Embraer manufactures ventilator parts
March 26, 2020
Brazilian aircraft maker Embraer has begun manufacturing parts for ventilators in an effort to support the country’s medical industry as the coronavirus pandemic grips all corners of the globe. Embraer says on 25 March it has also begun working with a Sao Paolo hospital to provide technical support for air filter systems and air quality control that could turn regular hospital wards into intensive care units. The work is taking place at the company’s headquarters facility in San Jose dos Campos. “The actions, developed jointly with Embraer’s supply chain, include the manufacturing of parts for the ventilator and respirator industry, the replacement of imported components for ventilators, the development of high-efficiency filtration systems for transforming regular hospital beds into intensive care beds and studies for the development of simple, robust and portable respirators aimed at rapid implementation and availability,” the manufacturer says. The company adds the filters used in air conditioning systems on aircraft can be modified to be used by clinics and hospitals, helping meet immediate health care needs. "The global health care system is facing an unprecedented scenario, and Embraer plans to apply its capacity during this moment of global collaboration and demand for effective and short-term solutions,” Embraer says. According to the Johns Hopkins University’s Coronavirus Resource Center, more than 466,000 people have been infected by the virus worldwide, resulting in more than 21,000 deaths in 173 countries. Brazil reports 2,433 cases, with 57 deaths.
Source: Cirium
Boeing chief pushes back against government equity stakes
March 25, 2020
Boeing chief executive David Calhoun insists government aid to the struggling airline and aerospace sectors should not be contingent upon the government taking equity in US companies. “Nobody has an interest in retaining government equity in their company. We want to pay everything back,” Calhoun tells Fox Business on 24 March. He also insists Boeing remains fundamentally sound despite the severity of the coronavirus downturn. “I have no less optimism for our commercial business than I did before this started,” he says. His comments come as Boeing seeks $60 billion in federal US aid to help itself, its 17,000 suppliers and the broader aerospace industry weather the coronavirus downturn. Meanwhile, Boeing’s US airline customers have urged Congress to provide them with some $58 billion in financial support. Congress has been wrangling over the package in recent days, with sticking points including worker protections, the degree to which aid will be in the form of grants or loans, and whether the government will take equity in, or set other conditions upon, companies that receive aid. On Fox Business, Calhoun denies that requests by Boeing and other companies for government funds amount to corporate welfare. “It’s anything but corporate welfare,” Calhoun says. “Government is supposed to step up, to get us from one end to the other. Whatever tool they put in place should be simple, straightforward and immediately accessible.” Calhoun notes Boeing holds $15 billion in cash. He says the company “will get through this” and that the “enterprise is not threatened”. “But the credit markets are closed to us,” Calhoun adds. Boeing on 23 March announced it will suspend production in Washington state for two weeks due to a coronavirus outbreak at its facilities. Aerospace manufacturing suppliers have likewise been reeling, reporting fast-moving developments and broad business uncertainly. On 23 March, General Electric said GE Aviation, which makes commercial aircraft turbofans, is laying off 10% of US workers and furloughing half its maintenance, repair and overhaul staff for 90 days. GE did not immediately say if Boeing’s production halt will spur additional staff or production actions. Supplier Triumph Group on 24 March said it will lay off 250 salaried staff and 250 contractors, and Spirit AeroSystems is halting much of its Boeing-related work. Another supplier, Collins Aerospace, says some of its sites “have been closed in areas that have been hardest hit by the virus, and some have been closed temporarily for cleaning”. “The majority of our sites are still up and running,” Collins says. Another engine maker, Pratt & Whitney, says all its facilities are up and running. On Fox Business, Calhoun insists Boeing will survive even without government aid. He says the company might need more “haircuts” without federal support, while stressing Boeing must do all possible to limit staff reductions so as to ensure it has resources needed to resume operations when the coronavirus crisis abates. “I have to keep my workforce in place and we have got to be ready when recovery comes,” he says. The chief executive also insisted the 737 Max remains on track for mid-2020 certification. “We remain on schedule… Everything so far looks good for the certification of the Max at the mid-point of the year.”
Source: Cirium
WestJet cuts staff by 50%
March 25, 2020
WestJet has eliminated about half of its workforce as it tries to preserve itself while the coronavirus continues ravaging the air transport industry, says chief executive Ed Sims. “Today, 6,900 WestJetters are receiving notices confirming early retirements, early outs and both voluntary and involuntary leaves,” Sims says in a video message posted on the airline’s website on 24 March. The airline had about 14,000 workers prior to the cuts. “This is devastating news for all WestJetters. The fact that we avoided a potentially worse outcome is testament to the spirit and selfless attitude demonstrated by our people, who have enabled WestJet to continue operating with a collective remaining workforce of 7,100.” About 90% of those being made redundant accepted voluntary departures, for a period of no less than three months, and some permanently, he adds. “It is through these WestJetters’ sacrifices that we can preserve a core of people who will remain employed to prepare for the moment when the situation stabilises, and we can look to rise again,” Sims says. The Calgary-based airline, Canada’s second to flag carrier Air Canada, is currently operating at about the same size it was in 2003, having cancelled all international operations and working a skeleton domestic service. The airline has grounded 120 aircraft, which is about two thirds of its fleet, Sims says. The carrier, like peers in North America and around the world, has taken radical measures to preserve cash. Executive team members and directors have taken pay cuts, the airline released about 80% of contractors, instituted a hiring freeze, stopped non-essential travel and paused about three quarters of its capital projects. All Canadian airlines have been hit hard by the crisis. On Tuesday, Air Transat said it would be cutting 70% of its staff and suspend all flights from 1 April. Air Canada laid off 5,100 cabin crew last week. Vacation specialist Sunwing Airlines and regional airline Porter have also announced operational halts. The country’s airline industry has requested government aid to help manage through the global pandemic.
Source: Cirium