Crisis talks between Airbus bosses and government officials were taking place this afternoon after the aerospace giant warned the future of its Filton plant would be at risk from a ‘no-deal’ Brexit.
Airbus employs around 4,000 people at Filton, which is its UK centre for wing design. 
This morning the European-owned group said it was reconsidering its investment plans at Filton and a sister site in Broughton, North Wales, in the light of suggestions that the government could be moving towards a ‘hard Brexit’.
Airbus chief operating officer Tom Williams told the BBC the company was “seriously considering whether we should continue” developing new wings in the UK.
He said the company had started to “press the button on crisis actions” over its concerns that EU regulations will no longer apply from March 2019 and uncertainty over customs procedures, instead opting to transfer production to North America, China or elsewhere in the EU.
Airbus, which directly employs 14,000 people in the UK and supports more than 100,000 jobs in the wider supply chain, also said a no-deal scenario would lead to “catastrophic” consequences which could cost the company billions of pounds in delays.
Airbus senior vice-president Katherine Bennett, pictured, – the company’s top executive at Filton – said: “It’s critical for our business to ensure that the wings that we build in Broughton and in Filton can get to France and Germany for the final assembly line.”
She said Airbus spent about £5bn each year on the UK supply chain. “It’s really important that the parts don’t get held up in warehouses. We have a very just-in-time delivery system.
“It would be very expensive for us and a burden we don’t want to be suffering. Our key preference is for the UK to remain a home nation for Airbus. But we really need the conditions for us to be effective. We don’t want extra costs on our UK business which may make Airbus think differently about us.”
Airbus chiefs were meeting officials from the Department for Business, Energy and Industrial Strategy (BEIS) this afternoon.
Bristol North West MP Darren Jones, whose constituency includes the Filton plant, attacked the government after Airbus’s statement.
He said: “Time and time again the government has been shown to listen only to hardline pro-Brexit MPs and not to the businesses that employ thousands of British workers, including Airbus.
“Thousands of skilled, well-paid jobs are now on the line because of the shambolic mess the government have created over the Brexit negotiations.
“I can’t stress how devastating this would be for North Bristol, where wing production is the core part of the Airbus business.”
UK manufacturing group ADS said the move showed the country’s manufacturing industry was “in peril”.
Airbus’s supply chain includes many of the region’s top engineering businesses as well as a host of small companies – many of them reliant on the group.
Bristol Chamber of Commerce chief executive James Durie said Airbus’s warning had to be taken very seriously.
“The role of Airbus as an employer and as an anchor firm for our hi-tech, advanced manufacturing and aerospace sectors is hard to overstate,” he said.
“Airbus is saying clearly that Brexit will have ‘severe negative consequences’ for the industry and may threaten their future UK production. This threatens not just Airbus’s own jobs and investment, but thousands of other jobs in their wider city region supply chain.
“Airbus’s frustrations and concerns are also widely felt among our wider business base of small and medium companies in the region.”
He said the chamber’s parent group Business West had been raising the concerns of business with national and local decision makers and politicians for nearly two years – over the lack of clarity and certainty faced by businesses, but also of the potential damage to firms from the greater costs and barriers that firms could face.
“It is now two years since the referendum and less than 10 months until Brexit day. We still do not have any idea as to what businesses have to prepare for, nor a settled agreement within government as to what end state the UK itself wants to see in our trading relationship with Europe.
“Patience among businesses, particularly exporters, is now wearing very thin. Politicians seem uninterested in the detail of how Brexit will impact local businesses, or how its negative impacts will make it harder for businesses to create the wealth upon which the health of our region depends.”
Airbus’s warning came the day after business and industry minister Richard Harrington toured the Filton plant with West of England Mayor Tim Bowles
Mr Bowles said Airbus had told them about their innovative plans for investment.
“Airbus is a crucial part of the regions aerospace industry and I pressed the case for a good deal for the sector at a ministerial meeting at the Department for Exiting the European Union on Monday,” he said.
“I will continue to work closely with Airbus and Government to get the best deal for the region, securing jobs and investment for the future.”
South West TUC secretary Nigel Costley said Airbus’s comments came as no surprise.
“In the past year, workers and businesses have told us how worried they are about a lack of progress with Brexit,” he said. “As we get closer to March, it’s looking more and more likely the UK will crash out of the EU, with dire consequences.”
Downing Street said the Prime Minister would listen to Airbus’s concerns but the government would deliver a Brexit that suits all sectors.
