Presented by Dennis Scott Ass, Chief Designer: COMAC (since August 2011) A China Perspective • Domestic COVID-19 situation • Aerospace Landscape • Q&A This PPT should be viewed in PRESENTATION mode. These views are my personal opinion
[email protected] and do not reflect the position of COMAC. Private & Confidential May 2020-V3 All Rights Reserved 2020 Dennis Scott: China Perspective 1. Coronavirus Situation • China has successfully completed the Coronavirus cycle (<5 new cases/<10 new symptomless cases per day). • All businesses, schools, colleges, sports centres have re-opened. 3 vaccines undergoing trials. • Currently, only Chinese nationals/Green Card holders allowed to enter China. • Every person entering China is tested before being quarantined for 14 days. Testing widely available. Private & Confidential Dennis Scott: China Perspective 1. Coronavirus Situation • Domestic flights now back up to 80+% of pre-virus level (trains are now essentially fully operational). • Discussions ongoing with Dubai, Singapore, Thailand, Vietnam and New Zealand on how/when to re- start international flights, potentially from May 22nd (Emirates have started COVID-19 testing before check-in). • Comprehensive financial support has been provided to Chinese airlines and business in general. • Airline consolidation expected (Hainan Airlines + subsidiaries is a prime candidate). Private & Confidential • Drastic reduction/deferral of new aircraft orders and severe reduction in maintenance/after sales activities. • Aerospace supply chain facing a 30 to 50% reduction in order intake (short term). • Excess capacity and headcount is a global issue across the industry (but is not such4 a problem in China). Private & Confidential Dennis Scott: China Perspective 2. China Aviation Industry Overview • China was already a key aircraft market before COVID-19, with 25% of Airbus and Boeing production going to Chinese airlines.