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FLYHT Aerospace Solutions Ltd. is sharing details of the actions the company is taking to protect the health of its employees and fortify its operations during the COVID-19 pandemic.
To safeguard its employees during this pandemic, FLYHT has instituted a company-wide travel ban and is isolating all employees who recently travelled internationally. Many of the company’s employees are continuing their work remotely, which not only mitigates the risk of potential exposure to the virus but ensures all FLYHT’s systems and services continue to function seamlessly for customers.
While most industries have felt the effects of COVID-19, the pandemic has substantially impacted commercial aviation. Since early January, daily departures from major airports have declined 28 per cent to 91 per cent depending on the country. International travel has been severely curtailed, and airlines are taking extraordinary measures to preserve cash. Industry layoffs and furloughs have been accelerating, accounts payable have been pushed out, and capital equipment orders have been delayed or restructured.
Due to the equity raise in November 2019, which improved the company’s working capital, and the operational progress made throughout 2019, FLYHT entered 2020 with a relatively robust cash position. However, the company anticipates reduced revenues in the near-term as a result of customers rescheduling orders and decreases in air traffic, which will impact the company’s corresponding SaaS revenues. Despite current headwinds, FLYHT does expect to continue receiving uninterrupted revenues from other sources during this challenging period. Additionally, the company is discussing with customers the possibility of accelerating installations on aircraft that have been or will be grounded.
To preserve FLYHT’s liquidity through this period of commercial aviation uncertainty, the company is undertaking the following measures:
- Instituting a company-wide travel ban to protect employees and reduce associated costs;
- Postponing new hires (with minimal exceptions);
- Initiating internal cost cutting measures;
- Pursuing small business disaster loan assistance in the United States;
- Pursuing business credit programs through Export Development Canada (EDC) and/or the Business Development Bank of Canada (BDC);
- Pursuing work-share programs from the government of Canada and the state of Colorado;
- Engaging suppliers for extended payment terms.
FLYHT will continue to monitor the industry conditions and implement these measures, as well as consider additional cash saving efforts, as the current situation dictates.
