icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Airbus production likely to plunge 40% over the next 2 years in aftermath of Covid-19

Airbus production likely to plunge 40% over the next 2 years in aftermath of Covid-19
European plane maker Airbus is bracing for a huge drop in production, threatening to set development back 15 years, the company’s chief executive, Guillaume Faury, says.

“For the next two years – 2020/21 – we assume that production and deliveries will be 40% lower than originally planned,” the CEO said in an interview with Die Welt newspaper.

Also on rt.com ‘Bleeding cash’: Airbus warns of deeper job cuts with ‘survival at stake’

It was earlier reported that the aviation giant is likely to see production down by a third, but that was in reference to the results the company posted at the end of 2019, Faury explained. The 40-percent cut refers to company’s initial plans for the next two years, meaning that only around 40 aircraft per month will be rolled off the production line.

Lower production also means that Airbus “will return to the level we were at about 10 to 15 years ago,” the CEO said. While the plane maker does not want to significantly change its industrial footprint, it will have to “turn every stone” at its facilities to reduce costs.

Also on rt.com ‘Tsunami of job losses’: Airlines going bust & firing HUNDREDS OF THOUSANDS of employees as pandemic crushes global travel

To cope with the fallout from the pandemic, the company will have to shed thousands of jobs. While Faury did not reveal the exact scale of the measures, promising to announce the decision in around one month, it was earlier reported that up to 15,000 jobs could be cut. That’s more than 16 percent of its 90,000-strong workforce. 

While the aviation industry will be reeling from the coronavirus crisis for a long time, Airbus expects production volume to pick up in 2023 and return to pre-crisis levels by 2025.

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.

Podcasts