“Overall, it could be a very bad year for the economy,” Ben Bernanke said. “The U.S. economy could shrink 30% or more this quarter as stay-at-home orders aimed at slowing the coronavirus outbreak choke off business.” Unfortunately, this scenario is not limited to the U.S.  – for the most part it is a global issue facing a broad spectrum of businesses, including aviation. We continue to see a reduction in activity in the aviation sector, primarily due to the decrease in demand for air travel due to COVID-19 and it looks like this may well be the trend for a good part of 2020. Many airlines have parked/stored the majority of their fleet, some routes are flown with a handful of passengers – if the carrier is lucky, and airframers are looking at order cancellations and reduced aircraft deliveries for 1Q20. It goes without saying that our industry is undergoing a radical change and all sectors within it are bracing for the trickle-down effect on their businesses. In fact, one of the major IFEC vendors has reduced their staff by 200+ people in the last week – most likely the first of many companies to do so. The IFExress team will endeavor to keep you appraised of the latest developments, so stay tuned.

---

AIRBUS
After a solid commercial and industrial performance at the beginning of the year, Airbus is now revising its production rates downwards to adapt to the new Coronavirus market environment.

In Q1 2020, Airbus booked 290 net commercial aircraft orders and delivered 122 aircraft. A further 60 aircraft were produced during the quarter, highlighting the solid industrial performance, however they remain undelivered due to the evolving COVID-19 pandemic.

36 aircraft were delivered in March across the different aircraft families, down from 55 in February 2020. This reflects customer requests to defer deliveries, as well as other factors related to the ongoing COVID-19 pandemic.
The new average production rates going forward have been set as follows:
● A320 to rate 40 per month
● A330 to rate 2 per month
● A350 to rate 6 per month

This represents a reduction of the pre-coronavirus average rates of roughly one third. With these new rates, Airbus preserves its ability to meet customer demand while protecting its ability to further adapt as the global market evolves.

Airbus is working in coordination with its social partners to define the most appropriate social measures to adapt to this new and evolving situation. Airbus is also addressing a short-term cash containment plan as well as its longer-term cost structure.

“The impact of this pandemic is unprecedented. At Airbus, protecting our people and supporting the fight against the virus are our chief priorities at this time. We are in constant dialogue with our customers and supply chain partners as we are all going through these difficult times together”, said Airbus Chief Executive Officer Guillaume Faury. “Our airline customers are heavily impacted by the COVID-19 crisis. We are actively adapting our production to their new situation and working on operational and financial mitigation measures to face reality.”

In its effort to support the fight against the COVID-19, Airbus has carried out extensive work in coordination with social partners to ensure the health and safety of its employees. This has been achieved by implementing new stringent work standards and processes. Airbus is contributing to the development, sourcing and ferrying of medical equipment, including facemasks and ventilators, in support of medical health services.

---

BOEING

Today (April 14, 2020), Boeing announced their 1Q 2020 deliveries for commercial aircraft, which totaled 50 jetliners – compared to 149 in 1Q 2019. The 50 aircraft were comprised of the following: five 737s, zero 747s, ten 767s, six 777s, and twenty-nine 787s.

The company has also been hit by an additional 75 737 MAX cancellations from Irish leasing company Avolon, bringing the total number of jetliners removed from the company’s order book in March to 300+ aircraft as airlines adjust their fleets in response to COVID-19.

Also, Boeing will deliver the first set of reusable 3D-printed face shields to support healthcare professionals working to stop the spread of COVID-19. The Department of Health and Human Services (HHS) accepted the initial shipment of 2,300 face shields this morning. The Federal Emergency Management Agency (FEMA) will deliver the shields to the Kay Bailey Hutchison Convention Center in Dallas, Texas, which has been established as an alternate care site to treat patients with COVID-19. Boeing is set to produce thousands more face shields per week, gradually increasing production output to meet the growing need for Personal Protective Equipment (PPE) in the United States. Distribution of additional face shields will be coordinated with HHS and FEMA based on immediate needs. Boeing is producing face shields with additive manufacturing machines at company sites in:

• St. Louis, Missouri
• China Lake, El Segundo, and Huntington Beach, California
• Puget Sound region of Washington State
• Mesa, Arizona
• Huntsville, Alabama
• Philadelphia, Pennsylvania
• Charleston, South Carolina
• San Antonio, Texas
• Salt Lake City, Utah
• Portland, Oregon

Boeing subsidiaries Argon ST in Smithfield, Pennsylvania, and Aurora Flight Sciences in Bridgeport, West Virginia, are also participating in this project. Solvay, a long-time Boeing supplier, provided the clear film for the face shields. Another supplier, Trelleborg Sealing Solutions, donated the elastic used for the adjustable headband. Face shield production and donations are part of a larger Boeing effort to leverage company and employee resources to aid with COVID-19 recovery and relief efforts. To date, the company has donated tens of thousands of units of PPE – including face masks, goggles, gloves, safety glasses and protective bodysuits – to support healthcare professionals battling COVID-19 in some of the hardest-hit locations in the United States. Boeing has also offered use of its unique airlift capabilities, including the Boeing Dreamlifter, to help transport critical and urgently needed supplies to healthcare professionals. The company is coordinating closely with government officials on how best to provide airlift support. “Boeing is proud to stand alongside many other great American companies in the fight against COVID-19, and we are dedicated to supporting our local communities, especially our frontline healthcare professionals, during this unprecedented time,” said Boeing President and CEO David Calhoun. “History has proven that Boeing is a company that rises to the toughest challenges with people who are second to none. Today, we continue that tradition, and we stand ready to assist the federal government’s response to this global pandemic.”

---

OTHER NEWS

• If you are interested in the affects of COVID – 19 on the body (and we understand if you are not), here is a very good Visual Capitalist graphic on the subject – and yes, it is a graphic!!! Visualizing What COVID-19 Does to Your Body – Visual Capitalist
• Someone’s worst (or best) flight – Thanks Reddit Images!
• Watch LifeSavvy’s mask video – Confused About Face Masks? Watch This Informative Video – LifeSavvy
• Here is a good, free, tech read on Coronavirus that you might like.
• The folks at CNN published a story on April 13th that is hard to envision, and believe us, this ain’t how to fly in a jet airplane. And, yes, it is IFE – Incredible French Experience! A French 64-year-old ejected himself from a fighter jet in midair | CNN Travel
• Lufthansa designed an Airline Flight Demand Tracker and you can find it here and it is updated each Monday – The Airline Flight Demand Tracker – Travel & Mobility Tech