Out with the old jets? How virus-led fleet decisions will impact OEMs, aftermarket providers

The coronavirus-led airline industry downturn seems to have left airlines with 2 means by which to cull the number of jets in their fleets. They can keep flying old jets longer while slashing their number of new aircraft deliveries, or they can ground older, less-efficient jets while continuing to acquire new aircraft, analysts note. Which strategy airlines will ultimately take remains uncertain, but analysts say the outcome could determine which segment of the aerospace market – OEMs or aftermarket providers – fare best amid the downturn and eventual recovery. “It’s going to be a delicate balancing act,” says an analyst with Teal Group. “Cheap fuel sure incentivises people to keep 25-year-old jets.” <br/>