ISTAT Jetrader - Winter 2020 - 19

What surprises arose from the pandemic
for your business?
KC: The pandemic has totally reshaped our whole business
because of our inability to fly the international market, so we
really had to penetrate more into the domestic market. It's
reshaped the whole aviation market for China.

Ke Chen
Chief Financial Officer,
Spring Airlines

Where does Spring Airlines operate, and what type of
aircraft does it fly?
Ke Chen (KC): Spring Airlines is based in Shanghai, China.
We are a low-cost carrier with 97 aircraft.
When were the first signs that this crisis was different
from those of the past?
KC: Compared to the last crisis, the coronavirus pandemic
is global. So, it's bigger, and we just don't know how long it
will last.
How has COVID-19 affected your business?
KC: The travel ban changed our business. We had to ground
over 99% of our international flights. We could only keep one
flight per country. Before the crisis, our international flights
were about 40% of our business; now it's only 2-3%. We're
now more focused on the domestic market.

Before the crisis, our international
flights were about 40% of our business;
now it's only 2-3%. We're now more
focused on the domestic market.
We operate single-aisle aircraft, so that gives us more
flexibility to adapt to the environment. Other airlines have a
lot of widebody aircraft, which doesn't give them as much
flexibility because of the cost of flying those aircraft.

What are the biggest lessons you/your business has
learned from the crisis?
KC: It's twofold: You need to make sure you can survive
longer by putting yourself in a good cash position in case
a crisis like this happens again in the future. You also need
to make sure you have a good capital debt structure. That
means you can raise money during a crisis.
We should also make sure our business model has as
much flexibility as possible. Airlines have huge fixed costs. So
if another crisis comes, if it's short term, that's OK, everyone
can endure for a short time. But if it's another crisis like the
coronavirus, you must change something. You have to quickly
adapt to the dynamic, changing environment. So, you should
make sure your business model has flexibility, including your
fleet, labor, etc. That means switching some of the fixed costs
to variable costs.

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Jetrader

* WINTER 2020 * 1 9


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ISTAT Jetrader - Winter 2020

Table of Contents for the Digital Edition of ISTAT Jetrader - Winter 2020

ISTAT Jetrader - Winter 2020
From the President
News & Events
Perspectives: Q&A With Rich Wiley of SKY Leasing
Winds of Change
10 Years of Air Shows
ISTAT Foundation
Appraisal: Airbus A330-300 and Boeing 767-300ER
At a Glance: Peter Hopkins
Advertiser Index
ISTAT Jetrader - Winter 2020 - Intro
ISTAT Jetrader - Winter 2020 - ISTAT Jetrader - Winter 2020
ISTAT Jetrader - Winter 2020 - Cover2
ISTAT Jetrader - Winter 2020 - 1
ISTAT Jetrader - Winter 2020 - From the President
ISTAT Jetrader - Winter 2020 - 3
ISTAT Jetrader - Winter 2020 - 4
ISTAT Jetrader - Winter 2020 - 5
ISTAT Jetrader - Winter 2020 - 6
ISTAT Jetrader - Winter 2020 - 7
ISTAT Jetrader - Winter 2020 - News & Events
ISTAT Jetrader - Winter 2020 - 9
ISTAT Jetrader - Winter 2020 - Perspectives: Q&A With Rich Wiley of SKY Leasing
ISTAT Jetrader - Winter 2020 - 11
ISTAT Jetrader - Winter 2020 - 12
ISTAT Jetrader - Winter 2020 - 13
ISTAT Jetrader - Winter 2020 - 14
ISTAT Jetrader - Winter 2020 - 15
ISTAT Jetrader - Winter 2020 - Winds of Change
ISTAT Jetrader - Winter 2020 - 17
ISTAT Jetrader - Winter 2020 - 18
ISTAT Jetrader - Winter 2020 - 19
ISTAT Jetrader - Winter 2020 - 20
ISTAT Jetrader - Winter 2020 - 21
ISTAT Jetrader - Winter 2020 - 22
ISTAT Jetrader - Winter 2020 - 23
ISTAT Jetrader - Winter 2020 - 24
ISTAT Jetrader - Winter 2020 - 25
ISTAT Jetrader - Winter 2020 - 10 Years of Air Shows
ISTAT Jetrader - Winter 2020 - 27
ISTAT Jetrader - Winter 2020 - 28
ISTAT Jetrader - Winter 2020 - 29
ISTAT Jetrader - Winter 2020 - 30
ISTAT Jetrader - Winter 2020 - 31
ISTAT Jetrader - Winter 2020 - 32
ISTAT Jetrader - Winter 2020 - 33
ISTAT Jetrader - Winter 2020 - 34
ISTAT Jetrader - Winter 2020 - 35
ISTAT Jetrader - Winter 2020 - 36
ISTAT Jetrader - Winter 2020 - 37
ISTAT Jetrader - Winter 2020 - ISTAT Foundation
ISTAT Jetrader - Winter 2020 - 39
ISTAT Jetrader - Winter 2020 - 40
ISTAT Jetrader - Winter 2020 - 41
ISTAT Jetrader - Winter 2020 - Appraisal: Airbus A330-300 and Boeing 767-300ER
ISTAT Jetrader - Winter 2020 - 43
ISTAT Jetrader - Winter 2020 - 44
ISTAT Jetrader - Winter 2020 - 45
ISTAT Jetrader - Winter 2020 - At a Glance: Peter Hopkins
ISTAT Jetrader - Winter 2020 - 47
ISTAT Jetrader - Winter 2020 - Advertiser Index
ISTAT Jetrader - Winter 2020 - Cover3
ISTAT Jetrader - Winter 2020 - Cover4
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