Lockheed Martin now expects to deliver 18-24 fewer F-35s in 2020 than the program’s 141-aircraft goal due to supply chain disruptions caused by the novel coronavirus pandemic, the company said May 19.
As many as a fifth of lower-tier suppliers in aerospace and defense could exit the sector over the next 18 months as COVID-19 disrupts the commercial aviation market and hurts the defense industrial base, seasoned supply chain experts have told Aviation Week.
Along with other measures, such as 30-50% cuts to cash wages, the reduction in force should still mean the company at a minimum remains at cash breakeven.
Month-old Raytheon Technologies is slashing billions of dollars in costs and other retrenchments, including workforce cutbacks, as commercial OEM and aftermarket revenue could be halved this year in the wake of COVID-19.
Rolls-Royce says it is “actively pursuing” changes to its business to better align with medium-term market conditions as the coronavirus pandemic hits engine production and maintenance volumes.
The U.S. Army is checking in daily with Boeing to evaluate how facility closures in India related to the spread of the novel coronavirus may delay delivery of Apache attack helicopters.
The spread of the novel coronavirus has changed the way the Defense Department views its supply chain and the military is beginning to understand where the industrial base is “hyper efficient but very brittle,” according to the U.S. Navy acquisition executive.