July 14, 2020
AliExpress WW
'Secure Our Future' - Airbus CEO Warns Of Production And Job Cuts 

‘Secure Our Future’ – Airbus CEO Warns Of Production And Job Cuts 

AliExpress WW

“Over the next two years, 2020/21, we expect production and deliveries to be 40% lower than originally planned,” said Gilom Fori, Airbus Executive Director, in an interview with the German National Daily Newspaper. Die weltOn Monday, adding that by 2025 production will normalize.

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Fori said the outbreak of COVID-19 led Airbus to lose 40% of its civil aviation business. He said that instead of planning to increase the production of commercial aircraft, it is necessary to reduce production and labor, as aviation industry is experiencing the worst crisis in its history,

Airbus previously announced that it had reduced productivity by a third on average. we noted in March, the European aerospace giant was expecting production cuts for its A330 amid falling demand for its most popular wide-body airliner.

In April, Fori told employees in a note that Reuters noted that the company was “bleeding” and needed to cut costs in order to withstand the coronavirus pandemic storm.

“In April / May, we were 80% below our plan. In April, only 14 aircraft were delivered instead of 75, ”Fori said. “On the one hand, due to travel restrictions, airline crews could not accept the delivery of their aircraft, on the other hand, the airlines did not have financial security, but it is gradually improving.”

Industry sources reported Reuters It is expected that a 40% reduction in production in the “one-pass equivalent” will result in layoffs and lower productivity in the manufacture of jet aircraft — the announcement may be due in early July.

Sources said that between 14,000 and 20,000 jobs could be eliminated – they also said that the plan could be made public as early as Wednesday when Airbus called an emergency meeting with its union.

“This is a cruel fact, but we must do it. We are talking about the necessary adaptation to a huge drop in production. It’s about securing our future, ”said Fory Die Welt, vaguely referring to the details of the restructuring.

Forey does not expect recovery of production until 2025:

“After studying the market and discussing with airlines, we assume that the previous volume will return no later than 2025. We expect that the demand for single-pass aircraft will grow faster than for large-scale models. We expect the A320 family to gradually increase production from 2022/2023. We expect that demand for wide-body aircraft will be low over the next five years, as there was already an oversupply market before the crisis. expected for the Boeing 777 and Airbus A330, but it’s still far from it, “he said.

Airbus shares have already recovered by 61.8% – Fib from the low of 2009 (7.19 euros) to the maximum (139.40 euros) observed in January.

Airbus CEO confirmed similar A warning that Boeing CEO Dave Calhoun made in April, indicating that it would take 2-3 years for airline growth to return to crown levels, adding that long-term growth trends could recover even longer.

“Based on what we know now, we expect it to take two to three years for the journey to return to the levels of 2019, and a few more years after that, to return to long-term growth in the industry,” he said.

For comparison: the world’s leading jet aircraft manufacturers do not see a recovery either in business or in air transportation for several years – the aviation industry provides 65.5 million jobs worldwide and 2.7 trillion. Dollars (3.6%) of world GDP.

Airbus and Boeing in landfills destroyed air travel and the travel and tourism industry was destroyed – don’t expect V-shaped recovery in the global economy soon,

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