Aviation infrastructure has received a lot of attention recently, and the COVID-19 disruption is having a significant impact across virtually all aviation segments.

2. With more institutional equity investors using Direct
Infrastructure Investment as a method of returning long-term
secular growth, it is time to look at strategies for managing these
investments in turbulent times.

3. Aviation infrastructure has received a lot of attention recently,
and the COVID-19 disruption is having a significant impact across
virtually all aviation segments. We will address some of the key
focus areas for managing aviation infrastructure assets in volatile
times.

4. The first area to be addressed is to reduce the variable and fixed
cost structure to match activity and revenue levels. For an on-
airport service provider, this usually requires the difficult step of
reducing personnel. There are varying strategies for how to
accomplish these types of employee actions, but two of the least
objectionable are not backfilling voluntary attrition and the
reduction of hours across the workforce.

5. Other fixed cost areas must be examined as well, and all non-
essential funding should be suspended. All capital
improvements, whether maintenance or growth related, should
be analyzed and all but previously committed and the most
critical should be postponed.

6. Restructuring aviation businesses has special considerations. First,
since most aviation businesses take place on-airports under either
short or long term leases, lease modifications are an important
matter for evaluation.

7. Rent deferral or forgiveness for a certain period of time may
afford an airport based aviation services company the time it
needs to restructure its workforce and other aspects of its expense
base. These types of endeavors, however, have additional parties
beyond vendors and suppliers which may be required to give
their consent, such as airports, regulators and more.

8. Examples of aviation restructuring management services offered:
•Strategic Aviation Restructuring Plans
•Restructuring Management
•Operational, Competitive and Financial Analysis

9. •Business Valuations & Appraisals
•Merger & Acquisition Advice
•Business Planning
•Capital Structuring and Capital Sourcing
•Turnaround Management

10. While many firms may offer Aviation Restructuring Services,
different organizations should carefully consider their own
unique requirements and select a management and consulting
company which has the specific aviation experience which will
meet their needs.

11. A key area to review is to ask for customer references on projects
similar to the one being contemplated. Another critical area in
which an independent third-party restructuring manager can
deliver value is the relationships they bring to the client. These
relationships can take many business forms—relationships with
customers and suppliers are among the most critical and usually a
primary focus.

12. Professional aviation restructuring managers can also refer
additional professionals in different disciplines who have a deep
track record of aviation experience. This can be very valuable to
the client in the areas of attorneys, accountants, insurance and
banking relationships and more.

13. For example, an aviation restructuring manager who can bring in
a team of professionals with aviation experience for due diligence
will shorten the time and expense of the engagements because the
professionals will not begin at the bottom of the aviation learning
curve and should be able to understand the competitive dynamics
and business model immediately.

14. Make sure that you are diligent on the aforementioned aspects
that have been reviewed here. To know more about Aviation
Infrastructure Development as well as Direct Infrastructure
Investment in aviation, please continue to follow our posts and
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