|Subject: [Hangout - NYLXS] Airlines death - the end of common carrier
Boeing And Airbus Halt Production; Future Of Airplane Manufacturing
April 6, 20207:22 PM ET
Employees work on Airbus SE A321 fuselages at the company's final
assembly line facility in Mobile, Ala. in 2017.
Bloomberg/Bloomberg via Getty Images
Two more big airplane manufacturing facilities are shutting down because
of the coronavirus outbreak.
Airbus is temporarily halting production at its manufacturing plant in
Mobile, Ala., where it makes A220 and A320 passenger jets, idling about
1,100 employees. And Boeing is closing down its 787 campus in North
Charleston, S.C., affecting about 7,000 workers.
Airbus says the Alabama plant shut down will continue through at least
April 29. But the company says there will be no layoffs at the factory.
A company spokesperson says those who can continue to work remotely will
do so, but those who cannot will continue to be paid during the
three-week pause in production.
Airbus has already temporarily shut down most of its European aircraft
manufacturing plants, as have many industry suppliers here and abroad.
Boeing's decision to shut down the 787 plant comes after South
Carolina's governor issued a stay-at-home order. Republican Henry
McMaster had been one of eight governors holding out on ordering
residents to remain at home except for essential trips, but he reversed
Employees who can work remotely at Boeing will continue to be paid
during the entire duration of the plant shutdown. Boeing will pay those
who cannot work remotely for two weeks. If the shutdown continues longer
than two weeks, employees can use paid time off, including sick and
vacation days, to remain on the payroll, or they can file for
That's what Boeing employees in Washington state will have to do as the
company extends plant closings there indefinitely. Those facilities shut
down March 25.
Many of those who are leaving their jobs on the airplane factory floors
must be wondering if they'll ever be called back to work, as this has
suddenly become an anxious time in the aviation industry.
Analysts are predicting a long and slow recovery once travel
restrictions are lifted and several airlines have put orders for new
airplanes on hold or have even cancelled orders.
In January, Airbus announced it would ramp up production at the Mobile
plant and hire hundreds of additional workers, but now, with an
unprecedented drop in air travel, airlines are canceling orders for new
Boeing had already begun offering employees pay and benefit incentives
to leave the company, as it planned to scale back production of its
bigger, longer range aircraft.
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