BOBBY CHADHA, CHAIRMAN & MANAGING DIRECTOR SRC AVIATION
“The recovery when it happens, may not be the V shape that many expect because the appetite for demand may be subdued in favour of savings”
Issue: BizAvIndia 2/2020
Photo(s): By SRC Aviation
- The COVID-19 virus is probably a signature event in human history. Never before has global commerce been shut down so completely for so long.
- Many industries that work on small margins and high turnover, like the airline industry will be affected more.
- The commercial airline industry will take a year or two to recover. The business aviation industry could recover faster both because senior managers may prefer the safety of a personal jet over a commercial airline and also because supply chain disruptions may induce more senior management travel.
- Managements will now be forced to focus more on cash flows and having meaningful cash balances to ride over unexpected black swan events.
- Valuation is a much less relevant factor now than top line revenue and cash flows.
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