Dear valued reader,

The looking-glass world in times of Corona is asking for more breath than initially expected by most of us. While strict measures in Europe bring down infection rates the virus will stay with us for the rest of the year – and longer. We all have to find our ways to cope with the situation and adjust to new conditions. But we can manage by trusting longstanding business relations, becoming creative and communicating openly. The business world will have to become more modest and tolerant.

Overview Commercial Air Transport in Switzerland

In Switzerland many core players in the aviation segment are struggling their ways. Swiss, the national carrier is operating in crisis mode. Only 6 A/C are currently operating on short and (one) long-haul routes. Lufthansa as foreign parent company has also cut its network until May 17 and will only be serving 5 long-haul destinations and 36 weekly domestic/European connections out of Frankfurt, the main hub. Munich is down to 6 weekly domestic connections. Swiss and Lufthansa are offering rebooking options free of charge for all ticket categories including a 50 EUR voucher for customers still flying in 2020. Both will be laying off aircraft, single aisle and wide bodies, including a number of A380. It is the strategy of international airlines for the coming months – to shrink to minimum operational levels, laying off resources and personnel, taking in government support and hoping to start from a small base again into the post Corona world. Many cash-stricken airlines and pilots will lose out to cost cutting measures.

Swissport, the leading global airport ground services provider is struggling for survival. In Switzerland 95% of 5000 employees had to take on short work in April. Cashflows dried out at a time when HNA – the debt-ridden Chinese parent corporation – had already decided to sell off its subsidiary. Again, government funds and special programs are needed in a complex international setup to keep this fixed cost driven business up and running for an airport world that will see less traffic for the next 2-3 years while airport operators such as Zurich – used to comfortable cash flows – try to hold on to their fee levels. The same challenges apply for SR Technics, a leading international MRO service provider for aircraft, engines and components with headquarters at Zurich airport and also owned by HNA (80% stake).  Even Skyguide, the distinguished Swiss air traffic control and aeronautical information management organisation is forced to short work and looking for lost revenues that came with busy air traffic. Still, its sovereign function does not allow for failure and requires a strong backbone to cover the high national and European expectations on airspace control and safety.

SAC Business in a Challenging Environment

Inspection in the Netherlands

Despite the extremely challenging environment caused by COVID-19 SAC conducted Physical Inspections in Basel, Savannah, Dallas, West Palm Beach, Kuala Lumpur and Moscow. Due to our global coverage we are able to reach most of the assets and are still able to support our customers – also with regards to Repossessions or other crisis related services. Operator audits are being conducted via effective web calls. Business continuation when almost every company within our sector is in crisis mode or seeing revenues decline is tedious but possible.

In our Advisory & Compliance unit focusing on flight operations we continue working on our existing projects and develop IT based Document Knowledge content for a top ten Asian Business Aviation Operator. New large scale projects are waiting for their decisions. Based on our personal network for Financial Reviews and Cost Analysis we see promising potential for new business, like Aircraft Record Reviews and PPI support.

Our CAMO is taking advantage of the current lockdown situation to prepare for the near future. Apart from taking care of our client’s assets while they are forced to stay on ground – including a new assignment for a Global 6000 – we are revising our procedures and bucking the trend we have hired a new specialist who will join us from May 1st.

SAC is Welcoming Peter Amaral as New Entry

Peter, what made you join Swiss Aviation Consulting in the first place?
“SAC’s Mission and Values. I got to know SAC as a recognised leading full-service provider for the aviation industry that stands for innovative and personalised services, multi-cultural capability and independence. I met a great team of experienced and highly qualified individuals doing smart business worldwide. This had a significant impact on my decision.”

What will be your role in the company?
“I’m joining Swiss Aviation Consulting as CAMO Specialist and Aircraft Inspector, supporting SAC capacities within CAMO/Technical Services and Asset Management.”

What is your personal background and which competences and experience do you bring along?
“I hold an EASA Part-66 Licence and a Master’s Degree in Mechanical Engineering Sciences. More than one decade of experience in the aeronautic industry, in both Maintenance and Production environments, granted me full awareness of the specific requirements for this sector. My hands-on and management capabilities will help me carry out this new position successfully.”

What are your personal goals and ambitions?
“My main goal is to ensure that we keep trusting the aeronautic business to be the safest in the world in moving people and cargo. While embracing this new challenge, I expect to grow with and within the company, supporting the best way possible our costumers in their actual needs, assuring at all times the high standards of this business sector. I hope to contribute with my experience and ambition in new service offers to come.”

What are you looking forward to the most?
“I am looking forward to seeing how the aeronautical sector will change with future technological developments. In the short term, I am looking forward to seeing a sustainable resolution to this impasse due to the current COVID-19 crisis. Seeing airborne Aircrafts all over the world once again would make me very happy.