The aeromedical helicopter service in Albion Park will receive a larger chopper and a custom-built base when Toll Group takes over the reins in 2017.
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The Australian corporation, which has a strong track record in helicopter aviation, was named as the preferred tenderer to run helicopter retrieval services throughout the state's southern region on Friday.
That will include the provision of services from newly constructed bases in Wollongong, Bankstown and Orange and an existing base in Canberra.
A Toll Group spokesman said the new contract would mean patients in those regions would receive faster emergency care due to the enhanced capacity of the new aircraft.
However CHC Helicopters Australia, which is currently responsible for helicopter emergency medical services in Wollongong and the rest of southern NSW and the ACT, expressed "disappointment" at the decision.
The announcement was made by NSW Health Minister Jillian Skinner as part of a statewide reform plan for aeromedical retrieval services.
The new helicopter retrieval network will be made up of two regions - with the Northern NSW Helicopter Rescue Service to run the northern region from bases in Lismore, Newcastle and Tamworth.
NSW Ambulance health emergency and aeromedical services executive director Dr Ron Manning welcomed the new network, and said the people of the Illawarra and Shoalhaven would be well served by the successful tenderer.
"The aircraft [Augusta Westland 139 helicopter] is the next model up from the aircraft the Wollongong base currently enjoys," he said.
"It's got an increased payload, which means it can carry more fuel so can travel further.
"And it's the long-nose version, which means when it hovers it is in more of a horizontal position, which makes operating easier for the crew.
"Plus the aircraft is capable of taking babies and children, which will mean we won't have to rely on a single NETS [Newborn and Paediatric Transport Service] helicopter like at present."
Dr Manning said the tender also included funding for a new base at the Illawarra Regional Airport at Albion Park, next to the HARS hangar where the chopper is now housed.
"The new base will be up and running in November 2016 and will include accommodation for the aircraft as well as training rooms, sleeping facilities and educational facilities," he said.
Dr Manning said the Toll Group wanted to retain existing pilots and aircrew, but admitted there were "no guarantees" all jobs would be safe.
A Toll spokesman said more than 100 "highly skilled operational and engineering roles" would be required across NSW and the ACT in the lead-up to operations starting in January 2017.
"We have given our assurance that during the two-year transition to the new network, we will hold staff discussions with a view to engaging present operator staff," the spokesman said.
"This approach will help to provide relationship continuity between the aircrew, the medical crews and the local area of operations knowledge."
CHC regional director Nick Mair said since starting operations in NSW in 2007 the organisation had conducted about 14,000 missions for NSW Ambulance.
"During that time, we have achieved significant improvements in the way helicopter emergency medical services are conducted here," Mr Mair said.
"... Rest assured, there will be no let-up in our commitment while we are still operators."