Airbus has unveiled a series of emergency measures to strengthen its finances to ensure its future amid the coronavirus crisis.
The virus had seen it pause production last week in France and Spain last week while its airline customers have seen their industry grind to a halt as travel restrictions are imposed.
This morning Airbus unveiled measures to bolster its liquidity and balance sheet in response to the COVID-19 pandemic as it continues to assess the ongoing situation and the impact on its business, customers, suppliers and the industry as a whole.
The company employs around 11,000 people in the UK, with a majority at Broughton in North Wales and Filton near Bristol.
The measures include:
- Secure a new credit facility amounting to € 15 billion£13.7bn) in addition to the existing € 3 billion revolving credit facility
- Withdraw the 2019 dividend proposal of € 1.80 per share with an overall cash value of approximately € 1.4 billion; and suspend the voluntary top up in pension funding.
- Operational scenarios, including measures to minimise cash requirements, have been identified and will be activated depending on the further development of the pandemic.
The planemaker added it was withdrawing its 2020 financial guidance.
Airbus chief executive officer Guillaume Faury said: "Our first priority is protecting people while supporting efforts globally to curb the spread of the coronavirus.
"We are also safeguarding our business to protect the future of Airbus and to ensure we can return to efficient operations once the situation recovers.
"We have withdrawn our 2020 guidance due to the volatility of the situation.
"At the same time, we are committed to securing the liquidity of the Company at all times through a prudent balance sheet policy. I am convinced that Airbus and the broader aerospace sector will overcome this critical period."
Liquidity resources previously standing at approximately €20 billion, were further bolstered by converting an existing € 5 billion credit line into a new facility amounting t €15bn.
Available liquidity now amounts to approximately €30 billion.
A spokesman added: "By maintaining production, managing its resilient backlog, supporting its customers and securing financial flexibility for its operations, Airbus intends to secure business continuity for itself even in a protracted crisis. Safe and efficient air travel is a key backbone of global economic development and cultural exchange.
"Airbus therefore highly welcomes governmental efforts around the globe to stabilise this industry by supporting the financial health of its airline customers and its suppliers. Airbus continues to monitor the overall health of the industry."
