What effect does the virus have on major air show deals?

Question

Accepted Answer

Virus Outbreak Dampens Major Deal-Making at Singapore Airshow

The coronavirus outbreak has significantly impacted the Singapore Airshow, leading to a subdued atmosphere for major deal negotiations and a notable decrease in both exhibitor numbers and expected trade attendees compared to previous years. While some deals were still secured, the overall expectation for significant transactions was low due to the global aviation industry's struggles and travel restrictions.
Reduced Exhibitor and Attendee Numbers

The Singapore Airshow saw a considerable decline in participation, with over 70 exhibitors, including prominent companies like Lockheed Martin, Bombardier, and De Havilland, withdrawing their presence. At least 10 Chinese companies also pulled out following travel bans imposed by Singapore. Consequently, the event hosted approximately 930 exhibiting companies, a decrease from over 1,000 in 2018, and anticipated around 40,000 trade attendees, down from over 54,000 in the prior edition.
Subdued Atmosphere for Deal Negotiations

The prevailing mood at the airshow was subdued, as airlines grapple with the repercussions of numerous countries barring travellers from China. This situation has led to a roughly 25 per cent reduction in flights from and within mainland China. Consequently, few major deals were anticipated for the current year’s event.
Limited Major Deal Announcements

Despite the challenging environment, some agreements were still reached. Franco-Italian plane maker ATR announced that PNG Air would become the launch customer for a new aircraft, placing an order for three planes. However, beyond this specific order, the extent and value of other deals signed were not detailed, reflecting the overall cautious sentiment regarding significant transactions amidst industry-wide disruptions.
Potential Impact Exceeding Previous Outbreaks

Industry analysts predict that the current virus outbreak could have a more severe impact on the aviation sector than the SARS outbreak in 2002-2003. During SARS, Asia-Pacific airlines incurred an estimated US$6 billion in lost revenues. With China playing a larger role in the global economy and airline traffic now compared to 2003, the economic fallout for the industry and the broader tourism sector is expected to be substantial.

Reading history

Hide →

This history is cleared when the page is closed.

What effect does the virus have on major air show deals?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends