For our Perspectives series, we talk to experienced business aviation industry professionals, who share with us their unique insights and offer a window into their world. This month's interviewee is Robert Fisch, co-president of aviation services for the Luxaviation Group. Having gathered around the CEO to discuss options as the spread of COVID-19 increased, the company quickly came to the conclusion that cash is still king, and looked to save costs.

“Coronavirus became a household name faster than a new pop star. Now, after many weeks of confinement, massive slowdown, worrying times and conflicting information, there is finally light of the end of the tunnel. And at this time, a few reflections come into my mind in the world of private jet management.

At the beginning of this crisis, as borders started to close in Asia and isolated our Singapore, Hong Kong and then Australian offices, we formed a group around our CEO to gather intelligence. The essence of the many opinions was the same – this challenge is going to follow us for a while.

Coronavirus is different in length from other crises, such as hurricanes or aircraft incidents. In the first days of the crisis, good aircraft management companies triggered two key actions – communication and cash management.

During a crisis, it is important to communicate not just inside but also outside your company. If you have a monthly contact with a client, double it. Open and frank communication is better than a sugar-coated, waste-of-time discussion. Reach out not only to clients but also to providers, banks, shareholders, politicians, trade associations, institutions and governments. Our marketing team has been available around the clock during coronavirus. When discussing issues with legislators and some authorities, it became apparent that if you work to be part of the solution, doors open more quickly than if you do nothing. We have been involved in several discussion groups and participated in the elaboration of new rules and regulations.

We have discussed many of our clients’ concerns during the coronavirus crisis. What is going to happen with my asset? What is the best course of action? The vast majority of our clients trust us with the management of their asset and have been clients for years, if not decades, owning multiple airplanes and helicopters. Each one had his or her concerns and we tried to offer a viable solution for their asset.

Talking to industry partners, management companies can channel the requests of their customers and alleviate some of their concerns. We established safety action groups for pilot licensing and extended maintenance intervals in accordance with manufacturers’ recommendations. Most civil aviation authorities agreed to increase the validity of certificates with a detailed action and risk management plan. In short, in the early weeks of the pandemic, good aircraft management companies established strong, multi-channel communications.

In a crisis you very often hear that cash is king. When the COVID-19 pandemic began, we quickly imposed drastic measures to reduce our spend, convince clients to pay their (over)dues and discuss matters openly with providers, financial institutions and governments. Our CFO did a remarkable job in not only providing several courses of action and longevity plans but also in communicating with providers, clients and our own group.

Several weeks forward, when the situation allowed, we started to work on a return to normal operations. Our intense efforts were paying off. The return to normal operations was not as difficult as for a traditional airline. We did not have aircraft grounded, we continued to perform flights and we kept the steam under pressure through the crisis.

Looking ahead as an industry, there are many more people to convert to business aviation. If we agree that a net worth of US$5m is the entry door to flying privately, why do we have so few customers?

We need to fetch the clients that budget a considerable amount on their travel, privately and professionally, but use airlines to fly. Several airlines will not survive COVID-19. The airline industry’s offering will be reduced, prices will increase and connections will disappear. When I read that the government bailout of one of the main carriers in Europe is subject to cutting internal routes, I see an opportunity for our industry.

The key question now: will our industry be able to maintain the exclusivity of the past, attract a new customer base and be ready to fly when the masks come off?”