Air navigation service providers (ANSPs), particularly those that are privately owned, are taking tough steps to ensure they can survive the slump in air traffic caused by the coronavirus crisis.
Astronics, the already embattled provider of aircraft seat technology and other interior products, is “adjusting its workforce” to align with a dropoff in demand due to the coronavirus and sudden economic slowdown.
A 40% drop in global revenue passenger miles followed by a rapid snap-back and leveling out of 5% year-over-year growth starting in 2023 would cut near-term new-aircraft demand about 25% from pre-coronavirus pandemic estimates, Vertical Research Partners analysts conclude.