Grupo TACA

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.

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.

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.