- France is expected to reveal a massive relief package worth billions of euros for its ailing aerospace industry on Tuesday, according to French media outlets.
- The package, which could be worth up to 10 billion euros ($11.3 billion), will aim to revitalize the troubled French airline industry through loan guarantees, preservation of employment, and protection of French firms from foreign takeovers.
- As part of the crisis package, a planned investment fund of 1 billion euros ($1 billion) is meant to aid private aerospace suppliers.
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In an effort to help its depressed aerospace sector, France is reportedly preparing to unveil an economic rescue package worth billions of euros on Tuesday.
The emergency plan — expected to be valued at around 10 billion euros ($11.3 billion) — aims to revitalize the hard-hit industry through measures such as loan guarantees and job preservation, according to French financial paper Les Echos.
The coronavirus pandemic has hammered global demand for air travel as authorities have restricted their population's movements and people have avoided flying to reduce transmission.
European airline manufacturer Airbus, aircraft engine-maker Safran, defence avionics group Thales, and several other French suppliers have suffered from a sharp decline in business as airlines cut back.
France's economic minister, Bruno Le Maire, along with the transport and defence ministers, are set to unveil the emergency package, including a potential 1 billion euro ($1 billion) investment fund, on Tuesday.
The investment fund will focus on safeguarding private French aerospace firms from foreign takeovers, according to Reuters. The transport minister, Jean-Baptiste Djebbari, has signaled a need for protection against Chinese companies making acquisition offers.
The planned air crisis package is also meant to reactivate air transport, revive manufacturing, and develop lower energy-dense "hybrid planes" by 2027 and more "carbon neutral" aircraft by 2035, Bloomberg said.
On Sunday, Djebbari told French news channel LCI that from June 26, travel would be allowed anywhere in the European Union if the Schengen Area is reopened.
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