The aviation industry is facing stormy skies as the world economy is affected by the coronavirus. As governments are trying to contain further spreading of the virus, regional economies are coming to a standstill, in turn adversely affecting domestic and international travel.
In our VZM Market Outlook 2020 we look back at recent events and provide our thoughts regarding future developments.
Already peak globalization dampens further worldwide economic growth, and as the coronavirus has built up from an epidemic to a pandemic, the impact will be felt throughout the total value chain of the aviation industry. The skies are already darkened by the flying public’s general awareness of airline emissions, whereas more clouds may be gathering as trade conflicts deepen. Boeing is still trying to recover from its 737 MAX grounding leading to delayed Narrow Body deliveries in the years to come, having a knock-on effect on the MRO market. The latter may currently be booming, and thus be able to weather the storm but can it continue to thrive where it is already facing labor shortages and innovations still needing to deliver on their promises?
We hope you enjoy this 20th edition and look forward to your feedback and comments. Electronic copies of the Outlook along with other VZM publications are freely available to subscribers of the VZM website at the Info Center. If you are not a subscriber, simply click the Subscribe-link. Subscription is free of charge and without obligation.
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