Coronavirus lockdown for Airbus

Airbus, an international pioneer in the aerospace industry, has alerted its 135,000 employees that the industry may not withstand because of coronavirus lockdown if the government doesn’t take immediate action.

On Friday, the chief executive of Airbus, named Guillaume Faury, told the staff that the plane maker was passing through a disaster at an exceptional speed, and was considering all the options since it had waited to observe how severely the demand would be impacted by the outbreak of COVID-19.

This aerospace manufacturer has begun to take the benefits of the government schemes that include a lay off the programme in France in order to assist by paying around 3,000 local workers during this lockdown period. Also, it has convinced the banks to soar the line of credit by giving the airline a proper time to acclimate and reshape.

The Warning and the Havoc

Airbus is currently one of the greatest plane suppliers to commercial airlines and is considering the other financial assistance that includes – government-backed loans as well – mentioned by Reuters. But Faury warned that the team might need to design for more measures to remain floating. He said that the survival of the industry was in big question if they didn’t act at the right time.

The warning has appeared after the team declared it would greatly reduce the number of planes that it generates because of travel inhibition. The order has caused havoc on the global airlines and decreased the demand for their new aircraft.

Faury also said that within a couple of weeks, they had lost one-third of their business, and openly, that was not the worst-case scenario that they could face.

Usually, the company generates over 60 of its most famous Airbus A320 per month, but now is cutting that to only 40. Also, it will decrease the production of A330 planes to only two and A350 to only six.