Aerospace Sector Advances Towards Economic Reactivation

This week Carlos Robles, Vice President of the Central Region of the Mexican Federation of the Aerospace Industry (FEMIA), explained that the pandemic has dramatically turned the course of the aerospace sector. "Three months ago, the Mexican aerospace industry was heavily focused on finding ways to continue expanding as one of the world’s Top 10 global suppliers," Robles explained. However, in these days OEMs and suppliers now are focusing on reopening operations and reactivate economically. 

On Monday, factories in Yucatan and Baja California that supply the US military industry resumed operations, as well as companies from the automotive sector in entities such as San Luis Potosi and Aguascalientes. Among the companies that reopened were Precision Castparts Airfoils, located in Merida, which is considered a critical link in a chain that has been classified as key for national security by the US government. Its suspension complicated the work of the US Department of Defense, according to a Milenio note.

Now let’s jump into the Week in Aerospace! 
 

“Public Health Corridors” Can Keep Vital Air Cargo Moving: ICAO
The COVID-19 pandemic has highlighted the importance of maintaining logistic networks that guarantee the safe and speedy delivery of necessary goods and life-saving medical equipment. However, global restrictions on international travel have constricted the sector, which is reliant on air transport to deliver time sensitive goods. In particular, the cancellation of a significant percentage of passenger flights has greatly complicated logistics as about half of the total cargo is shipped in those flights. While many airlines have contributed to address this gap by turning their regular aircraft into cargo planes, measures have not been enough to address the needs of the sector. For instance, during 1Q20 Mexico transported 9.5 percent less cargo that in 1Q19. “The implementation of extensive and inconsistent border restrictions in response to the global spread of the COVID-19 pandemic has severely disrupted the supply chain and delivery of essential medical supplies needed to respond to the pandemic,” said the International Civil Aviation Organization (ICAO).

Santa Lucia: A Post-COVID-19 Airport?
General Gustavo Ricardo Vallejo Suárez, Chief Engineer of the Felipe Ángeles International Airport project in Santa Lucia, delivered a progress report this week on the status of the airport’s construction. According to Excelsior, as part of his report, General Vallejo was quoted saying that SEDENA “has the opportunity and responsibility of building a major size airport that will be one of the first post-COVID-19 airports in the world. While we are still analyzing this ongoing phenomenon and waiting for a new official international framework in this matter, what this means is that airports in construction will have to account for a new dynamic in terms of passenger interactions and we must study in detail how this will translate into construction specifications.” 

IATA Outlines Layered Approach for Safe Return to the Skies
The COVID-19 pandemic has been a blight for many economies and industries and aviation was specially affected. Due to the outbreak, up to 1.5 billion people less are expected to travel during 2020, costing the industry US$314 billion in lost revenue. Mexican airlines, for instance, reported drops in demand of over 80 percent in domestic and international travel during April. Airlines across the globe have been implementing nearly desperate cash-saving measures to address the crisis, including pay cuts for staff and major layoffs. Some airlines have folded under the pressure, including the second-largest airline in the world, Avianca, which filed for bankruptcy just last week.