Airbus alerts about Brexit free movement

Company - Mohit Shah - Jan 25,2017

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airbus alerts about brexit free movement

 

Chief operating officer, Tom Williams, has warned that the company might head into a “dangerous phase” if Airbus cannot seamlessly transport people and products across the European Union.

Toulouse-headquartered Airbus, that employs 15,000 people in Britain, had already issued warnings about the expected consequences of a Brexit vote last year.

Tom Williams, the chief operating officer told MPs that Washington would be elated if that happened.

After offering evidence to the Commons Treasury Select Committee, Williams added that the US would make decisions based on the interests to US rival Boeing.

Mr. Williams is also the president of commercial aircraft at Airbus. He told the committee's inquiry into Britain leaving the EU, that he stays "sceptical" regarding the effectiveness of the World Trade Organisation (WTO) at resolving disputes.

Airbus and its prime rival, US-origin aircraft giant Boeing, have been in a long-term dispute over development and subsidies for production.

Last year, Airbus had 731 net aircraft orders as compared to 668 for Boeing.

The prime minister announced last week that no deal was greater than a bad deal as the UK exits the EU and settles its future relationship.

It directly points out that WTO rules would apply.

Treasury committee member, Conservative MP Steve Baker, stated that it would be possible to create a full aircraft industry in the United Kingdom. However, Mr. Williams suggested that this idea would not turn out to be successful.

At present, Airbus employs another 9,000 workers outside North Wales.

 Mr. Williams stressed that EU deal must grant the company to move its products and workers across Europe, including at short notice and without any limitations.

To some relief, the UK government has indicated it would try to frame special arrangements for important sectors such as aerospace.