Airbus has reportedly boosted its liquidity with 15 billion euro ($16 billion) in an attempt to expand the credit facility by scrapping its dividend proposal for 2019. The aircraft manufacturer withdrew 2020 guidance as of March 23, in response to the coronavirus crisis that has grounded much of the global airline fleet.
Airbus' board of directors approved the securement of a new credit facility bringing the plane maker's available liquidity up to about 30 billion euros, as per the reports. The company also suspended the voluntary top-up in pension funding, as its available liquidity now stands up to about 30 billion euros after critical policy revision. The company told the news agencies that it has identified operational scenarios that could reduce cash requirements, and that, such measures will be activated depending on how the coronavirus pandemic develops.
In an official statement, the air-carrier manufacturers emphasized that by maintaining production, managing its resilient backlog, and supporting its customers Airbus intended to secure business continuity for itself even in a protracted crisis. Securing financial flexibility for its operations was the immediate need of the hour, a media agency quoted the officials. It further reiterated that the company had clamped down on maximum cash outlays as leading airlines company halted buying the planes due to decreased demand for travel in view of a global pandemic.
The European manufacturer’s CEO, Guillaume Faury, told the European press that the aircraft production is expected to resume at a slower pace than normal. He was quoted saying that extensive efforts with the unions were put to ensure the health and safety of its employees. Therefore, the business could now look upon the continuity, he added. According to the international media reports, the partial aircraft production will resume, as Airbus’ French and Spanish factories reopen as of March 23, after a four-day prolonged shutdown to tackle health concerns.
(With inputs from agencies)