Expert case by Clara

# COVID-19 impact on Heathrow Airport

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Rating:
4.4
(300+ Ratings)
9.3k
Times solved
4.4
300+ Ratings
Intermediate
Difficulty

## Case Prompt

Your client is the CEO of Heathrow airport (London), the busiest airport in Europe in terms of commercial traffic.

Due to COVID-19, the airport's operations and hence, revenue streams, have been severely affected.

The CEO asks for your help with the preparation of the upcoming Steerco, focused on:

“How to secure Heathrow's revenue streams during April-June 2020, mitigating the effects of COVID-19”.

## Question 1 – Structuring

How to secure Heathrow´s revenue streams during April, May and June 2020, mitigating the effects of COVID-19?

Note: includes securing old revenue streams and searching for new ones.

## Question 2 – Exhibit & math

The CEO would like to know how many passengers Heathrow airport missed/will miss during April, May and June 2020 (COVID-19 peak in Europe). For this, they ask for your help to:

Estimate what was the forecasted traffic in the airport in the cited 3 months.

## Question 3 – Lost business

We know from an industry report that airports in Europe ranged from losing 100% of their operations in April-June 2020 (i.e., total closure) to keeping 10% of their operations.

Knowing that, plus the facts that we already know about Heathrow airport:

1. Which percentage of their initially forecasted operations do you estimate they have been/will be able to maintain.
2. How many passengers will the airport have then in April-June 2020?

## Final question – Executive summary

You are the Associate who worked in this engagement, and who is currently guiding the CEO of Heathrow Airport to the ExCom meeting with the MBB partners. In the elevator ride (1 minute), she asks you to provide her a quick note on what the conclusions are.

9.3k
Times solved
Intermediate
Difficulty
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