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December 11, 2024
AirAsia X

AirAsia X


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The continuing Boeing 737 MAX crisis and soap opera at Boeing, combined with the Coronavirus flight and new route cancellations and postponementssupply chain shortages from China’s shutdown, and a stock market correction will likely result in 2020 as a year to forget in the civil aviation sector.  While we expect dramatic improvement from this influenza, which now appears to have a low fatality rate, the hope is that its spread loses its intensity with the onset of spring and then summer in the Northern Hemisphere.

The impacts will be widely felt by airlines, particularly in Asia, where demand has dropped precipitously in China and neighboring markets.  With traffic down substantially, carriers have already begun deferring new aircraft deliveries, including AirAsiaX deferring 78 A330neos.  While Cathay Pacific has parked half its fleet. While the deferrals are not permanent cancellations, the impacts on Airbus and Boeing will be substantial in 2020.

The continuing Boeing 737 MAX crisis and soap opera at Boeing, combined with the Coronavirus flight and new route cancellations and postponements,  supply chain shortages from China’s shutdown, and a stock market correction will likely result in 2020 as a year to forget in the civil aviation sector.  While we expect dramatic improvement as this influenza, which now appears to have a low fatality rate, the hope is that its spread loses its intensity with the onset of spring and summer in the Northern Hemisphere.  

The impacts will be widely felt by airlines, particularly in Asia, where demand has dropped precipitously in China and other markets.  With traffic down substantially, carriers have already begun deferring new aircraft deliveries, including AirAsiaX deferring 78 A330neos.  While the deferrals are not permanent cancellations, the impacts on Airbus and Boeing will be substantial in 2020.

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author avatar
Ernest Arvai
President AirInsight Group LLC