State's helicopter rescue service up in the air

[Jethro H]

Care of the Tele today:

By Kate Sikora

THE state's air rescue service is once again in limbo with the Canada-based operator quietly trying to sell its Australian investments.

The global CHC company has secured one of the major banks to tout its Australian air services arm, including a $270 million contract in NSW.

Only three years into a seven-year contract with NSW Health, the company has decided to "test the market" for potential buyers.

It follows a litany of mishaps with its service since it won the contentious contract in NSW over community-based CareFlight in 2006.

A furore erupted after the State Government snubbed CareFlight, which had the contract for 20 years, for the profit-driven Canadian operator.

CHC Australian managing director Chris Ridings confirmed the company was looking to get out of its contract.

"We are doing some market testing," he said. "It's early days and there's definitely no decision."

Opposition health spokeswoman Jillian Skinner said "great uncertainty" now hung over the future of NSW's rescue helicopter services.

"Not only did (the Government) dump the widely respected NRMA CareFlight and Westpac Life Saver Rescue Helicopter services, which were well supported by the community and clinicians, it handpicked a foreign operator that wants to quit," she said.

CHC is primarily involved in flying workers to gas and oil stations.

It established its first Australian air ambulance service in 1980, but it wasn't until 2006 it started operating in NSW.

The ANZ bank has been placed in charge of touting the business but a bank spokesman declined to comment.

It is believed the bank has contacted a number of international companies in the search for a potential buyer. Any buyer will need to fulfil CHC's contractual arrangements. It owns more than 28 twin-engine helicopters and employs 300 Australian staff.

A government investigation was called in January when The Daily Telegraph reported pilots were working in 50C heat in the helicopters because the craft had no airconditioning.

NSW Health was unaware of CHC wanting to sell its business but a spokesman said that their contract "contains strong provisions to ensure continuity of services in the event any change is proposed".

I could imagine Ian Badham at Careflight would be rolling his eyes and shrugging his shoulders with that "I told you so" look!