Airbus will reduce production by 40 percent

European Airbus SE will reduce its supply and product volumes by 40 per cent during the biennium and will lay off thousands of employees in the face of a severe production decline due to the pandemic. This was stated by Guillaume Forie, CEO of the company. The Die Welt newspaper is publishing an interview with him on Monday, June 29.

“We cannot act in isolation from the development of the situation with airlines,” he said. At the moment, many of the already produced aircraft models have not been delivered, as aircraft operators do not accept them because of the crisis.

Fori specified that all representatives of the model range will continue to gather, although “at a slower pace. As for the best-selling A320 series, it is planned to produce no more than 40 airliners per month. According to the General Director, it will be possible to talk about stabilization of the situation only at the end of 2021.

Fori did not name the exact number of jobs to be reduced, it will be known by the end of July.

The loss of almost half a billion euros

Airbus lost €481 million in the first quarter of this year due to the pandemic. The year 2019 also resulted in losses for the Group, but these were related to payments made as part of a corruption scandal. Airbus SE entered into a settlement agreement with the authorities of France, the UK and the United States for a record fine of almost 3.6 billion euros. Most of this amount – 2.1 billion euros – was received by France, another 984 million euros by the UK and 535 million euros by the United States. Within the framework of the agreements, an agreement on postponement of prosecution was concluded.

According to the British Service for the Fight against Major Financial Fraud (SFO), the decision to pay was made almost four years after the agency began an investigation into the suspected use of European concern corruption schemes in the sale of aircraft to several countries. According to London, Airbus engaged external consultants to bribe its clients to purchase its civilian and military aircraft. These included its offices in Sri Lanka, Malaysia, Indonesia, Ghana and Taiwan.