By continuing to use the site, you agree to the use of cookies. You can find out more by following this link.  OK  Find out more

 
Latest Aviation News Civil aerospace BOEING SOUNDS ALARM ABOUT VIRUS IMPACT ON AVIATION

Boeing sounds alarm about virus impact on aviation

AFP
13/02/2020 | 661 words

Boeing issued a stark warning Wednesday about the impact of the deadly coronavirus outbreak, saying there was "no question" it would hammer the aviation industry and the broader economy.

The virus has killed more than 1,100 people and infected tens of thousands in China, and spread to over two dozen other countries in what is now considered a global health emergency.

Major airlines have halted flights in and out of China, where a lockdown has been imposed in the worst-affected areas, while several countries have banned arrivals from China.

"You have several global airlines that have limited their traffic in and out of China, that's revenue," said Ihssane Mounir, the US plane maker's senior vice president of commercial global sales and marketing.

"You have business trips not happening, you have cargo not going in and out.

"It will have an impact on the economy, it will have an impact on revenues, it will have an impact on these carriers... there's no question about it."

Mounir was speaking in Singapore to reporters at Asia's biggest air show, which has seen over 70 exhibitors withdraw and a fall in visitor numbers due to virus fears.

Singapore has reported 47 cases of the virus so far and has raised its health alert level to the same as during the 2002-2003 Severe Acute Respiratory Syndrome (SARS) outbreak.

The vast exhibition centre hosting the four-day show has been unusually empty, pockmarked by deserted booths of companies who have pulled out.

Organisers have been using thermal scanners to check the temperature of those attending and have advised participants to avoid handshakes and instead greet one another by waving or bowing.

- Stormy skies ahead -

Boeing's warning came against a backdrop of mounting evidence that the aviation industry is heading for severe turbulence due to the virus outbreak.

Aviation consultancy Ascend by Cirium warned this week that the impact on aviation could be worse than during the SARS outbreak, which battered economies across Asia.

SARS, like the new virus, emerged in China and spread to other countries, killing hundreds.

Rajiv Biswas, chief regional economist at consultancy IHS Markit, said Asia-Pacific commercial aviation "has become increasingly dependent on mainland Chinese tourism and business travel over the past decade".

Many Asian airlines have established direct flights to a growing number of cities across China following a boom in tourists from the world's number two economy, he said.

There are other signs of the virus's economic impact, with extended holidays and movement restrictions imposed by China causing major disruption to global supply chains.

The South Korean unit of US car company General Motors on Wednesday announced a partial suspension of operations next week due to shortages of parts from China.

Japanese auto giant Nissan and South Korea's Hyundai Motor have also been affected.

Boeing gets some aircraft components from China, but Mounir said he was not yet seeing any impact on these operations from the coronavirus.

However the delivery of Boeing planes to China and potential Chinese orders for new aircraft would be delayed, he said.

The US manufacturer meanwhile said its executives have been busy reassuring customers that its 737 MAX, which has been grounded since March last year following two deadly crashes, will be fit to return to service.

"Trust is earned, we're going to have to earn it again," Mounir said.

Boeing, which halted deliveries of the jets and temporarily ceased production after the crashes, is targeting mid-2020 to win regulatory approval and resume flights.

"As you can imagine the conversations are not always easy... We've got a whole army of folks who are involved every waking moment in this process," he said.

 
 
 
 
Related articles

Boeing reports no new jet orders in January

Boeing reported its first annual loss since 1997

Boeing's new 777X airliner takes off on first flight

Boeing reports net drop in 2019 orders amid MAX crisis

13/02 Collins Aerospace unveils its Singapore Innovation Hub
13/02 Revima Asia-Pacific, Revima's new MRO facility in Thailand soon to be operational
13/02 A propeller repair centre for ATR aircraft to be based in Indonesia
13/02 Airbus A321P2F certification is expected within the next few weeks
13/02 Sanad Aerotech and Ethiopian Airlines to create a centre of excellence in Africa for APUs
13/02 Airbus Helicopters certifies Ixarys's TracingFlight solution
12 FEB 2020
(Singapore Airshow) PRATT & WHITNEY revealed the industrialization of the use of 3D-printing for an aero-engine component - a first in the maintenance, repair and overhaul (MRO) of commercial engines - in collaboration with Singapore's ST ENGINEERING. The 3D-printed part is projected to be part of the repair process by mid-2020 at PRATT & WHITNEY's repair specialist in Singapore, Component Aerospace Singapore.
12 FEB 2020
(Singapore Airshow) AAR subsidiary has signed a three-year support services agreement with flag carrier PHILIPPINE AIRLINES (PAL). Working in conjunction with PAL's Aircraft Material Management team, AIRINMAR will provide a full suite of support services covering both new aircraft warranty and value engineering.
12 FEB 2020
(Singapore Airshow) COLLINS AEROSPACE SYSTEMS has signed a five-year tailored FlightSense agreement with JAPAN AIRLINES to service air management and electric power components for the airline' growing fleet of Boeing 787 aircraft. Valued at approximately $200M, the new contract, which builds on a 14-year relationship between Collins Aerospace and JAL, now includes a total of 51 aircraft through 2025.
05 FEB 2020
SANAD AEROTECH has entered into an agreement with ETHIOPIAN AIRLINES to establish a center of excellence in Addis Ababa for the repair and overhaul of Boeing 737 and Airbus A320 auxiliary power units. The services can be offered to third party airlines and then extended to other components and even engines.
03 FEB 2020
(Heli-Expo 2020) AIRBUS HELICOPTERS announces that it has signed HCare material management contracts, in Smart and Infinite versions, for 250 new helicopters in 2019. The number of aircraft covered rises to 2,250, a 19% increase over 2018. New contracts were signed in January at Heli-Expo.
ALERTAVIA, the News platform for Aerospace and Defense industry Professionals.

Featured Content
AFI KLM E&M steps up a gear on CFM's LEAP
Sabena technics finally gets back on-board C-130Hs
Airbus and Thai Airways to launch a new joint venture MRO facility at U-Tapao
How Thai Airways will Expand Rolls-Royce's Trent Engine Service Network
China embarks on board aircraft recycling
 
LATEST NEWS   CIVIL AEROSPACE   MRO & SUPPORT   AIR TRANSPORT   DEFENCE   SPACE
Follow us
© 2020 Le Journal de l'Aviation - All rights reserved