European airline struggles add risk to 15% of Airbus, Boeing orders

By Judson Rollins Subscription Required
Introduction
Earlier this week, LNA examined the potential for a shakeout among European carriers as the coronavirus outbreak spreads to the continent. Five European countries now rank among the ten hardest hit – travel demand is plummeting nearly as rapidly as after the September 11 attacks in the US. On Thursday, UK-based Flybe went into bankruptcy after long-time financial struggles. The airline had 54 De Havilland Canada Dash-8-400s and nine Embraer E175-E1s in its fleet, more than half of which were leased from Nordic Aviation Capital and HEH Aviation Management. LNA reviewed aircraft ownership data to understand top manufacturer and lessor exposure to European carriers, particularly those with known profitability issues and high debt loads.

Source: Twitter / @AirportWebcams

Summary
  • Airbus’s exposure to Europe is 16% on single-aisles and 19% on twin-aisles;
  • Boeing has just under 15% of its single- and twin-aisle orders from Europe;
  • Embraer’s E2 jet program has 27% exposure to the region;
  • ATR, De Havilland Canada, COMAC face little to no threat from European airline woes;
  • Norwegian, TAP, SAS, TUI are likely the most imminent threats to manufacturers and lessors.

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