Shares slide as Airbus halts operations in France and Spain
17.03.2020 - Kulakov Vladimir
Airbus (AIR.PA) made its plans on suspending production in France and Spain for 4 days public. This is of course due to the coronavirus crisis that had reached even the financial sector.
To date, the pandemic had been the most serious across-the-board disruption in the company’s operations. In 1989, a strike at its British partner BAE Systems, caused it shares to falter by 7%.
“This will allow sufficient time to implement stringent health and safety conditions in terms of hygiene, cleaning and self-distancing, while improving the efficiency of operations under the new working conditions,” an Airbus representative had said in an interview.
It had been reported earlier this week that Airbus had already whipped up backup plans to slow or cease production should France be placed in total lockdown due to the virus.
French President Emmanuel Macron had mandated that stricter prohibitions on the movements of citizens so as to dampen the spread of the coronavirus.
Airbus shares slid by 7.1% as opposed to a 1% decline in France’s CAC40 .FCHI blue-chip index earlier in the morning.
France’s aerospace capital of Toulouse is home to Airbus’s bigest assembly plants could be found in Toulouse, France’s aerspace capital. Its providers are also expected to take a hit due to the crisis.
Spain, on the other hand is where Airbus builds part of the tail section are assembled. The country is the A400M military transporters are built.
Currently, all deliveries have already suffered blows. What airlines are doing is stop themselves from possession of aircraft in order to conserve cash, industry sources say.
Meanwhile, Airbus’s U.S. rival, Boeing (BA.N) in a statement disclosed that it would be deploying all its faculties in order to carry on with operations.