Airbus and Boeing Cease Manufacturing Operations

International air reservations to Mexico plunged 95 percent in March, compared to the same month of 2019, the Center for Tourism Research and Competitiveness of Universidad Anáhuac (CICOTUR) reported this Wednesday, based on data from the Amadeus Global Reservation Network. More than 60 percent of foreign travelers arriving to Mexico by plane come from the US and Canada, according to SECTUR. In addition, Avianca has suspended all its flights abroad. 

Airbus is temporarily halting production at its manufacturing plant in Mobile, Alabama, where it makes A220 and A320 passenger jets, idling about 1,100 employees. Meanwhile, Boeing is closing down its 787 campus in North Charleston, affecting about 7,000 workers.

Now let’s jump into the Week in Aerospace!

NATIONAL

• European manufacturer Airbus has announced that it will reduce its monthly aircraft production rate by one third due to lower demand, which has been significantly impacted by travel restrictions caused by COVID-19 outbreaks worldwide. Airbus will reduce its monthly production of A320 family aircraft from 60 to 40 aircraft. As for long-range aircraft, A330 manufacturing will be limited to two aircraft per month and six for A350 equipment.

• Mexican low-cost airline Viva Aerobus reported a slight increase in passenger traffic as other airlines in Mexico and abroad are in free fall due to the COVID-19 outbreak. While Viva Aerobus also canceled some flights due to low demand, it closed March with 1 percent growth in passenger traffic compared to that same month in 2019. This number presents a sharp drop from February’s 36 percent growth, which at the time was the largest monthly growth in the sector. 

• IATA, which previously estimated that the industry would lose US$252 billion in 2020 as a result of the crisis, now reports that almost 25 million jobs in the sector are at risk. The association estimated that the COVID-19 crisis will cost the sector 11.2 million jobs in the Asia-Pacific region, 5.6 million in Europe, 2.9 million in Latin America, 2 million in North America, 2 million in Africa and 0.9 million in the Middle East. 

INTERNATIONAL

• Boeing is shutting down its 787 campus in North Charleston, affecting about 7,000 employees. In addition, Boeing’s stock fell 2.5 percent to US$145.04 after the end of daily trade in New York and shares surged 19 percent during the day in the middle of a broad market rally, as recorded death tolls in some of the world's hot spots of coronavirus showed signs of easing.  

• UK-based group Caircraft proposes refurbishing airplanes grounded by the crisis into ICU units to treat those suffering from COVID-19. The process, which would require stripping down aircraft and refurbishing them with between 100-150 ICU beds, could take seven to 10 days.