WhatsApp Logo Subscribe
For News Alert

News

France pledges 15 billion euros of aid for aviation sector

June 9, 2020 03:24 PM


Twitter Share Facebook Share WhatsApp Share

The French government will provide 15 billion euros ($16.9 billion) to support the country's aviation industry, which has been hammered by travel restrictions imposed to blunt the coronavirus pandemic, Finance Minister Bruno Le Maire said Tuesday.

"We are declaring a state of emergency to save our aeronautics industry so that it can be more competitive," Le Maire said at a press conference in Paris.

"If we hadn't intervened right away, a third of the jobs in the sector would have disappeared... that's around 100,000 of the 300,000 direct and indirect jobs in the sector," he added.

The southwestern French city of Toulouse is home to the headquarters of pan-European aircraft maker Airbus, which for decades has supported hundreds of suppliers and service providers in the region.

But orders have dried up as airlines worldwide warn they are facing catastrophe as the prospects for travel remain highly uncertain as the COVID-19 crisis takes its toll.

The government has already announced that Air France-KLM, which posted a 1.8 billion euro loss in the first quarter, will get seven billion euros in loans either from, or backed by the state.

That money will allow it to go through with a purchase of 60 Airbus A220 planes and 38 long-haul A350 jets.

The French state and Airbus, as well as Dassault Aviation, Thales and Safran, will contribute 200 million euros each to a fund for small- and mid-size firms, in particular to help them invest in carbon-reduction technologies.

The plan also includes 1.5 billion euros to spur research on a future "carbon neutral plane" over the next three years, with a goal of having the plane operation by 2035, Le Maire said.

Defence Minister Florence Parly, who attended the press conference alongside Environment Minister Elisabeth Borne, said 600 million euros of planned military orders would be accelerated, including the purchase of three Airbus A330s that will be converted to refuelling planes, and eight Caracal troop transport helicopters.

The military will also double its orders reserved for small- and mid-size firms, to some 100 million euros, to develop light surveillance planes and drones, "ensuring 1,300 jobs for the next three years," Parly said.

The support for the aviation sector comes after French President Emmanuel Macron promised eight billion euros for the auto sector, with a focus on developing the electric vehicle market.

https://www.youtube.com/watch?v=3XpMCGt6uvA


Most Read

  1. Water tariff doubled for Lahore consumers Water tariff doubled for Lahore consumers
  2. Here are the top 21 finalists for Miss Universe Pakistan 2024 Here are the top 21 finalists for Miss Universe Pakistan 2024
  3. Missing young boy found dead at Islamabad’s Trail 5 Missing young boy found dead at Islamabad’s Trail 5
  4. ‘Bado Badi’ girl Wajdan Rao blocks Chahat Fateh Ali Khan for ‘cheap’ action ‘Bado Badi’ girl Wajdan Rao blocks Chahat Fateh Ali Khan for ‘cheap’ action
  5. Amitabh Bachchan’s mimicry expert dies Amitabh Bachchan’s mimicry expert dies
  6. Here is what Heeramandi’s Cartwright, Jason Shah has to say about Alamzeb's ‘one tone’ performance Here is what Heeramandi’s Cartwright, Jason Shah has to say about Alamzeb's ‘one tone’ performance

Opinion

  1. Congo coup failed, Malanga killed
    Congo coup failed, Malanga killed

    By Naveed Aman Khan

  2. Hats off to Fatah-II
    Hats off to Fatah-II

    By Naveed Aman Khan

  3. New twist in PTI founder’s strategy towards Military Establishment
    New twist in PTI founder’s strategy towards Military Establishment

    By Salim Bokhari

  4. Revoke the heat stroke
    Revoke the heat stroke

    By Dr Asif Channer

  5. Defiance, sacrifice & national resilience
    Defiance, sacrifice & national resilience

    By Naveed Aman Khan

  6. Maryam Nawaz Sharif's Police Uniform: Breaking Gender Stereotypes, Not Minds
    Maryam Nawaz Sharif's Police Uniform: Breaking Gender Stereotypes, Not Minds

    By Alysha Khan