EuroWire September 2020

Transatlantic cable

for the industry since 2004, and represent the largest effort to support a key export sector. Current proposals require four manufacturers, Airbus, Dassault Aviation, the engine maker Safran, and avionics firm Thales, to contribute a fifth of the fund’s billion-euro target, but no final sum has been agreed. A source confirmed: “It’s being discussed; it isn’t done yet.” Funds could be used to make investments in small firms or to support consolidation among small suppliers, though at least one of the big industrial companies is said to be reluctant to encourage mergers in the supply chain, saying, “This is not its role.” Private equity fund Tikehau Capital and France’s BPI state bank are also in the frame as possible contributors. Bombardier to cut jobs The Canadian business jet maker Bombardier Inc announced in early June that it will cut 2,500 jobs at its aviation unit, and take a related charge of $40 million. In its statement, the company said, “Now with business jet deliveries, industry-wide, [forecast] to be down by approximately 30 per cent year-over-year due to the pandemic, Bombardier must adjust its operations and workforce to ensure that it emerges from the current crisis on solid footing.”

Emirates has been the largest buyer of the Airbus A380, and its decision in 2019 to cut its orders for the jet led the French manufacturer to announce it would take the A380 out of production: many industry analysts called it “the end of an era”. However, the airline is said to be “looking” at an order for 50 Airbus A350s and orders with Boeing for 126 of its 777x jets and 30 of the 787. Sir Timothy, who was part of Emirates’ founding team in 1985, retired as president in June to become an adviser to the UAE government-owned airline. French government and industry officials are said to be negotiating a €1 billion privately led investment fund for small aerospace suppliers, in which major manufacturers could invest €200 million euros. French government-backed plans to help the automobile sector, and comes as a response to the aerospace industry’s calls for funding to help suppliers through the coronavirus crisis. Aircraft production has all but stopped since the pandemic put an end to most travel, and many suppliers are in urgent need of cash. If adopted, Aerofund 4 will follow three similar packages The scheme would be similar to earlier French aerospace suppliers in negotiations for €1 billion backing

Gill Watson Features Editor

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September 2020