The French government has unveiled a €15bn (£13.3bn) aviation rescue package in a bid to save 100,000 jobs connected to the industry.
The bailout includes a €7bn loan to flag carrier Air France, announced before the latest measures, a €500m investment fund for the development of medium sized suppliers, as well as €300m to help sub-contractors modernise plants and production sites.
During this morning’s presentation of the plans, Finance minister Bruno Le Maire pledged to “save our aerospace industry” adding that France would not cede its position in the global aviation market to rivals such as the US or China. Airbus, remains the world’s largest airline manufacturer, but is under growing pressure from Boeing and Chinese manufacturer Comac.
€1.5bn investment into environmentally friendly aviation technology
The plan also includes €1.5bn earmarked for investment into environmentally friendly aviation technology over the next three years. Measures to accelerate green aviation technologies were included as a condition of the bailout of Air France agreed last month.
The scale of state bailouts in European countries has received criticism from some airline bosses over European competition rules. Ryanair boss Michael O’Leary has blasted Lufthansa’s €9bn rescue package, which sees the German state take a 25 per cent stake in the flag carrier for significantly distorting competition rules. Ryanair has referred the case to the European Commission.
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