AIR.PA - Airbus SE
| Previous close | 65.63 |
| Open | 67.42 |
| Bid | 0.00 x 0 |
| Ask | 0.00 x 0 |
| Day's range | 66.94 - 68.46 |
| 52-week range | 48.12 - 139.40 |
| Volume | 2,437,574 |
| Avg. volume | 3,705,714 |
| Market cap | 53.097B |
| Beta (5Y monthly) | 1.59 |
| PE ratio (TTM) | N/A |
| EPS (TTM) | -2.42 |
| Earnings date | 30 Jul 2020 |
| Forward dividend & yield | N/A (N/A) |
| Ex-dividend date | 20 Apr 2020 |
| 1y target est | 120.82 |
- Motley Fool
Boeing to Wind Down 747 Production, a Report Says
Boeing (NYSE: BA) reportedly plans to wind down production of its massive 747 jumbo jet, the end of an era for double-decker jets as airlines focus on smaller, more fuel-efficient aircraft. The company has not yet made the decision official, but Bloomberg reported the last 747-8 will roll off Boeing's assembly line in about two years. While the timing of Boeing's decision is new, the fate of the 747 has been obvious for a while.
- Reuters
Brazil's Embraer negotiates worker buyouts as rivals downsize
The world's No. 3 planemaker Embraer SA said on Thursday it was negotiating buyouts, signaling likely cuts in its workforce due to the coronavirus pandemic that has hammered the travel industry. Larger rivals Boeing Co and Airbus have each announced plans to cut over 10,000 jobs, although the French planemaker is still negotiating due to government pressure. Embraer said it is discussing with some of its unions the possibility of offering buyouts for workers who are currently furloughed.
- Bloomberg
Boeing Quietly Pulls Plug on the 747, Closing Era of Jumbo Jets
(Bloomberg) -- Boeing Co. hasn’t told employees, but the company is pulling the plug on its hulking 747 jumbo jet, ending a half-century run for the twin-aisle pioneer.The last 747-8 will roll out of a Seattle-area factory in about two years, a decision that hasn’t been reported but can be teased out from subtle wording changes in financial statements, people familiar with the matter said.It’s a moment that aviation enthusiasts long have dreaded, signaling the end of the double-decker, four-engine leviathans that shrank the world. Airbus SE is already preparing to build the last A380 jumbo, after the final convoy of fuselage segments rumbled to its Toulouse, France, plant last month.Yet for all their popularity with travelers, the final version of the 747 and Europe’s superjumbo never caught on commercially as airlines turned to twin-engine aircraft for long-range flights. While Boeing’s hump-nosed freighters will live on, the fast-disappearing A380 risks going down as an epic dud.The grand jetliners also face another indignity: The Covid-19 pandemic threatens to leave their manufacturers scrounging to find buyers for the last jumbos built.“As it turned out, the number of routes for which you need an ultralarge aircraft are incredibly few,” said Sash Tusa, an analyst with Agency Partners.Boeing’s “Queen of the Skies” debuted in 1970, an audacious bet that transformed travel but almost bankrupted the company. Passenger versions boasted a spiral staircase to a luxurious upstairs lounge. Freighter models featured a hinged nose that flipped open to load everything from cars to oil-drilling gear. The 747 went on to rack up 1,571 orders over the decades -- second among wide-body jets only to Boeing’s 777.The millennial-era A380 could haul as many as 853 travelers and reflected Europe’s lofty aerospace ambition. But by the time it arrived in 2007, airlines were already tilting to smaller planes that burned less fuel.Boeing correctly anticipated the trend with the twin-engine 777 and the 787 Dreamliner. With prodding from Joe Sutter, a famed engineer who’d led the original 747 program, the planemaker decided to develop a relatively inexpensive upgrade of the four-engine plane to steal sales from the A380.The strategy would have been successful, had the 747-8 not been bedeviled by early mismanagement, blowing its budget and deadlines, said Richard Aboulafia, an analyst with Teal Group.The Chicago-based company has lost about $40 million for each 747 since 2016, when it slowed production to a trickle, making just six jets a year, Jefferies analyst Sheila Kahyaoglu estimated. All told, Boeing has recorded $4.2 billion in accounting charges for the 747-8, which has been kept alive as a freighter. The 747 notched its last order as a passenger jet in 2017 -- for Air Force One.Boeing’s jumbo freighters will continue to ply the skies for decades after production stops, said Aboulafia. But he’s dropped the passenger-only A380 from his forecasts.“It’s going to have the shortest lifespan of any type in history,” Aboulafia predicted. “I’d be shocked if there’s still an A380 in service in 2030.”Airbus disagreed. “We will see the A380 continue flying for many years,” the planemaker said by email.But the coronavirus pandemic is hastening the end of the behemoths as people movers. With travel not expected to fully recover until mid-decade, airlines are culling aging jetliners and four-engine jumbos from fleets to limit spending. About 91% of 747s and 97% of A380s are parked, Credit Suisse estimated last month.Air France, Lufthansa, and Qatar Airways are among carriers weighing whether to ground their A380s permanently or are preparing to do so. Airbus has just nine of the planes still be delivered. All but one of them are tagged for Emirates Airline, the largest A380 operator, which is considering whether to scrap its final five on order.The A380 has cost Airbus about 20 billion euros ($23 billion), breaking even or generating profits for only a three-year stretch starting in 2015, Agency Partners estimated. With just 251 aircraft sold over the program’s life, the planemaker never achieved the efficiency that comes with manufacturing at large scale, Tusa said.Boeing, meanwhile, had been preparing for years to wind down the 747 program, and its sales team has been sounding out customer interest in a potential freighter version of the 777X. If such a model goes forward, it would bolster flagging sales of the largest twin-engine aircraft in the company’s lineup.The telling omen that Boeing had written the iconic 747’s final chapter came in financial filings earlier this year. Gone was any indication that the company would continue to “evaluate the viability” of the program, standard phrasing it had previously used.“At a build rate of half an airplane per month, the 747-8 program has more than two years of production ahead of it in order to fulfill our current customer commitments. We will continue to make the right decisions to keep the production line healthy and meet customer needs,” Boeing said for this story.The planemaker has just 15 unfilled orders for the 747 -- all freighters. A dozen of them are headed to United Parcel Service Inc., and the fate of the rest is unclear, part of a dispute with Russia’s Volga-Dnepr Group.Boeing has approached the U.S. courier and other potential customers about taking the three planes, people familiar with the matter said. The planemaker and UPS declined to comment. Volga-Dnepr didn’t respond to requests for comment.UPS in May agreed to take a 747 that Volga had ordered. “Working with Boeing, we saw an opportunity to bring another 747-8 online this year in time for our peak shipping season,” the courier said.Ultimately, Boeing’s decision on the 747 boiled down to resource allocation, said George Dimitroff, who leads valuations at aviation consultant Cirium. Could the assembly line floor space be better used on another airplane, such as the 767, which shares a bay in Boeing’s Everett, Washington, factory?“If you’re building half an airplane a month, it’s probably not your most profitable program,” Dimitroff said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Reuters
Unions urge Airbus to slow down restructuring plans
French unions and regional leaders urged Airbus on Thursday to step back from a Big Bang restructuring as workers across Europe waited for a factory-by-factory breakdown of 15,000 job cuts brought about by the coronavirus pandemic. The battle over the scale and timing of cuts heated up as Air France staff also waited for confirmation of 7,500 expected cuts in French aviation's worst week for decades. Airbus unveiled the cuts on Tuesday, with France and Germany bearing the brunt of the restructuring with around 5,000 cuts each, while Britain is set to lose 1,700 jobs and Spain 900.
- Reuters
UK wants to be first with carbon zero Atlantic commercial plane
The United Kingdom wants to be the first to develop a commercial jet plane to fly across the Atlantic Ocean without any carbon emissions, Transport Secretary Grant Shapps said on Thursday. Prime Minister Boris Johnson surprised some in the aviation sector on Tuesday when he promised the United Kingdom would produce the world’s first zero emission long haul passenger plane. "We've set up the JetZero council specifically to take forward the objective of being the first country to develop a jet commercial airliner to fly zero carbon across the Atlantic," Shapps told the British parliament.
- Yahoo Finance UK
Coronavirus: UK aerospace industry faces ‘very bleak future’ without government aid
Sector that generates £9bn every year could see vast job losses without aid packages similar to those introduced in France and Germany, Unite warned.
- Reuters
Spain working with Airbus to keep jobs in wake of restructuring
Spain is working with Airbus to find ways for the airplane maker to keep jobs in the country, Prime Minister Pedro Sanchez said on Wednesday, a day after it announced many layoffs as part of a global restructuring. Speaking to reporters after the reopening of Spain's border with Portugal, Sanchez highlighted the country's role in the founding of Airbus and said he hoped to find solutions to retain some jobs. "We are working with Airbus to find joint lines of work to keep jobs in Spain," Sanchez said, without elaborating.
- Bloomberg
Things Are Terrible at Airbus, But at Least It’s Not Boeing
(Bloomberg Opinion) -- The ink has barely dried on Airbus SE’s announcement that it will cut 15,000 jobs, or about 11% of the workforce, and the French finance minister is already criticizing the cuts as “excessive.” Pushback from governments and trade unions is inevitable when big industrial companies announce layoffs. That’s especially true at Airbus, which has assembly lines on three continents and counts France, Germany and Spain as anchor shareholders.Redundancies are never pleasant and they’re a particular blow in aerospace because employees are usually highly skilled and well paid. Unite, a British trade union, said the loss of 1,700 Airbus jobs in the U.K. was an act of “industrial vandalism.” Airbus hasn’t cut this deep before, but the workforce is fortunate not to suffer even more. The impact of Covid-19 on Airbus’s aircraft-making business has been devastating. In 2020 and 2021, it will probably produce 40% fewer planes than planned. The company has no choice but to scale back. With the coronavirus now ripping through the southern U.S. again, any hope that American and transatlantic air travel would swiftly return to normal has been shot down. The aviation recovery will probably be slow and prone to setbacks. Airlines are cutting their staff numbers too — British Airways, for example, by 30% — and some may not survive the crisis.Instead of attacking the passenger jet manufacturer, Europe’s governments should be grateful that Airbus’s finances and order book were in decent shape before Covid-19 appeared. Its problems are mild by comparison with arch-rival Boeing Co., which is reeling from the grounding of the 737 Max. The American company announced 16,000 job cuts in April, and its balance sheet is in a far worse state.Of course, it stings that most of Airbus’s job cuts will be in France and Germany. Both countries have pledged billions of euros of support for the aviation sector.But at least European states haven’t had to directly recapitalize Airbus. At the end of March the manufacturer had 18 billion euros ($20.2 billion) of gross cash, plus a similar volume of available credit lines. It will burn though lots of money this year — in part because airlines either can’t or won’t take delivery of planes — but Airbus will end the year with only “modest” net indebtedness, according to Standard & Poor’s, which rates the company’s debt a pretty respectable A, albeit with a negative outlook.Contrast that with Boeing, which had $9 billion in negative shareholder equity at the end of March, and $39 billion of indebtedness. Boeing avoided a U.S. government bailout only by issuing a further $25 billion of bonds in April. It may consume an astonishing $16 billion of cash this year, according to a consensus of analyst forecasts compiled by Bloomberg, and its debt is rated only one notch above junk.While Airbus’s comparatively solid finances will help it withstand this unprecedented crisis, they shouldn’t be used as a justification for not facing reality. Using government subsidies to furlough employees only makes sense if you think demand will quickly bounce back. But pre-crisis levels of air traffic probably won’t be reached again until 2023, according to Airbus. Even that might be an optimistic assumption. Airbus revenue won’t fully recover until 2024, analysts estimate.The equity markets have certainly taken a dimmer view of Airbus of late, after it scrapped its 2019 dividend. The company was capitalized at almost 110 billion euros as recently as January, when its assembly lines could barely keep up with demand. Now, the market value has shrunk to less than 50 billion euros.Boeing’s shares, by contrast, have gained more than 90% since their March nadir because of hopes that the 737 Max will return to service. Massive stimulus from the Federal Reserve has helped too. Airbus shares have recovered only 28% during that period. Still, an over-inflated American stock market is one thing, the comfort of the European company’s cash pile is quite another.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Reuters
Airbus hints at compromise as governments fret over job cuts
Europe's Airbus left the door open on Wednesday to scaling back its planned 15,000 job cuts in exchange for government-funded labour schemes and research, as its coronavirus restructuring stoked political and union alarm. Europe's largest aerospace group plans to cut 11% of its global workforce, after a 40% slump in its 55 billion euro ($61.8 billion) jet business, sparking anxiety about compulsory redundancies in France, Germany, Spain and Britain. France urged Airbus to make as few forced layoffs as possible, while French and German unions said compulsory cuts at the European planemaker were a "red line".
- Yahoo Finance UK
Coronavirus: Ryanair pilots agree 20% pay cut amid job loss warnings
Airline had warned that thousands of jobs would be slashed unless staff agreed to pay cuts.
BloombergAirbus Plans 15,000 Job Cuts as Virus Hits Demand for Planes
Jul.01 -- Airbus SE embarked on the most extensive restructuring in its history, setting out plans to cut 15,000 civil-aerospace jobs worldwide as it attempts to steer through the crisis brought on by the coronavirus pandemic. The European manufacturer will eliminate more than 10,000 positions across its main bases in Germany and France, part of an 11% reduction in global headcount, according to a statement on Tuesday. Caroline Connan reports on "Bloomberg Markets: European Open."
- Yahoo Finance UK
Coronavirus: Airbus to slash 15,000 jobs from global workforce
Airbus employs around 13,500 people in the UK, out of a global workforce of 135,000.
- EQS Group
Airbus plans to further adapt to COVID-19 environment
Airbus SE / Key word(s): Miscellaneous Airbus plans to further adapt to COVID-19 environment 30-Jun-2020 / 19:26 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. * * *Ad-hoc release, 30 June 2020Airbus plans to further adapt to COVID-19 environment * New measures contribute to safeguarding the Company's future * Necessary reduction of approximately 15,000 positions across Airbus' global workforce * Information and consultation process with social partners launched, agreements targeted in 2020Airbus (stock exchange symbol: AIR) has announced plans to adapt its global workforce and resize its commercial aircraft activity in response to the COVID-19 crisis. This adaptation is expected to result in a reduction of around 15,000 positions no later than summer 2021. The information and consultation process with social partners has begun with a view to reaching agreements for implementation starting in autumn 2020. The commercial aircraft business activity has dropped by close to 40% in recent months as the industry faces an unprecedented crisis. Commercial aircraft production rates have been adapted accordingly. Airbus is grateful for the government support that has enabled the Company to limit these necessary adaptation measures. However with air traffic not expected to recover to pre-COVID levels before 2023 and potentially as late as 2025, Airbus now needs to take additional measures to reflect the post COVID-19 industry outlook.Following the in-depth analysis of customer demand that has taken place over recent months, Airbus anticipates the need to adapt its global workforce due to COVID-19 by approximately:\- 5,000 positions in France\- 5,100 positions in Germany\- 900 positions in Spain\- 1,700 positions in the UK\- 1,300 positions at Airbus' other worldwide sitesThese figures include the Airbus subsidiaries Stelia in France and Premium AEROTEC in Germany. However, they do not include approximately 900 positions stemming from a pre-COVID-19 identified need to restructure Premium AEROTEC in Germany, which will now be implemented within the frame of this global adaptation plan.The details of this COVID-19 adaptation plan need to be finalised with social partners.While compulsory actions cannot be ruled out at this stage, Airbus will work with its social partners to limit the impact of this plan by relying on all available social measures, including voluntary departures, early retirement, and long term partial unemployment schemes where appropriate."Airbus is facing the gravest crisis this industry has ever experienced," said Airbus CEO Guillaume Faury. "The measures we have taken so far have enabled us to absorb the initial shock of this global pandemic. Now, 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. To confront that reality, we must now adopt more far-reaching measures. Our management team and our Board of Directors are fully committed to limiting the social impact of this adaptation. We thank our governmental partners as they help us preserve our expertise and know-how as much as possible and have played an important role in limiting the social impact of this crisis in our industry. The Airbus teams and their skills and competences will enable us to pursue our ambition to pioneer a sustainable future for aerospace."* * * For professional broadcasters: Airbus executives video statements downloadable below:\- Guillaume Faury, Airbus CEO (in English)\- Philippe Mhun, EVP Programmes & Services (in French)\- Michael Schoellhorn, Airbus COO (in German)\- Alberto Gutiérrez, President Airbus Spain (in Spanish) About Airbus Airbus is a global leader in aeronautics, space and related services. In 2019, it generated revenues of € 70 billion and employed a workforce of around 135,000. Airbus offers the most comprehensive range of passenger airliners. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world's leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide.Contacts for the media Guillaume Steuer guillaume.steuer@airbus.com +33 6 73 82 11 68 Stefan Schaffrath stefan.schaffrath@airbus.com +33 6 16 09 55 92 Justin Dubon justin.dubon@airbus.com +33 6 749 749 51 Matthieu Duvelleroy matthieu.duvelleroy@airbus.com +33 6 29 43 15 64 Clay McConnell (US) clay.mcconnell@airbus.com +1 571 278 0612 Sean Lee (Asia) sean.lee@airbus.com +65 9654 5761This and other press releases and high resolution photos are available on: AirbusMedia * * *30-Jun-2020 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de * * * Language: English Company: Airbus SE P.O. Box 32008 2303 DA Leiden Netherlands Phone: 00 800 00 02 2002 Fax: +49 (0)89 607 - 26481 Internet: www.airbusgroup.com ISIN: NL0000235190 WKN: 938914 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1083055 End of Announcement DGAP News Service
- Reuters
Airbus set to announce thousands of job cuts
Airbus is set to announce on Tuesday a restructuring involving thousands of job cuts as it deals with the fallout from impact of the coronavirus crisis, union officials said, with some sources predicting some 15,000 jobs are to go. Airbus, which has said it will announce fresh action by the end of July after introducing temporary furloughs, declined to comment. Industry sources have predicted between 14,000 and 20,000 job cuts, though it remains unclear how much will be achieved through early retirements in Airbus's 135,000-strong workforce, heavily populated by veterans of its original A320 development.
- Reuters
Airbus to cut 15,000 jobs to survive coronavirus crisis
TOULOUSE, France/PARIS (Reuters) - Airbus <AIR.PA> is cutting 15,000 jobs within a year, including 900 already earmarked in Germany, saying its future is at stake after the coronavirus outbreak paralysed air travel. Airbus is moving swiftly to counter damage caused by a 40% slump in its 55-billion-euro ($61.8 billion) jet business following the pandemic, balancing belt-tightening against aid offered by European governments and future priorities. Europe's biggest aerospace group said it would cut 5,000 posts in France, 5,100 in Germany, 900 in Spain, 1,700 in the UK, and 1,300 elsewhere by mid-2021, for a core total of 14,000.
- Reuters
Airbus slows services push amid coronavirus crisis
Airbus has postponed its target of building a $10 billion services business amid the coronavirus crisis, but is sticking with a strategy of supporting airline operations, a senior executive said as the company heads for a broader shake-up. Airbus has said it wants to boost services revenues to $10 billion by 2030 compared with over $4 billion in 2019, mirroring a push by rival Boeing. Industry sources say Airbus has effectively dropped the goal and is restructuring its services business, re-allocating some staff elsewhere.
- Bloomberg
Indian Telecom Tycoon Bids for SoftBank-Backed OneWeb
(Bloomberg) -- Indian telecommunications tycoon Sunil Mittal has submitted a bid for OneWeb, the bankrupt satellite firm whose investors include SoftBank Group Corp., people with knowledge of the matter said.An arm of Mittal’s Bharti Enterprises Ltd. conglomerate made an offer for London-based OneWeb with backing from the U.K. government, according to the people, who asked not to be identified because the information is private. The OneWeb sale has also attracted initial interest from Canada’s Telesat, the people said.The U.K. government plans to commit around $500 million to OneWeb alongside other investors as part of the company’s Chapter 11 bankruptcy proceedings, a person with knowledge of the matter said last week. OneWeb has said that bids were due Friday.Part of the U.K.’s interest in supporting OneWeb is to form the basis for a new national navigation system, after the European Union froze Britain out of the most secure elements of the bloc’s project, called Galileo. Prime Minister Boris Johnson is trying to attract fresh foreign investment from countries including India, China and the U.S. to help offset the U.K.’s departure from the EU.OneWeb makes so-called low-Earth orbit satellites that provide high-speed communications. It faces competition from Elon Musk’s SpaceX Starlink project and Jeff Bezos’s Amazon-linked Project Kuiper, as well as from incumbents such as Inmarsat, Intelsat SA and Eutelsat Communications SA.Pandemic BlowThe company has raised about $3.3 billion in debt and equity financing from shareholders including SoftBank, Airbus SE and Qualcomm Inc. since its inception, according to filings. In a March 27 bankruptcy announcement, OneWeb cited the financial effects and market turbulence related to Covid-19 pandemic for its failure to obtain financing it needed.Read more: U.K. Set to Bid About $500m for Stake in Satellite Firm OneWebMittal’s group controls Bharti Airtel Ltd., India’s second-biggest wireless operator. The carrier is the biggest shareholder of publicly-traded tower owner Bharti Infratel Ltd.Shares of Bharti Airtel gained as much as 1.7% in early trading Tuesday and were up 0.3% at 1:11 p.m. in Mumbai, giving the company a market value of about $41 billion. Bharti Infratel shares rose 1.8%.No final decisions have been made, and other suitors could still emerge for OneWeb, the people said. A representative for Bharti couldn’t immediately comment, while spokespeople for Telesat and OneWeb declined to comment.A representative for the U.K.’s Department for Business, Energy & Industrial Strategy declined to comment on any bid.“We have made clear our ambitions for space and are developing a new National Space Strategy to bring long-term strategic and commercial benefits to the U.K.,” the government spokesperson said in an emailed statement. “We are in regular discussions with the space industry as part of this work.”Bharti Enterprises participated in a 2015 funding round for OneWeb alongside other investors including Qualcomm Inc., Richard Branson’s Virgin Group and Airbus. OneWeb formed an alliance in 2018 with partners including Delta Air Lines Inc., Bharti Airtel and Sprint Corp. to allow wireless carriers to extend their service into airplane cabins.(Updates with Telesat interest in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Bloomberg
Airbus Braces for Job Cuts on Prolonged Virus Downturn
(Bloomberg) -- Airbus SE is meeting with European labor unions this week as it prepares to slash thousands of jobs and scale back its planemaking operation for a prolonged downturn, according to people familiar with the matter.Faced with a slump that could last until 2025, Airbus may not be able to avoid mandatory job cuts, one of the people said. Staff reductions will stretch beyond the commercial aviation division hit hard by the coronavirus, with the helicopter and defense units also set to lose headcount, said the person, who asked not to be named discussing confidential matters.The Toulouse, France-based planemaker has so far prioritized voluntary measures such as early retirement as it fine-tunes a plan to cut costs. It’s also exploring ideas like shorter working weeks to ease the impact on employees and minimize backlash in its home countries of France and Germany, which have committed billions to aid aviation. These measures alone aren’t likely to generate the cash savings required for an extended period of lower demand, the person said.Airbus must “limit” job cuts as much as possible, a French minister said Tuesday. Junior economy minister Agnes Pannier-Runacher told BFM Business that she understood an adjustment was necessary with the drop in orders, but that the French aerospace plan was designed to help the industry through the crisis.The aircraft manufacturer has seen demand for its planes dry up along with global travel this year after the virus spread across the globe. Chief Executive Officer Guillaume Faury has been warning for weeks that urgent action is needed to stem cash outflows.Faury told German newspaper Die Welt in an interview Monday that the company is braced for production and deliveries about 40% lower for the next two years and the solutions available to help mitigate the impact “will not be enough.”The 40% figure is consistent with targets first announced in April, and reflects the shortfall measured against pre-coronavirus plans to increase output levels through 2023.Lower OutputShares in the Toulouse, France-based plane maker gained 3.3% to 65.43 euros as of 9:18 a.m. in Paris, paring the drop this year to 50%.In April, Airbus said it would reduce output of its mainstay A320 series narrow-body by one-third, with larger cutbacks on its wide-body A330 and A350 aircraft.The company is meeting with unions this week, the people said. The impact on jobs will be worse than under a prior restructuring called Power8 more than a decade ago, when the company cut 10,000 posts, one of the people said.Airbus unions will meet with the company on Tuesday and Wednesday after holding their own discussions Monday.An Airbus spokesman declined to comment on the agenda of internal meetings.(Updates with French minister comments, share price from 4th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Yahoo Finance UK
What to Watch: Lookers £19m accounting woes, record gilt sale, stocks rise
A daily overview of the top business, market, and economic stories you should be watching today in the UK, Europe, and around the world.
- Yahoo Finance UK
Coronavirus: Airbus expects 40% drop in production over next two years
European aircraft manufacturer says impact of coronavirus would be felt for years.
- Reuters
Airbus close to slashing jobs as CEO confirms 40% output drop
Airbus <AIR.PA> was finalising an imminent restructuring plan involving thousands of job cuts on Monday as its chief executive confirmed plans to hold output down by 40% for two years. Airbus, whose shares rose 2.4%, declined to comment. The company is expected to move swiftly to counter damage caused by a 40% drop in its 55 billion euro ($61.8 billion) jet business following the pandemic, balancing the belt-tightening against aid being offered by European governments and future priorities.
- Reuters
Airbus fine-tunes job cuts as CEO confirms 40% output drop
Airbus was finalising an imminent restructuring plan expected to include thousands of job cuts on Monday as its chief executive confirmed plans to hold output down by 40% for two years. Europe's largest planemaker could set out its largest ever reorganisation plan by Wednesday, union sources said ahead of meetings early this week with Airbus, which declined to comment. Airbus needs to move swiftly to counter the damage caused by a drop of some 40% in its 55-billion-euro jetliner business during the coronavirus crisis, industry sources say.
- Investing.com
Stocks - Europe Lower Amid Worries Over Virus Resurgence
European stock markets are set to open lower Monday, with investors displaying a cautious tone as the ever-rising number of Covid-19 cases threatens the global economic recovery. At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.8% lower. France's CAC 40 futures were down 0.8%, while the FTSE 100 futures contract in the U.K. fell 0.5%.
- Zacks
Air Lease (AL) Inks Second Lease Agreement With HiSky Moldova
The second Airbus A320-200 to be leased by Air Lease (AL) TO HiSky Moldova
- Reuters
EU is 'very concerned' by delayed WTO decision on tariffs vs U.S
A delay to a decision on whether the European Union can impose tariffs against the United States over subsidies for Boeing is unjustified and harms the bloc's right to retaliate, the European Commission said on Thursday. The World Trade Organization has pushed back the decision, originally expected in May or June, to at least September due to the impact that recent coronavirus lockdowns are having on its work, people familiar with the case told Reuters on Wednesday. "The EU is very concerned about this and we have communicated this to the WTO," a Commission spokesman said.
