Airbus signals further production cut with job losses set to follow
Airbus signalled it was preparing a second cut to production in June, with thousands of job losses expected to follow, as the European aircraft maker plunged into net loss in the first quarter and warned that the industry would have to learn to “coexist” with the coronavirus. CE Guillaume Faury said Airbus was aiming to define “a new world by June” when longer-term demand from airlines would be clearer. Initial assessments suggested a return to normal could take three to five years. Airbus would take steps to “resize” the business for both the short and medium term, Faury said. The company employs 81,000 people in its passenger jet business compared with 64,000 at rival Boeing’s commercial division, and out of a total of 130,000. Earlier this week Faury warned staff that the company's survival could be at stake amid a global collapse in air travel. “Our industry now faces probably the gravest crisis in its history,” Faury said, as the group revealed an E8b cash outflow in the first three months, while lower aircraft deliveries contributed to consolidated net losses of E481m, against a E40m profit a year ago. "We are very aggressively adapting to the short term [situation] and assessing what is the most likely new scenario for aviation for the next years.”<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-30/general/airbus-signals-further-production-cut-with-job-losses-set-to-follow
https://portal.staralliance.com/cms/logo.png
Airbus signals further production cut with job losses set to follow
Airbus signalled it was preparing a second cut to production in June, with thousands of job losses expected to follow, as the European aircraft maker plunged into net loss in the first quarter and warned that the industry would have to learn to “coexist” with the coronavirus. CE Guillaume Faury said Airbus was aiming to define “a new world by June” when longer-term demand from airlines would be clearer. Initial assessments suggested a return to normal could take three to five years. Airbus would take steps to “resize” the business for both the short and medium term, Faury said. The company employs 81,000 people in its passenger jet business compared with 64,000 at rival Boeing’s commercial division, and out of a total of 130,000. Earlier this week Faury warned staff that the company's survival could be at stake amid a global collapse in air travel. “Our industry now faces probably the gravest crisis in its history,” Faury said, as the group revealed an E8b cash outflow in the first three months, while lower aircraft deliveries contributed to consolidated net losses of E481m, against a E40m profit a year ago. "We are very aggressively adapting to the short term [situation] and assessing what is the most likely new scenario for aviation for the next years.”<br/>
