The Consequences of Brexit [part 4]

[Top Cats Hat 10]

4 million parts in an Airbus 380.

 

The A380 although a marvellous aircraft has a precarious future. Airbus put their money on a big hub to big hub model for the future of air travel. Boeing put their money on a point to point model and invested in the 787 Dreamliner which is much more suitable. As a result, Airbus are struggling with orders for the A380.

 

It's not the hubcaps and ashtrays that are made in Broughton, it's the wing, a fairly important component which helps them fly. If these items (25-30% of total cost of the aircraft) incur a tariff for being made outside the EU, this will seriously threaten the future of the model.

 

Airbus are not messing about when they say that they are considering pulling out of the U.K. That is 14,000 jobs at 25 locations, many of them in Wales.

[tzijlstra 11]

Airbus leaving would be a disaster in itself, but replicated many times over would be utter catastrophe.

 

You can’t easily replace those engineering skills or the infrastructure.

 

When is this utter insanity going to stop.

 

Just received an e-mail from one of my insurers, IAG, confirming they are moving their entire European operation to Luxembourg (where is L00b now? ). (see http://www.aig.com/brexit for confirmation)

 

On a serious note though: Manufacturing and Finance, the bedrock of British economy, is now beginning to carry out the 'threats' that turn out not to have been made in vain. That is 2500 top jobs in London on the move, being replaced by a 'UK entity' (so 500? lower skill jobs).

 

AIG aren't messing about on this, other major international firms will follow shortly. They have to, to ensure access to the markets they serve from London. Those people who earned 100K-500K a year as bankers will up sticks easily, it is the cleaners, porters, security, drivers and so on who will be left behind trying to find a replacement for their low-pay job. 'It's PROJECT FEAR! They don't care about us!' - nope. That is correct.

 

The A380 although a marvellous aircraft has a precarious future. Airbus put their money on a big hub to big hub model for the future of air travel. Boeing put their money on a point to point model and invested in the 787 Dreamliner which is much more suitable. As a result, Airbus are struggling with orders for the A380.

 

It's not the hubcaps and ashtrays that are made in Broughton, it's the wing, a fairly important component which helps them fly. If these items (25-30% of total cost of the aircraft) incur a tariff for being made outside the EU, this will seriously threaten the future of the model.

 

Airbus are not messing about when they say that they are considering pulling out of the U.K. That is 14,000 jobs at 25 locations, many of them in Wales.

 

Correct - and as I alluded to, it isn't just the tariffs, it is the danger to the supply chain more than anything. Advanced manufacturing is extremely time-sensitive in the supply-chain. If the specially milled aluminium screw caps don't arrive when you need them you risk delaying the production of the entire plane, causing ripple-effects throughout total production.

Edited June 22, 2018 by tzijlstra

[retep 68]

Just received an e-mail from one of my insurers, IAG, confirming they are moving their entire European operation to Luxembourg (where is L00b now? ). (see http://www.aig.com/brexit for confirmation)

 

On a serious note though: Manufacturing and Finance, the bedrock of British economy, is now beginning to carry out the 'threats' that turn out not to have been made in vain. That is 2500 top jobs in London on the move, being replaced by a 'UK entity' (so 500? lower skill jobs).

 

AIG aren't messing about on this, other major international firms will follow shortly. They have to, to ensure access to the markets they serve from London. Those people who earned 100K-500K a year as bankers will up sticks easily, it is the cleaners, porters, security, drivers and so on who will be left behind trying to find a replacement for their low-pay job. 'It's PROJECT FEAR! They don't care about us!' - nope. That is correct.

 

 

 

Correct - and as I alluded to, it isn't just the tariffs, it is the danger to the supply chain more than anything. Advanced manufacturing is extremely time-sensitive in the supply-chain. If the specially milled aluminium screw caps don't arrive when you need them you risk delaying the production of the entire plane, causing ripple-effects throughout total production.

 

So a foot in each camp, sensible thinking,

 

"As part of the restructuring, AIG will transfer all of AEL’s existing UK insurance business to the new UK insurance company, and at the same time, will transfer AEL’s existing European business to the new Luxembourg company.

The proposed restructure will be undertaken through a legal process combining an insurance business transfer (known as a Part VII Transfer) and a cross-border merger, which is subject to regulatory and court approvals. We will be writing to policyholders, claimants, brokers, and other interested parties from April 2018 to provide details of the proposed restructure, and how it may impact them.

Following the restructure, AIG will have one entity in the UK to write UK business and one in Luxembourg to write business in EEA countries and Switzerland through its branch network."

[ez8004 10]

So a foot in each camp, sensible thinking,

 

"As part of the restructuring, AIG will transfer all of AEL’s existing UK insurance business to the new UK insurance company, and at the same time, will transfer AEL’s existing European business to the new Luxembourg company.

The proposed restructure will be undertaken through a legal process combining an insurance business transfer (known as a Part VII Transfer) and a cross-border merger, which is subject to regulatory and court approvals. We will be writing to policyholders, claimants, brokers, and other interested parties from April 2018 to provide details of the proposed restructure, and how it may impact them.

Following the restructure, AIG will have one entity in the UK to write UK business and one in Luxembourg to write business in EEA countries and Switzerland through its branch network."

 

 

So how do you address the loss in jobs in the UK with the EU business having to move continent when it used to be processed within the UK? Also, what about the the associated decrease in tax receipts as well?

 

---------- Post added 22-06-2018 at 16:16 ----------

 

The A380 although a marvellous aircraft has a precarious future. Airbus put their money on a big hub to big hub model for the future of air travel. Boeing put their money on a point to point model and invested in the 787 Dreamliner which is much more suitable. As a result, Airbus are struggling with orders for the A380.

 

It's not the hubcaps and ashtrays that are made in Broughton, it's the wing, a fairly important component which helps them fly. If these items (25-30% of total cost of the aircraft) incur a tariff for being made outside the EU, this will seriously threaten the future of the model.

 

Airbus are not messing about when they say that they are considering pulling out of the U.K. That is 14,000 jobs at 25 locations, many of them in Wales.

 

You are correct and the main competitor to Boeing's 787 is the A350 XWB which has its wings made in Wales.

 

However, like all areas that voted to Leave, they deserve what they voted for.

[whiteowl 54]

 

You are correct and the main competitor to Boeing's 787 is the A350 XWB which has its wings made in Wales.

 

However, like all areas that voted to Leave, they deserve what they voted for.

 

Possibly a bit harsh as I strongly suspect Airbus employees will have voted overwhelming to remain, working for a European company and all.

[RJRB 688]

Looks like the Pro Brexit posters are struggling to put a positive spin on this news item.

[Top Cats Hat 10]

Possibly a bit harsh as I strongly suspect Airbus employees will have voted overwhelming to remain, working for a European company and all.

 

They may well have done but the rest of Flintshire (where Airbus is based) voted 56% to leave. And with all these things, when one major employer leaves the knock on in the surrounding area is enormous especially outside the large cities. Look at places like Grimethorpe, Worsborough and Maltby after the pits shut down.

[melthebell 864]

Looks like the Pro Brexit posters are struggling to put a positive spin on this news item.

 

"Project fear" is all they'll come out with, or "it doesnt matter, we'll survive without airbus"

[retep 68]

So how do you address the loss in jobs in the UK with the EU business having to move continent when it used to be processed within the UK? Also, what about the the associated decrease in tax receipts as well?

 

---------- Post added 22-06-2018 at 16:16 ----------

 

 

You are correct and the main competitor to Boeing's 787 is the A350 XWB which has its wings made in Wales.

 

However, like all areas that voted to Leave, they deserve what they voted for.

 

Where does it say job losses?

[tzijlstra 11]

So a foot in each camp, sensible thinking,

 

"As part of the restructuring, AIG will transfer all of AEL’s existing UK insurance business to the new UK insurance company, and at the same time, will transfer AEL’s existing European business to the new Luxembourg company.

The proposed restructure will be undertaken through a legal process combining an insurance business transfer (known as a Part VII Transfer) and a cross-border merger, which is subject to regulatory and court approvals. We will be writing to policyholders, claimants, brokers, and other interested parties from April 2018 to provide details of the proposed restructure, and how it may impact them.

Following the restructure, AIG will have one entity in the UK to write UK business and one in Luxembourg to write business in EEA countries and Switzerland through its branch network."

 

Where does it say job losses?

 

They are moving the site where they conduct ALL European business to Luxembourg. People and the businesses that they form move across borders, who knew? What an alien concept. You'll probably arrive at the next conclusion that a colleague of mine took: If they leave we should fine them. Even better position than drawing up the bridge and influencing trade, this way you'll definitely stop all inward investment. Just what a 'global' country needs.

 

I suppose BMW doesn't bother you either? shame that this is death number 2 for both Mini and Rolls if you get your way.

 

Pressure will continue to rack up - business planning involves years, not months and certainly not weeks. This is where you and the government are incredibly naive and show a complete lack of awareness of how large organisations work.

 

Show me the workable solutions Peter, because so far you are clutching at straws.

[RJRB 688]

Where does it say job losses?

 

Do you really need this spelling out?

[I1L2T3 10]

So a foot in each camp, sensible thinking,

 

"As part of the restructuring, AIG will transfer all of AEL’s existing UK insurance business to the new UK insurance company, and at the same time, will transfer AEL’s existing European business to the new Luxembourg company.

The proposed restructure will be undertaken through a legal process combining an insurance business transfer (known as a Part VII Transfer) and a cross-border merger, which is subject to regulatory and court approvals. We will be writing to policyholders, claimants, brokers, and other interested parties from April 2018 to provide details of the proposed restructure, and how it may impact them.

Following the restructure, AIG will have one entity in the UK to write UK business and one in Luxembourg to write business in EEA countries and Switzerland through its branch network."

 

You’re deluded with no concept of the reality.

 

Sorry but it’s the truth.