Aerospace trade body ADS has called for government support as the French government announces a €15 billion bailout of aviation and aerospace.
The support includes:
- A €1.5 billion fund for research into green aircraft technology,
- A €7 billion loan package already announced for Air France-KLM
- €300 million to modernise the supply chain and an investment fund, starting at €500 million, to help the development of SMEs
- Accelerated defence procurement programmes that will support manufacturers with both civil and defence production, and their suppliers
ADS has been calling for the UK government to address five priority areas for support in the industry, including a pragmatic plan to resume flights, rapid expansion of government support for low carbon aerospace technology and pulling forward public procurement to support jobs and cashflow.
Five priorities for the aerospace industry in the pandemic
- A pragmatic and proportionate plan to resume flights and enable travel as soon as the crisis allows.
- Extension and flexibility for employment support measures that will be needed for many months in a sector that faces a long road to recovery.
- Rapid expansion of government support for low carbon aerospace technology, putting the UK at the forefront of the drive to develop and manufacture more sustainable aircraft.
- An evolution of business support measures that unlocks finance for manufacturing supply chains.
- Bringing forward public procurement programmes to support jobs and cashflow, particularly in defence and space.
ADS chief executive Paul Everitt said: “The French government has recognised the unique challenges faced by its aerospace industry from this crisis and is delivering the specific support needed to protect jobs and manufacturing capability.
“We have set out priority areas for action, including investment in the development of new green aerospace technology, a pragmatic plan to resume flights without resorting to quarantine measures, and pulling forward public defence and space projects.
“Around the world, our international competitors are acting to support airlines, manufacturers and their supply chains. Tens of thousands of UK jobs are now at risk and the UK Government must urgently put in place the measures we need to make sure our industry is not left behind.”