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In A New Playbook for Aviation Restructuring in a Post-Pandemic World, Nicholas Pastushan, executive director at Riveron, examines the challenges facing the airlines industry and offers strategies to weather the storm.
Pastushan outlines several key things industry operators can do to address these challenges and prepare for an uncertain future:
Leverage the hibernation period: Companies that take appropriate actions to minimize losses during a period of “hibernation” will have a high likelihood of emerging on the other side.
Adopt a conservative liquidity management strategy: A company that has already done an initial restructuring will be hard-pressed to raise new cash if its commercial plan turns out to be significantly wrong. It is better to be conservative initially, even if it involves a deeper restructuring to avoid failing to emerge due to inadequate liquidity.
Demand transparency and fair treatment: Transparency and a sense of fair treatment enables plans to be properly evaluated and can build the trust that is needed among all stakeholders for a successful restructuring.
