Top aerospace companies plotting £1bn bailout fund to help suppliers stricken by coronavirus crisis
Top aerospace companies are plotting a £1billion bailout fund to help suppliers stricken by the virus crisis.
The fund would help small companies that have been left crippled by collapsing demand for aircraft and parts, amid restrictions on flying, which has left many planes unused.
European aerospace giant Airbus is reportedly among the backers.
Grounded: The fund would help small companies that have been left crippled by collapsing demand for aircraft and parts
The scheme is being organised by industry body ADS Group, which wants the Government to match private funding.
The organisation of the fund comes after BAE Systems boss warned of the impact the pandemic was having on small firms, creating a headache for their bigger customers.
The air travel collapse is sending shockwaves through supply chain businesses, which often also make defence parts or technology. Demand is not expected to pick up soon.
BAE boss Charles Woodburn previously told the Mail he was ‘very mindful’ of the supply chain and firms were ‘facing some tough times’.