S1 Ep15: Aengus Kelly - Flight Disruption

Career Journey of Angus Kelly

Angus Kelly, a UCD graduate, credits his education as a pivotal foundation for his successful career in aviation. He began his professional journey at KPMG, where he gained invaluable experience, particularly during his tenure at GPA after its difficult time in the late 1990s. This exposure ignited his passion for the aviation industry, inspired by prominent figures like Tony Ryan, who highlighted the potential of the sector in Ireland during a point of economic hardship. Kelly emphasizes that surrounding oneself with a driven team and a supportive environment is crucial for fostering ambition and achieving success.

Response to COVID-19 Impact

As the COVID-19 pandemic unfolded, Kelly and his team recognized its potential impact on the aviation sector early on, particularly during a trip to China where concerns about the virus emerged. By February, airlines were seeking assistance due to government-mandated shutdowns, leading to a significant drop in demand. Kelly underscores the importance of maintaining a strong liquidity position, an essential strategy that allowed Aircap to weather the storm of economic turbulence. This proactive financial strategy, which included carrying substantial cash reserves, ultimately positioned the company to navigate the unprecedented challenges posed by the pandemic.

Negotiating with Airlines

In managing relationships with airlines, Kelly stresses the need for flexibility during times of crisis, especially when airlines face severe revenue losses. Effective communication and collaboration become essential, as both parties must work towards equitable solutions amidst financial strain. Early encounters in China during the pandemic involved negotiating terms that aligned with the airlines' compromised positions, illustrating the necessity of a cooperative approach. This mutual understanding not only aids in maintaining longstanding partnerships but also fosters a supportive industry environment.

Future of Aviation and Climate Change

Looking ahead, Kelly acknowledges that while the aviation industry faces significant challenges, notably from climate change, the need for air travel will persist. He highlights the growing emphasis on sustainability, noting that state aid for airlines is increasingly tied to environmental conditions. The evolving regulations will likely push airlines towards cleaner technologies, which could transform industry dynamics. As this shift takes shape, lessors like Aircap must adapt to changing operational models and market demands, ensuring they remain at the forefront of an evolving sector.

UCD Business Impact

S1 Ep15: Aengus Kelly - Flight Disruption

Episode guests

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Quick takeaways

Deep dives

Career Journey of Angus Kelly

Response to COVID-19 Impact

Negotiating with Airlines

Future of Aviation and Climate Change

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