Airbus decision to halt airplane production
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 employees.
Airbus says the Alabama plant shut down will continue through at least April 29. However, the company says there’ll be no layoffs at the factory. A company spokesperson says those who will continue to work remotely will do so. However, people who cannot will continue to be paid during the three-week pause in production.
Airbus has already briefly shut down most of its European aircraft manufacturing plants. As have many industry suppliers here and abroad.
Boeing decision to halt airplane production
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 stay at home except for essential trips, but he reversed course Monday.
Employees who can work remotely at Boeing will still be paid throughout the entire length of the plant shutdown. Boeing will pay those who cannot work remotely for 2 weeks. If the shutdown continues longer than two weeks, employees will use paid time off, including sick and vacation days, to remain on the payroll, or they can file for unemployment benefits.
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 curious 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 other airlines have put orders for brand new airplanes on hold or have even canceled orders.
In January, Airbus announced it’d ramp up production at the Mobile plant and hire many additional employees. But now, with an unprecedented drop in air travel, airlines are canceling orders for new planes.
Boeing had already begun offering employees pay and benefit incentives to leave the company. As it planned to reduce the production of its bigger, longer-range aircraft.