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Birmingham Post
Birmingham Post
Business
Owen Hughes

Airbus secures bailout cash as part of French Government rescue deal for aviation sector

Airbus has welcomed a French Government bailout of the crisis hit aviation industry.

France’s government announced 15 billion euros (£13.3bn) in rescue money on Tuesday for the pandemic-battered aerospace industry, including plane maker Airbus and national airline Air France.

The money includes 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 aid, companies will be required to invest more and faster in electric, hydrogen or other lower-emission aircraft, as France aims to make its aviation industry the "cleanest in the world".

This could see money secured for the Wing of the Future programme being developed at Filton near Bristol, with hopes the future manufacturing work would then be secured by Broughton in North Wales.

Airbus site at Filton, Bristol (Bristol Post)

An Airbus spokesman said: “Airbus welcomes the French 'plan de relance' and is thankful to its governmental partners who have supported the aerospace sector since the beginning of the COVID-19 crisis, either through direct support to airlines and suppliers, or through job retention schemes which we / the aerospace industry have used extensively. 

"This continued support to our ecosystem will help mitigate the critical situation that our customers and suppliers are currently facing, and help limit the social impact of the crisis in our industry by preserving expertise and know-how.

"This plan will reinforce Airbus’ action and commitment to decarbonising the aviation industry. By supporting R&T and R&D in the field of sustainable technologies, the plan will enable France and Europe to pioneer a new chapter in the history of aerospace and to accelerate the green revolution in aviation.”

Despite the support it is still widely expected that Broughton, which employed 6,000 staff before the crisis, will be hit with job cuts - with 500 Guidant agency staff already facing redundancy.

Airbus said it is cutting production by 35% to 40%, and rival Boeing announced during the virus lockdown that it would cut 10% of its 161,000-person workforce.

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