European mega Airplane manufacturer Airbus announced Wednesday that it is reducing production by one third as demand for its aircrafts and travel plummets worldwide due to the coronavirus pandemic.
In the first quarter, the company said it delivered 122 planes, but 60 still remain with Airbus. It delivered only 36 in March, down from 55 Airplanes in February, after many airlines requested to suspend orders when facing huge costs related to a near-total shutdown of air travel.
Airbus CEO declared, “We are adapting production to the new reality of the airlines, that are all going through unprecedented circumstances, and we want to do this together.”
The CEO did not say how long the production cuts would last, and that Airbus will review its output needs on a monthly basis.
The company is keeping tight control on its own costs and has not requested for government assistance, but said it might seek to ask European Union to help pay for salaries of workers put on temporary leave.