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Montevideo, July 19th 2018 - 04:12 UTC

Airbus warns UK on Brexit and “its severe negative consequences”

Friday, June 22nd 2018 - 08:15 UTC
Full article 4 comments
The European plane maker said the warning was not part of “project fear, but its dawning reality”. Airbus employs about 14,000 people at 25 different sites in UK The European plane maker said the warning was not part of “project fear, but its dawning reality”. Airbus employs about 14,000 people at 25 different sites in UK
If UK leaves EU without a deal: “this scenario would force Airbus to reconsider its investments in the UK, and its long-term footprint in the country” If UK leaves EU without a deal: “this scenario would force Airbus to reconsider its investments in the UK, and its long-term footprint in the country”

Airbus has warned it could leave the UK if the country exits the European Union single market and customs union without a transition deal. The European plane maker said the warning was not part of “project fear, but its dawning reality”. Airbus employs about 14,000 people at 25 different sites in the UK.

Last week, the outgoing president of the CBI said sections of UK industry faced extinction unless the UK stayed in the EU customs union. It brings together the EU's 28 members in a duty-free area, with a common import tariff for non-EU goods.

Prime Minister Theresa May has ruled out staying in the customs union. The UK is due to leave the EU on Friday, 29 March, 2019. In its Brexit “risk assessment ”published on Thursday, Airbus said if the UK left the EU next year without a deal - meaning it left both the single market and customs union immediately and without any agreed transition - it would “lead to severe disruption and interruption of UK production”.

“This scenario would force Airbus to reconsider its investments in the UK, and its long-term footprint in the country,” it added.

The company, which makes wings for its passenger planes in the UK, also said the current planned transition period which is due to end in December 2020 was too short for it to make changes to its supply chain. As a result it would “refrain from extending” its UK supplier base. It said it currently had more than 4,000 suppliers in the UK.

Tom Williams, chief operating officer of Airbus Commercial Aircraft, said in “any scenario” Brexit had “severe negative consequences” for the UK aerospace industry and Airbus in particular.
Further, without a deal he said Airbus believed the impacts on its UK operations could be “significant”.

“We have sought to highlight our concerns over the past 12 months, without success. Far from Project Fear, this is a dawning reality for Airbus,” he said.

“Put simply, a no-deal scenario directly threatens Airbus' future in the UK.”

Categories: Economy, International.

Top Comments

Disclaimer & comment rules
  • DemonTree

    Cue Brexiters all over the UK sticking their fingers in their ears and chanting “Project Fear, Project Fear, Project Fear, not listening”...

    Jun 22nd, 2018 - 09:37 am +1
  • DemonTree

    Hehehe. Someone's feeling salty America didn't qualify. Better luck next time, buddy.

    By the way, do you ever post anything that isn't rightwing buzzwords? Your comments have less and less relevance to the subject matter.

    Jun 22nd, 2018 - 03:32 pm +1
  • chronic

    It's another chineselike enterprise.

    Incapable of market participation without massive state sponsorship.

    DT, why are you so ashamed?

    Your birthplace didn't qualify for the wc?

    Jun 22nd, 2018 - 02:55 pm -1
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