Airbus is considering selling its subsidiary Premium Aerotec for high losses

European aircraft manufacturer Airbus is defending its plans for a possible sale to its German subsidiary Premium Aerotec. "The company has been making losses for 12 years. These losses are in the billions," DPA was quoted as saying by Airbus chief operating officer Michael Schöllhorn for the German daily Augsburger Allgemeine. The situation is exacerbated by the fact that airlines currently do not purchase virtually any new aircraft. "Given the high investment we have to make in hydrogen technology, for example, we cannot afford such losses," Schöllhorn explains. "We simply cannot continue like this in Augsburg or other Premium Aerotec locations." Airbus is examining the possibility of selling the production of individual parts in Germany. In Augsburg, 2,200 out of a total of 2,800 Premium Aerotec employees work in production. Sales may also affect production in Friesland in the Netherlands. The company unions and the sectoral trade union IG Metall oppose these plans, as they fear the relocation of parts of production to cheaper countries and the reduction of employees' wages. Schöllhorn said that ideally they would find an investor who would have access to other industries, such as the automotive industry. "In that case, the number of pieces produced would increase, the parts would be cheaper and the business more competitive. A medium-sized company in Germany could also prove this," the manager emphasized. There was a certain investor in the game with factories in Romania and Vietnam. However, German governments are afraid that factories in Bavaria or Lower Saxony will not be able to compete with companies from cheaper countries in a few years. Schöllhorn emphasized that the production of individual parts can be competitive in more complex jobs that also require adequate salaries. "A stronger partner could help us here, opening up access to other industries and bringing in investment capacity," the manager added. At the request of the unions, Airbus is also examining the possibility of keeping production in its ownership, but according to Schöllhorn, this will not be possible without painful interventions, while simpler work will still have to be provided by suppliers. According to the DPA, the reorganization will not affect about 700 employees of Premium Aerotec, which in Augsburg produce parts for the Eurofighter fighter and the A 400M military transport aircraft.