Client & Engagement Overview
- Client is a leading regional airline in Central America with dual hubs in El Salvador and Costa Rica.
- A global economic downturn caused a material decline in the airline’s passenger traffic, negatively impacting financial performance.
- Prior to the economic downturn, client operated an unprofitable cargo business that was getting worse and generating bigger losses
- Client maintained minimal operating cash and was starting to incur losses across all business units.
- Airline was in the middle of converting its fleet from older Boeing aircraft to newer Airbus aircraft when passenger traffic declined.
- Cargo operations become a major drain on cash flow.
- Immediately deployed on-site resources to develop comprehensive cash flow projections by business unit
- Shut down cargo operations and returned aircraft to lessor.
- Worked with Airbus to divert near-term aircraft deliveries to other airlines.
- Negotiated multi-year financial lease payment reductions with all lessors, offset by lease term extensions to keep lessors whole while preserving cash flow.