Aeroservices diversifies to help airlines preserve grounded craft

A Yorkshire supplier to the aerospace industry has diversified to help airlines preserve their grounded aircraft, following support from Lloyds Bank.

Natalie Hanckock, relationship director at Lloyds Bank, with Mashood Akmal, managing director at Aeroservices

Leeds-based Aeroservices said the move is boosting revenues at a time when the sector faces a steep downturn because of Covid-19 disruption.

The firm usually distributes aircraft tools and components, from tyres to lubricants, to more than 90 countries. Its customers include regional airlines, national carriers, air freight operators and defence fleets.

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However, with global air traffic falling by 90 per cent during the peak of the Covid-19 crisis, the firm’s order book was hard hit.

Aeroservices has expanded its portfolio to parts and components that are specifically used by airlines to maintain grounded fleets. The firm turned to Lloyds, securing a seven-figure loan as part of the Coronavirus Business Interruption Loan Scheme.

To help with its recovery, the group hired a new director and a supply chain specialist. The appointments follow Alun Phennah joining the company as chief operating officer shortly before the pandemic.

Mashood Akmal, managing director at Aeroservices, said: “It was clear early on that we’d need to diversify to really safeguard the business. Grounded aircraft still need to go through regular maintenance for compliancy and expanding our services into this category felt like a natural step for us.

“The funding from Lloyds Bank really helped us to take our mind off finances and to focus on this expansion, which will ultimately help us to ride out the storm while the aviation industry recovers.”

Natalie Hancock, relationship director at Lloyds Bank, said: “Thanks to the ingenuity of Aeroservices management team, the business now has a strong footing to weather the industry’s recovery phase. It’s a great example of a firm we’re supporting as part of our work to help Britain’s businesses recover.”