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Weekly Roundups

USMCA Represents a Great Opportunity for the Aerospace Sector

By Alessa Flores | Thu, 07/09/2020 - 15:11

A few days after USMCA’s enforcement, the first investment came to Mexico by the vehicle company Bombardier Recreational Products in Ciudad Juarez, Chihuahua, which will generate more than 1,000 jobs, according to an official statement from the company. President López Obrador made his first visit to the US, while Felipe Sandoval, President of the Mexican Federation of the Aerospace Industry (FEMIA) said to Aviación 21 that "Mexico, the US and Canada must work together on setting a similar course for the entire aerospace industry in the region.” 

"The three countries have the ability to learn and train their personnel in a key way, to perfect the operation of the block as a whole. USMCA represents a great opportunity for the aerospace sector,” said Sandoval.

Now let’s jump into the Week in Aerospace!

Unprecedented Decrease in Global Passenger Traffic: ACI
I
ndustry associations had previously identified a sharp drop in air travel earlier in the year and now the only global trade representative of airports reports that passenger traffic in airports all over the world plunged to unprecedented lows in April. ACI informs that traffic fell by 94.4 percent year-on-year that month as the world grappled with the COVID-19 outbreak. The drop in traffic was more pronounced in international travel, which fell by 98.9 percent, while domestic traffic fell by 90.7 percent that month. Altogether, passenger traffic during the first four months of the year fell by 41.8 percent and the association expects that it will continue to decline in the following months. “April was devastating for the aviation industry as global air travel almost came to a complete halt as national governments made unilateral decisions to implement strict confinement measures in the second week of the month to contain the COVID-19 outbreak, heavily affecting the movement of passengers,” said Luis Felipe de Oliveira, Director General of ACI World. 

 

Travelers Still Afraid to Fly Because of COVID-19
In a recent survey, IATA reports that 58 percent of recent travelers reported that they have avoided traveling during the outbreak and 33 percent of surveyed travelers said that they would abstain from traveling during the coming months to avoid exposure to the virus. The association explained that while over half of those surveyed were willing to travel again to visit friends and relatives once it was safe to do so, 66 percent indicated that they would reduce their leisure and business trips. “This crisis could have a very long shadow. Passengers are telling us that it will take time before they return to their old travel habits. Many airlines are not planning for demand to return to 2019 levels until 2023 or 2024,” said Alexandre de Juniac, Director General and CEO of IATA.

 

Airbus’ Deliveries Increased in June but Still Below 2019 Levels
In June, French planemaker Airbus registered no new orders for the third month in a row, leading the company to close the first six months of 2020 with 298 net orders after cancellations. Deliveries, on the other hand, rose slightly in comparison to May and April. During the sixth month, Airbus delivered 36 aircraft, while it only delivered 24 during May and 14 in April. These deliveries include the first A321neo for Mexico’s low-cost airline Viva Aerobus, which will perform its inaugural flight in August. Viva Aerobus is scheduled to receive two more A321neo and one A320neo over the year and expects that this aircraft will be an advantage when operations return to normal. “With the arrival of this new Airbus A321neo (240 seat configuration), we keep preparing ourselves for the gradual recovery in passenger demand,” said Juan Carlos Zuazua, CEO of Viva Aerobus. 

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Alessa Flores Alessa Flores Senior Journalist and Industry Analyst