Airbus warns on jobs, says survival at stake

Airbus warns on jobs, says survival at stake

Airbus has warned staff it is bleeding cash and may have to cut jobs.

Julian Satterthwaite reports.

Airbus says its survival could be at stake.

In a letter to staff chief executive Guillaume Faury warns of potential job cuts.

He says the aerospace giant is ‘bleeding cash at unprecedented speed’.

And adds that production cuts of a third or more are not the worst-case scenario.

Output could be slashed even further.

Industry sources say a restructuring plan could be announced in the summer.

They say it may resemble the 2007 upheaval, which saw 10,000 jobs go.

Separate sources say Airbus is in talks with European governments over aid including loan guarantees.

It’s also calling for its airline customers to get help.

Carriers around the world are suffering as they’re forced to ground planes.

On Monday (April 27) Germany said there was no decision yet on aid for its largest carrier, Lufthansa.

But local rival Condor said it would get aid from the country’s federal government and the state of Hesse.

Meanwhile Norwegian Air warned it could collapse by mid-May if its proposed rescue plan isn’t approved soon by creditors and shareholders.

After years of rapid expansion it’s weighed down by debts and liabilities totalling around 8 billion dollars.

As an all-Boeing operator, its fate may not much worry Airbus.

The fate of the broader industry definitely does.