MALJF - Commercial Aircraft Reductions Pose A Serious Risk For Magellan Aerospace
The novel coronavirus pandemic has created the worst crisis for the aerospace industry since the 9/11 terrorist attacks. Government travel restrictions and mandatory self-isolation for those who do travel have led to significant reductions in commercial airliner passenger volumes. It is estimated that 66% of the global commercial aircraft fleet, approximately 19,350 aircraft, have been grounded (Source: Magellan Q1 2020 MD&A). Multinational aircraft producers have begun cutting their production forecasts as a result, signaling troubling times for the manufacturers that supply these businesses.
Despite this dire outlook, Magellan Aerospace (MALJF) managed to remain