Business

Brexit: Airbus threatens to pull out of UK if no deal reached

Airbus has warned it could leave the UK in the event of a hard Brexit, putting around 14,000 jobs at risk.

The pan-European firm said it would consider moving out of the UK if there is no transition deal involving ongoing membership of the Single Market and customs union.

While that is the government's intention, Prime Minister Theresa May has ruled out staying in either for the longer term and there is growing fear that a deal may not be concluded in time.

However more bullish MPs claim the narrow victory this week on the EU Withdrawal Bill has made the threat of a no deal less likely.

Either way the clock is ticking – the UK is due to leave the EU on 29 March 2019.

Airbus said last night the warning was not part of "project fear, but its "dawning reality".

In a risk assessment the company warns that "while an orderly Brexit with a withdrawal agreement is preferable to a no-deal scenario, the current planned transition (which ends in December 2020) is too short for the EU and UK Governments to agree the outstanding issues, and too short for Airbus to implement the required changes with its extensive supply chain".

As a result Airbus is "carefully monitor[ing] any new investments in the UK and refrain from extending the UK suppliers/partners base".

The company said it may ultimately abandon plans to build aircraft wings in British factories amid fears that EU regulations will cease to apply and uncertainty over customs procedures, transferring production to North America, China or elsewhere in the EU.

Tom Williams, chief operating officer of Airbus Commercial Aircraft, said: “In any scenario, Brexit has severe negative consequences for the UK aerospace industry and Airbus in particular.”

“Immediate mitigation measures would need to be accelerated,” he added. “While Airbus understands that the political process must go on, as a responsible business we require immediate details on the pragmatic steps that should be taken to operate competitively.

“Without these, Airbus believes that the impacts on our UK operations could be significant. We have sought to highlight our concerns over the past 12 months, without success. Far from Project Fear, this is a dawning reality for Airbus. Put simply, a no-deal scenario directly threatens Airbuss future in the UK.”

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