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France unveils €15bn support plan for aerospace industry

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Stock photo: Getty

Stock photo: Getty

Stock photo: Getty

France on Tuesday unveiled what it described as a €15bn support package for its aerospace industry, saying huge numbers of jobs were at stake amid a slump in air travel demand due to the coronavirus crisis.

The plan includes an investment fund starting at €500m with a target of €1bn to boost the development of medium-sized suppliers, and €300m of other aid to help aerospace sub-contractors modernise plants.

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

The plan, presented by government members including Economy Minister Bruno Le Maire, reinforces some measures already available such as furlough schemes and export credit guarantees.

"In total, this plan will represent more than €15bn of aid, investment, loans and guarantees," the government said in a statement. The total includes €7bn of aid already announced for Air France and an acceleration of existing orders for Airbus tankers and other military kit.

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