Coronavirus News Asia

‘Survival of Airbus in question if we don’t act now’

“In just a couple of weeks we have lost roughly one-third of our business. And, frankly, that’s not even the worst-case scenario we could face.”

Those are the stark words of Airbus chief executive Guillaume Faury.

The aerospace and defence firm, which employs thousands in its supply chain, sent a letter to staff laying out the problems it faces as the aviation industry is hit hard by Covid-19, The Independent reported.

In fact, Airbus has warned it is “bleeding cash at an unprecedented speed” and may not survive the coronavirus pandemic unless it cuts some of its 135,000 jobs globally.

“The survival of Airbus is in question if we don’t act now,” Faury wrote.

He added: “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.”

Airbus has seen the majority of flights cancelled as countries attempt to slow the spread of Covid-19 across the globe, The Independent reported.

That has caused a plunge in demand for aircraft with few signs of an upturn in the coming months and some analysts forecasting a long-term decline in the volume of flights after the immediate health crisis is contained.

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