In Time Of Major Crisis, Focus On Finance

It sounds like a lesson learned, but we shouldn’t forget!

Cash Flow and balance sheet management have been the main focus area for any airline CEOs during the past 3-4 years, not to say the major focus and headache. Aside from government and shareholder support regarding fresh money invested, what measures were crucial to light the money-blinding period?

Fuel Hedging Position

Immediately investigate your fuel hedging position as the situation may worsen, and it might be time to adjust your position drastically to reduce your exposure to market volatility. As all numbers turn red, a pre-agreed credit line from banks will support your immediate cash needs and may give you extra time to implement corrective action and start negotiations with other partners.

As a good father and as the financial market has changed since the crisis began, it is also time to openly talk about renegotiating and consolidating ongoing contract loans with all of your creditors. There is no better time than a crisis for this.

Aircraft Maintainance

Once this first pure finance phase is done, focus on your next biggest cost, aircraft. Owned aircraft must be, as much as possible, securely stored and maintained in the safest and most…