Entries by residco

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As Demand Recovers, What’s On The Horizon?

Domestic economies are beginning to reopen as evidenced by the number of TSA airport security screening checks.  They totaled 87,534 April 14th and by May 25th had tripled to 257,451.  “We’re past the trough in terms of peak damage”.  Much of the pickup reflects the states’ decisions to open parts of their economies.  While global […]

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China-US Imports Rise Yet Rail Freight Contracts

With economies ‘locked down’ and travel restricted, the pandemic has disrupted U.S. industrial production and impacted derived domestic rail freight traffic negatively.  The Federal Reserve reported manufacturing output fell by 13.7% in April, its largest monthly decline dating back to 1919.  Record declines in spending and employment are creating State budget disasters.  Furloughs caused by […]

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Navigate to Tomorrow’s Fleet Environment

The past aviation super cycle was driven by growing demand from Asia’s emerging middle class (China) as well as the expansion of no-frills carriers.  With much of the world now subject to air travel restrictions more than two-thirds of the world’s passenger aircraft are parked.  The reality is that most of these aircraft will be […]

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Demand Shock

The coronavirus was the turning point. Schools and universities are being closed. Public activities are being canceled. Air travel and supply chains are being disrupted. Companies are telling employees to stay put. The virus constitutes a force majeure event.   Even before the U.S. ban on travel from Europe, Air Carriers were reacting by trimming capacity, […]