Page 54 - World Airnews Magazine May 2020 Edition

NEWS DIGITAL

CAN EXECUTIVE DIRECTOR

PASSES ON

this difficult time, and to those
with the organization he led so
The National Business effectively for 11 years.”
Aviation Association (NBAA) Fleiss led CAN until 2016.
is saddened to learn of During his tenure, he grew
CAN’s member companies to
the passing of Peter Fleiss, include over 500 supporters,
executive director emeritus for encompassing half of the
the Corporate Angel Network Fortune 100, and the organi-
(CAN). zation celebrated its 50,000th
“Peter was an effective patient flight.
leader for CAN and a valued Before joining CAN,
friend,” said NBAA President Fleiss worked at Safe Flight
and CEO Ed Bolen. “His passing Instrument Corporation, and in developing CAN into the continued commitment to the
is a profound loss for the in close collaboration with organization it is today,” said mission was well known by
business aviation community. Safe Flight founder and CAN CAN Executive Director Gina patients and business aviation
We extend our condolences to co-founder Leonard Greene. Russo in an April 6 release peers alike.” Fleiss passed away
his family and friends during “Peter was instrumental issued by the organization. “His April 3 at the age of 76. Q

AIRLINES
THE PLUNGE IN OIL PRICES IS

THE LAST THING THE INDUSTRY

NEEDS NOW

By Leslie Josephs

“to adapt to the new Corona virus market environment.”
As the demand for travel plummets and cities lock down, jet-fuel
The corona virus pandemic, the threat of airline bankruptcies demand has fallen faster than other products made from oil.
and a global recession, add to this a historic oil glut and price crash Globally, jet-fuel demand is set to drop 47% in the second quar-
- all of added to the woes of Boeing and Airbus. ter from a year earlier, nearly twice the rate of the forecast decline
The duopoly that dominates most of the world’s aircraft in gasoline consumption and more than three times the rate of the
production have spent more than a decade racking up record drop in diesel, which is crucial for freight transportation, according
orders for planes they boasted could save millions in fuel. to estimates from S&P Global Platts.
“One thing that kept the industry aloft during the great financial Jet-fuel prices in the US have fallen more than 65% since the
meltdown [in 2008] is fuel prices actually rose,” said Richard start of the year.
Aboulafia, an aviation analyst at vice president at Teal Group, “The problem that’s what’s happening right now is [the crisis] is
referring to record oil prices that year. hitting all the countries at the same time,” said Claudio Galimberti,
Rising oil prices help boost sales of more fuel-efficient aircraft, head of oil demand, refining and agriculture analytics at S&P
the opposite of sales trends for larger personal vehicles. Global Platts.
The Airbus A320neo and the Boeing 737 Max, each manufactur- Airlines have slashed flights to match paltry demand from would-
er’s best-selling narrow-body airplanes were developed after the be travellers. The carriers have parked hundreds of planes and
Great Recession when fuel prices were again rising and airlines deferred orders of new planes. Some customers have cancelled
were on the hunt for models that would help them cut fuel costs. orders altogether.
Both companies amassed years of orders for thousands of planes While airlines are expected to accelerate the retirement of older,
and now manufacturers have lost that selling point. less fuel-efficient jets, this isn’t expected to be enough to spur
Aboulafia has estimated that Airbus and Boeing should net a flurry of new orders with a recovery in air travel demand still
around 1,000 cancelled orders this year combined, an unprece- unclear.
dented drop when compared with 681 net orders last year. Airlines for America, a lobbying group that includes American,
Boeing, already reeling from the grounding of its 737 Max after Delta, United Southwest and other large US carriers has said that
two fatal crashes, has posted an increasing number of cancelled as of April 15, more than 2,700 planes, or 44% of their fleet had
orders. been parked off. Q
Airbus has said it would cut aircraft production rates by a third Article courtesy: https://www.cnbc.com/

World Airnews | May Extra 2020
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