Airbus chief executive Guillaume Faury predicts passengers will end up paying higher fares if the aerospace industry is forced to upend global supply chains in the face of tariffs.

Faury says that if tariffs imposed by different trading blocs become permanent, suppliers will respond by moving factories so components “cross borders much less often”.

This will see the sector shift from an industry with a “globalised ecosystem”, where parts are made where it makes most sense, to one that is more “regionalised”.

Such a “de-optimised” set-up will add additional costs and “in the end passengers will pay more for tickets”, he said, speaking at the Paris Air Forum on 13 June.

A350-c-Airbus

Faury says Airbus is not yet “thinking about regionalisation” and is “adapting” to the current situation. In the short-term, tariff increases are being spread throughout the industry, he notes.

Having to relocate production for any company will be “very expensive”, Faury says.

He is hopeful the entire industry can convince politicians of the imperative to return to tariffs on aerospace products that are “near zero”, as has largely been the case since 1979.

However, he says, if there is no willingness to compromise on the part of the USA then Europe will have to “show its teeth a little”.





Source link

Posted in
Uncategorized
Related Posts
Limousine Comments are Closed

Plan the perfect NYC Memorial Day weekend

Pack only what you need and avoid overpacking to streamline the check-in and security screening…

News Comments are Closed

LA’s worst traffic areas and how to avoid them

Consider using alternative routes, such as Sepulveda Boulevard, which runs parallel to the 405 in…

ITA Airways, United secure approval for codeshare partnership | News

ITA Airways is working to establish a codeshare relationship with United Airlines, following last month’s…

Martinair A350F trimmed from Air France-KLM backlog

One of KLM cargo division Martinair’s Airbus A350 freighters has been dropped from the carrier’s…

Safran aims to recover Leap delivery backlog to Airbus by end-October

Safran is aiming to recover the backlog of CFM International Leap-1A engine deliveries to Airbus…

Indonesian Aerospace expands cooperation with Turkish defence industry after ordering 48 TAI Kaan fighters

Indonesian Aerospace has deepened ties with Turkey’s defence aerospace industry amid Jakarta’s plans to obtain…

Angara maintenance certificate revoked following inspection after An-24 crash

Russian federal air transport regulator Rosaviatsia has revoked the maintenance certificate of Siberia’s Angara Airlines,…

Rolls-Royce ‘on track’ with second phase of durability package for 787 and A330neo

Rolls-Royce says it remains “on track” to deliver a 30% time-on-wing improvement for the Trent…

BAE chief hails Turkish Typhoon pact, but sidesteps jet trainer JV reports | News

BAE Systems chief executive Charles Woodburn has welcomed Turkey’s memorandum of understanding (MoU) linked to…

Bombardier still pondering option of Belfast acquisition | News

Bombardier is still not ruling out acquiring part of its former Belfast site to safeguard…

Rival submissions to expand Heathrow each promise third runway in a decade

Two proposals for expansion at London Heathrow each foresee a third runway – albeit of…

Otto Aviation picks Italian specialist to design Phantom’s fuel system

US firm Otto Aviation, which is developing a low-emission business jet, has selected Italian-based Secondo…

Post a comment

Your email address will not be published.