France’s aerospace industry to get $17b in government support

The French government announced an enormous financial support program on Tuesday for its flagship aviation industry as global travel restrictions from the coronavirus pandemic slash passenger flights and orders for new planes, putting tens of thousands of jobs at risk. The E15b package (almost $17b), which includes some previously announced measures, includes aid for Air France, Airbus and major French parts suppliers through direct government investment, subsidies, loans and loan guarantees. It also includes a special fund jointly financed by the government, Airbus and other big manufacturers to support small suppliers. In exchange for the support, companies will be required to invest more in low-emission aircraft, powered by electricity, hydrogen and other means, as the government capitalizes on the opportunity to make the French aviation industry the “cleanest in the world.” “We are declaring a state of emergency to save our aeronautical industry to allow it to be more competitive,” Bruno Le Maire, the finance minister, said at a news briefing with France’s defense and environment ministers. He said the plan would allow France to set new global standards for low-carbon aircraft, with E1.5b earmarked over the next three years on research and development to develop a carbon-neutral aircraft by 2035.<br/>