Airbus could move investments out of the UK if there is a no-deal Brexit. Chief Executive Officer Tom Enders called the UK's position a "disgrace" as more firms pull the plug on a UK still stuck in political quagmire.
UK Prime Minister Theresa May and Airbus CEU Tom Enders in front of an Airbus 380 military plane at the Farnborough Air ShowImage: picture-alliance/AP Photo/M. Dunham
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Airbus CEO Tom Enders said on Thursday the European planemaker could move future investments out of the UK if there is a no-deal Brexit.
"If there is a no-deal Brexit, we at Airbus will have to make potentially very harmful decisions for the UK," Enders said. "Please don't listen to the Brexiteers' madness which asserts that, because we have huge plants here, we will not move and we will always be here. They are wrong."
"Make no mistake, there are plenty of countries out there who would love to build the wings for Airbus aircraft," he went on
Enders said the global aviation market was growing 5 percent a year, but that Airbus was not dependent on the UK for its future.
"It is a disgrace that more than two years after the result of the 2016 referendum, businesses are still unable to plan properly for the future," Enders said. "If you are really sure that Brexit is best for Britain, come together and deliver a pragmatic withdrawal agreement."
A torrid week
Enders' comments are his strongest since the 2016 Brexit referendum and raise pressure on Theresa May, the British prime minister, who is struggling to cobble together a deal in Parliament.
Adding insult to injury, Japanese electronics giant Sony said it was moving its European headquarters from near London to the Netherlands, while UK appliance maker Dyson revealed this week it would move its base from the UK to Singapore in 2019.
Jobs at risk
Airbus, which is based in Toulouse, France, directly employs 14,000 people in the UK and supports another 110,000. The company has production sites in Filton, in the southwest of England, and in Wales where it manufactures wings for its commercial aircraft.
It has been stockpiling parts at its plants in the UK and Germany to try to mitigate against any immediate impact of the hard borders that a no-deal Brexit would mean. The company said that while it expects to have enough stock to cover production for one month, it can't be fully prepared.
This septic isle
The head of the UK parliament's anti-EU research group, Jacob Rees-Mogg, says no-deal would boost the economy by 1.1 trillion pounds (€1.32 trillion). Not many agree with him. So, what would a no-deal Brexit look like?
Image: picture-alliance/DUMONT
It never rains
A delay by UK Prime Minister Theresa May to allow Parliament to vote on her Brexit deal has increased the chances Britain will leave the bloc without a deal in March. The odds on a no-deal Brexit have shortened to 2/1, according to oddschecker.com, while Steve Eisman, the trader whose prediction of the 2008 crisis was dramatized in the film The Big Short, is betting against UK banks.
Image: Getty Images/J. Taylor
Money where your mouth is
The IMF says that while some sectors like agriculture and mining might benefit, the majority of sectors would shrink by between about 1 percent and 33 percent. The Bank of England said no-deal would wipe between 4.75 percent and 7.75 percent off what the UK would have produced by 2024 and the pound would fall by 25 percent.
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Not waving, but drowning
The EU has said the UK would have "third country" status under a no-deal scenario, giving it the same status as China, Russia and Pakistan. All goods crossing EU borders would be subject to tariffs of up to 38 percent. The Confederation of British Industry (CBI) said additional paperwork attached to trading under WTO rules would act as an extra tariff of up to an average of 6.5 percent.
Image: Getty Images/S. Rayford
Love's labor lost
Britain’s farmers and manufacturers face the largest shortage of skilled workers since 1989 due to a fall in the numbers of EU27 nationals coming to work since the Brexit vote. A no deal would likely accelerate that process.
Image: Imago/i Images/A. Parsons
A road to nowhere
The financial industry and British regulators say a hard Brexit poses a threat to trillions of euros worth of derivative and insurance contracts London could lose up to to €800 billion to Frankfurt, lobby group Frankfurt Main Finance has said. Some 30 banks and financial firms have already chosen the city as the site of their new EU headquarters, with others opting for Dublin or Paris.
Image: picture-alliance/dpa/A. Rain
Movers and shakers left in limbo
No-deal would have significant implications for people's ability to go where they want. A €7 charge for visiting the EU's Schengen Area would kick in in 2021, after the UK's transition period ends. British expats would face uncertainty, as many foreign governments have not yet established their rules for residency under no-deal.
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Can't beat a good queue
The UK Road Haulage Association has said a lack of planning over no-deal would mean the manufacturing sector would be put under "severe pressure" and hauliers would go out of business. European airports have warned that no-deal would cause "major disruption and heightened safety risks" to the air network. Ryanair's chief executive Michael O'Leary has warned planes could be grounded.
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All in it together
The biggest impact of no deal could be felt in Ireland, which exports 12 percent of its goods and 40 percent of its food to the UK, and two-thirds of its other exports travel through the UK. The IMF believes the Netherlands, Denmark, the Czech Republic and Belgium also face taking moderate hits to their economies of between 0.5 percent and 0.7 percent.
Image: picture-alliance/dpa/V. Simanek
Where there is harmony, May brings discord
The Police Federation has said it was worried about "widescale disruption and dangers for the general public." Defence Secretary Gavin Williamson has said 3,500 troops are on standby to cope with the fallout of no deal. The government is preparing for potential shortages of key items in the wake of a no-deal Brexit. But May refused to guarantee the health service (NHS) would have enough medicines.
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Christmas-voting turkeys play chicken in Ireland
The border between Northern Ireland and the Republic of Ireland would remain unresolved with no deal. The main sticking point has been the Irish 'backstop' — the insurance scheme for avoiding a hard border in Northern Ireland. One solution has been a Canada-style agreement that would remove most EU restrictions but would not abolish the need for a hard border. But uncertainty breeds fear.
