Video Interview: What Can Airlines Do Now To Manage Cash And Costs?

by 
David Kaplan
Monday, April 13, 2020
 • 
1
 min read

Welcome to Kambr Media's inaugural video interview series. We spoke with global airline advisor and Aviation Festival Americas Chairman René Armas Maes about his recent article for us, Airlines and COVID-19: How Carriers Can Improve Liquidity and looked into the ways executives should embark on cost cutting and maintaining dwindling cash.

"On the one hand, you have airlines selling fewer tickets or no tickets at all. Then you have more cancelation rates," Maes says. "All of this has put the industry on its knees in terms of their ability to generate cash. Airlines are keeping the same fixed costs and other related expenses, such as leasing, insurance, debt payments."

Some of the questions we address:

  • It’s been noted that unlike the recession 12 years ago, major airlines have tended to be profitable since 2014. Does the healthy position airlines had before this crisis mean that they are more able to weather the crisis?
  • Or has the pandemic and the resulting 90 percent capacity decline erased all the financial power airlines had a month ago?
  • How much can government assistance help to maintain liquidity? What private funding mechanisms are available for airlines?

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