Air France-KLM and Lufthansa, the two leading European airlines, announced further capacity reductions for the summer season on Wednesday in the face of the deepening world recession.
Airlines around the globe are being hit by the mounting crisis in the aviation sector. More are seeking to defer delivery of new aircraft, undermining the outlook for production at jetmakers Airbus and Boeing, and smaller producers such as Brazil’s Embraer and Canada’s Bombardier.
By Kevin Done and Gerrit Wiesmann in Frankfurt, Justine Lau in Hong Kong and John Murray-Brown in Dublin
Published: March 11 2009 19:08 | Last updated: March 11 2009 19:08
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The less airplanes being delivered the less raw materials needed. This could put a strain on Australia, US and other raw material locations. In addition it will put a hit on Boeing et al. Watch the manufacturing sector for more weakness in months and weeks to come, not to mention airlines themselves.