Advertisement
Singapore markets closed
  • Straits Times Index

    3,224.01
    -27.70 (-0.85%)
     
  • S&P 500

    5,250.02
    +1.53 (+0.03%)
     
  • Dow

    39,747.90
    -12.18 (-0.03%)
     
  • Nasdaq

    16,383.52
    -16.00 (-0.10%)
     
  • Bitcoin USD

    70,927.15
    +1,300.98 (+1.87%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,962.57
    +30.59 (+0.39%)
     
  • Gold

    2,227.20
    +14.50 (+0.66%)
     
  • Crude Oil

    82.38
    +1.03 (+1.27%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Nikkei

    40,168.07
    -594.66 (-1.46%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE Bursa Malaysia

    1,530.60
    -7.82 (-0.51%)
     
  • Jakarta Composite Index

    7,288.81
    -21.28 (-0.29%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Airbus and Rolls-Royce to stockpile parts amid claims of 'criminal' Brexit damage

Airbus' Tom Williams said that if the company was damaged by Brexit, it would be “criminal” - Bloomberg
Airbus' Tom Williams said that if the company was damaged by Brexit, it would be “criminal” - Bloomberg

Britain’s two biggest aerospace companies Airbus and Rolls-Royce are looking to stockpile parts in the event of a "no-deal Brexit" as a senior executive warned that the consequences of crashing out of the EU would be "criminal".

Airbus has already begun building up parts and examining its supply chain to see how customs red tape could hurt it, chief operating officer Tom Williams told the Farnborough air show.

Mr Williams, the most senior Briton in the pan-European company, said that if the company was damaged by Brexit, it would be “criminal”.

“We’ve created a tremendous European success story and a world competitive company,” he said. “It would be criminal if we were to see that destroyed.”

ADVERTISEMENT

Mr Williams highlighted Airbus’s historic success, noting the company competes with Boeing for the title of the world’s biggest airliner company. 

“If you look back 40 years - and some of us can - European aviation companies had wonderful technology and great aircraft,” said the industry veteran, who will step down from Airbus at the end of the year. “But if you added all those European companies together, then they still had only had 11pc of market and the rest was US.”

He described the prospect of any event that weakened Airbus as “extremely frustrating”.

Airbus last month dropped a bombshell saying it could freeze all investment in the UK in the event of a hard Brexit.

Airbus's Brexit warning dissected: How will 'no deal' cost it €1bn a week?
Airbus's Brexit warning dissected: How will 'no deal' cost it €1bn a week?

Meanwhile Rolls-Royce boss Warren East said the Derby-based engine maker was also preparing to hoard parts to insulate itself from potential supply shocks.

“We are not doing it just yet but we might have to do it in the next few months,” Mr East said. “We will have to make a decision on building up a buffer of stocks.”

Mr East, speaking at Farnborough, also voiced his frustration at the uncertainty created by Brexit.

Business has tried to be pretty good and quiet and not make a fuss but we’re talking about stockpiling

Warren East, Rolls-Royce

“We can’t rely on anything,” he said, referring to the amendments Prime Minister Theresa May made to her plans that came out of her Chequers summit. “The white paper was incrementally positive in terms of context but it still leaves loads of unknowns and we have a business to run. We have to take contingency measures and will continue to do so.”

He added: “Look what happened yesterday. It got incrementally worse again, so yes, there is a bit of frustration. Having done a few interviews yesterday and talked about how positive it was and then seeing half of it undone was frustrating.”

He called for both sides of the Brexit negotiations to “start being constructive”, saying it was taking a toll on companies.

Inside Farnborough Airshow 2018, dominated by Brexit and trade deals
Inside Farnborough Airshow 2018, dominated by Brexit and trade deals

“It’s time to start negotiating something - and that’s on both sides of the fence,” Mr East said.

“Business has tried to be pretty good and quiet and not make a fuss but we’re talking about stockpiling,” the Rolls chief said. "It’s inconvenient and costly. When we say we have extra inventory because of Brexit, our investors won’t say ‘poor you’, they’ll say, 'why have you got it?'”