The Coronavirus impact on the aviation Industry
Spirit AeroSystems, the primary supplier to Boeing’s 737 Max program, has been directed to lower its deliveries further in 2020 from the lingering effects of the global pandemic and Max grounding, according to a Spirit filing with the Securities and Exchange Commission (SEC) after the close of the market on Monday. “The B737 MAX grounding coupled with the Covid-19 pandemic is a challenging, dynamic, and evolving situation for Spirit,” the company said in Monday’s filing.
As business for XOJet Aviation has continued throughout the pandemic, the operator has implemented a layered, comprehensive approach to ensure the health and safety of both its passengers and crew
With aircraft disinfection on the minds of most in the aviation industry, operators are being presented with myriad alternatives, some more suitable to the current situation than others, as more becomes known about the threat of Covid-19 and its transmission vectors.
Citing several data points, Baird Equity Research senior research analyst Peter Arment is seeing a U-shaped recovery in business aviation shifting to a V-shaped one, according to his note to investors this week. “Business flight activity is making a comeback over the past few weeks as recent daily data points to a near V-shape recovery,” Arment said.
The FAA is working through another extension on medical requirements, FAA Deputy Administrator Dan Elwell said, but cautioned that the agency also is now turning its attention to “unraveling” the myriad such special considerations as flying begins to pick up and restrictions lift.
The British Business and General Aviation Association (BBGA) this week stepped up its efforts to secure an exemption for the industry from the UK’s 14-day quarantine requirement, which took effect June 8 for an initial three-week period. The association is trying to convince the government’s Home Office that an alternate compliance plan provides sufficient protection against increasing the risk Covid-19 infections from the low numbers of travelers arriving in the country on business aircraft.
Textron is eliminating 1,950 positions in three business segments, including Textron Aviation, largely because of the effects of the Covid-19 pandemic, the company announced in a Securities and Exchange Commission (SEC) filing on Thursday afternoon.
A Textron Aviation spokeswoman referred questions about the contents of the filing to officials at parent Textron. She declined to specify how many jobs are affected at Textron Aviation’s Wichita headquarters and elsewhere. “We do not have any specific information to share at this time.”
Average and median values of preowned business aircraft have fallen 10 to 15 percent so far during the pandemic, with some individual makes and models experiencing decreases exceeding 20 percent, according to a report released yesterday by Amstat. Fortunately, the business aviation market research information and services firm said some market segments are now seeing a slowing of value decline.
Level Europe, the low-cost subsidiary of International Airlines Group (IAG), has ceased trading with immediate effect and intends to file for insolvency, the company announced on Thursday. The Vienna-based airline blamed the impact of the coronavirus and the related travel restrictions or border closures for its demise. Its flights have been grounded since lockdown restrictions were imposed in Europe from mid-March.
