Currently as the crisis deepens, U.S. lawmakers are considering changing some of about $58 billion (£50.25 billion pounds) in proposed emergency loans to the airline industry to cash grants to cover payroll costs, four people familiar with the matter said. Brazil’s Embraer SA (EMBR3.SA), the world’s third-largest aircraft maker, said on sunday it would furlough all non-essential workers in brazil where it makes regional jets and further measures could be announced later this week.
Joining the list of temporary shutdowns is Bombardier, which is suspending Canadian production of business jets, according to a source familiar with the matter. Airbus chief executive Guillaume Faury had called for strong government support for airlines and suppliers but stopped short of calling for direct aid for Airbus itself, which has secured an extra 15 billion euros of commercial credit lines.
The european planemaker has, however, told officials privately that it may need european government help if the crisis lasts for several months, Reuters reported last week. industry executives said the biggest source of alarm was the global supply chain of thousands of suppliers who would be severely hurt by abrupt stop-start movements in plane output. Many are already severely stressed by the year-long 737 MAX grounding. Engine maker GE Aviation (GE.N) announced plans to cut its U.S. workforce by around 10%, according to a letter to staff. Also GE’s aviation unit employed about 52,000 people globally as of 2019, with about half of them working in the United States.
