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Aerospace Industry Assesses Impact of Airline Crisis September 19, 2001- WASHINGTON, D.C. - AIA has revised its estimate for aerospace industry sales based on revised delivery projections of its manufacturers in the wake of last week's terrorist attacks. Commercial aircraft and parts sales are expected to decline by approximately $2 billion from the previous estimate. Total industry sales will decline only by $400 million, to $143 billion--from the $143.7 billion in sales in 2000. Prior to the events of September 11, the Aerospace Industries Association had predicted industry sales of $145 billion, a $1.6 billion sales increase this year from 2000. John Douglass, AIA President and CEO, said that industry sales could decline as much as $5.6 billion in 2002, and by $6.7 billion in 2003. Increased sales in space and defense markets may offset to some extent the decline in commercial sales, he said, depending on the way the administration responds to the crisis. "An air campaign would have a different impact than a campaign involving the movement of large to moderate ground and naval forces," he said, adding, "Space sales will probably increase in any event." Douglass also said the final balance in sales will depend in large degree on how quickly the Defense Department adds funds to its procurement and spares budget. "A lot will depend on the immediate stress on the operations and maintenance budget," he said. AIA will continue to refine its sales estimates as actions in the war against terrorism unfold.
P.A. Rel 2001-24 09.19.01 -AIA- Contact: Matt Grimison, AIA |
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