Posted: Mon 27th Apr 2020

Reports: Airbus CEO warning that impact of coronavirus crisis may threaten its “very existence”

North Wales news and information
This article is old - Published: Monday, Apr 27th, 2020

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. ‌​‌‌​​​‌‍‌​‌​‌​​​

Press coverage:

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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