Airbus secures £13.9 billion of funding to power through the Coronavirus pandemic

The
ongoing Coronavirus pandemic has weighed heavily on the global businesses with
the airline industry have taken the greatest hit. Worldwide carriers are seeking
government financial support to survive through the health emergency that
is threatening to push the global economy into recession.

Worldwide
airlines are also resorting to massive job cuts, curbing expenditures, and
canceling flights. The lower demand is also reflecting on the financial stature
of the plane manufacturers.

The
world’s largest planemaker, Airbus SE (EPA:AIR) signed a £13.9 billion credit
facility on Monday and improved its financial position through the challenging
times of the crisis.

Airbus
Withdraws Financial Guidance For 2020

Owing
to the rising uncertainty due to the pandemic, Airbus also withdrew its
previously given financial guidance for fiscal 2020. Other measures announced
by the European planemaker on Monday included suspension of its 2019 dividend
that was worth £1.3 billion cash value. The company also said that it will no
longer be adding funds to the staff pension schemes this year.

According
to CEO Guillaume Faury’s statement on Monday:

“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have withdrawn our 2020 guidance due to the volatility of the situation.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.”

Airbus’s
announcement on Monday also highlighted that the company has over £27.50
billion in liquidity that is sufficient for it to power through the pandemic. The
funds, as per the company, are sufficient to sustain production despite the
Coronavirus driven disruptions in global business.

Airbus
To Partially Resume Operations At Facilities In Spain And France

Airbus
had suspended operations at its
facilities in Spain and France last week to minimize the transmission of
the flu-like virus. Following the implementation of the new measures for the health
and safety of its workers, the planemaker said that it plans on partially
resuming operations at the aforementioned production centers this week.

At the time of writing, Airbus is exchanging hands at around £55.70 per share in the stock market that translates to over 50% decline in 2020 so far. Its performance in 2019, on the contrary, was largely upbeat with an annual gain of around 50%.

Airbus has lost all of its gains that it posted last year in the first three months of 2020. The European plane manufacturer currently has a market value of £43.3 billion.