Production to be reduced by 40% for two years: Airbus

AEROPLA E manufacturer Airbus will likely see its production reduced by 40 per cent for two years in reaction to the coronavirus pandemic, according to a press report Monday.

“We cannot disconnect ourselves from developments at the airlines,” Airbus CEO Guillaume Faury told the German daily Die Welt.

The Airbus group had previously spoken of a reduction in production of around 30 per cent, but Faury said the firm is working under the assumption that manufacturing and deliveries will be 40 per cent lower than originally planned for 2020 and 2021. The firm plans to produce only 40 of its popular A320 jets per month.

The narrow-body twinjet is

Airbus’ top seller.

Many completed aircraft are currently parked, Faury said. The airlines have not been taking delivery of them because of the slump in the market caused by the coronavirus crisis. It would take until the end of 2021 before production and deliveries are in line again, the Airbus boss told the paper.

Faury wants to announce the exact scope of the planned job cuts by the end of July, after discussions with the employee side.

There is speculation that up to 15,000 jobs in the civil aircraft division with 90,000 employees will be affected.

Despite production being reduced, no final assembly lines will be closed. Production on all models would continue, “but at a slower pace,” said Faury. Every facility was looking for ways to cut costs. “We will leave no stone unturned,” Faury said.

Airbus posted a loss of 481 million euros (522 million US dollars) in the first quarter of 2020 due to the coronavirus pandemic.