INFLATION (2)

We are about to end this year with good growth perspectives for 2023. Forecasts indicate that next year the recovery trajectory will continue, which, despite some occasional setbacks (the slow recovery of air traffic in China, for example), is on the path that was foreseen two years ago. However, in the current climate of high uncertainty, there are several risks that threaten the fulfillment of these forecasts and we must continue to be cautious.

One risk that is no longer a risk, as it has unfortunately become a fact, is the impact that inflation is having on our costs and, therefore, on the company’s profitability. The increase in labor costs, in the goods and services we purchase, in energy and in financial interest rates, are having a very important impact on our cost structure. After more than ten months of active dialogue with our customers, it is not being easy to find ways to translate inflation impact into prices. We will keep on pursuing commercial solutions to address this situation. In the meantime, and as an inalienable distinguished mark of Aernnova, we must stick more than ever to our pillars of Performance, Efficiency, Lean and Cash to successfully defend our future.

But let’s move on to more positive issues. Our industry’s commitment to lead decarbonization and achieve the goals set by Europe, which, among others, pursue carbon neutrality, continues to be one of our goals. In Europe, the Clean Aviation Program has been and continues to be the key vehicle for introducing improvements with a positive environmental impact in the sector through technology. Aernnova is actively involved in this program, participating in new ideas and transforming concepts in the field of clean aviation.

In addition, at the Aernnova Group, we have launched, with equal parts of enthusiasm and ambition, our plan and goals for ESG, acronyms that refer to the factors that make a company sustainable through its Environmental, Social and good Governance commitment. We explain it in detail in this issue and we will persevere on it, as we do not want to fail, over the next few years. Aernnova is a company committed to playing a leading role in the sustainable development of our society.

In just a few days, some of you will start working with new digital tools and processes at Aernnova. You will be those affected by the first wave of implementation of our Zero Latency digital transformation project, which will start on January 1st, 2023. The second wave, which will affect the vast majority of Aernnova employees, will be launched on January 1st, 2024. Changes are always complicated, but we have been preparing for this for more than a year: let’s go for it with discipline and work.

All these issues, and some more, are covered in this edition of ANNnews, which, as always, I hope you enjoy.

I would like to take this opportunity to wish you all a Merry Christmas and may all your dreams come true in 2023.