The French government announced a massive financial support program for the aerospace sector. As global travel restrictions from the coronavirus pandemic slash passenger flights and orders for brand new planes, putting tens of thousands of jobs in danger.
The 15 billion euro package (almost $17 billion), which includes some previously announced measures. Includes aid for Air France, Airbus, and major French parts suppliers through direct government investment, subsidies, loans, and loan guarantees. It conjointly includes a special fund collectively financed by the government, Airbus, and different massive manufacturers to support small suppliers.
In exchange for the support, corporations will be required to invest more in low-emission aircraft, powered by electricity, hydrogen and other means. As the government is capitalizes on the chance to reform the French aerospace sector the “cleanest in the world.”
“We are declaring a state of emergency to save our aerospace sector to allow it to be more competitive,” Bruno le Maire, the minister of finance, said at a news briefing with France’s defense and environment ministers. He said the plan would enable France to set new global standards for low-carbon aircraft, with €1.5 billion earmarked over the next 3 years on research and development to develop a carbon-neutral aircraft by 2035.
France Aerospace Sector
The aeronautical sector is one of the biggest employers in France. Providing 300,000 direct and indirect jobs in manufacturing, research, and development. A third of these would are wiped out if the government didn’t step in, Mr. LeMaire aforesaid, adding that preserving jobs was the highest priority.
Air France and Airbus have announced that they’re examining job cuts as airlines operate at a small fraction of their normal capacity and orders for planes crater. The money would come with no rules forbidding layoffs, but Mr. LeMaire called on companies receiving aid not to resort to job cuts.
France has spent hundreds of billions of euros on paid furlough programs intended to prevent mass unemployment. The measures announced would allow employers to tap government-paid furlough schemes. And come on top of an €18 billion support package for the battered tourism sector and €8 billion in aid to Renault and other French manufacturers in the auto sector.
Under the plan announced, France’s public investment bank, Bpifrance, will provide a total of around €500 million in loans to Airbus. Safran a maker of jet engines and other components; Dassault Aviation, military and commercial aircraft manufacturer; and Thales, which makes aerospace electrical systems.
Additionally, France’s defense and interior departments will speed up orders for €600 million worth of Airbus aircraft.