French government presents €15bn aid package to save aviation sector
The French government has this morning unveiled a €15bn (£13.3bn) plan to save its aerospace industry, saying that 100,000 jobs are at risk due to the coronavirus crisis.
The rescue package, which includes pre-announced measures such as a €7bn loan to flag carrier Air France, comes amid the worst aviation downturn in history.
New measures include a €500m investment fund for the development of medium sized suppliers, as well as €300m to help sub-contractors modernise plants and production sites.
Presenting the aid plan today, finance minister Bruno Le Maire said that France would not cede its position in the global aviation market to rivals such as the US or China.
France-based Airbus, which has been devastated by the crisis, is the world’s largest airline manufacturer, but is under pressure from Boeing and Chinese planemaker Comac.
Le Maire said: “We must save our aerospace industry”.
Another aspect of the plan will see €1.5bn invested into environmentally friendly aviation technology over the next three years.
The attempt to accelerate green aviation is in line with the bailout of Air France agreed last month, a condition of which was that the carrier would have to reduce its short-haul flights.
Like European neighbours such as Germany, France has acted swiftly throughout the crisis to protect its aviation sector.
However, across the Channel, authorities have resisted laying out plans for a industry-wide bailout, though financial help has been available to UK-based airlines through the Bank of England’s commercial paper lending scheme.
Most of the UK’s largest airlines, such as BA, Easyjet, and Wizz Air, have availed themselves of the assistance.
Some airline bosses have hit out at the scale of state bailouts in European countries, with Ryanair boss Michael O’Leary singling out Lufthansa’s €9bn deal for particular criticism.
He said that the deal, which will see the German state take a 25 per cent stake in the flag carrier, would significantly distort competition rules.
Ryanair has referred the case to the European Commission.