"Air travel will take even longer than previously thought to return to pre-virus levels"
https://abcnews.go.com/Travel/wireStory/air-travel-expected-recover-2024-72030210
Not good news for GE Aviation, let's hope the 25% layoffs took this into account or more layoffs are on the way soon.
https://www.forbes.com/sites/advisor/2020/09/09/airlines-are-struggling-heres-why-you-should-care/#72677c6b27f1
Boeing pulled eight 787 Dreamliners in August for repairs, discovering they did not meet structural-soundness "requirements for safe flight and landing," according to an FAA memo. Boeing has notified all airlines with 787 Dreamliners about the problems. The parts in question are "nonconforming" sections of "rear fuselage, or body of the plane, that fell short of engineering standards," One defect Boeing "didn't test how it produces shims, or material that fills gaps between barrel-shaped sections of the jets' fuselages, to ensure they meet requirements." Could affect GEnx production.
https://www.cnbc.com/2020/08/25/american-airlines-is-cutting-19000-jobs-when-federal-aid-expires-in-october.html
IATA warns the virus-induced downturn will continue to pressure air passenger numbers, employment and economies across Europe.
IATA said passenger flights are expected to decline by 60% in 2020.
https://www.iata.org/en/pressroom/pr/2020-08-13-01/
Boeing said it lost another 43 orders for the 737 MAX jet in July, bringing the total number of canceled orders to 416 for this year. Doesn't look good for LEAP engines any time soon.
Certification of the 737 MAX outside the U.S. could be next year.
https://ca.finance.yahoo.com/news/boeing-737-max-return-outside-153247287.html
Lufthansa cuts 22 thousand jobs (16% of total workforce) and sells 100 aircraft.
https://www.theguardian.com/business/2020/aug/04/virgin-atlantic-files-for-bankruptcy-as-covid-continues-to-hurt-airlines
https://www.headforpoints.com/2020/08/05/court-filings-reveal-the-full-details-of-virgin-atlantics-rescue-plan/
https://www.aerotime.aero/rytis.beresnevicius/25561-boeing-737-max-backlog
https://www.seattletimes.com/business/boeing-aerospace/alaska-airlines-warns-nearly-1600-washington-state-flight-attendants-of-fall-layoff/
https://www.theguardian.com/business/2020/jul/30/airbus-slows-plane-making-covid-19-loss-aircraft-orders
Aircraft parts maker Spirit AeroSystems announced Friday that it is laying off 450 more workers. That's 30% of their workforce this year. Boeing is preparing to delay its all-new 777X jet by several months or up to a year, And we all know what rolls downhill.
I was recently laid off. I now work for a company in the Fortune 100 list that had a nine-figure annual travel budget. It was just announced that all corporate travel is banned indefinitely. I wouldn't expect a rebound in corporate travel until next year at the absolute earliest. It looks like Zoom and Skype meetings for now.
Boeing has about 450 737 MAX jets in storage. They believe it will take a year to deliver them to customers once the MAX is recertified in 4th quarter. Meanwhile, current production will be way down.
https://simpleflying.com/boeing-max-predictions-2020/
If you look at the presentation it indicated that 5400 employees or 10% of aviation was let go. So 15% (approx 8000) left by end of 2020. This being said many have been notified already and end dates in 3rd quarter. Most that of those already notified are salary and basically completed. The bulk of those yet to go are hourly. Unfortunately some are hoping that slight upturn in business will change mgmt minds. I am 100% sure that will not happen. These reductions are written in stone.
Boeing managed to deliver only 20 commercial jets in the 2nd quarter. Boeing is also trimming monthly output of its 787 Dreamliner to six and its 777 wide-body to two. The 737MAX is not looking good as customers cancel and defer deliveries. They announced further layoffs today. So it looks like further layoffs for GE Aviation, too.
If I heard the CFO correctly on the webcast, 11% of Aviation Worldwide is permanently furloughed as of now. About 5600+ employees. She said the goal remains to achieve 25%, so I would guess 7000 more to go permanently worldwide in the near future. Aviation was the worst performer of the quarter. Orders down 56% and revenue down 44%. I would not be surprised to see site consolidations and even closures of one or two. GE Aviation is laying off nearly its entire workforce in Delaware but keeping a few for military obligations.