Plane storage business booming amid Covid-19

Author
Newstalk ZB,
Publish Date
Fri, 26 Jun 2020, 10:54AM
Teruel Airport, which is used for aircraft maintenance and storage, has received increased demand as a result of the pandemic. (Photo / CNN)

Plane storage business booming amid Covid-19

Author
Newstalk ZB,
Publish Date
Fri, 26 Jun 2020, 10:54AM

It was grim news for Qantas yesterday, with CEO Alan Joyce announcing further job cuts, while also forecasting international travel with the company is unlikely to resume until July next year.

Qantas will continue to stand down 15000 staff, while its fleet of A380s will be sent to the Mojave Desert for storage for three years.

While international travel is plummeting, the business of aircraft storage is booming.

Forbes transport journalist Gabriel Leigh told Mike Hosking that there already were a number of places to store planes, but now that parking space is limited, more spaces are becoming available. 

He says that airlines have to choose between operating the planes with no passengers, or park them somewhere for somewhere long-term. 

"But then there's a whole question about whether you put it into long-term storage or short-term storage," with both options requiring different work and costs.

Leigh says that some airlines such as Qantas are choosing to retire planes that they would have stopped using within the next few years anyway.