Factories re-open, jobs cut, acquisitions halted
The impacts of the Coronavirus (COVID-19) continue to become clearer as more announcements about big decisions are made across the aerospace industry.
We’re hearing about aerospace companies returning to work after temporary closures now that they’ve reorganised production, longer-term jobs cuts and the cancellation of corporate acquisitions. Specific challenges for key parts of the supply chain, such as aero engines, materials and the aftermarket, are being clarified too. And we're now seeing major government subsidies for airlines being announced.
17 Apr Airbus furloughs 3,000 French aerospace workers Reuters
17 Apr The MAX Returns To A Changed World [Boeing may get MAX production restarted, but will demand be there?] Aviation Week
19 Apr How coronavirus brought aerospace down to earth [good big-picture overview of crisis for aviation and aerospace] FT
20 Apr Powering Down [analysis of the impact on the different big aero-engine producers] Aviation Week
20 Apr Extended 777 Groundings Bode Ill For GE90 Aftermarket [forecasts for big growth in twin-aisle aircraft MRO in tatters] Aviation Week
21 Apr Hexcel Still Has Not Heard From Boeing; Expects Deep Cuts [Hexcel a supplier of composite materials for 787 and 777X wing] Aviation Week
21 Apr What To Watch For As A&D Companies Plan Future With COVID-19 [good overview of the main factors in play for the future of the supply chain] Aviation Week
23 Apr Will Bailouts Commit OEMs To Supporting Their Suppliers? [the author says the answer is “no.”] Aviation Week
24 Apr Time and money, not gimmicks, are going to get people flying again [airlines will struggle to persuade business and private travellers to fly] The Air Current
23 Apr Almost 400 jobs to go at aviation firm [Safran Seats in UK to make 25% staff redundant – makes Business and First Class seats] The Business Desk
24 Apr Aviation suppliers need uncomplicated support, and soon - results of the H & Z study presented [German consultancy surveyed 400 German aerospace suppliers]
25 Apr Meggitt cutting 1,800 jobs worldwide and moving headquarters from Bournemouth Airport [15% of UK jobs to be cut] Dorset Echo
25 Apr Embraer says Boeing used false claims to ditch $4bn tie-up [Boeing is not going ahead with plan to purchase 80% of Embraer civil business to match up to Airbus] FT
26 Apr Dutch readying €2-4bn aid package for KLM: minister [partner airline Air France expecting €7bn from French state] Le Journal de L’Aviation
26 Apr Midlands' economy 'will be the hardest hit' by coronavirus crisis [KPMG study says Midlands economy will shrink by 10% in 2020 – due in part to reliance on manufacturing] Express and Star
Ideas for how our country might approach the recovery are circulating but the industry needs a joined-up approach. The KPMG study highlighted by the Express and Star (above) forecasts that the whole Midlands economy will shrink by 10% this year, one of the worst performances in the country. We'll be integrating those findings as we continue work at pace on our five-point plan to a) guide our industry through this challenging time, and b) help lobby Government for the right support for aerospace companies. As above, finance packages are already being announced for airlines and we must make sure our supply chain gets the help it needs too.