How to effectively restructure an airline – by Steven T. Kargman

ARTICLE – How to effectively restructure an airline

The airline industry globally often faces serious financial and operational challenges, and in recent times it has not been uncommon to see airlines even in many industrialized countries undergo major restructurings. However, the travails facing airlines in Africa generally seem to be more acute than in most other parts of the world.

The disparity between the performance of African and non-African airlines is evident most clearly and strikingly in the profitability results for airlines in different regions around the globe. As shown in data from the International Air Transport Association (IATA), Africa stands out starkly as one of the few regions in the world where airlines in the region collectively have shown negative profitability in recent years. In fact, among the major airlines in Africa, very few operate on a profitable basis.

The below article provides a brief overview of major challenges facing African airlines and how the African airlines can respond to these challenges through the use of restructuring and turnaround tools and techniques employed by troubled companies across a range of industries.

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We also spoke to Steven T. Kargman about the article in an exclusive podcast.

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