'Airbus, a Jewel of the European Economy, Signals Distress' diff viewer (1/2)

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Airbus, a Jewel of the European Economy, Signals Distress	Airbus, a Jewel of the European Economy, Signals Distress
2020-04-29 18:46:17 UTC	2020-06-04 07:26:18 UTC (about 1 month later)
Airbus, the European aircraft giant, could not make planes fast enough earlier in the year. But the coronavirus pandemic has forced it to face a devastating fact: Some airlines that put in orders do not want its planes now.	Airbus, the European aircraft giant, could not make planes fast enough earlier in the year. But the coronavirus pandemic has forced it to face a devastating fact: Some airlines that put in orders do not want its planes now.
The aerospace company said on Wednesday that 60 of its aircraft could not be delivered in the first quarter, partly because the airlines that ordered them want to put off paying for them.	The aerospace company said on Wednesday that 60 of its aircraft could not be delivered in the first quarter, partly because the airlines that ordered them want to put off paying for them.
With the majority of the world’s commercial aircraft sitting on runways and not earning money, airlines do not need new planes.	With the majority of the world’s commercial aircraft sitting on runways and not earning money, airlines do not need new planes.
“We are now in the midst of the gravest crisis the aerospace industry has ever known, ” Guillaume Faury, the company’s chief executive, said in a statement on Wednesday.	“We are now in the midst of the gravest crisis the aerospace industry has ever known, ” Guillaume Faury, the company’s chief executive, said in a statement on Wednesday.
Airbus reported a net loss of 481 million euros (about $522 million) in the first quarter of 2020, a reversal from a profit of €40 million a year earlier.	Airbus reported a net loss of 481 million euros (about $522 million) in the first quarter of 2020, a reversal from a profit of €40 million a year earlier.
Last year, while Boeing struggled with the grounding of its 737 Max plane after two crashes killed a total of 346 people, Airbus topped its American rival in the global race for aircraft deliveries. Two months ago, Mr. Faury told investors that the company’s A320 jets — the main competitor to the 737 Max and the bulk of Airbus’s commercial business — were sold out through 2025.	Last year, while Boeing struggled with the grounding of its 737 Max plane after two crashes killed a total of 346 people, Airbus topped its American rival in the global race for aircraft deliveries. Two months ago, Mr. Faury told investors that the company’s A320 jets — the main competitor to the 737 Max and the bulk of Airbus’s commercial business — were sold out through 2025.
Now with business down by a third or more, Airbus’s factories in Germany and France have been producing too many aircraft. The company has been spending far more cash — to pay employees and buy the hundreds of thousands of components that make up an aircraft — than it is receiving from customers.	Now with business down by a third or more, Airbus’s factories in Germany and France have been producing too many aircraft. The company has been spending far more cash — to pay employees and buy the hundreds of thousands of components that make up an aircraft — than it is receiving from customers.
Recently, Mr. Faury sent a memo to employees warning that Airbus, with a work force of 134,000, was “bleeding cash at an unprecedented speed, which may threaten the very existence of our company.”	Recently, Mr. Faury sent a memo to employees warning that Airbus, with a work force of 134,000, was “bleeding cash at an unprecedented speed, which may threaten the very existence of our company.”
Specifically, the company bled €8.5 billion in cash in the first quarter, with €3.6 billion going to settle a corruption investigation with the authorities in France, Britain and the United States.	Specifically, the company bled €8.5 billion in cash in the first quarter, with €3.6 billion going to settle a corruption investigation with the authorities in France, Britain and the United States.
Over all, it delivered 122 commercial aircraft, down from 162 in the first quarter of 2019. Delivery is a key threshold for earning revenue for aircraft makers.	Over all, it delivered 122 commercial aircraft, down from 162 in the first quarter of 2019. Delivery is a key threshold for earning revenue for aircraft makers.
The numbers released Wednesday reflected the January-March period, and the situation for Airbus appears likely to worsen before it improves because the effects of the pandemic on air travel started only midway through the quarter.	The numbers released Wednesday reflected the January-March period, and the situation for Airbus appears likely to worsen before it improves because the effects of the pandemic on air travel started only midway through the quarter.
“April and maybe also the following months will be tougher in terms of deliveries than what we have seen,” Dominik Asam, the company’s chief financial officer, said on a call with reporters, although he expressed optimism that the situation might improve later in the year.	“April and maybe also the following months will be tougher in terms of deliveries than what we have seen,” Dominik Asam, the company’s chief financial officer, said on a call with reporters, although he expressed optimism that the situation might improve later in the year.
Earlier in April, the company said it would slow overall production by about one-third by temporarily halting or slowing work at various facilities, including plants in Mobile, Ala., Britain, France and Germany. On the same call, Mr. Faury said these output cuts would be reviewed later this year and could go deeper.	Earlier in April, the company said it would slow overall production by about one-third by temporarily halting or slowing work at various facilities, including plants in Mobile, Ala., Britain, France and Germany. On the same call, Mr. Faury said these output cuts would be reviewed later this year and could go deeper.
During these slowdowns, the company is shedding staff through government-financed furloughs. On Thursday, about half of the 6,000 workers at a facility in Broughton, Wales, that makes wings will begin a furlough largely paid for by the British government but partly financed by Airbus. It is also furloughing about 3,000 workers through a French government-assistance plan. More of these temporary job reductions are likely to come in France, Spain and Germany, according to the company.	During these slowdowns, the company is shedding staff through government-financed furloughs. On Thursday, about half of the 6,000 workers at a facility in Broughton, Wales, that makes wings will begin a furlough largely paid for by the British government but partly financed by Airbus. It is also furloughing about 3,000 workers through a French government-assistance plan. More of these temporary job reductions are likely to come in France, Spain and Germany, according to the company.
The company is trying to adjust its operations to the collapse of the world’s airlines, Airbus’s main customers.	The company is trying to adjust its operations to the collapse of the world’s airlines, Airbus’s main customers.
“This is just a very unusual circumstance in which the end-user market has simply failed,” said Richard Aboulafia, vice president for analysis at Teal Group, an aviation consulting firm. “This has never happened before.”	“This is just a very unusual circumstance in which the end-user market has simply failed,” said Richard Aboulafia, vice president for analysis at Teal Group, an aviation consulting firm. “This has never happened before.”
A meltdown at Airbus would have geopolitical ripples. With German, French and Spanish ownership and plants strung across the continent, it is a largely successful pan-European project that has created a powerful rival to Boeing and the American aerospace industry.	A meltdown at Airbus would have geopolitical ripples. With German, French and Spanish ownership and plants strung across the continent, it is a largely successful pan-European project that has created a powerful rival to Boeing and the American aerospace industry.
“The importance of Airbus transcends the purely economic aspects of its activities,” said Daniel Capparelli, head of the trade practice at Global Counsel, a consulting firm. Airbus, he said, is the “flagship example” of choosing and supporting European Union-wide industrial champions.	“The importance of Airbus transcends the purely economic aspects of its activities,” said Daniel Capparelli, head of the trade practice at Global Counsel, a consulting firm. Airbus, he said, is the “flagship example” of choosing and supporting European Union-wide industrial champions.
Its success “enables Europe to throw its weight around and compete with the U.S. on a global scale,” said Mujtaba Rahman, managing director for Europe at the Eurasia Group, a political consulting firm.	Its success “enables Europe to throw its weight around and compete with the U.S. on a global scale,” said Mujtaba Rahman, managing director for Europe at the Eurasia Group, a political consulting firm.
Beyond its own employees, Airbus supports hundreds of thousands of other mostly well-paid and technologically sophisticated jobs across Europe.	Beyond its own employees, Airbus supports hundreds of thousands of other mostly well-paid and technologically sophisticated jobs across Europe.
	Updated June 2, 2020
	Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
	Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
	States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
	Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
	Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
	If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
	More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
	Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
	The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
	If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
	If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
“This is the sort of employment that national governments everywhere have been trying to grow,” said Sandy Morris, an analyst at Jefferies, an investment bank. If Airbus suffers a steep downturn, he added, “I really don’t like the implications for employment across Europe.”	“This is the sort of employment that national governments everywhere have been trying to grow,” said Sandy Morris, an analyst at Jefferies, an investment bank. If Airbus suffers a steep downturn, he added, “I really don’t like the implications for employment across Europe.”
Analysts said Airbus was not in immediate danger of running out of money. The company has a strong balance sheet, reinforced by €15 billion in new credit lines. If stress increases, the company could take loans from the European Central Bank, they said.	Analysts said Airbus was not in immediate danger of running out of money. The company has a strong balance sheet, reinforced by €15 billion in new credit lines. If stress increases, the company could take loans from the European Central Bank, they said.
“They are in an OK state to withstand what is likely to be a very bad year,” said Jeremy Bragg, an analyst at Redburn, a market research firm.	“They are in an OK state to withstand what is likely to be a very bad year,” said Jeremy Bragg, an analyst at Redburn, a market research firm.
This relative financial strength could give Airbus a competitive advantage over Boeing, although at present there is not much to play for. Boeing, which remains hobbled awaiting the return of its most popular plane, said Wednesday that it planned to cut its work force by about 10 percent.	This relative financial strength could give Airbus a competitive advantage over Boeing, although at present there is not much to play for. Boeing, which remains hobbled awaiting the return of its most popular plane, said Wednesday that it planned to cut its work force by about 10 percent.
Mr. Faury appears to be trying to prepare both his employees and their unions for what are likely to be tough measures to reduce costs.	Mr. Faury appears to be trying to prepare both his employees and their unions for what are likely to be tough measures to reduce costs.
He has also become a cheerleader in the efforts of ailing airlines to secure government aid, noting that his company — and its vast network of suppliers — needs healthy airlines. The company will not be able to perform well after the crisis without “an ecosystem that will be still alive and able to recover,” he said.	He has also become a cheerleader in the efforts of ailing airlines to secure government aid, noting that his company — and its vast network of suppliers — needs healthy airlines. The company will not be able to perform well after the crisis without “an ecosystem that will be still alive and able to recover,” he said.