Airbus warns no-deal Brexit could see it leave UK

The firm, which employs 14,000 people at 25 sites across the country, said it would "reconsider its investments in the UK, and its long-term footprint in the country" if Britain crashed out of the single market and customs union without a transition agreement.

Airbus has a major operation at Broughton in North Wales, and the West Midlands is a major base for aerospace manufacturers, including UTAS and Moog in Wolverhampton who both provide parts to Airbus.

The latest Airbus jet staged a flypast over the Broughton wing factory this week. The Airbus A330-900neo cruised past overhead at lunchtime on Monday as it began function and reliability tests.

Publishing a Brexit "risk assessment" on its website, the firm also called on the Government to extend the planned transition period due to run until December 2020 if a deal is agreed, saying it was too short for the business to reorganise its supply chain.

If there was no extension it would "carefully monitor any new investments in the UK and refrain from extending the UK suppliers/partners base", it said.

Tom Williams, the chief operating officer of Airbus Commercial Aircraft, said: "In any scenario, Brexit has severe negative consequences for the UK aerospace industry and Airbus in particular.

"Therefore, immediate mitigation measures would need to be accelerated.

"While Airbus understands that the political process must go on, as a responsible business we require immediate details on the pragmatic steps that should be taken to operate competitively.

"Without these, Airbus believes that the impacts on our UK operations could be significant.

"We have sought to highlight our concerns over the past 12 months, without success.

"Far from Project Fear, this is a dawning reality for Airbus.

"Put simply, a no-deal scenario directly threatens Airbus' future in the UK."

Jason Pitt, chief executive of manufacturing organisation Made in the Midlands said: "Our region’s supply-chain and formidable national infrastructure are valuable assets to Airbus.

“Our members involved in the aerospace supply chain are resilient – and only said as much at our annual exhibition on Thursday at the Ricoh Arena – but they need the support of a clearly defined Brexit strategy in order to plan and invest for the future.”

The former Secretary of State for Wales, who represents Preseli Pembrokeshire, said: "The enormous Airbus factory in North Wales is one of the jewels in the crown of UK manufacturing. This is a wake-up call. A pragmatic, sensible Brexit that protects trade and jobs is vital."

Unite's assistant general secretary Steve Turner said: "The realities of a 'cliff edge' Brexit and its impact on jobs in manufacturing communities across the four nations of the UK are becoming closer by day.

"Airbus supports 110,000 jobs in the UK. Its stark warnings of the uncertainty facing the aerospace industry cannot be dismissed by ministers and 'hard Brexiteers'.

"It would be a betrayal of Airbus workers, their families and the tens of thousands of workers in the wider supply chain if the Government failed to secure frictionless trade and access to the customs union and single market."

A Government spokeswoman said: "We have made significant progress towards agreeing a deep and special partnership with the EU to ensure trade remains as free and frictionless as possible, including in the aerospace sector, and we're confident of getting a good deal that is mutually beneficial.

"Given the good progress that we are continuing to make in the negotiations we do not expect a no-deal scenario to arise."

She added the Government is working closely with companies to understand their concerns ahead of leaving the EU and alongside industry will invest almost £4 billion by 2026 to ensure the UK remains a "world leader" in civil aerospace.