Coronavirus infections, travel restrictions making aviation outlook worse than expected: Airbus executive
Airbus has planned to cut 15,000 jobs due to the pandemic
The outlook for the aviation industry has deteriorated again due to rising coronavirus infections and renewed travel restrictions, Airbus chief operating officer Michael Schoellhorn was quoted as saying on Saturday.
With air travel at a fraction of normal levels due to restrictions and travelers’ fears related to the pandemic, airlines have slowed deliveries of new aircraft.
Airbus has said it needs to shed 15,000 posts worldwide.
SEVEN AIRLINES CLOSE BILLIONS OF DOLLARS IN LOANS WITH TREASURY
In an interview with the Handelsblatt business daily, Schoellhorn said the situation in early autumn was worse than the company had expected in the summer, adding that the planned 15,000 job cuts would be the minimum.
As some Airbus factories were already underutilized before the pandemic, labor unions now fear that the management could decide to shut down entire locations.
BOEING ANNOUNCES 787 PRODUCTION MOVING TO SOUTH CAROLINA IN 2021
At least for Germany, Schoellhorn ruled out such a move.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“In terms of substance, I do not see any German locations at risk at the moment,” he said.
Stocks in this Article
Airbus chief executive Guillaume Faury said last month the planemaker would do its best to cut costs without resorting to compulsory redundancies, but it could not guarantee they won’t happen.
In a letter to staff in September, Faury warned that Airbus may have to carry out compulsory layoffs after air travel failed to recover from the pandemic as quickly as anticipated.
READ MORE ON FOX BUSINESS BY CLICKING HERE
Reporting by Michael Nienaber, editing by Giles Elgood