(qlmbusinessnews.com via theguardian.com – – Mon, 26th Aug, 2019) London, Uk – –
Aerospace lobby group slashes 2019 deliveries forecast and says prospect of no-deal Brexit making things worse
Global aircraft production has fallen by a quarter after the grounding of Boeing’s 737 Max jet following two fatal accidents.
ADS, the British aerospace lobby group, said 88 aircraft were delivered in July, down 24% on the same month a year ago, with the fall largely due to the slump in production of single-aisled planes such as the 737. The number of aircraft delivered in the year to date has now reached 716 but that is more than 11% lower than in 2018.
The ADS recently slashed its forecast for 2019 global aircraft deliveries from 1,789 to 1,489.
The ADS chief executive, Paul Everitt, said the prospect of a no-deal Brexit was making the situation worse for British companies in the £36bn aerospace sector. Firms spent about £600m preparing for the 29 March deadline, and that figure is expected to rise ahead of the new 31 October deadline.
The aerospace industry has been among the most forthright in its opposition to leaving the UK without a deal. Airbus, Europe’s largest aerospace company, has warned it will consider closing British factories in the event of a no-deal Brexit. “No deal remains the worst outcome for industry, with many small businesses particularly vulnerable,” said Everitt.
By Zoe Wood
