Aircraft manufacturers were no exception to the pain and tumble that the aviation industry took amidst the current pandemic. Now, the Chief Executive Officer (CEO) of Airbus Guillaume Faury has provided an indication as to when the European manufacturer expects some sense of normality and a return to 2019-levels of business.
“For the next two years, i.e. 2020/2021, we assume that production and deliveries will be 40 percent lower than originally planned,” Faury said in an interview with Die Welt. In April 2020, which was so far the lowest point in terms of capacity for the industry during the current crisis, Airbus delivered only 14 aircraft out of the 75 that were planned. While Faury mentioned that travel restrictions place difficulties upon airlines to retrieve aircraft, financial challenges were also part of the problem.
But the recovery in demand for aircraft is not set to return anytime soon, as following market studies and discussions with customers, the manufacturer assumes that 2019-levels of production will return only in 2025. However, narrow-body aircraft demand will return sooner compared to that of wide-body jets, not only because of international travel restrictions but also because there was an abundance of twin-aisles in the market, noted Faury.
While he could not indicate how many people would be laid off, if any, he stated that the company will first go to the unions before undertaking any action. Previously, rumors indicated that Airbus could cut from 10,000 to 12,000 jobs.