Velocity of Aviation Industry Expected to Soar by 4.3% by 2036
What Maneuvers it need to achieve it?
Aftermath of the COVID-19 Pandemic:
- The pandemic caused unprecedented disruptions, erasing two decades of passenger traffic gains.
- Even after travel restrictions lift, the long-lasting effects persist
- Aviation was folded back 10years as it lost about $1272 billion in revenue for both Domestic and International between 2019 to 2022 as per ICAO
Future of Aviation and how Financial ERP can ignite there Engines
Lease Accounting
- Lease Accounting Aviation has the biggest chunk of Lease hold property which needs an appropriate valuation whether its’ The lease accounting landscape grapples with a significant issue: the coexistence of two distinct accounting models for financial and operating leases. These divergent approaches hinder the comparability of company financial statements, posing challenges for effective decision-making. Many Airline companies want to is looking to expand its fleet by leasing five more planes, but it is concerned about how the adoption of ASC 842 will affect its balance sheet, as both IFRS 16 and US GAAP run hand in hand for Lease Accounting standard.
Increased Debt
- Airlines experience a significant increase in on-balance debt due to lease obligations being on the balance sheet, Trillions of additional lease obligations have been added to airlines’ balance sheets globally this has resulted small airlines to reduce long haul and business expansion
IFRS S2 (Climate-related Disclosures)
Airlines must disclose climate-related risks and opportunities, as required by the International Sustainability Standards Board (ISSB) under IFRS S2. This information is crucial for primary users of financial reports to make informed decisions regarding resource allocation
