Airbus To Put 3700 Jobs At Risk Due To The Problems With A380
Airbus – one of the leading Aircraft manufacturers worldwide decided to cut the production of two models Airbus A380 superjumbo and A400M military transport. This decision might affect jobs of 3700 people in Spain, Britain, and Germany.
Even though the general demand for the aircraft production is rapidly growing worldwide, and the two major producers Boeing and Airbus are reaching record heights in the number of orders, some models are more successful than others. This year these producers manufactured almost 1600 airliners. Nevertheless, they notice a trend of airlines choosing to order smaller planes.
Airbus A380 is the biggest aircraft produced by the company. Airlines admit they are not willing to order such massive carriers because it seats more than 500 passengers and it might be a challenge to fill it. It is not even needed to mention the price for such a purchase is $445.6 million before the discounts.
When a project of A380 was launched, at least 40 planes produced per year were planned. But the demand has never reached this level, last year only 15 aircraft were manufactured, and till 2020 the number is estimated to be as low as 6. And this level of production can only be maintained due to the Emirates Airline order of 36 carriers after Singapore Airlines decided to make up their mind and not to prolong original leasing contract.
However, A380 is not the only aircraft causing loses for the Airbus. A400M also falls into this category due to Airbus‘ difficulties faced developing promised improvements which lead to the exceeding costs.
Company currently employs approximately 130 000 people. Their Plan to cut A380 production might result in affecting the jobs of 3700 staff. “About 10 sites will be impacted in Europe. Most workers will be redeployed,” an Airbus spokesman said when Airbus delivered a presentation for European Works Council.
Airbus representative also announced that the most affected factories will be in Sevilla, Spain also Britain‘s Filton and two plants Bremen and Augsburg in Germany. Unionist admitted that redeployment will be relatively easy in France, though Britain and Spain factories might face some challenges due to fact that their production is mainly focused on A400M.
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