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NEW DELHI: The largest US aerospace, Boeing, warned that air travel will take years to return to pre-pandemic levels. And even when the situation stabilizes, the commercial aircraft market will be smaller and airline needs will be dramatically reduced. Boeing Company CEO David Calhoun’s speech at this year’s annual shareholder meeting makes it clear that he is “preparing for the new reality.”
“The health crisis (corona) is different from everything we have experienced. With fewer people flying, global airline revenues will decrease by $ 314 billion by the end of the year. Only in the USA In the US, more than 2,800 aircraft have been inactive, and passenger volume is down more than 95% compared to the previous year. It will be years before this returns to pre-pandemic levels, “said Calhoun, 63, who became Boeing president and CEO in January 2020, in his speech delivered practically in the United States.
“And this has a direct effect on the products and services that our customers will want and need. Airlines are reducing their operations dramatically. As they evaluate their businesses, they make difficult decisions that lead to the grounding of fleets, defer aircraft orders, postpone acceptance of completed orders, and slow or stop payments. They are also accelerating aircraft withdrawals and require fewer services. All of this adds pressure on our supply chain beyond what we are already experiencing due to the pandemic, ”he said.
“We are in an unpredictable and rapidly changing environment, and it is difficult to estimate when the situation will stabilize. But when it does, the commercial market will be smaller and our clients’ needs will be different. We will have to balance supply and demand accordingly as the industry recovers. But I still trust our industry and Boeing – we will recover. We are already preparing for the new reality, ”said the CEO.
“Currently, our team is focused on the best ways to maintain liquidity flow through our industry and our supply chain until our customers return to purchasing aircraft and related services. Specifically, we have withdrawn a loan, reduced operating costs, suspended dividend payments, extended our existing pause in share buybacks, prioritized some strategic investments, and expedited some progressive payment receipts with the help of our defense clients. Larry and I also waived all payments until the end of the year, ”he said.
“The recent $ 25 billion support package agreed by the airlines and the (US) government is a critical step in maintaining the aviation pillar of the United States economy, even if the full recovery will take years, not just months. Know that the US airline industry USA Having critical financial support through the pandemic allows us to plan our production and service systems for the medium and long-term impact on air travel, “said the CEO.
Boeing is already dealing with its B737 Max crisis. All B737 Max’s have been grounded worldwide since last year after two accidents. In reference to these. Two crashes, he said, “We continue to feel the deepest sorrow for loved ones and colleagues who died in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents. We have not forgotten them. We never will. The loss of life is devastating and always will be. We are deeply humbled by these tragedies, and they fuel our determination to continue to implement the lessons we have learned and to maintain our commitment to safety. ”
“We continue to drive toward the safe return to service of the 737 MAX as we work closely with global regulatory authorities, including the US Federal Aviation Administration. USA We are committed to supporting your process and timeline, and our progress has continued throughout the pandemic. ”
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“The health crisis (corona) is different from everything we have experienced. With fewer people flying, global airline revenues will decrease by $ 314 billion by the end of the year. Only in the USA In the US, more than 2,800 aircraft have been inactive, and passenger volume is down more than 95% compared to the previous year. It will be years before this returns to pre-pandemic levels, “said Calhoun, 63, who became Boeing president and CEO in January 2020, in his speech delivered practically in the United States.
“And this has a direct effect on the products and services that our customers will want and need. Airlines are reducing their operations dramatically. As they evaluate their businesses, they make difficult decisions that lead to the grounding of fleets, defer aircraft orders, postpone acceptance of completed orders, and slow or stop payments. They are also accelerating aircraft withdrawals and require fewer services. All of this adds pressure on our supply chain beyond what we are already experiencing due to the pandemic, ”he said.
“We are in an unpredictable and rapidly changing environment, and it is difficult to estimate when the situation will stabilize. But when it does, the commercial market will be smaller and our clients’ needs will be different. We will have to balance supply and demand accordingly as the industry recovers. But I still trust our industry and Boeing – we will recover. We are already preparing for the new reality, ”said the CEO.
“Currently, our team is focused on the best ways to maintain liquidity flow through our industry and our supply chain until our customers return to purchasing aircraft and related services. Specifically, we have withdrawn a loan, reduced operating costs, suspended dividend payments, extended our existing pause in share buybacks, prioritized some strategic investments, and expedited some progressive payment receipts with the help of our defense clients. Larry and I also waived all payments until the end of the year, ”he said.
“The recent $ 25 billion support package agreed by the airlines and the (US) government is a critical step in maintaining the aviation pillar of the United States economy, even if the full recovery will take years, not just months. Know that the US airline industry USA Having critical financial support through the pandemic allows us to plan our production and service systems for the medium and long-term impact on air travel, “said the CEO.
Boeing is already dealing with its B737 Max crisis. All B737 Max’s have been grounded worldwide since last year after two accidents. In reference to these. Two crashes, he said, “We continue to feel the deepest sorrow for loved ones and colleagues who died in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents. We have not forgotten them. We never will. The loss of life is devastating and always will be. We are deeply humbled by these tragedies, and they fuel our determination to continue to implement the lessons we have learned and to maintain our commitment to safety. ”
“We continue to drive toward the safe return to service of the 737 MAX as we work closely with global regulatory authorities, including the US Federal Aviation Administration. USA We are committed to supporting your process and timeline, and our progress has continued throughout the pandemic. ”
