When the Carousel Stops
Aviator UK Ground Handling Case Study
May 02, 2018
When the Carousel StopsDownload Case Study
In an industry based on strict regulation, rigorous safety standards and operations planned to minute detail, the unexpected closure of a major ground handling operator in one of Europe’s busiest hubs would cause significant disruption. FTI Consulting were engaged to advise the board and management of Aviator UK on alternate outcomes to immediately ceasing operations.
After the unexpected (and immediate) loss of support for the UK operation from their lender group, the directors of the Aviator UK business held an emergency meeting to consider immediately ceasing all operations at major airports in the UK.
Taking this approach would have had a catastrophic impact on European air traffic, the UK airports, airlines and passengers. The potential disruption was reminiscent of other major aviation impacts such as the Iceland ash cloud in 2010 which cost the industry over €1 billion.
Without the support of their lender group and facing a £3m+ wage bill the following week, the business was insolvent and the directors saw no other option but to immediately cease operations. Given the gravity of the situation, the directors made a decision to engage FTI Consulting to assess the options for the Group and help prevent an immediate and uncontrolled insolvency filing of the UK companies.