Despite challenges, Asia’s aerospace industry plots rebound at air show

Singapore, Feb 17 (BNA): With the exhausted Singapore Air Show looming, delegates reported growing optimism as the hard-hit Asian aviation market began to recover despite emerging concerns about labor shortages, rising costs and supply chain challenges.


Organizers estimated attendance at more than 13,000 ahead of the four-day show – still a shadow of previous years – but attendees said that as of Tuesday, the busiest day, only a few thousand showed up at the fair. Organizers said final numbers had not yet been collected.


However, repeat visitors like Eric Noel, executive director at a flight training center in Arizona, said the atmosphere was more lively than the last show in February 2020, when dropout exhibitors delayed by COVID-19 left half empty spaces. Booths finished, giving an eerie feel to an exhibition hall at a time of market uncertainty.


Show attendees on Thursday ventured outside into the blazing afternoon sun to see the latest batch of flight shows, including an American B-52 bomber, a design that first flew in the 1950s.


This year’s fair was the largest event of any kind in Singapore since the start of the pandemic, although the low turnout was a prime example of the devastating impact that strict health and border controls have had on the airline industry over the past two years.


However, there is optimism about reopening in Asia, with host nation Singapore announcing on Wednesday it will open quarantine for travel from more countries after an initial halt when the alternative Omicron emerged late last year.

READ MORE  Minister of Industry and Commerce Meets Korean Minister of Commerce


“People want to come back in person because we’ve all figured out Zoom is good, but it doesn’t really make it happen,” Domhnall Slattery, CEO of aircraft rentals Avolon, said at the show.


His company on Wednesday signed an agreement to lease at least 100 flight taxis to AirAsia Aviation Group, which aims to start a flight-sharing business in Southeast Asia.


With passenger travel declining during the pandemic, Asian airlines have relied on the freight market to survive, and freight has been the star of the show in terms of major deals.


Singapore Airlines on Wednesday completed an order for seven Airbus A350 freighters, while Etihad Airways placed a provisional order for seven of the same model.


Singapore Technologies Engineering has also been accumulating more orders for passenger-to-freight transfers, a company that has helped keep hangars and its workforce busy during a slowdown in passenger travel.


On the defensive side, there have been no big deals, but manufacturers have been hoping for a rebound as Asian countries emerge from the economic rubble of COVID-19 and look for cost-effective ways to modernize their militaries.


As demand begins to recover, there are growing concerns about cost inflation and difficulties in the supply chain, for both commercial and defense manufacturers.


Lead time for parts from his company’s suppliers has doubled, said Shaun Badfield, senior vice president for space at seat belt manufacturer SCHROTH Safety Products, making it difficult to meet customer commitments.

READ MORE  Fed interest-rate hike seen a lock for July


“We’re really trying to mitigate by adding some strength to our supply chain, like having multiple suppliers for the same parts,” he said on the sidelines of the show. “But one thing we’ve realized in aviation, is that some of these parts are very specialized, and it takes a long time to get another supplier up and running to deliver the same quality and quantity.”


Other industry challenges revolve around employment after major workforce cuts when demand collapsed in 2020, causing some workers to retire or switch industries.


“There is a general labor shortage and the only way to get labor back to work is with higher rates,” said Kailash Krishnaswamy, Senior Vice President of Aftersales Services at Spirit AeroSystems. “When we have the opportunity, we try to pass that price on to the customer. We try to build automation when needed if possible.”


MI






Source link

Leave a Comment