Brexit: How Airbus warning might affect NI suppliers

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Airbus employeeImage source, Getty Images
Image caption,

The company has about 14,000 employees at 25 different UK sites

A matter of months ago, Airbus was being toasted by the government as a saviour of jobs in Belfast - now it is warning it could abandon the UK because of Brexit.

The European planemaker said the warning was not part of "project fear", but its "dawning reality".

Airbus employs about 14,000 people at 25 different sites in the UK.

It has no frontline presence in Northern Ireland.

But it is vital to the future of Bombardier's C-Series aircraft - and, by extension, a good many of the Canadian firm's 4,000 jobs in Belfast.

Several smaller Northern Ireland companies are also suppliers of parts to Airbus.

So Airbus's pronouncements might cause some jitters locally, but should not on its own induce panic.

Image source, Getty Images
Image caption,

Airbus makes wings for the A380 and other models in the UK

Its taking of a majority stake in the C-Series will happen on July 1 and the plane's Belfast-made wings, which are sent to Canada, cannot currently be made anywhere else.

Bombardier, as per a separate deal struck last year, will also go ahead and supply engine nacelles to Airbus.

Potentially, a no-deal Brexit, the scenario which would have Airbus consider quitting the UK, could have greater impact on supply chain companies.

Many Northern Ireland aerospace firms sell parts to Airbus and any regulatory divergence with the EU would make things difficult.

However, Airbus is but one customer and Bombardier remains the biggest client for most Northern Ireland firms in the aerospace sector.

In short, Airbus is to Wales what Bombardier is to Belfast.

So any decision on its UK future will be felt more in Great Britain, certainly in the first instance.