Financial Impacts on Safety

7 July 2020

The COVID-19 situation has already had a financial impact on the industry and it is important that you face up to the challenges this places on the way you manage safety.  

Follow-up work on each safety issue and mitigations

This information will be updated as the work of assessing each of the safety issues and developing potential mitigations progresses.

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Safety issues related to the financial impacts on safety

Missing suppliers and difficulty liaising with suppliers

The shutdown has already resulted in difficulties for organisations liaising with their suppliers. Further economic constraints may increase problems, making it difficult to maintain the supply chain.

Reduced available financial resources

A reduction in available financial resources may cause the loss of key personnel and corporate knowledge, increase pressure on personnel, and affect decision-making. Long-term investment plans may slip or be changed, with consequences manifesting themselves long after traffic levels have begun to recover.

Shortage of operational and technical staff

Organisations’ limited finances may limit the number of personnel they employ, and movement restrictions resulting from the pandemic may further hamper personnel in remaining in the workplace. Health and national movement restrictions may also cause shortages in personnel and these shortages may be difficult to plan for, with regional or local lockdowns a possibility.

Technical issues related to an ageing fleet

A consideration still open for debate is whether a reduction in financial resources will generate an ageing fleet, with consequent technical issues. However, the reduction in aircraft in use could have the opposite effect – older aircraft are left parked in favour of younger aircraft.

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