When the Pandemic Covered the Sky

The aviation industry is no stranger to crises. Geopolitical tensions, fuel prices, security risks, and economic swings are part of the landscape. But the Covid-19 pandemic went beyond any crisis we had experienced. It practically brought the sector to a standstill. Planes were grounded, routes were closed, and demand had almost disappeared. In this context, procurement and supply chain teams moved from being cost-managing units to the heart of the companies’ survival strategies.

Demand Disappearing Overnight

One of the first and most pressing challenges in the early days of the pandemic was the complete loss of predictability. Flight schedules, maintenance plans, and parts orders that had been set months in advance became meaningless within weeks. The aviation supply chain, usually run on a “just-in-time” principle, suddenly faced the risk of excess inventory and cash flow constraints.

For procurement managers, the critical question was simple yet daunting:
“If we don’t buy this part today, will operations come to a halt tomorrow?”

Balancing that was perhaps the toughest set of decisions in our careers.

The Domino Effect in the Supply Chain

In aviation, even a single part goes through dozens of certification steps, making the supply ecosystem extremely fragile. The pandemic made this fragility painfully clear. Many small and mid-sized suppliers halted production, some went bankrupt, and others redirected capacity to other industries.

Procurement teams had to think beyond the usual “cost-quality-delivery” triangle. During this period:

• Supplier financial resilience became as important as technical capability

• Approval processes for alternative sources, which normally take months, were accelerated

• Long-standing suppliers were treated not just as contract partners but as crisis partners

• In some cases, accepting higher prices was necessary to secure long-term supply continuity

Cash is King: Contracts Rewritten

The pandemic forced a review of nearly every procurement contract in aviation. Advance payment terms, minimum order commitments, penalty clauses, and volume discounts were renegotiated.

The goal was not short-term gain but buying time while protecting cash flow. Many contracts were adjusted to:

• Delay deliveries and reduce stock pressure

• Extend payment terms

• Trade short-term cost advantages for long-term business guarantees

Procurement worked more closely with finance and legal teams than ever before, because every decision had a direct impact on the company’s balance sheet.

Digital Transformation: From Choice to Necessity

Many digital initiatives that had been seen as “projects to explore” became essential overnight. With physical audits impossible and travel halted:

• Remote supplier audits

• Digital contract management

• Real-time stock and order tracking

• Scenario-based demand planning

all became part of daily operations. This period demonstrated just how strategically procurement and supply chain teams can leverage technology.

The Biggest Lesson: Resilience Trumps Low Cost

Covid-19 delivered a clear, albeit harsh, lesson to aviation: the lowest-cost supply chain is not always the right one.

After the pandemic, airlines and aviation companies reshaped their strategies. Multi-sourcing, regional suppliers, safety stocks, and more flexible contracts are no longer seen as inefficiencies—they are strategic insurance.

Conclusion: Procurement Was in the Cockpit

During the pandemic, procurement and supply chain managers were not back-office support—they were at the center of decision-making. Even with planes grounded, they made the choices that would shape future operations.

Looking back, one thing is clear: Covid-19 was the turning point that elevated procurement in aviation from an operational support function to a strategic leadership role.