France’s government announces €15 billion in rescue funds to aviation industry weakened by global pandemic

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In hope of keeping Airbus and Air France globally competitive

THE French government is releasing €15 billion in aid funds into the country’s struggling aerospace industry, in the hope of saving jobs and keeping Airbus and Air France still in the global game after the Coronavirus pandemic.
As an exchange for this aid, businesses will need to invest in electric, hydrogen and low-emission aircraft, as France has set the goal of having the cleanest aviation industry in the world.
The arrangement has been negotiated with unions, who said they would remain observant about employment guarantees. Environmental activists have expressed some scepticism with regard to the green ambitions as it seems an impossible goal for such a high-emission industry.
“We will do everything to support this French industry that is so critical for our sovereignty, our jobs and our economy,” said Finance Minister Bruno Le Maire, as he unveiled the plan with the ministers of defence, transport, and environment.
To keep the virus contained travel restrictions grounded most flights which had a knock-on effect on the industry from airlines to airports to all the way down to parts suppliers.
Officials predict the industry will take years to recover as airlines across the world filed for bankruptcy struggling to keep their business afloat.
There is also a special fund jointly financed by the government, Airbus and other manufacturers to help smaller suppliers that include €7 billion euros in loans that the government had already promised to Air France.




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