The executive president of Airbus has written to his employees to warn that more cuts in production are on the way, as the aeronautics giant struggles to cope with the impact of the COVID-19 pandemic.
Airbus is often used as a good example of how European nations can work together to compete on the international stage - and market analyst Guy Shone says that if such a top performer is in difficulty, it shows just how deep the crisis is for businesses across the continent.
“The company had already slashed production by more than a third,” said Shone, CEO of ExplainTheMarket.
“If you ever wanted a demonstration of the devastating impact of this pandemic on big business, we only need look back to January when the Airbus share price hit a record high after a fantastic 2019.”
He says it is difficult to fault Airbus management for the problems.
“Highly-paid company directors often get rightly criticised for a lack of planning or a lack of ideas, but when planes are literally banned from the sky, frankly they really don’t have many options,” Shone told Euronews Now.
Airbus Executive President Guillaume Faury wrote to employees warning them that the existence of the company was under threat, because of the speed with which Airbus is losing its treasury.