Airbus warns it would leave UK in no-deal Brexit scenario
By Caoimhe Toman
Date: Friday 22 Jun 2018
(Sharecast News) - European aviation giant Airbus warned overnight that it could leave Britain if the country exits the European Union in 2019 without a transition deal.
In a Brexit risk assessment, Airbus said that a no-deal scenario "would lead to severe disruption and interruption of UK production" and threatens the future of the company in Britain.
If the UK leaves without a deal, delays and disruptions could lead to additional costs of €1bn in lost turnover.
"This scenario would force Airbus to reconsider its investments in the UK, and its long-term footprint in the country, severely undermining UK efforts to keep a competitive and innovative aerospace industry, developing high value jobs and competences," it warned.
Even with a transition deal lasting until December 2020, the French company said the period "is too short for the EU and UK Governments to agree the outstanding issues, and too short for Airbus to implement the required changes with its extensive supply chain".
"In this scenario, Airbus would carefully monitor any new investments in the UK and refrain from extending the UK suppliers/partners base."
Airbus currently employs 14,000 people at over 25 sites in Britain where it manufactures aircraft wings and supports over 100,000 jobs in the wider supply chain.
Tom Williams, chief operating officer of Airbus Commercial Aircraft, told the BBC that Airbus was currently working on developing the "next generation" of aircraft wings in the UK.
"We are seriously considering whether we should continue that development or whether we should find alternative solutions," he added.
The Airbus announcement came as Jean-Claude Juncker told the Irish parliament on Thursday he was stepping up preparations for a breakdown in Brexit talks, and even drafting plans aimed at keeping the peace in Northern Ireland.
Juncker said: "With pragmatism comes realism. As the clock to Brexit ticks down, we must prepare for every eventuality, including no deal. This is neither a desired nor a likely outcome. But it is not an impossible one. And we are getting ready just in case."
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