Page 21 - C:\Users\Tharindu Dissanayake\Documents\Flip PDF Professional\CMA JOURNAL 2021_compressed\

CERTIFIED MANAGEMENT ACCOUNTANT 21

“I expect the reduction in hours to International Air Transport Association
remain for some time, because we predicts that global passenger traffic
have temporarily closed Terminal One “ will not return to pre-COVID-19 levels
due to low traffic. Even though 80 until 2024. However, with Asia-Pacific

“This has been another way to reduce per cent of our being a growth market, Jain says the
estimated recovery period is closer to
expenses,” adds Jain. three years.
“There is no reason to incur operating expenses are
costs, like utilities and power, at “In India, the expectation is that, in
two to three years, we will reach pre-
the terminal. We cut our electricity fixed, we found COVID-19 levels of travel, but it is
consumption by 60 per cent by closing difficult to predict,” says Jain. “We
it. ways to save,” have to be ready with cash, so that we
“We have also used dynamic lighting Jain says. can be sustainable.”
and switched off air conditioning
across the airport wherever possible.
Cash flow has also been improved with Lessons from the
“Once traffic comes back to normal –
or even 70 per cent – I think all workers a return of domestic flights. COVID-19 crisis
will resume normal hours and wages.” By September 2020, Indian Airlines
were allowed to operate at 60 per
CSMIA’s air cargo business has cent capacity, but Jain notes that Rajeev Jain FCPA believes the pandemic
managed to cushion much of the international travel will be a challenge, has presented three important lessons
economic impact. It has continued to with every country having its own for all finance leaders.
perform comparatively well, largely COVID-19 travel restrictions.
due to the urgent need for medical and
emergency supplies throughout the Lesson #1 Build a cash flow
crisis. Adapting to change buffer
“If you are hand-to-mouth with your
Between April and August 2020, it availability of cash, any disruption will
handled more than 169,000 tonnes of CSMIA has been quick to respond to hurt,” says Jain. “There should always
cargo, including approximately 135,000 the resumption of domestic travel, be a cushion in liquidity to tide the
of international and 34,000 tonnes of with a number of measures to address business over in case of unexpected
domestic cargo. disruptions.”
customer safety and peace of mind.
“We focused on cargo during this time The airport launched a COVID-19
and managed quite a large quantity, testing facility, available for all arriving Lesson #2 Be prepared to cut
which has supported us very well,” passengers, and social distancing costs
says Jain. is encouraged through distinctive “Even though 80 per cent of our
signage. expenses are fixed, we found ways to
“We are expecting that, by year end, save,” Jain says. “We cut electricity
we’ll have reached about 72 per cent Seating arrangements at the food court consumption by 60 per cent by closing
of cargo capacity based on last year’s and the terminal building have also been one terminal. This is a big saving.
numbers, so we anticipate our revenue reshuffled to promote a safe physical Similarly, we had dynamic deployment
from cargo will be going to be 10 per distance, and the airport has put in of workers, which helped us to control
cent lower than it was last year.” place a QR code-enabled contactless our costs.”
check-in mechanism, which allows
passengers to use their mobile phones
Cash flow is key to remotely operate check-in and Lesson #3 Always maintain
bag drop kiosks for printing boarding strong relationships with
passes and bag tags. suppliers
In August 2020, it was announced “You need to have very good
that MIAL would be sold to Indian “This is the first airport in India that has relationships with vendors, so that
infrastructure giant Adani Group, an airport health accreditation from they can support you during a crisis,”
making it the country’s largest private ACI [Airports Council International] for says Jain. “In normal times, pay them
airport operator after the GMR Group, dealing with COVID-19,” says Jain. on time and have a good rapport with
which operates Delhi and Hyderabad “These steps that we have taken them, so they are willing to stand up
airports. and help in times like this.”
are to instil a sense of confidence in
Jain says the acquisition by Adani will passengers that it is safe to fly. Every Source: CPA Australia. Copyright@2020
provide MIAL with greater liquidity and month there is an improvement.” CPA Australia Ltd. Used by permission.
will make funding for Navi Mumbai Despite signs of growth, Jain expects
airport easier to access.
a challenging road to recovery. The

www.cma-srilanka.org | Volume 06 -No. 2 - September 2021