Suppliers Weather the Storm

From engine manufacturers to airports, the COVID-19 crisis is impacting companies across the aviation supply chain, as Selwyn Parker explains.

British Airways’ second Boeing 787-10 Dreamliner was delivered to its Heathrow hub on July 1.
V1IMAGES.COM/ANDY FONSECA

With commercial aircraft making a welcome but uncertain return to the skies, engine manufacturers and other key suppliers to the aerospace industry are slashing production, pay and personnel as they adjust to the new post-pandemic reality of collapsing order books. Airline losses are expected to accumulate well into 2021, with trade body IATA predicting industry revenues will sink to US$598bn this year, approximately 29% below 2019’s US$838bn figure. Chief executives at many of the biggest carriers have collectively made it clear that spending through suppliers will be down for at least two years, probably longer.

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