Airbus has announced it has acquired a new €15 billion credit facility and will withdraw its 2020 dividend proposal, which has a cash value of €1.4 billion.
The news came shortly after the planemaker said it would “partially resume” production and assembly work in France and Spain on 23 March.
Last week, Airbus temporarily paused production for four days following a temporary lockdown applied in the two EU countries.
In an announcement on Monday, Airbus said the new financial measures would prop up the company during the coronavirus crisis.
Airbus chief executive Guillaume Faury said, “We have withdrawn our 2020 guidance due to the volatility of the situation.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.”
The new €15 billion credit facility is in addition to an existing € 3 billion revolving credit facility, and the board has also approved suspending voluntary top up in pension funding.
The statement said, “With these decisions, the company has significant liquidity available to cope with additional cash requirements related to the coronavirus. Available liquidity now amounts to approximately €30 billion.”
Meanwhile, the business said it would only open production areas that comply with new health and safety measures in terms of hygiene, cleaning and self-distancing, and those measures will apply worldwide.
In February, the company’s assembly line in Tianjin, China, reopened following a temporary production stoppage related to the coronavirus outbreak.
Meanwhile, in the past days, Airbus has donated thousands of face masks to hospitals around Europe and used its test aircraft to obtain supplies from China.
This weekend, an A330-800 transported 2 million masks from Tianjin back to Europe – the majority will be donated to the Spanish and French authorities.
Faury said, “Health and safety is our number one priority at Airbus so the work stations at our sites in France and Spain will only re-open if they meet the required standards.
“I’d like to salute the strong commitment from our employees to ensure business continuity in close co-operation with our social partners and other stakeholders.”
