Airbus in danger
From today's Times
Airbus, the European aircraft manufacturer that employs and indirectly supports tens of thousands of jobs in British aerospace factories, is in danger of collapse, its chief executive said.
Speaking yesterday to the French media, Guillaume Faury said: “The crisis is existential. Our life as a business is potentially at risk if we don’t take the right measures.”
He added: “The situation is so serious, and we are faced with so much uncertainty, that I think no one can guarantee there won’t be compulsory redundancies if we’re to adapt to the situation, especially if it evolves further.”
Mr Faury said the shutdown of aviation markets meant that Airbus needed to cut a total of 15,000 jobs, or more than 11 per cent of the group’s workforce. In the UK Airbus said it needed to cut 1,700 jobs, 12 per cent of its 13,500-strong workforce, much of that in the group’s wing factory at Broughton in north Wales.
Many of those workers have spent the summer on the government’s furlough scheme. The knock-on effect has been felt at Rolls-Royce, an Airbus engine supplier, which is cutting thousands of jobs.
Compulsory redundancies would play very badly in France and Germany, where about 10,000 jobs will go, plus 900 in Spain and a further 1,300 around the world where Airbus has operations in the US and China.
The crisis has led to it halving production of the world’s bestselling short-haul aircraft, the A320, and the popular long-haul A350.
Mr Faury, 52, said that the issue was not that airlines were cancelling orders, but “airlines aren’t taking deliveries”.