The corona virus pandemic is hitting the aviation industry hard. International air traffic is collapsing, airlines are in the red and reducing their fleets. Airbus is now feeling this too – and more so than previously thought. The costs have to go down.
Aircraft manufacturer Airbus will cut production and deliveries by 40 percent and cut thousands of jobs for two years in response to the aviation crisis. This was announced by Airbus CEO Guillaume Faury in the “world”. While the company previously spoke of a 30 percent cut, it is now 40 percent because the difference to the previously planned production expansion will increase in 2020/21. Only 40 of the best-selling A320 series are to be manufactured per month.
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Many finished aircraft are currently parked, Faury said. The airlines do not initially accept them because of the slump in the market caused by the corona crisis. It will take until the end of 2021 before production and deliveries are in line again. After discussions with the employee side, Faury wants to announce the exact scope of the job cuts by the end of July. It is speculated that up to 15,000 jobs in the civil aircraft division with 90,000 employees will be affected. “It is about the necessary adjustment to the massively reduced production figures. It is about securing our future,” said Faury.
The Airbus boss does not want to rule out layoffs, especially since a second corona wave could dampen the hoped-for revival. Despite the throttling of the business, no final assembly line will be closed and all models will continue to be produced, “but at a slower pace,” said Faury. Every location is looking for ways to cut costs. “We turn every stone over.”
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