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Airbus warns about no-deal Brexit

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Airbus warns about no-deal Brexit

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Old 22nd Jun 2018, 17:49
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The prospect of Airbus leaving has been around ever since BAe sold out to EADS. Airbus threaten to leave the UK every time they want a government loan. Now what they're doing is simply lobbying for their best commercial interests - if we crash out of the EU next March without continued EASA membership, things will be difficult for Airbus and they don't want anything to disrupt their business, which is understandable.

In the long term, there's probably an on-going assessment of whether wing production can be done more efficiently in France or Germany. If one day they move, it won't have much to do with brexit - more because the Beluga operation is too expensive.
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Old 22nd Jun 2018, 17:57
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Originally Posted by ZeBedie
The prospect of Airbus leaving has been around ever since BAe sold out to EADS. Airbus threaten to leave the UK every time they want a government loan. Now what they're doing is simply lobbying for their best commercial interests - if we crash out of the EU next March without continued EASA membership, things will be difficult for Airbus and they don't want anything to disrupt their business, which is understandable.

In the long term, there's probably an on-going assessment of whether wing production can be done more efficiently in France or Germany. If one day they move, it won't have much to do with brexit.
But no-one has clearly said how Brexit will impact Airbus if Britain crashes out without a deal? I raised the spectre of Airbus UK parts being no longer certified and I was told that with a flick of a pen that particular bogey-man will be eliminated. Britain imports and exports plenty of goods from non - eu nations daily. Are we now saying that this is just a pure fluke, and with Britain no longer being in the CU / SM, the world starts turning the other way?

This is, as you say, merely Airbus using Brexit as a means to an end. 'We are leaving the UK, and it's due to Brexit'. Even if Brexit hadn't happened, since the sales of the EADS shares by BAE in 2007, this was always on the cards.
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Old 22nd Jun 2018, 19:28
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With the aviation industry coming to the conclusion these huge leviathans such as the A380 are yesterdays fad, to such an extent Boeing no longer produce the 747 in passenger config, this puts a question mark financially over the future of the A380. If i was an Airline boss wanting to procure a new fleet bearing in mind i could run and purchase 2 787s for one A380 with the same range id go for Boeing. Are Airbus really really stupid enough to cripple themselves financially to suit some political dogma... i think not although having said that , if Airbus are as badly run as the EU i could actually see this happening...its merely political posturing. BMW are joining the band wagon..next week When Trump decides to levy a 20% tariff on all EU cars, guess who is best placed to produce EU cars outside the EU...its all rhetoric which defies sound business logic. Boeing must be laughing at all this and Airbus are doing a great job acting as Boeing's P R...I wouldnt be wanting to procure an aircraft from Airbus if there are going to be interruptions or delays to my potential order, or increased costs due to a very odd business decision. The disruption this would have on Airbus defies all rational belief and it must be embarrasing for Tom Williams to trott out such politically motivated garbage as he been told to do so by the Airbus puppet masters
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Old 22nd Jun 2018, 19:47
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Originally Posted by Burnt Fishtrousers
BMW are joining the band wagon..next week When Trump decides to levy a 20% tariff on all EU cars, guess who is best placed to produce EU cars outside the EU...
Actually old bean, not the UK. BMW have a car plant in the USA.
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Old 22nd Jun 2018, 19:55
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Originally Posted by WB627
And now BMW issue the same warning as Airbus...….

Will the last European Company to leave the UK, please turn out the lights...….
Another sucked in by project fear.

My Mercedes was built in South Africa. I guess they are for the chop as well.

Oh and I can remember when the minimum wage was brought in to the cries of oh dear there will be mass unemployment.
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Old 22nd Jun 2018, 20:01
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Originally Posted by LTNman
Another sucked in by project fear

I'm always curious to hear where the fearless Brexit crowd are employed, if they are employed.

They mainly seem to be retired or self employed within some esoteric niche in the UK service industry.
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Old 22nd Jun 2018, 20:03
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Can anyone please try to explain to me how this will be solved by 1 April 2019.?
There is no progress whatsoever:

Time has for all practical reasons run out.

EU can , and will not give ANY concessions.
And the UK has NOTHING the EU wants!
Wings for the Airbus , Pahhh! Any EU state is more than happy to take over. ( Toulouse AND Hamburg being the logistical best place).
History will judge You hard Mr B Rexit.
You destroyed Your own Country!
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Old 22nd Jun 2018, 20:06
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Originally Posted by ZeBedie
Now what they're doing is simply lobbying for their best commercial interests - if we crash out of the EU next March without continued EASA membership, things will be difficult for Airbus and they don't want anything to disrupt their business, which is understandable.
Shock news: multinational company wishes for more clarity re the legislative/trade regime that's going to prevail soon in a country where one of its principal manufacturing bases is located.

That shouldn't really be news to anyone.
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Old 22nd Jun 2018, 20:14
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Originally Posted by Jetex_Jim
I'm always curious to hear where the fearless Brexit crowd are employed, if they are employed.

They mainly seem to be retired or self employed within some esoteric niche in the UK service industry.
They are also a lot of ex servicemen and the number of old BCAR LAE's that voted to leave is not small either. The reasons are varied and some are to be quiet honest alarmingly stupid.
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Old 22nd Jun 2018, 21:07
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The Solution to Brexit - EFTA/EEA

BluSdUp

Can anyone please try to explain to me how this will be solved by 1 April 2019.?
I recently came across the following letter. Perhaps you should also write to your MP using this or a similar format? However, it probably/certainly will have no effect as nowadays, MPs are merely pliable careerist voting fodder, in thrall to the Party machine and with little interest in the views of constituents. As is now becoming apparent, the Brexit process has for some time been hijacked by the Tory "ultras" who are determined on a "crash out", 23.00 hrs, 29 March 2019, presumably with a view to fundamentally altering the nature of UK society and politics, from then onwards.

Dear (name of MP)

I write in despair at the complete mess your government appears to be making of the Brexit negotiations.

I voted Brexit as I did not like the direction of travel to complete political and financial union of the EU - as subsequently confirmed by Juncker’s State of the Union speech.

However, I also acknowledge that 48% voted Remain, and the Brexit vote was not overwhelming. One also has to acknowledge the demographic of the Brexit vote.

I, therefore, fully expected the government to pursue a sensible Brexit, as laid out by Dr Richard North on his blog, on which he has devoted years to a plan called Flexcit – EU Referendum

The government could have opted to say to the EU, “yes we are leaving the political construct, but we will remain in the EEA and join EFTA instead”. Thus remaining in the Single Market, which is crucial for the economy, and the City. EFTA has it’s own court (independent of the ECJ), can make it’s own trade deals, and is free from the majority of EU legislation (73% - the remaining 27% is manufacturing/trading standard legislation passed down to EU from world standards bodies). This would have removed all uncertainty for business, and allowed the UK to push for further reform of trade with the EU from the safe harbour of EFTA.

The government could also have said it would put the controls on EU immigration which have always been available to it, but never used - in addition Articles 112 & 113 of the EEA Agreement allow for additional restriction to free movement.

The EEA/EFTA option would also have solved the Irish border issue.

Instead, we are now in a position where nearly 2 years on from the referendum, nothing has been achieved except massive uncertainty for the economy - I fear we are now at the point of businesses voting with their feet.

It is quite alarming listening to politicians who do not even seem to understand the difference between the Single Market and a Customs Union. And, indeed, Theresa May herself recently told Andrew Marr that you could not leave the EU and stay in the Single Market, which is patently untrue. The EFTA countries are in the Single Market but not in the EU, and they do have a voice in devising EU legislation relevant to their interests.

I never thought the day would come when someone with the name Kinnock would be making more sense on the economy than the Conservatives.

In fact, it is increasingly looking like the Conservatives are leading us off the cliff edge to economic carnage and empty supermarket shelves. If that happens, your party will be unelectable for generations.

Mrs May seems to be held hostage by the ERG, rather than acting in the interests of the country. Mr Rees-Mogg and Boris Johnson may have a veneer of charm, but I have not heard them come up with any reasonable solutions to the Irish border or queues at the Channel ports if we are not in the Single Market. Sanitary and Phytosanitary checks, of all live animals and foodstuffs cannot be done electronically... The KFC debacle showed how the slightest delay in the supply chain leads to panic buying, empty shelves and closed shops.

As I do not believe there is any majority in Parliament to leave the Single Market, I would plead with the Conservative Party to get your act together before it is too late, and you trash the economy, and allow Corbyn in by default.

Kind Regards.
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Old 22nd Jun 2018, 21:56
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A majority of Astn Martin workers voted leave, ditto at Nissan. Turkeys voting for Christmas comes to mind.
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Old 22nd Jun 2018, 22:09
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Alber Ratman

"I would go back to Jet Blast mate, your knowledge and aviation background reading your previous, belongs there and not here."

You do not need to push throttles on a daily basis to smell a political rat. 3 months ago Airbus were extolling the virtues of the UK workforce as the best and most productive now all of a sudden they are considering moving with a totally unconvincing business model. A business is a business and if observers see uncertainty in your business they aren't going to invest in it or purchase from you.
To put in jeopardy a viable going concern based on political dogma with so called barriers that can be done away easily with at the swipe of a pen in March 2019 appears somewhat odd to say the least.

I have set up many dealerships in India selling our software so know exactly how Indian business works. Too much red tape and veeery slowly in my experience

As for aviation, Boeing having no replacement on the cards to match the A380 says it all...the future of these large jets is in question with point to point flying the future as demonstrated by the 787 Heathrow to Perth non stop run recently.....makes common business sense...I'll see you over in Jet Blast mate so we can parry a few more over in the sandpit of us unworthy unwashed non aviation oiks
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Old 22nd Jun 2018, 22:26
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Since the wings on modern aircraft are highly complex bits of kit that hugely influence aircraft performance and fuel economy, one can only assume this is a bluff on behalf of Airbus. It would take years to set up manufacturing elsewhere to identical standards and in the meantime there is a stock of aircraft bodies building up with no way of making them fly. This would be the end of Airbus, not just manufacturing in the UK. But then we all know that Boeing makes proper aircraft with proper control layouts in the cockpit, not some glorified kiddies computer game with joystick controls.
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Old 22nd Jun 2018, 22:54
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If the ten per cent fall in sterling since the vote hasn’t been enough to cheer airbus up, nothing will..
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Old 23rd Jun 2018, 00:41
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Once again, it is left to Dr. Richard North at EU Referendum to come up with the facts of the matter in respect of the Airbus operation in UK, cutting through the prevailing ignorance and obfuscation like a hot knife through butter.

In July 2008, EASA issued its first Single Production Organisation Approval – and that was to Airbus fixed-wing manufacturing. Helicopters followed later. That means precisely what I wrote yesterday, that Airbus is regulated directly by EASA. It will not be directly affected by Brexit. It will remain regulated by EASA even after we leave the EU – the UK operations voluntarily adopting EU law and control in order to work as part of the Airbus conglomerate.

The problem comes with the 215 (or so) production organisations in the UK approved by the Civil Aviation Authority, many of which will supply Airbus, including GKN engineering which does much of the wing fabrication under contract to Airbus.

Once the UK leaves the EU and becomes a third country, in order to keep supplying Airbus, they must re-apply directly to EASA for approval and until they have gained that approval will no longer be able to deliver parts or assemblies for use in aircraft certified by EASA.

The potential for disruption is obvious, not least as the industry is asserting that parts approved by the CAA currently fitted to such aircraft will invalidate their airworthiness certificates, preventing them being flown until the parts are replaced or revalidated.

As regards new, post-Brexit approvals, it is bound to take EASA a while to deal with the applicants, especially as they cannot actually apply until the UK is a third country. That would suggest that there is bound to be some discontinuity, with Airbus unable to continue manufacturing aircraft for an unspecified period......
Follow the link and read on.
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Old 23rd Jun 2018, 01:13
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Originally Posted by brakedwell
There are assembly plants in China and the USA.
Tanjin. Another somewhere in Trumpland. Expect the reaction there should be amusing .............
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Old 23rd Jun 2018, 06:43
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As Uncle Roger would say ...A bit late on the round-out Hoskins!

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Old 23rd Jun 2018, 07:21
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Originally Posted by highcirrus
Once again, it is left to Dr. Richard North at EU Referendum to come up with the facts of the matter in respect of the Airbus operation in UK, cutting through the prevailing ignorance and obfuscation like a hot knife through butter.

Follow the link and read on.
And for a slightly less histrionic (but equally alarming) assessment: Royal Aeronautical Society - Civil Aviation Regulation: What Future after Brexit?
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Old 23rd Jun 2018, 07:52
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Old 23rd Jun 2018, 08:00
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and Airbus are going to stop fitting American engines as they were not made in the EU.
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