Daily Management Review

Airbus Will Be 'Resized' And Could Slash Output Again: Reuters


Airbus Will Be 'Resized' And Could Slash Output Again: Reuters
Airbus needs to be “resized”, plans for which are to be set out around the end of June, the European plane maker has told senior staff. The company has said that it is also ready to slash jet production again to be able to address and meet the challenges of a possible second wave of the coronavirus crisis, said a report published by the news agency Reuters citing sources with knowledge of the matter.
The report claimed that in a briefing on Thursday on the current coronavirus pandemic related crisis, the company’s Chief Executive Guillaume Faury informed the company’s bosses that they should be ready to “face reality”. The pandemic related induced crisis in the global airline industry has forced idling of an estimated 14,000 jetliners or two thirds of the global fleet and forced aircraft manufacturers and airlines to struggle to save costs and money.
According to the report quoting sources, Faury once again repeated his earlier warning that the company might not survive if no change was implemented immediately and insisted that “radical,” “proactive” and urgent steps were the order of the day for the company’s survival.
An Airbus spokesman however said that the company had made no decisions yet. “Any further measures will be discussed first with our social partners, which means it is too early to speculate on any figures,” the spokesman added.
There have been recent speculations about thousands of job losses because of restructuring at the one of Europe’s largest industrial employers that was in line with the warning by the company’s head. Airbus has major manufacturing operations in four countries.
For the first time, a reference to a possible “restructuring plan” was made by Faury reference in his presentation. He however told the company bosses that the speculation of a loss of 10,000 job cuts because of the restructuring as reported by a British newspaper was simply speculation and imaginative reporting.
According to the Reuters report quoting people briefed after a weekly management call, “all necessary” social tools are planned to be used by Airbus in its plans to transform its structure into a simpler and more profitable one.
There were reports on Wednesday that quoted industry sources saying that Airbus was considering options for restructuring that included plans for deep job cuts even as the company has already furloughed thousands of staff. Report however also confirmed that no final decision had been taken by the company.
Following an earlier decision of Airbus to cut down on production, labour unions are reportedly preparing themselves for heavy cuts in production and administration posts.
According to Reuters, Airbus could go in for a second phase of slashing of production if there is resurgence of the virus for a second time. The company had already slashed its production by one-third for narrow body jets and a 42 per cent cut in production of wide body models.
But even if there is a slow but steady recovery from lockdowns and travel bans, then the current plans of the company will be enough, Airbus bosses have reportedly said.