The French government is coming up with a rescue package of EUR 10 billion for the aviation industry. The details of the plan will be announced on Tuesday, the French newspaper reports Les Echos Sunday.
The plan is intended to support French aircraft manufacturer Airbus, among others, the business newspaper writes. Dassault and defense company Safran will also receive support.
The aviation industry has been hit hard by declining passenger numbers due to the corona virus. The rescue package, according to the French government, is necessary to absorb the losses for these companies and to prevent job losses. The rescue package will partly consist of guarantees and investments.
The French Ministry of the Economy did not yet want to respond to the leaked plans on Sunday evening.
Earlier, French Secretary of State for Transport, Jean-Baptiste Djebbari, told news channel LCI that a billion euros may be invested to “prevent companies from being taken over by Chinese companies”. According to Djebbari, several Chinese companies see an opportunity to invest now that many French companies are struggling because of the corona virus.
The aviation industry is important to France. More than one hundred thousand people work for the various aviation companies. Airbus alone employs nearly fifty thousand people.
French government supports Air France
The French government previously decided to support Air France with 7 billion euros in loans and guarantees. Airline Air France-KLM suffered the largest net loss ever in the first quarter of the year with a loss of EUR 1.8 billion.
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