Totally timid cockatiel - how to progress?

[SaraU]

My new cockatiel, George, is a few months old (pet shop didn't know exactly) and I have had him for 3 months. As far as I know nothing has happened to traumatise him. He totally avoids my hand or a stick inside the cage, just runs or hops away. He has got to the point where (outside the cage) he will take food from my fingers (but not always, and often approaches very gingerly, grabs it and runs). He will sometimes sit on my knee to nibble a treat if my other (tame) cockatiel Edward is also on my knee. But I can't get any further with getting him to come near me, venture onto my hand for food or to step up. I've tried a target stick and a hand-held perch but he was terrified of them (so was Edward, who otherwise is very tame). What can I do next? I don't seem to be making any progress.

[Wolf]

The fact that both George and Edward live in the same cage can work both for and against you. I would start by talking to them while they are both in the cage and offering them some millet sprigs through the bars of the cage. The thing that is at issue here is that of trust and you need to go slowly and give them the chance to come to you on their own. Do this, maybe twice a day for about 15 minutes, once in the morning and then in the evening, letting them come out afterwards in the evening. If this is done about two or three hours before dark then it should be relatively easy to get them to return to the cage for their dinner.
Target training will help you in the long run but due to the timid nature of the birds you may need to place some targeting sticks around where they like to hang out to give them the opportunity to see that the stick is not going to hurt them. Then after they start playing with the sticks and chewing on them and throwing them off of their spaces then you may be able to start target training them in the cage. The key to this is simply getting them past their fear.
If you are able to target Edward in the cage, I would do so as it will help George to see that it is alright, they will learn more quickly by seeing the other one doing things and getting treats for them. I always use a more trained animal to help me to teach a new and / or younger one the things it need to know as they communicate with each other much better than I can.
I hope this will help you.

[Pajarita]

Parent-fed birds have a natural distrust of humans so it takes a looooong time for them to overcome it and start bonding with them.