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| Source: https://commons.wikimedia.org/wiki/File:Airbus_A320-214,_Airbus_Industrie_JP7617615.jpg License URL: https://creativecommons.org/licenses/by-sa/3.0/deed.en Credit: Pedro Aragão | Photographer |
With the Coronavirus pandemic still residing all over the globe, it continues to exacerbate the aviation industry and as a consequence, aerospace giant Airbus announced on Tuesday that it would cut nearly 15,000 jobs across its global work force, the largest downsizing in the company’s history.
A 40 percent decline in commercial aircraft business activity, Airbus said it would slash around 10 percent of its jobs worldwide, with layoffs hitting operations in France, Germany, Spain and Britain.
“Airbus is facing the gravest crisis this industry has ever experienced,” Mr. Guillaume Faury (Chief Executive) said in a statement on Tuesday.
“We must ensure that we can sustain our enterprise and emerge from the crisis as a healthy, global aerospace leader, adjusting to the overwhelming challenges of our customers.”
Following the unprecedented crisis, the company said on Tuesday that it didn’t expect air travel to return to pre-virus levels before 2023 and potentially not until 2025.
Around the globe, air travel operations has literally ceased tumbling Airbus' fortunes with the rest of the aviation industry.
Since airlines are now expecting a reduced passenger demand in the future, they won't require new airplanes as well.
“We must ensure that we can sustain our enterprise and emerge from the crisis as a healthy, global aerospace leader, adjusting to the overwhelming challenges of our customers.”
Following the unprecedented crisis, the company said on Tuesday that it didn’t expect air travel to return to pre-virus levels before 2023 and potentially not until 2025.
Around the globe, air travel operations has literally ceased tumbling Airbus' fortunes with the rest of the aviation industry.
Since airlines are now expecting a reduced passenger demand in the future, they won't require new airplanes as well.
The company is shedding 5,000 of its 49,000 employees in France, 5,100 of 45,500 positions in Germany, 900 of 12,500 workers in Spain and 1,700 of 11,000 positions in Britain.
Another 1,300 will be cut at other Airbus sites around the world, and about 900 are part of a previously planned restructuring.
Moreover, Airbus had already begun cutting production of its most selling A320 single-aisle aircraft and A350 long-range aircraft in April by around a third, when quarantines to contain the pandemic were in effect across Europe.
Although the French government introduced an enormous aid program for the aviation industry in June featuring a 15 billion-euro support package (almost $17 billion) to bolster Airbus, Air France and various other French parts suppliers, the magnitude of crisis is extremely massive that Airbus is having troubles figuring out remedies.
Nevertheless, “Airbus is grateful for the government support that has enabled the company to limit these necessary adaptation measures,” Airbus said.
“However, with air traffic not expected to recover to pre-Covid levels before 2023 and potentially as late as 2025,” the statement continued, “Airbus now needs to take additional measures to reflect the post-Covid-19 industry outlook.”
What do you think what will be the future of Aviation Industry? Would love to know in the comments!
Another 1,300 will be cut at other Airbus sites around the world, and about 900 are part of a previously planned restructuring.
Moreover, Airbus had already begun cutting production of its most selling A320 single-aisle aircraft and A350 long-range aircraft in April by around a third, when quarantines to contain the pandemic were in effect across Europe.
Although the French government introduced an enormous aid program for the aviation industry in June featuring a 15 billion-euro support package (almost $17 billion) to bolster Airbus, Air France and various other French parts suppliers, the magnitude of crisis is extremely massive that Airbus is having troubles figuring out remedies.
Nevertheless, “Airbus is grateful for the government support that has enabled the company to limit these necessary adaptation measures,” Airbus said.
“However, with air traffic not expected to recover to pre-Covid levels before 2023 and potentially as late as 2025,” the statement continued, “Airbus now needs to take additional measures to reflect the post-Covid-19 industry outlook.”
What do you think what will be the future of Aviation Industry? Would love to know in the comments!
If you remember the previous incident of 9/11 and what happened right after that, it took a lot of time for the aviation industry to come back. It definitely will take time to recover.
ReplyDeleteThe pandemic crisis confronting the aviation industry is not only unprecedented but also that no one who is working in the industry has any clue on how to put the industry back on track.
That's absolutely correct Ananya! Various aircraft manufacturing companies themselves aren't sure of this uncertainty. All they can do is either switch to purely Cargo operations till the time the pandemic exists (but this involves huge costs) or else cut jobs and do minimal work.
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