(Bloomberg, Toulouse, 27 Apr 2020) Airbus chief executive Guillaume Faury told employees that the aircraft manufacturer's cash is being lost and that it needs to cut costs quickly to adapt to the rapid contraction of the aviation industry. According to an internal letter seen by Bloomberg, Farui said in a letter to employees last Friday that airline customers faced a crisis of survival and were unable to accept new aircraft. Therefore, Airbus ’delivery plan faced challenges and the company was re-evaluating The long-term prospects of the aerospace industry. He said that the plan to cut production by one-third announced earlier this month may not reflect the worst.
"Our cash is being lost at an unprecedented rate, which may threaten the survival of our company. We must now urgently take action to reduce our cash expenditures, restore our financial balance, and eventually restore control of our destiny.
Airbus declined to comment on its internal communications.
The European manufacturer and its American competitor Boeing are struggling to cope with the plummeting demand caused by the coronary disease pandemic, which has shaken their dominating commercial aviation industry. Airbus has increased its liquidity by 15 billion euros (RM70.8 billion) to weather the crisis, and Boeing is negotiating on US aid. Both companies are preparing for layoffs while seeking to measure the depth of the recession and the speed of recovery.
**Info & Image are taken online
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