Saturday, 20 October, 2018

Airbus production cuts puts 3700 jobs at risk

Airbus's A380 assembly site at Blagnac near Toulouse                  AFP Airbus's A380 assembly site at Blagnac near Toulouse AFP
Nellie Chapman | 08 March, 2018, 10:12

Airbus estimates that its proposed reduction in A380 and A400M production rates will affect up to 3,700 personnel across its four home nations.

The cut, presented to Airbus's European Works Council on Wednesday, will mean a drop in A380 production to six per year from 2020.

The A380 has struggled to secure the orders that Airbus anticipated, despite some recent success through a major order by Emirates.

The A400M program, meanwhile, has been beset by glitches and cost overruns. Airbus said that it is now entering into a formal process with staff representatives at European and national levels to analyze potential implications for the company's workforce and to start joint mitigation efforts. Airbus said it will pursue export opportunities beyond this level. The manufacture of the A400M military transport will be reduced to eight planes annually.

It insisted last night that there would be no redundancies and that jobs would be shed through the non-replacement of retirees, the redeployment of staff and a cut in the use of temporary workers.

Airbus said in a statement the at-risk jobs are located in Britain, France, Germany and Spain. He said redeployment to other programmes would be hard in Spain and Britain. Airbus hopes the Emirates agreement will spur orders from other airlines, but some will be hard to win over. "It is very heavy".

IAG IAG.L, which operates British Airways, Iberia, Vueling and Aer Lingus, said on Tuesday that it would consider buying more A380s if the aircraft was cheaper.