Grupo TACA

Client & Engagement Overview

• Client is a leading regional airline in Central America with dual hubs in El Salvador and Costa Rica​.
• A global economic downturn caused a material decline in the airline’s passenger traffic, negatively impacting financial performance​.
• Prior to the economic downturn, client operated an unprofitable cargo business that was getting worse and generating bigger losses​
• Client maintained minimal operating cash and was starting to incur losses across all business units​.

Challenges

• Airline was in the middle of converting its fleet from older Boeing aircraft to newer Airbus aircraft when passenger traffic declined​.
• Cargo operations become a major drain on cash flow​.

Outcome

• Immediately deployed on-site resources to develop comprehensive cash flow projections by business unit​
• Shut down cargo operations and returned aircraft to lessor​.
• Worked with Airbus to divert near-term aircraft deliveries to other airlines​.
• Negotiated multi-year financial lease payment reductions with all lessors, offset by lease term extensions to keep lessors whole while preserving cash flow​.