Coast.

The AFR reported Regional Express Holdings Ltd (Rex) was “perhaps the most logical acquirer” of the airline, as it looks to expand its services into the Northern Territory (TD 04 Jun).

Cobham Aviation Services has been touted as another potential buyer, while it is believed a number of financial investors are also in the running to bid for the airline, seeing it as a platform to develop a larger position within the Australian aviation sector.

However, other industry commentators have speculated Qantas may make a move for the airline to retain access to routes it codeshares with Airnorth.