In January 2020, KPMG, in partnership with Airline Economics, published its annual Aviation Industry Global Leaders Report, which took a general state of the industry based on interviews with a variety of industry leaders.
At that time, the industry was focused on the impact of the grounding of the 737 MAX as well as a general slowing in growth and the rise of the climate change agenda. The novel coronavirus, COVID-19, was only just beginning to make headlines and despite the downturn, the market was still awash with liquidity and the future looked positive. Even those with a more pessimistic outlook that were predicting a shock to the system could never have envisaged such a significant exogeneous shock as the current pandemic.
With many countries in Europe and the US on total lockdown to slow the spread of the disease, the aviation industry has been hit particularly hard. Most of the world’s airlines have the majority of their fleet grounded. And with the virus setting the timetable, the aviation industry is taking stock of its options to ride out this crisis to survive intact by the time the recovery surely comes.
As an addenda to the Aviation Industry Global Leaders project, KPMG, in partnership with Airline Economics, has launched the first in a series of podcast interviews with industry leaders to assess their reaction to the current crisis.
In this first podcast, Joe O’Mara, KPMG’s Head of Aviation Finance, speaks to Stephen Hannahs, CEO of Wings Capital Partners, about the current crisis weighing on his decades of experience of the impact of exogeneous shocks to the aviation industry.