Reports: Airbus CEO warning that impact of coronavirus crisis may threaten its “very existence”
Media outlets are reporting on a memo sent by Airbus Chief Executive Guillaume Faury to workers last week.
In it, Mr Faury warns the company is “bleeding cash at an unprecedented speed” as the impact of coronavirus takes its toll on the airline industry.
According to reports, the letter was sent to employees on Friday, ‘days before the company is due to give first-quarter results overshadowed by a pandemic that has left airlines struggling to survive and virtually halted jet deliveries since lockdowns in mid-March.’ Notes Reuters news agency.
Airbus has around 13,500 workers in the UK, with a large number making wings at its plant in Broughton, Flintshire.
In the letter, Mr Faury wrote: “We’re bleeding cash at an unprecedented speed, which may threaten the very existence of our company.
“We must now act urgently to reduce our cash-out, restore our financial balance and, ultimately, to regain control of our destiny.”
It’s noted that “Airbus said it did not comment on internal communications.”
The planemaker cut production rates by a third earlier this month, A320 family jets has been reduced from a rate of 60 to 40 per month, A330 rate will reduce from six to two per month and A350 production rate will drop from 10 to six per month.
“This represents a reduction of the pre-coronavirus average rates of roughly one third.
“With these new rates, Airbus preserves its ability to meet customer demand while protecting its ability to further adapt as the global market evolves.
“Our airline customers are heavily impacted by the COVID-19 crisis.
“We are actively adapting our production to their new situation and working on operational and financial mitigation measures to face reality.” The company said at the time.
Bloomberg: Airbus CEO Warns Workers It’s Bleeding Cash and Cuts Are Needed
FT (Paywalled) : Airbus is ‘bleeding cash’, says chief executive
Reuters: Airbus survival at stake without immediate action – CEO memo
The Guardian: Airbus warns it is ‘bleeding cash’ and may need more job cuts
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