Airbus Brexit flight risk threatens more than 100,000 UK jobs

Airbus workers and supply chain employees face an uncertain future after the European aerospace giant said it could be forced to leave the UK by a ‘no deal’ Brexit.

The company, which employs 15,000 people in the UK but supports 100,000 more through its supply chain, gave a frank view of its position after publishing an online risk assessment.

“Exiting the EU next year without a deal – therefore leaving both the single market and customs union immediately and without any agreed transition – would lead to severe disruption and interruption of UK production,” said the company.

“This scenario would force Airbus to reconsider its investments in the UK, and its long-term footprint in the country, severely undermining UK efforts to keep a competitive and innovative aerospace industry.”

The statement from the firm, which builds plane wings, helicopters, satellites and more in the UK, is a “warning shot to the government about the importance of negotiating an agreement that will meet the needs of industry by minimising the impact of tariff changes and avoiding customs delays,” said Paul Adams from management consultancy Vendigital.

“Many had thought that the UK’s aerospace industry was protected from the worst effects of the expected tariff changes, due to the exclusions that apply to many aerospace components,” he told PE. “Clearly, no industry is immune to the impact of Brexit and UK workers could end up paying the price.”

The company previously warned that it could stockpile inventory to avoid production delays. Incoming lorries could face long waits at Dover post-Brexit, for example. Such a strategy could put pressure on some suppliers.

The firm has more than 25 UK sites, including a 6,000-employee facility in Broughton, North Wales.

Conservative MP Stephen Crabb said: “The enormous Airbus factory in North Wales is one of the jewels in the crown of UK manufacturing. This is a wake-up call. A pragmatic, sensible Brexit that protects trade and jobs is vital.”

The Airbus announcement comes after the EU’s chief Brexit negotiator, Michel Barnier, said the bloc is increasing preparations for no deal.

Tom Williams, chief operating officer of Airbus commercial aircraft, said: “In any scenario, Brexit has severe negative consequences for the UK aerospace industry and Airbus in particular. Therefore, immediate mitigation measures would need to be accelerated.

“While Airbus understands that the political process must go on, as a responsible business we require immediate details on the pragmatic steps that should be taken to operate competitively. Without these, Airbus believes that the impacts on our UK operations could be significant. We have sought to highlight our concerns over the past 12 months, without success.

“Far from ‘Project Fear’, this is a dawning reality for Airbus. Put simply, a no-deal scenario directly threatens Airbus’ future in the UK.”