French aerospace sector gets €15bn govt bailout

The French aerospace industry was thrown a €15bn (£13.37bn) lifeline by the government on Tuesday with warnings of massive job losses in the sector as the coronavirus crisis battered air travel.

France’s plan included a previously-announced €7bn loan deal Air France-KLM, €300m to modernise the supply chain and an investment fund starting at €500m, with a target of €1bn, to help development of small and medium-sized industries.

There would also be €1.5bn over three years to support research into new environmentally friendly aviation technology, of which €300m will be available this year.

"In total, this plan will represent more than €15bn of aid, investment, loans and guarantees," the government said in a statement.

Finance Minister Bruno Le Maire said the package was “commensurate with the violence represented by the crisis at the start of the year and its lasting impact on air traffic”.

“If the state doesn’t intervene straight away then one-third of the jobs in the sector could disappear,” he added. The industry employs around 300,000 people and is the home to aircraft maker Airbus, which has slashed production.