the state releases EUR 15 billion to support the aviation sector

Bercy announces support of € 15 billion, some of which has already been paid, to remedy the French aviation industry. According to the Minister of Economy, this plan would have saved a third of jobs in the sector, threatened by the Covid-19 crisis.

The government flies in support of the French aviation sector, hardened by the krona virus crisis. A major € 15 billion aid plan was unveiled on Tuesday, June 9 by Bruno Le Maire. The EUR 7 billion in bank loans granted to Air France in April are included in this support.

For the Minister of Economy, it is a matter of “saving” the French aviation industry to allow it to be more competitive “and” more decarbonized “by producing tomorrow’s” green plan “, he said. to be spent over the next three years on research and development with the aim of “achieving a carbon neutral aircraft by 2035”, Bruno Le Maire added.

The goal is to prepare the next generation of commercial aircraft, helicopters and commercial aircraft equipped with new propulsion systems that emit less CO2, such as hydrogen and “very high dilution” engines. This plan also aims to save jobs in the research and development of the aviation sector, where almost a third of 35,000 jobs are challenged by the industry’s difficulties.

A fund for SMEs and SMEs

In order to “accelerate the transformation of SMEs and SMEs”, the state and the aviation industry have agreed to create an investment fund with EUR 500 million from this summer and eventually EUR 1 billion.

The state, through the public bank Bpifrance, “will bring in EUR 200 million, the industrialists [Airbus, Safran, Dassault Aviation et Thales, NDLR] EUR 200 million also, at least 100 million will be provided by the fund manager who will be selected through the tender, detailed Bruno Le Maire. These 500 million euros “will raise a billion in the long run”, he specifies.

One third of aviation jobs saved

The aviation sector represents 300,000 direct and indirect jobs in France. “If we had not intervened immediately, a third of jobs in the sector would have disappeared,” Bruno Le Maire said, urging the industry to do everything “to avoid coercive deviations.”

Air France alone benefited from seven billion euros in state aid in the form of direct loans or bank loans guaranteed by the public authorities, an amount included in the plan’s 15 billion. In particular, this should enable it to fulfill the order for 60 AirbusA220 and 38 A350 widebody aircraft it had planned.

With AFP