“THE BLOOD” OF AIRBUS: CONCERN IS GETTING READY FOR A POSSIBLE BANKRUPTCY

One can only sympathize with the head of “Airbus” Guillaume Faury. The leading manager of the concern was forced to write to the employees, informing them about unpleasant news of the enormous losses. According to Faury, they are the main threat to the future existence of the aerospace brand. In fact, this means that the management will take unpopular measures in order not to go bankrupt.

As Faury noted, it is necessary to take the active steps immediately. The main goal now is to reduce the expenses and restore financial balance. Will the company be able to cope with the situation and, as it is noted by its head, to regain control over its own destiny?

The picture of the day turned out to be really bleak for the “Airbus”. Given that the European company has about 135 thousand employees, the warning about the possibility of a significant reduction is definitely a piece of unpleasant news, to put it mildly.

The financial cushion, even of such a big company as the “Airbus” is, made the manager say that the company was “bleeding”, losing money.

The fact is that the aircraft stopped flying due to the COVID-19 pandemic, and the carriers began to abandon the contracts for the purchase of new aircraft, the corporation began to rapidly lose its assets. The management tried to cope with this by sending 3,000 employees on vacation – the funds for the workers’ salaries compensation were allocated from the budget of French.

However, these measures were not enough and in the next few days, about 10 thousand employees of the company might be sent homes as well. Will the employees receive any compensation? Will they be able to return to work after the massive restructuring is over? No one is able to answer these questions.

Previously, the “Airbus” has already announced a reduction in the production of its aircraft. The company intends to reduce the production of both narrow-body and wide-body vessels.

The production of A320 planes is planned to be reduced by 30% and there will be no more than 40 aircraft produced per month. The production of A350 and A330 aircraft is planned to be reduced by 40%.

In late March, the factories of “Airbus” in Spain and France were closed for almost a week so that the premises were disinfected and prepared for the sanitary requirements of the current situation of a pandemic control. At the same time, the shares of the concern have already started to go down. In one day, April 27, the price of them fell by 2%, and taking into consideration the period from the beginning of 2020, the price of the shares fell by 61%.