Airbus Will Suspend Production And Could Seek Government Assistance

Airbus has today announced it will suspend production of its products at its sites in both France and Spain. These suspensions will last for a period of four days, and are to give the planemaker time to implement ‘stringent health and safety conditions’. Sources at the planemaker have said it could seek government support, should the coronavirus situation persist for many more months.

Airbus planes at Toulouse
Airbus is suspending production and could seek government support. Photo: Airbus

Airbus to suspend production today

In a statement sent to Simple Flying, Airbus has revealed it is planning to temporarily pause production and assembly at both its French and Spanish sites. The suspension will take place for four days starting from today.

The company says that this suspension will allow it enough time to implement “stringent health and safety conditions in terms of hygiene, cleaning and self-distancing, while improving the efficiency of operations under the new working conditions.

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It says it is looking to implement home working where possible in both facilities. However, clearly in an aircraft assembly plant, there are only so many people who will be able to work from home. It says it is working with social partners to bring in the changes.

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Airbus spain factory
One of the Airbus factories in Spain. Photo: Airbus

The Spanish Airbus sites employ approximately 3,400 people, and are involved in producing the horizontal stabilizers for the entire Airbus range. Sites are also producing components of the empennage and aft fuselage for commercial aircraft and for the Eurofighter combat plane. Albacete and Getafe also employ 500 people for the rotary wing Airbus range, and its defense and space sites are responsible for some 7,700 employees.

Airbus Spain
The Spanish site produces components for the A350, among others. Photo: Airbus

Over in France is Airbus’ main Toulouse assembly plant, which builds the A350 as well as other types. At its headquarters, Airbus employs 28,000 people and, across all of France, it is responsible for more than 48,000 jobs. When its suppliers are also taken into account, that number balloons to more than 63,000 people.

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Airbus Toulouse
The huge Airbus plant at Toulouse. Photo: Airbus

The manufacturer has not released any details on whether employees will continue to be paid or not.

Could seek government support

Almost simultaneously with the announcement of the production shutdown came an exclusive from Reuters which suggests that Airbus could be seeking government support, should the coronavirus situation continue for an extended period.

Sources told the publication that, should the current situation persist for several more months, the manufacturer could struggle to make ends meet. The company has reportedly been in crisis talks yesterday with Germany’s economy ministry.

Details of the type and level of support have not been disclosed, although options are likely to include additional liquidity. This may involve solutions such as state guaranteed credits, the sources said. An Airbus spokesperson told Reuters,

“We are having regular dialogues with our home nation governments which are all non-public in nature which is why we do not comment on them.”

Airbus France
The planemaker could seek government support. Photo: Airbus

Overall

With airlines around the world beginning to request delays on their aircraft deliveries, stopping production for a short period seems a logical solution for the planemaker. However, should things persist longer, an extended shutdown could be disastrous for both Airbus and for airlines in the queue for new aircraft in the future.

State aid could certainly help Airbus weather the current storm, but with many airlines and a multitude of other industries all holding out their hands for help, the world’s governments will have a tough time choosing who to help, and who to let down.

What do you think? Let us know in the comments.

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Trent

What. A. Mess.

Anonymous

‘Airbus Will Suspend Production in 2 Countries’

Business as usual in the remaining 50.

TonytTDK

It’s likely that AIrbus will ‘only’ want to borrow huge amounts of money, not actually have money gifted to them.?? They’re currently cash-rich & profitable. but of course, they’ll burn through their cash really quickly, especially considering they’ll have no sales, so no moore cash coming in. Most of the… Read more »