Financial and Operational Revitalisation of a National Carrier
Applying a meticulous and structured approach, ACC Aviation carried out historical performance analyses and benchmarked the airline’s financial, commercial, and operational performance against its regional and global peers.
The analysis identified the airline’s low operational efficiency and aircraft utilisation, a high cost-base compared to its industry peers, and its accumulated poor financial position, which hindered the airline’s ability to access competitively priced capital for its fleet expansion plans.
ACC Aviation collaborated with the airline’s executive team to develop a restructuring strategy. This strategy saw the airline streamline its fleet, reduce its reliance on ACMI operations, and improve operational efficiency. In parallel, ACC Aviation’s financial advisory team developed a strategy to restructure the airline’s balance sheet, focussing heavily on a debt-equity swap of related company liabilities, which would bring the airline’s debt ratios in line with industry standards.
ACC Aviation delivered a realistic and bankable restructuring and turnaround plan for the national airline, approved by the state shareholding entity and the cabinet of ministers.
The national carrier now has a clear path to improving its financial performance and creating a sustainable business model. ACC Aviation has subsequently been engaged to support the airline in executing various projects related to the plan.
Over ten months, ACC Aviation successfully supported a consortium of lenders to prepare and fully liquidate the non-performing portfolio, recovering significant amounts of capital for the lenders.
ACC Aviation was engaged to advise the bank on how best to recover asset value whilst preserving social benefit and to support the implementation of the recommendations.
ACC Aviation was engaged to manage the recovery and remarketing of a Portfolio of 737 Classics.