“We will not let the global aeronautical market be divided between China and the United States. France and Europe will be there too,” said Le Maire.
Some €1.5 billion ($1.7 billion) will be allocated for research and development with the goal of producing a carbon neutral aircraft in 2035. “France can be the European country where the planes of tomorrow will be designed and produced,” Le Maire added.
The global airline industry will lose $84 billion in 2020 and an additional $15 billion in 2021, according to a forecast from the International Air Transport Association on Tuesday. The industry group said that demand for air cargo and travel will rise sharply next year, but passenger travel will still be nearly 30% lower than in 2019.
Global competition
Airbus is at the heart of the European aviation industry. Based in France but with production facilities in Germany, Spain and the United Kingdom, it competes with Boeing to supply planes to airlines around the world.
The company secured a €15 billion ($16.9 billion) credit facility in March to help bolster its position as the pandemic swept across Europe. The French government said Tuesday that it would bring forward pending military orders for Airbus refueling tankers and helicopters.
Airbus also stands to benefit from aid provided to Air France, one of its biggest customers.
“The plan announced by France is solid and the right response to the challenges,” CEO Guillaume Faury said on Twitter. “It will help us soften the blows in the short-term, while preserving our ability to rebound when the time comes. At Airbus, in the face of this crisis, we are doing everything we can to protect our business & the industry.”
China’s COMAC is trying to break up the duopoly enjoyed by Airbus and Boeing, but its C919 single-aisle plane has fallen badly behind schedule and it could be years before the company produces an aircraft capable of challenging its rivals.
— Hanna Ziady and Eoin McSweeney contributed reporting.
Source : Nbcnewyork