Covid-19 fallout: Airbus, Boeing results show turbulent times for aviation

Given the nationwide lockdown and weak travel sentiment, global aviation consultancy CAPA revised downwards estimates for India's air traffic for the for FY21 from 80 to 90 million to 55-70 million

The skies are far from clear for the Indian aviation sector as the Covid-19 pandemic continues to withhold airlines such as IndiGo and SpiceJet from flying. A recent government suggestion to begin operation between green zones has been shot down by the airlines, calling it commercially unviable. Amid this, US-based aircraft manufacturer Boeing has now said that air travel could take at least 3 years to recover to 2019 levels.

“Fundamental growth drivers remain intact but it will take 2-3 years for air travel to return to 2019 levels and a few more years to return to long-term growth trends,” Dave Calhoun, chief executive officer of Boeing recently said.

According to rating agency Crisil, the aviation industry will crash-land this fiscal with a revenue loss of Rs 24,000–25,000 crore with airlines contributing more than 70 per cent of the losses, or nearly Rs 17,000 crore.

“What’s worse, the losses will climb if travel restrictions last longer in hubs such as Mumbai, Delhi, Chennai and Kolkata. We expect the aviation sector will take at least 6-8 quarters to reach pre-pandemic levels,” it said in a recent report.

Given the nationwide lockdown – in place at least till May 17 -- and weak travel sentiment, global aviation consultancy CAPA, too, recently revised downwards estimates for India’s air traffic for the current financial year from 80 to 90 million domestic passengers to just 55-70 million, while international traffic could decline from 35-40 million to 20-27 million.

Crisil expects the Covid-19-led slowdown to reverse the growth trend of 11 per cent annum the industry has logged over the past ten years. Domestic air travel in the month of March declined 33 per cent month-on-month (MoM) to 7.76 million passengers from 11.59 million passengers in February, 2020, data provided by Directorate General for Civil Aviation (DGCA) shows.

Coronavirus: Boeing suspends production of 787 at South Carolina plant

The announcement came soon after the state's governor issued an order on Monday directing residents to stay home except for essential trips.

Boeing Co said on Monday it would suspend production of its 787 airplanes at its facilities in South Carolina amid the coronavirus pandemic.

The announcement came soon after the state's governor issued an order on Monday directing residents to stay home except for essential trips.

Boeing production will be suspended until further notice after the second shift on Wednesday. On Sunday, the largest US planemaker indefinitely extended the halt of its production operations at its Washington state facilities.

On Thursday, Reuters reported that planemakers - including Boeing and Airbus SE - were looking at drastic cuts in wide-body production amid a slump in demand for the industry's largest jetliners, citing manufacturing and supplier sources.

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Deliveries of long-range jets like the Boeing 777 or 787 and Airbus A350 or A330 have been hit particularly badly as airlines seek deferrals and many withhold progress payments.

On Monday, Airbus said it would temporarily halt production at its A220 / A320 manufacturing facility in Alabama because of "high inventory levels in the sites and the various government recommendations. "

Production in Alabama will be halted this week through April 29.

Boeing said on March 23 it would halt production at its Washington state twin-aisle jetliner factory as a temporary measure to help fight the outbreak of the respiratory disease. Production had been expected to resume early this week.

Vistara takes delivery of its first Boeing B787-9 Dreamliner aircraft

The new aircraft is the first of the six that Vistara has purchased from Boeing.

Vistara took the delivery of its first wide-body Boeing 787-9 Dreamliner plane on Friday, making it the first Indian airline to fly this aircraft.

The plane, which has the registration number VT-TSD, will depart from the Boeing facility here at 2 pm (local time) on Friday and land in Delhi at 2 pm (local time) on Saturday, Vistara officials said here.

The new aircraft is the first of the six that Vistara has purchased from Boeing.

The second Dreamliner aircraft is currently on the production line and will be delivered soon.

Vistara's Boeing 787-9 Dreamliner aircraft comes with 299 seats in a three-class cabin configuration, giving customers a choice of business, premium economy and economy cabins.

The aircraft features lie-flat business class seats in a 1-2-1 configuration that gives a direct aisle access to each business class passenger and a separate premium economy cabin that offers seats in a 2-3-2 configuration.

The aircraft has in-seat televisions in all three cabins with a high-definition (HD) display, powered by Panasonic as well as in-flight WiFi internet connectivity onboard long-haul international flights, officials stated.

It would make Vistara the first airline to offer WiFi service in India.

Indian aviation startups to pitch for support at Singapore Air Show 2020

More than 60 startups from 10 countries, including India, are scheduled to make presentations on a wide range of domains during the show.

Startups from India with innovative technologies in the aerospace, civil aviation and air services are expected to pitch for support to industry heavyweights such as Airbus and Boeing at the Singapore Air Show 2020 next month, the organisers said.

The Singapore Air Show would be organised from February 11-16 and will witness the participation of some 65 top aerospace and defence companies.

The show, which is being organised by Experia Events Pte Ltd, will also be joined by 1,000 industry exhibitors from 50 countries and 55,000 trade visitors from 150 countries.

"We all know that there is a lot of technologies that these companies hold. We are looking forward to see these startups during pitching sessions," said Leck Chet Lam, the managing director of Experia Events Pte Ltd during the pre-show press conference on Monday.

More than 60 startups from 10 countries, including India, are scheduled to make presentations on a wide range of domains during the show.

The presentations will cover sustainability, smart transport, automation, smart manufacturing, digital solutions, artificial intelligence and cyber security apart from other vital subjects.

"The startups are to pitch for investors and industry support from the global aviation industries, which would include chief executives of industry heavyweights such as Airbus and Boeing," said Leck.

The Indians have been long-term participants as they value participating in the Singapore Air Show, he added.

Also, planned along the show is the Singapore Airshow Aviation Leader Summit to be attended by more than 300 aviation experts.

The summit is to be held from February 9-10 and will be addressed by industry experts, including Ajay Singh, chief executive of SpiceJet, the organisers said.

Business Standard

Vistara to launch international flights in the second half of 2019

A joint venture between Tatas and Singapore Airlines, Vistara might also look at starting medium and long-haul flights, depending on approvals, amid the grounding of Jet Airways.

Business Standard : Full service carrier Vistara, which has been serving the Indian skies for more than four years, plans to launch international services in the second half of this year.

A joint venture between Tatas and Singapore Airlines, Vistara might also look at starting medium and long-haul flights, depending on approvals, amid the grounding of Jet Airways.

"We see India as a growing market. We are here for the long term," Vistara CEO Leslie Thng said on the sidelines of the annual general meeting of airlines' grouping IATA on Sunday.

Without providing specific details, he said the airline plans to start international operations in the second half of 2019.

It had planned to launch overseas flights in the first half of this year.

Currently, Vistara has more than 22 planes and operates around 850 flights every week.

Last month, the carrier announced it would take on lease four Boeing 737-800 NG aircraft and two A320 neo planes.

In 2018, Vistara placed its order for purchased and leased aircraft totalling 50 from the Airbus A320neo family, including A321neos.

These would be for domestic as well as short and medium-haul international operations, with deliveries scheduled between 2019 and 2023.

Further, the carrier has bought six Boeing 787-9 Dreamliner aircraft that are scheduled to be delivered between 2020 and 2021. These would operate long-haul international operations.

Thng said, Vistara can start short-haul flights but would need more time for long-haul ones.

"If we do get the necessary rights, we do have a plan in place on how do we plan to operationalise it but I will not be able to share too much detail...," he said.

According to him, the airline would look at options to deploy the right type of aircraft provided it gets the necessary flying rights.

This 88-seater plane from Japan's Mitsubishi is taking on Boeing and Airbus

With few seats and smaller fuselages, regional jets are a different class of aircraft from larger narrow-body planes such as Boeing's 737 or Airbus's A320.

Business Standard : A new, long-delayed 88-passenger jet from Japan may finally be the right plane at the right time.

More cities in Asia and Europe are seeking to link up with each other and the global air travel network. The Mitsubishi Regional Jet, the first airliner built in Japan since the 1960s, began certification flights last month in Moses Lake, Washington, to satisfy that demand.

Mitsubishi Heavy Industries Ltd.’s new airliner is testing the skies just as rivals are moving to sell off their manufacturing operations for jets with up to 160 seats. Boeing Co. is set to buy 80 percent of the Embraer SA’s commercial operations in a joint venture, while Bombardier Inc. last year sold control of its C Series airliner project to Airbus SE and is exploring “strategic options” for its regional-jet operations. At stake, particularly in the market for jets with fewer seats, is $135 billion in sales in the two decades through 2037, according to industry group Japan Aircraft Development Corp.

“Bombardier’s moves do indeed create opportunities for the MRJ,’’ said Richard Aboulafia, aerospace analyst at Teal Group. “It’s the biggest single factor in the MRJ’s favor.’’

With few seats and smaller fuselages, regional jets are a different class of aircraft from larger narrow-body planes such as Boeing’s 737 or Airbus’s A320. The MRJ has a range of about 2,000 miles, while a smaller variant can haul up to 76 people for about the same distance.

A longtime supplier of aircraft components to Boeing, Mitsubishi Heavy is developing the MRJ to emerge from its customer’s shadow. After spending at least $2 billion over more than a decade, the manufacturer is looking to get its jet certified and start deliveries to launch partner ANA Holdings Inc.

Mitsubishi initially planned test flights in 2012 but blew past that deadline because of production difficulties. Now the company, which makes ships, nuclear power plants and aerospace components, expects to have the plane ready for customers next year, a timetable that will test the company, said Mitsubishi Aircraft Corp. President Hisakazu Mizutani.

“This coming year is extremely important for us,” Mizutani said at a media event on April 16 in the central Japanese city of Nagoya.

A lot now hinges on Mitsubishi’s ability to get the jets ready on schedule, said Sho Fukuhara, an analyst at Jefferies Japan Ltd. who said the company’s current 407 MRJ orders aren’t enough to make the program profitable.