Aviation Sector – 2020: Bad days ahead

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Aviation Sector
thebrandusa.com

Very bad days for the 100 years old AVIATION Sector are ahead in the year 2020 with most of the airlines practically not operating and heavily leveraged.

Present Scenario:

  • Virgin Atlantic has fired more than 3,000 people including 600 Pilots.
  • Virgin Atlantic Australia has filed for Bankruptcy.
  • Thai Airways has filed for bankruptcy.
  • Etihad Airways has cancelled 18 orders for A350, grounds 10 A380 and 10 Boeing 787. Lays off, 720 staff.
  • Emirates has grounded 38, A380s and have cancelled all orders for the Boeing 777x (150 aircraft, the largest order for this type). They have asked all employees over 56 years of age to retire.
  • Air Mauritius had gone into Administration.
  • South African Airways has filed paper for Bankrupt Protection.
  • Finnair has returned 12 planes and lays off 2,400 people.
  • U Airlines has grounded 22 planes and fires 4,100 people.
  • Ryanair has grounded 113 planes and gets rid of 900 pilots for the moment, 450 more in the coming months.
  • Norwegian Airlines has completely stopped its long-haul activity!!!  The 787s are returned to the lessors.
  • Scandinavian Airlines (SAS) has returned 14 planes and fires 520 pilots… The Scandinavian states are studying a plan to liquidate Norwegian and SAS to rebuild a new company from their ashes.
  • Wizz Air has returned 32 A320s and has laid off 1,200 people, including 200 pilots, another wave of 430 layoffs planned in the coming months.  Remaining employees will see their wages reduced by 30%.
  • International Airlines Group (IAG) (British Airways’ parent company) has abandoned the takeover of Air Europa (and will pay €40 million compensation for that).
  • IAG (Iberia) has grounded 56 planes.
  • IAG (British Airways) has grounded 34 planes.  Everyone over 58 years of age has to retire.
  • Luxair has reduced its fleet by 50% (and associated redundancies).
  • Czech Airlines (CSA) has abolished its long-haul sector and have kept only 5 medium-haul aircraft.
  • Eurowings had filed papers for into Bankruptcy.
  • Brussels Airline has reduced its fleet by 50% (and associated redundancies).
  • Lufthansa plans to ground 72 aircraft (in 2 instalments).
  • Air France Hop is studying the possibility of reducing fleet and staff by 50%.

General Scenario:
Currently, 60 new aircraft stored at Airbus with no buyers in sight (order cancellations) including 18 A350s. There is a forecast of a minimum of 8,000 grounded planes by September 2020.  With an average of 5.8 crews per plane (medium and long haul combined), that would make more than 90,000 unemployed pilots worldwide.

The trouble days are ahead for the Air Transport Industry or the aviation sector for the year 2020!

Also Read: Would We Start Travelling Again Anytime Soon?

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