SAC ELEVATOR BRIEFING No. 6
Dear valued readers,
nestled in the Northern spurs of the Swiss Alps we are curiously monitoring COVID-19 related projections for the tourist industry during the important winter months ahead. Will ski resorts open up and what will the concept for ski lifts, hotels, restaurants and entertainment look like? The possible economic loss could be historic and devastating for every mountain region, especially with regards to the crucial weeks over Christmas and New Year’s Eve. Tests, quarantine rules and travel restrictions are already existent again and will most likely stay, allowing mainly for local and domestic recreational activities only. The same effects will hit the aviation sector. Less traffic but new opportunities out of domestic mobility. The larger a country the better the chances for domestic demand and overall activity. The USA as matching example? Airlines and lessors still have to embrace a bumpy ride, strip down their fleets and implement the most cost-effective parking and interims management for their aircraft.
Commercial Aviation – A bumpy ride ahead
We have reached Q4 of the year 2020 dominated by COVID 19, the impact for commercial aviation has been absolutely devastating.
Only around 35% of the global fleet of airlines have returned to service around 9800 aircraft. The other 18400 aircraft remain in short and long term storage around the world, many of these aircraft may never take off again.
The demand landscape has been fundamentally changed, OEMs have cut production rates and airlines have adjusted their capacities to meet the new demand requirements.
Lufthansa Europe’s biggest flag carrier estimated earlier this year that the demand by Q4 2020 to be at 50% of the Q4 2019 level, the reality is that they fly now at around 30% of last year’s capacity.
The demand remains weak as many countries are getting hit by a second wave of COVID 19 outbreaks, what happens with all these surplus aircraft and engines valued in the billions of dollars?
Essential Asset Protection Services recommended for your Aircraft and Engines:
– Aircraft and engine short and long term storage by an approved MRO
– Off lease technical airworthiness management by an approved CAMO/Technical Manager
– Ferry flights
– Part out services for older aircraft and or airframes with no commercial future
– Redelivery and registration change management by a CAMO or experienced consultant
– Aircraft and engine valuations to support the decision to either store or part out the asset
SAC Business Review
– Re-Delivery of narrow body for an international airline
– Closing of a Gulfstream sale
– Various on-site technical and document inspections on four continents
– Off-lease technical airworthiness management and NCC (interims) operations in the UK and Germany
– Several Airworthiness Reviews and Recommendations
Meet the SAC Team
Name: Julian Rappo
Job Title: Manager Processes and Operations
Location: SAC Office Hünenberg, Switzerland
Julian, how long have you been with the company and why did you join?
“I joined in 2018 because I like to work at a company where I have a lot of personal responsibility but still can work together with other people.”
What is your role in the company?
“I mainly plan and coordinate the asset management inspections. This includes talking to operators, checking the availability and downtimes of the aircraft, coordinating who will do the job, where and when the inspections will take place and last but not least booking the whole itinerary (flights, hotels, rentals, visas etc.). In addition, I work on developing the internal processes within the company’s management system.”
What do you like most about working at SAC?
“I like working for an international company and being in contact with aircraft operators and clients around the world. I very much appreciate the personal responsibility, flexibility and independence of my role. Furthermore, I can count on my coworkers if I ever need assistance. It is a great team!”
What do you enjoy doing when you are not working?
“I enjoy playing pool, working out at the gym, watching movies, learning a new language (Japanese at the moment) and going out with friends.”
Which holiday or travel destinations would you like to visit?
“There are many places I would like to visit over the next few years, but my top 5 are: Japan, Canada, Israel, Botswana, Australia.”