Aviation sector : the massive support of the government - The Point

After the tourism and the automotive industry, it is the turn of the aviation sector to receive the support of the government. It must show Tuesday, June 9, a b

Aviation sector : the massive support of the government - The Point

After the tourism and the automotive industry, it is the turn of the aviation sector to receive the support of the government. It must show Tuesday, June 9, a broad-based plan, the amount of which is expected to be worth several billion euros. Five ministers Bruno Le Maire and Agnès Pannier Runacher for the Economy, Florence Parly for the Armed forces, Elizabeth Terminal for the ecological Transition and Jean-Baptiste Djebbari for Transport) was applied to their ads. 200 000 emlpois in France are in the game.

The sector, like the rest of the economy, has already much use of the part-time unemployment measures and loans guaranteed by the State, which could be expanded. Alone, Air France has received seven billion euros in aid from the State in the form of direct loans or bank loans guaranteed by public power.

also Read How the low cost airlines hope to take advantage of the crisis

The survival of Airbus

The aviation industry is a victim of the effect cascade from the collapse of air traffic and the financial difficulties of the airlines that have to cancel or postpone orders. The crisis is such that the "survival of Airbus is at stake", according to his boss Guillaume Faury. And with that the juggernaut with 48 000 employees in France, a myriad of suppliers, often SMES or enterprises of intermediate size to the cash flageolante. European aircraft manufacturer, which has reduced its rates by approximately 30 %, claims to spend each year to 12.5 billion euros of orders from 10,000 manufacturers in France.

Read also The fear of the vacuum for Airbus and its 12 000 sub-contractors

The plan should therefore include a fund for the recapitalization for firms in difficulty, with several hundred million euros, financed in particular by major sector (Airbus, Safran, Dassault, and Thales), BPIFrance or the fund ACE Management (a subsidiary of Tikehau), according to several sources close to the matter. In a report, the member of parliament for the Haute-Garonne, Michael Nogal recommends that it be funded also by communities and private investors "to the tune of one billion euros" in total, and that it is "running as quickly as possible in view of the urgency". The guarantees exports in a sector that is beneficial for the trade balance could also be strengthened.

To stimulate the activity of the sector, Michael Nogal offers in its report submitted to Jean-Baptiste Djebbari and to create a "scrapping premium" that should be brought to the european level. "Many companies, usually small and/or low-cost, have fleets of planes are aging" that consume more fuel and are therefore more polluting, than the most modern aircraft, he wrote in his report consulted by Agence France-Presse. In parallel, it would initiate a chain of dismantling and recycling of the devices, according to him.

also Read How Air France déconfine drivers

research and development

another element of the plan relates to the support of research and development, the budget item in which firms tend to cut in times of difficulty. It would be a step forward to aircraft that emit less greenhouse gases and modernize the industrial tool. "The strong arm in the field of aerospace to go towards a plane more green, it is the Corac", the Council for civil aeronautics research, which brings together all actors in the sector, according to a source close to the folder. Its annual budget is currently $ 135 million, but are quite considerable have been requested," according to her.

Read also The descent to the underworld of Boeing

The Defense, the first investor of the State, is also mobilized to support a sector "dual", in the civil and the military. By a "game teaser", the ministry of the Armed forces is going to accelerate some of the commands planned at a later date in order to give support to enterprises in difficulties and who are able to deliver. The inability of other manufacturers to deliver this year due to the crisis, "frees some margin of manoeuvre of the budget", says one to the cabinet of Florence Parly.

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Updated Date: 08 June 2020, 23:33

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