Is this the beginning of a downward spiral for AirAsia?
Spiral? AirAsia almost certainly has flexibility in deliveries. Every airline must differ deliveries. Even Delta is not accepting aircraft. There will be substantial decreases in aircraft production from all suppliers. AirAsia is simply negotiating in public.
There are more aircraft out there than will be needed for 6+ months. The concern of mine isn't recession.
Just checked AirAsia X's fleet.
A lot of their aircraft are leased. Most probably they generate cash by doing a lot of sale and leaseback.
It works well during times of growth and the value of ordered aircraft is increasing. With the current situation, I think they cannot generate easy cash any more.
I am afraid they need to down size a lot and then slowly close the company during the next three years.
AirAsia was returning aircraft after leases expired, so they were doing well enough.
They claim to have enough cash for 2020.https://www.flightglobal.com/airasias-f ... 92.article
There are many more A320 operators who will go bankrupt before AirAsia. But if you are saying they won't be contributing to A320 deliveries, at least meaningfully, I agree. The above link notes the group had 14 deliveries scheduled in 2020 (including A330NEO), so they were already in, for them, slow growth.
It is more that JetBlue, Delta, and others are differing. I'm reading the paper WSJ about GE aviation furloughing half the workforce. There is a sudden drop in demand for GE/CFM engines and services.
An equivalent link: https://www.bing.com/amp/s/www.cnbc.com ... eighs.html
This is far bigger than one airline.
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