France announces $16.9 billion in aid for aviation industry

PARIS (AP) — France’s government is pumping 15 billion euros ($16.9 billion) in rescue money into the pandemic-battered aerospace industry, in hopes of saving its hundreds of thousands of jobs and keeping plane maker Airbus and national airline Air France globally competitive.

In exchange for aid, companies will be required to invest more and faster in electric, hydrogen or other lower-emission aircraft, as France aims to make its aviation industry the “cleanest in the world.”

The deal was negotiated with unions, who said they would stay vigilant about job guarantees. Some environmental activists expressed skepticism about green ambitions for such a high-emission industry.

“We will do everything to support this French industry that is so critical for our sovereignty, our jobs and our economy,” Finance Minister Bruno Le Maire said, unveiling the plan alongside the ministers of transport, defense and environment - a sign of how important the aeronautic sector is in France.

As travel restrictions grounded most flights to keep the virus contained, the fallout cascaded across the industry, from airlines to airports to engine makers, maintenance contracts and spare parts suppliers. Airlines around the world have filed for bankruptcy or sought bailouts to survive the near-shutdown in their activity, and officials predict the industry will take years to recover.

The French aid money includes direct government investment, subsidies, loans and loan guarantees. It also includes a special fund jointly financed by the government, Airbus and other big manufacturers to support small suppliers.

It includes 7 billion euros in loans and loan guarantees that the government had already promised to Air France, whose planes were almost entirely grounded by the virus.

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