Posted: Mon 23rd Mar 2020

Airbus secures nearly £14bn to strengthen finances in wake coronavirus pandemic

News and Info from Deeside, Flintshire, North Wales
This article is old - Published: Monday, Mar 23rd, 2020

Airbus has unveiled a number of emergency measures aimed at strengthening finances in a bid to help it rideout the Covid-19 crisis.

The planemaker said its first priority is “protecting people while supporting efforts globally to curb the spread of the coronavirus.”

Airbus confirmed on Sunday partial aircraft production will resume at its French and Spanish factories from today following a four day shutdown to implement “stringent health and safety conditions in terms of hygiene, cleaning and self-distancing.”

Those measures have been introduced without the need to close the Broughton site in Flintshire.

Airbus has ditched it’s earnings guidance for the year and in a bid to bolster its liquidity and balance sheet introduced the new measures which include: 

  • Securing a new credit facility amounting to €15 billion (£13.8bn) in addition to the existing €3 billion revolving credit facility.
  • withdraw the 2019 dividend proposal of €1.80 per share with an overall cash value of approximately €1.4 billion.

Airbus said: “Given the limited visibility due to the evolving COVID-19 situation, the 2020 guidance is withdrawn.

Operational scenarios, including measures to minimise cash requirements, have been identified and will be activated depending on the further development of the pandemic.”

In a statement, the company said: “By maintaining production, managing its resilient backlog, supporting its customers and securing financial flexibility for its operations, Airbus intends to secure business continuity for itself even in a protracted crisis.

Safe and efficient air travel is a key backbone of global economic development and cultural exchange.

Airbus therefore highly welcomes governmental efforts around the globe to stabilise this industry by supporting the financial health of its airline customers and its suppliers. Airbus continues to monitor the overall health of the industry.”

“These are indeed exceptional times,” Airbus Chief Executive Officer Guillaume Faury said.

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We have withdrawn our 2020 guidance due to the volatility of the situation.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,” Faury added.

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