PARIS: France launched what it said was a €15 billion rescue plan for its aerospace industry on Tuesday , warning 100,000 jobs were directly at stake due to the COVID-19 crisis travel slump.
The package, which includes some already announced measures, includes an investment fund starting at €500 million with a target of €1 billion to boost the development of medium-sized suppliers, and €300 million of other aid to help aerospace sub-contractors modernise plants.
France will also invest €1.5 billion over three years to support research into new environmentally-friendly aviation technology, of which €300 million will be available this year. "In total, this plan will represent more than €15 billion of aid, investment, loans and guarantees," the government said in a statement. The total includes €7 billion of aid already announced for Air France and an acceleration of existing orders for Airbus tankers and other military kit.
The government was also talking to banks about how suppliers could manage surplus parts left stranded in the pipeline after decisions by Airbus and other manufacturers to slow production.France said it had agreed a one-year moratorium on the repayment of the principal of aircraft loans backed by export credit agencies from March with Britain, Germany and Italy – a move worth €1.5 billion.