For airlines strapped by coronavirus, the repo man is the latest challenge

Soon after Virgin Australia filed for bankruptcy last month, Phil Seymour’s phone started buzzing. Three leasing companies and two banks wanted to know if he had staff in Australia. Seymour runs IBA Group Ltd, an aviation data and advisory business. His company also repossesses jets when airlines go bust. Business for that line of work is poised to take off as the economic repercussions of the coronavirus pandemicwreak havoc on global travel. Most of the world’s biggest airlines have grounded upward of 80% of flights. Airlines are furloughing or laying off tens of thousands of staff, hoarding cash and negotiating with governments for bailouts. When airlines go bankrupt or miss payments on planes, aircraft financiers and lessors want their jets back. They call companies like Mr. Seymour’s to do the repossessing. It is a niche industry, with mostly small players, or those offering the service as part of a wider aviation-consultancy remit. Like the airline business itself, it can be boom or bust. In 2016, a banner year for airlines, only 11 carriers, with 56 planes, went bankrupt, according to data compiled by IBA. The past few years have been harder for airlines after many budget carriers pushed too aggressively for growth. In 2018 and 2019, there were 30 and 27 bankruptcies, respectively. This year, there already are 19. Those airlines operated 480 aircraft, the largest bankrupt fleet since IBA started compiling data. Story has more.<br/>