The world’s colossi Airbus, Boeing and Embraer, the largest customers of the Letňany plant, significantly reduced aircraft production last year. In response, the production of doors and components in Prague fell by half, and the decline in sales was almost identical: while in 2019 Latécoère earned over 3.6 billion crowns, last year it was less than two billion. For the first time since 2016, it ended up in a loss of 313 million crowns, which is one of the largest in the company’s more than twenty years of history. It follows from her annual report.
The company manufactures and assembles doors for civil transport aircraft. Last year, he worked, for example, on doors for Airbus A320, Embraer 170, on luggage doors for Dassault Falcon 7X or on door mechanisms of Boeing 787. But he also produced composite parts and subassemblies of Boeing 787 door frames or composite parts for Airbus A350.
“The aerospace industry was hit very hard by the coronary crisis, which had a significant impact on sales in our company as well. The situation brings an increased risk of reduced liquidity, “said the Czech division of Latécoère, adding that loans from the parent company in Toulouse should solve liquidity problems. It allegedly confirmed in writing in mid-June that it would provide financial support, including a loan of 833 million.
He dismissed Latécoère due to the critical situation in the aviation industry. At the end of 2019, 760 employees worked in Letňany, at the end of last year by a third less. But it doesn’t have to be the final account.
“Uncertainty remains about the future development of the pandemic in 2021 and its impact on the company’s business and demand for its products,” the company said. Prague’s Latécoère is therefore undergoing a restructuring, in which it will sell and lease back part of its tangible assets and transfer the door assemblies to a partner plant in Bulgaria.
The crisis in the aviation industry is based on a sharp drop in traffic. According to the International Air Transport Association, airlines carried 1.8 billion passengers on scheduled routes last year, up 60 percent less year-on-year. Revenues from transportation fell even more, by 69 percent to $ 189 billion, about four trillion crowns. Airlines have spent $ 126 billion.
The performance of air freight transport remained one of the few positives. The movement of goods, medical devices or vaccines dampened the year-on-year decline of this segment to 21 percent. At the end of last year, however, cargo almost returned to the usual pre-pandemic numbers.
Take a look at how doors for airliners are made in Letňany: