Boeing notes that coronavirus crisis will affect airlines for years

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The coronavirus pandemic has paralyzed the operation of many sectors of the industry that could have great consequences in the future, one of the most affected has been the movement of airlines, the cessation of air traffic will not only affect the weather forecast, but to the companies themselves, according to statements by the CEO of Boeing.

During the annual Boeing meeting, the American aircraft manufacturer discussed issues related to the future of airlines after the coronavirus pandemic, where David Clahoun, CEO of the company emphasized that it could take years for commercial flights to generate dividends.

"Based on what we know now, we expect travel to take two to three years to resume 2019 levels and a few more years for the growth of the industry's long-term trend to return, " Calhoun said , speaking of the company.

Financial blow after coronavirus

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Boeing has been one of the companies hit hardest financially not only by the cessation of commercial flights after the coronavirus crisis worldwide, but also because it brings in a million dollar loss generated after its 737 MAX aircraft suffered two fatal flights, causing the death of more than 300 people in 2019.

The two 737 MAX aircraft involved in the Air Ethiopia and Lion Air crashes crashed in less than five months, resulting in 346 fatalities, forcing Boeing to leave this aircraft grounded for a year, as well as the loss of al minus USD $ 1 billion for repairs and development of new aircraft.

As if that were not enough, when the company was just beginning to overcome the harsh blow of 2019, in 2020 it lost a millionaire contract with the leasing company Avalon, the third lessor of commercial aircraft in the world that sought to acquire 75 737 MAX aircraft from Boeing, but this business was canceled due to the coronavirus crisis.

"While the duration or depth of this crisis remains difficult to determine, we remain confident in our perspectives and in the industry's ability to recover after COVID-19," said Avolon's CEO at the time.

Cancel purchase of Embraer

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Another drastic measure taken by Boeing has been the cancellation of the purchase of 80 percent of the Brazilian company Embraer, valued at USD $ 4.2 billion and the start of the join venture to find new markets for the C-390 Millenium aircraft.

Embraer is currently suing Boeing over the unexpected cancellation of the deal.

The coronavirus pandemic has forced most airlines to reconsider their business model, take extremely hygienic measures and how to pay dividends once the pandemic ends, as it will not be an easy path, said the CEO of Boeing.

The company has been one of the hardest hit after the loss of $ 19 million billed after the fatal 737 MAX crashes, forcing them to ask for help from the Trump administration and the relief fund. However, many family members of MAX accident victims have asked US Treasury Secretary Steven Mnuchin to withhold funds for Boeing "unless it meets strict safety and governance standards."

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