French Economy Minister Bruno Lemerre said on Tuesday that the package would create 100,000 jobs over the next six months. It will also help French companies keep up with aircraft manufacturers such as American Boeing and Commack China.
“We will not allow the global aviation market to be divided between China and the United States. France and Europe will be there as well,” Le Mer said.
The package includes 15 billion euros (16.9 billion dollars) 7 billion euros (7.9 billion dollars) in a year Support for Air France
Previously announced by the government. Le Mer said airlines would be allowed to delay loan payments for up to a year, helping to create jobs in aircraft manufacturers. Airbus (EADSF)
And Dassault (DASTF)
In addition to suppliers of aviation components saffron (SAFRF)
About 1.5 billion euros ($ 1.7 billion) will be earmarked for research and development with the goal of producing a carbon neutral plane in 2035. Le Mer added that “France could be the European country where tomorrow’s aircraft will be designed and produced.”
The coronavirus crisis has destroyed global airlines and is now spreading to companies that make parts and systems operate their aircraft. Consumer demand for flights during the epidemic has been suppressed by the travel ban and closure, and is not expected to fully recover for several years after the liftings are lifted.
Governments across Europe are stepping in to support the airlines. Air France (AFLYY)
She was given the bailout plan in April, while Lufthansa (DLAKF)
He finalized the terms of a 9 billion euro ($ 9.8 billion) rescue package from the German government in May. Companies are being pushed to make their operations more environmentally friendly.
American airlines have also benefited from government bailouts It is worth about 50 billion dollars
Airbus is located in the heart of the European aviation industry. Based in France but with Production facilities in Germany, Spain and the United Kingdom compete with Boeing to supply aircraft to airlines around the world.
The company obtained a 15 billion euro ($ 16.9 billion) credit facility in March to help consolidate its position as the epidemic spreads throughout Europe. The French government announced today, Tuesday, that it will provide suspended military orders for helicopter and helicopter fuel.
Airbus will also benefit from the assistance provided to Air France, one of its largest clients.
, Which was already suffering from a 737 MAX grounding before the epidemic arrived, has so far avoided saving the US government by raising $ 25 billion by offering bonds.
The Chinese Comac company is trying to dismantle Airbus and Boeing’s duality, but its C919 single-aisle aircraft is seriously behind schedule and it may be years before the company makes a plane capable of challenging its competitors.
Hanna contributed to an increase in reporting.