When the Skies Closed During the Pandemic

The aviation industry is, by its nature, familiar with crises. Geopolitical tensions, fuel price volatility, security risks, and economic fluctuations are part of its DNA. However, the Covid-19 pandemic went far beyond any crisis scenario the industry had previously experienced, it brought aviation to a near standstill. Aircraft were grounded, routes were closed, and demand was almost entirely wiped out. In this environment, procurement and supply chain functions moved beyond cost management and became central to companies’ survival instincts.

Demand Evaporated Overnight

In the early days of the pandemic, the greatest challenge we faced was the complete loss of predictability. Flight schedules, maintenance plans, and parts orders prepared months in advance became meaningless within weeks. The aviation supply chain, traditionally built around just-in-time principles, suddenly faced the twin risks of excess inventory and severe cash constraints.

For procurement leaders, one critical question dominated every decision:
“Will every part we decide not to buy today bring operations to a halt tomorrow?”

Balancing this trade-off led to some of the most difficult decisions of our professional lives.

The Domino Effect Across the Supplier Network

In an industry where even a single component may require dozens of certifications, the fragility of the supplier ecosystem became painfully clear during the pandemic. Many small and mid-sized suppliers suspended production, some went bankrupt, while others redirected capacity to different industries.

Procurement teams were forced to move beyond the traditional “price–quality–delivery” triangle. During this period:

• Supplier financial resilience became as critical as technical capability

• Approval processes that normally took months were accelerated to enable alternative sourcing

• Long-standing supplier relationships evolved from contractual partnerships into crisis partnerships

In some cases, accepting price increases was the cost of preserving long-term supply continuity.

Cash Is King: When Contracts Were Rewritten

The pandemic triggered a fundamental reassessment of procurement contracts across aviation. Advance payments, minimum order commitments, penalty clauses, and volume-based discounts were all renegotiated.

The objective was not short-term gain, but preserving cash flow effectively buying time. Across many agreements:

• Deliveries were deferred to reduce inventory pressure

• Payment terms were extended

• Short-term cost advantages were secured in exchange for long-term business commitments

During this period, procurement worked more closely than ever with finance and legal teams. Every decision had a direct and immediate impact on the balance sheet.

Digitalisation: No Longer a Choice, but a Necessity

Many digital initiatives previously viewed as “improvement projects” suddenly became business-critical. In a world without travel and on-site audits:

• Remote supplier audits

• Digital contract management

• Real-time inventory and order visibility

• Scenario-based demand planning

became part of everyday operations. This period clearly demonstrated how strategically procurement and supply chain functions could leverage technology.

The Biggest Lesson Learned: Resilience Is More Valuable Than Low Cost

Covid-19 delivered a harsh but unmistakable lesson to the aviation industry:
The lowest-cost supply chain is not always the right supply chain.

In the aftermath of the pandemic, airlines and aviation companies reshaped their strategies. Multi-sourcing, regional suppliers, safety stocks, and more flexible contract structures are no longer seen as inefficiencies, but as strategic insurance.

Conclusion: Procurement Was Not at the Table, It Was in the Cockpit

During the pandemic, procurement and supply chain leaders were not operating in the back office; they were at the very centre of decision-making. Even while aircraft remained grounded, decisions were made that shaped the future of operations.

Looking back today, I can say this with certainty:
Covid-19 was the single most significant turning point that elevated procurement in aviation from an operational support function to a position of strategic leadership.