This article looks at the challenges facing the European aviation industry and considers how procurement can be a catalyst for transformation and cost base restructuring.
In recent times the news has been full of the Flybmi collapse, but this is not out of the blue. Earlier in February Germania, the Berlin based low cost carrier also folded, citing increasing fuel prices and unexpected aircraft maintenance costs. In 2017 Air Berlin, Alitalia and Monarch all ceased trading in quick succession, proving to be an early warning sign for 2018, which saw Primera, Cobalt, Azurair, Small Planet and SkyWork all make their last flights. The skies are transforming quickly above us. What comes next?
Further casualties? Consolidation? Or how about a redefinition of offerings and restructuring of the cost base, prompted in part by better procurement delivering better suppliers and improved EBITDA.