Aviation
Take to the skies
Companies from all transport sectors are facing significant challenges arising from the global ‘credit crunch’ and its impact on business and consumer confidence alike. The challenges posed by the current economic climate, tougher competitive environment and regulatory changes require the very best professional service providers dedicated to helping these companies succeed. We already advise many of the industry’s key players on the significant issues it faces.
All of the UK’s leading aviation and transport companies – including both major UK airport operators and the majority of the UK’s biggest airlines – choose Deloitte as a provider of professional services. We are the number one professional services firm globally for aviation and transport clients, providing a broad range of services to companies across the aviation sector, including airlines, airports, ground handlers, air traffic controllers and Civil Aviation Authorities.
Research & insight
Issues, trends & solutions
- Processing insurance claims
Although the dust has now settled following the Iceland volcano back in April 2010, many parts of the industry are still counting the cost of its impact and furthermore having to deal with a significant volume of dubious claims. - Mergers, acquisitions and disposals
Whilst most other industries have shown an abrupt halt to the number of mergers and acquisitions taking place, the desperate need for most airlines to reduce their cost base and achieve synergies with competitor airlines continues unabated. - Landing slot valuations
For many airlines landing slots are one of their most significant assets. However, the market in airport landing slots is still maturing and valuation is a complex and sometimes controversial subject. It requires an in-depth understanding of the relevant market and the asset, together with financial and non-financial information. - Hedging strategy
To hedge or not to hedge, that is the question. Both fuel prices and currencies have fluctuated wildly as a result of the turmoil in global markets and, with cost management becoming increasingly important to airlines in terms of managing their cost base, effective hedging enables management to plan ahead. - Cost reduction
The aviation sector, now that it is seeing a decline in revenues, especially as people are largely not choosing to fly at the front of the aircraft, needs to focus on cost reduction methodologies and related solutions. - Regulatory and banking issues/Distress
High profile failures such as silverjet, Zoom and XL have demonstrated how susceptible airlines can be to significant downturns in business coupled with rapidly rising costs. - Aviation emissions and fleet strategy
Aviation emissions are damaging to the environment, and the sector will be a growing contributor to global warming over the coming years. - Aircraft maintenance
From our continued review of airline financial reporting we continue to see inconsistencies in accounting for maintenance and in some cases incorrect accounting in terms of compliance with recognised accounting practices.
Our clients
Deloitte in the Aviation & Transport Services sector:
- We serve 9 of the world’s top 10 passenger airlines (encompassing 85% of all passengers carried in the UK) and 15 of the top 20.
- We provide audit and/or other services to 7 of the 10 oneworld members, 12 of the 17 in Star Alliance and 8 of the 9 in SkyTeam.
- We sit as a Strategic Partner on many of IATA’s committees, including Tax and FinCom;
- We work closely with the IAAIA (International Association of Airline Internal Auditors);
- We serve 91% of the Aviation & Transport companies included in the Fortune Global 500.
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