Airbus secures bailout cash from French rescue package
AIRBUS has secured bailout cash as part of a French Government rescue package for the crisis hit aviation industry.
Yesterday morning France’s government announced €15bn (£13.3bn) in rescue money for the pandemic-battered aerospace industry, including Airbus and the national airline Air France.
Funding will include direct government investment, subsidies, loans and loan guarantees.
It is hoped it could ease some of the pressure to cut job numbers at Airbus Broughton as production levels are reduced but it is unlikely to prevent further redundancies.
Airbus said it is cutting production by 35%-40% and 500 Guidant agency staff at Broughton are already facing redundancy. More reductions in staff numbers are expected at the 6,000-worker site.
The extra cash also includes a special fund jointly financed by the French government, Airbus and other big manufacturers to support small suppliers.
In exchange for the aid, companies will be required to invest more and faster in electric, hydrogen or other lower-emission aircraft, as France aims to make its aviation industry the “cleanest in the world”.
This could see money secured for the Wing of the Future programme being developed at Filton, near Bristol, with hopes the future manufacturing work would then be secured by Broughton.
An Airbus spokesman said: “Airbus welcomes the French ‘plan de relance’ and is thankful to its governmental partners who have supported the aerospace sector since the beginning of the Covid-19 crisis, either through direct support to airlines and suppliers, or through job retention schemes which we / the aerospace industry have used extensively.
“This support will help mitigate the critical situation that our customers and suppliers are facing, and help limit the social impact of the crisis in our industry.
“This plan will reinforce Airbus’ action and commitment to decarbonising the aviation industry. By supporting R&T and R&D in the field of sustainable technologies, the plan will enable France and Europe to pioneer a new chapter in the history of aerospace and to accelerate the green revolution in aviation.”
The government will help Air France buy Airbus planes, and pledged to order €600m (£534m) worth of refuelling tankers, drones and helicopters from Airbus’s defence arm. In addition to dominating the global passenger aircraft market alongside Boeing, Airbus is also a major supplier of military aircraft to European governments.
The rescue plan includes investment in developing the successor to Airbus’ mid-range A320, a new hybrid or hydrogen regional plane, and a new light helicopter.