Airbus Resumes Production
Airbus has resumed production in France and Spain after a temporary halt due to COVID-19. Earlier, the Toulouse-based company announced its decision to withdraw fiscal 2020 guidance and 2019 dividend proposal.
The move ditched its dividend worth €1.4bn (£1.3bn) and suspended funding to top up staff pension schemes. The company signed a credit facility for €15bn to shore up its finances.
Stock dipped and shares lost around 7% in stock trading in the morning in Paris.
The European plane maker said it is monitoring developments about the coronavirus and is assessing the situation closely. Airbus has begun to implement stringent health measures, standards and safety processes at all its sites before it resumed production.
The company said it is evaluating the pandemic’s impact on its employees, customers, suppliers and the business. With the resumption, it follows WHO and local authority guidance.
It assures everyone that it maintains a strong focus on backlog management, supporting customers, and securing continuity through these crises.
In the stock market, the its shares were at 59.51 euros, down 6.69%.
Why Airbus Had to Pause Production
The manufacturer had to pause production and assembly work in France and Spain. The objective was to carry out “extensive work in coordination with its social partners”. This will be in terms of “health and safety of its employees while securing business continuity”.
The company announced its partial opening today Monday, March 23 with workstations opening only if they comply with these measures. This will also include hygiene, cleaning and self-distancing which are also being deployed across all sites.
Last month, Airbus group in its Tianjin site in China went on a temporary stoppage. It is now operating efficiently under new working conditions. The group said it “supports those in the health emergency and public services that rely on its aircraft, helicopters and satellites”.
Furthermore, it has donated thousands of facemasks to hospitals and public services around Europe. It transported two million facemasks from Tianjin via a test A330-800 aircraft and additional flights are planned in the coming days.
The company will have its upcoming Annual General Meeting on April 16 in Amsterdam. Due to the COVID-19 pandemic, they highly recommend shareholders to vote by proxy instead of attending the event. This is in line with public health and safety measures.
In these meetings, the aircraft manufacturer informs shareholders about previous and future business activities and info on stocks and finances.
