Many airlines entered the COVID crisis with weakened balance sheets after a tough preceding year. As passenger traffic and revenues plummeted, airlines, which generally operate with a high degree of operating leverage and negative working capital, were forced into radical action to avoid turning a liquidity crisis into a solvency crisis.
Hundreds of carriers responded by reducing fleet size, streamlining fleet composition, employee headcount, seeking lease deferrals and re-negotiating lease contracts. Some, particularly in North America, have been able to raise significant capital, while others have benefitted from extraordinary levels of government support.
The high price of survival for numerous airlines has been a massive increase in debt levels. A large proportion of the $200 billion in government aid globally has been in the form of debt that needs to be serviced and repaid.
Ishka has been working with airlines throughout the crisis, providing expert advisory services focusing on:
Aircraft acquisition, disposal and fleet planning
Asset valuation and benchmarking
Traffic and trend analysis
Our combined services support you at every stage
Stage 1: Understand current and future market outlook for passenger and cargo traffic
Stage 2: Identify new opportunities to manage and scale your business
Stage 3: Acquire aircraft which meet operational and economic requirements
Stage 4: Benchmarking and monitoring
Contact our Advisory team to discover how we can apply this to your businessENQUIRE
The collective expertise and proven track record of our global team delivers first class advisory services. We can:
Research, analyse and monitor the market and deliver comprehensive supply and demand forecast scenarios
Create, validate and revise strategic business plans
Advise on selecting the right assets, tailored to network and operating profiles
Support the acquisition of new and used aircraft to purchase or lease at the best margins to create the optimal fleet mix
Value airline fleets via a full range of aircraft appraisal services
The Ishka Advisory team serves: