ISTAT Jetrader - Autumn 2020 - 11

downs, and economic crises are (unfortunately) a piece of it, but it is quite an
experience to navigate these waters right now. While working in the best way
possible to support our customers, we also need to support our own business and,
most importantly, the safety of everyone around us. The aviation industry will get
through this for sure, and I do believe there are always opportunities that arise
from difficult situations.
In terms of your second question, being able to "talk the same language" as
the airlines, having been there for so long is something the airlines do appreciate.
There are nuances that you can glean having lived through similar situations and
challenges in managing the complex machine of an airline. Having the ability to
"translate" from the airline to our team on the leasing side and vice versa does
bring some intangible advantages to both.
Jetrader: What do you see as the biggest challenge facing the aviation
industry due to the COVID-19 pandemic?
PFB: There has been an absolutely unprecedented drop in passenger traffic with
it off 55% in March, and a staggering 95% and 91% in April and May, respectfully.
Many airlines are facing a severe liquidity crisis. The biggest challenge, I think, is
getting people to feel safe flying again
to increase passenger traffic. This
obviously will take time and will likely
differ from region to region, depending
on local actions and reactions to
the crisis.

population still flies very little. (In
2019, only approximately 300 million
passengers were transported.) There
is considerable untapped demand and,
in many countries, people still travel
days on buses instead of hopping on
a plane for a domestic flight, as flying
is still very expensive. We need more
competition to stimulate such demand.
Prior to the impact of COVID-19,
aviation had been a significant GDP
contributor and employer in the region.
While some airlines will emerge from
the pandemic smaller than before, and
there may even be some consolidation,
the industry will not disappear. The
sector will return and will likely expand
in the mid to long term.

Jetrader: You're an expert in the
Latin American aviation market.
What are your thoughts on LATAM
filing for bankruptcy? Will we see
more airlines do the same?
PFB: It doesn't take an expert to
recognize the COVID-19 pandemic
is having a significant impact on
the aviation industry, but airline
bankruptcies are also not a new
phenomenon to the sector. As of this
interview in late July, there have been
approximately 20 bankruptcies, which
is about two times 2019 levels, and
that number could certainly increase.
Remember that a number of these are
Chapter 11, so it is an opportunity for
the airline to clean up its fleet and
financials, not necessarily liquidate.
Jetrader: What unique challenges
are the Latin American carriers
facing? Do they have any
unique opportunities?
PFB: The Latin American aviation
market still has amazing opportunities
to grow and evolve. The region has
around 650 million people, and that

While some airlines will emerge from the pandemic
smaller than before, and there may even be some
consolidation, the industry will not disappear. The sector
will return and will likely expand in the mid to long term.
Jetrader

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ISTAT Jetrader - Autumn 2020

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