Coronavirus: Airbus draws new €15bn credit line and cancels dividend
Aerospace giant Airbus has taken drastic steps to mitigate the financial impact of the coronavirus epidemic, including securing a new €15bn credit facility.
The world’s largest plane manufacturer has also suspended its guidance for the coming financial year and binned its 2019 dividend, which was worth approximately €1.4bn.
Airbus will also pause its voluntary top up of employee pension funds for the duration of the crisis.
As a result of these measures, the firm said that it now has about €30bn available to it in liquidity, which will help it handle the additional demands of the outbreak.
Several airlines have suspended or delayed plane orders from Airbus due to a complete collapse in passenger demand.
The planemaker confirmed that it would continue production for the duration of the crisis, this morning reopening plants in France and Spain after a four day shutdown for health reasons.
France’s CGT union has criticized the move, saying it put not only Airbus factories and surrounding populations but those of a wider supply chain at risk.
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Chief executive Guillaume Faury said: “Our first priority is protecting people while supporting efforts globally to curb the spread of the coronavirus.
“We are also safeguarding our business to protect the future of Airbus and to ensure we can return to efficient operations once the situation recovers. We have withdrawn our 2020 guidance due to the volatility of the situation.
“At the same time, we are committed to securing the liquidity of the company at all times through a prudent balance sheet policy. I am convinced that Airbus and the broader aerospace sector will overcome this critical period”.
Shares in Airbus initially plunged today before clawing back losses to stand one per cent down by the mid morning.
Global airlines have been devastated by the coronavirus outbreak, which has seen carriers ground vast swathes of their fleets in response to stringent restrictions on non-essential travel around the world.
Most are in negotiations with their respective governments about measures to protect them against the possibility of failure.