Ornge and Canadian Helicopters Income Fund (TSX: CHL.UN) announced on March 31, 2009 that Ornge had purchased from Canadian Helicopters Limited (CHL), a subsidiary of the fund, the current fleet of 11 medically equipped Sikorsky S-76 helicopters, and aviation assets, including four hangars, for an aggregate purchase price of $30 million. CHL will continue to provide services in support of Ornge's transport medicine operation for a period of three years starting April 1, 2009 (and a potential two-year extension at Ornge's option).
Under the new services agreement, CHL will continue to provide flight operations, maintenance, airworthiness and related support for Ornge's fleet of helicopters. Total revenue to the fund is expected to be approximately $90 million for the initial three-year period. In late 2010, the 11 Sikorsky S-76 aircraft are scheduled for replacement by Ornge over an approximate two-year period coinciding with the delivery of its 10 new state-of-the-art AgustaWestland helicopters. The purchase of the CHL hangars will enable Ornge to secure the provision of transport medicine for the citizens of Ontario.
Ornge operates from a number of bases across the province of Ontario and performs approximately 18,000 admissions annually. It coordinates all aspects of Ontario's aero medical transport system, the new critical care land transport program, and the authorization of air and land ambulance transfers between hospitals. Ornge is dedicated to the provision of high-quality patient care through innovative transport medicine.
Ornge was represented in-house by Catherine Rosebrugh and Maria Renzella, who were assisted by Fasken Martineau DuMoulin LLP with a team that included Cynthia Heinz, Alfred Apps, Lynne Golding, Brent Lewis, Sean Morley and Michael Gleeson (corporate); Corina Weigl (trusts and charities); Craig Carter and Dugan Edmison (real estate); Mitchell Thaw (tax) and Paul Casuccio (commodity tax).
McCarthy Tétrault LLP acted for CHL with a team that included Éric Gosselin, Frédéric Cotnoir, Louis Béland and Frank DeLuca (corporate); Jamie Orzech and Kamil Umar (real estate); and Fred Harvey, Marc Darmo and Brian Pel (tax).