Alas Group: 2020 Q1 - Executive Summary

As the coronavirus continues its global invasion, paralyzing both global movement and the aviation industry, ALAS Group is satisfied to report a stable activity level for Q1 2020.

If we look at our pax services, and the request level from a global scenario, we’ve seen a serious decline compared to Q4 in 2019. However, there’s been a significant increase in cargo services, both for aircraft's and inquiries connected to cargo.

Our inventory request level for the first quarter of 2020 reached just above 120 million dollars, showing that, even though the industry is seriously challenged, there are still activities in some parts of our business units. Especially Asia and the Middle East has shown a big interest in our services.

Over the next coming months our consultancy division expects an increase in global activities, as most of the industry is suffering from low yield, aircraft on ground and a challenged economy. Jump starting the industry and stabilizing the activity level with all the complexities combined, is not an easy task and requires a lot of experience and expertise. Our job ahead, is to assist the industry in synchronizing both costs and operations, keeping them both closely aligned, to prevent a financial melt-down.

Q2 will remain dormant in our pax division, however, we expect to see a slight increase in our cargo activities compared to Q1. In Q3 we hope to see all our business units align their global activities as the fight against the pandemic wears off and the situation begins to stabilize itself.

Our plans for an ATO in Nepal has been postponed until we know what the future holds. Right now, and over the next coming months, we expect to see a surplus in personnel from the aviation industry, increasingly slowing down the request for new pilots and cabin crew. We believe the global market will remain saturated until the economy has worked its way out of the current recession, which may take some time. We will continue our ATO plans in Nepal when the market picks up again and we see an increase in activities.

We can already predict that 2020 will be a difficult year, however, we still remain optimistic even though the industry is bleeding. The sudden shift in global demands has required a more flexible transformation in some of our business units, without compromising our long-term strategy and goals.

All in all, the first quarter of 2020 has been satisfactory, however, with a few minuses. We will keep monitoring the financial situation and global developments and align our businesses accordingly.

Dustin Paul Wilden

Chairman of the Group