Summary of the European Alliance Against Coronavirus Daily Webinar on 5 June 2020
In the meeting on 5th June, the European Aerospace Cluster Partnership (EACP) showed how measures taken to fight COVID-19 generated a risk for the aerospace sector with the collapse of aviation travel and the destruction of capability, capacity and competitiveness for the companies, but also gave a scenario of post pandemic financial vulnerabilities. COVID-19 has caused a major drop in travel demand and is significantly impacting the aviation and aerospace sector. For the recovery of global travel, it is possible to identify three scenarios: rebound, delayed cure and recession.
To support their companies, EACP tries to find solutions in the short term (to ensure the survival of European aerospace industry) and the medium term. R&D activities are the first ones to be cut, therefore it is to develop programmes and reinforce the investments in Green Aviation. Due to reduction in air travel, new aircraft demand is expected to be significantly lower (commercial aircraft could fall by 50-70% in 2020) forcing the industry to shrink. SMEs are a big part of the sector and need more attention, in particular those working in the civil aeronautics sector.
Needed help from the EU include public and personal health protection as well as cash-flow and liquidity support to prevent the collapse of the industry.