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CLIENT STORY

Middle East Aviation Group: IPO Business Plan Support

The challenge

A holding company in the Middle East was preparing for the Initial Public Offering (IPO) of two of its aviation businesses. They engaged our team of aviation experts to provide industry insight and support the IPO process by:

  • preparing a market study including a market forecast
  • providing commercial input and advice on the long-term network plan
  • developing a financial model for the company’s IPO business plan.

Our approach

Prior to our appointment, the client had already placed an order with an aircraft manufacturer to replace the airline subsidiary’s existing fleet and ensure future growth. This aircraft order had been used as the basis for developing an outline network plan, which in turn formed the foundation of a long-term business plan.

We worked with the management to:

  • provide input and advice on the various alternative fleet and network options for finalising the long-term network plan
  • align the fleet and network plan to provide a firm and consistent basis for developing a financial business plan
  • validate each revenue and cost line within the financial plan, challenging management on accuracy and integrity of the numbers and ensuring full alignment with the historical and audited baseline financials
  • develop a fully integrated financial business plan that included a seven-year profit and loss account, cash flow statement and balance sheet
  • develop a high-level unit cost benchmark to other regional competitors.

The subsequent financial model and output was reviewed with management with a view to finalising the IPO business plan.

The results

Our team provided the client with a financial plan that had undertaken rigorous validation from an aviation industry perspective. In addition, the financial model contained the flexibility required to further develop, modify and finalise the business plan.

The detailed market study and competitive benchmark analysis helped management understand how to best align the growth and development of the business with the Middle East’s aviation market and also highlighted areas for potential cost reduction and profit improvement.

Contact the aviation consulting team

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