UK aerospace companies which cut jobs after 11 September could fall behind their European rivals in competitiveness if the industry recovers quicker than expected. But the Society of British Aerospace Companies (SBAC) says a more likely gradual recovery could leave businesses in the rest of Europe "counting the cost" because they have been unwilling or unable to axe staff. The SBAC predicts UK aerospace industry sales are likely to fall by 10% this year from £18.4 billion ($28 billion) last year, with about 40,000 jobs being shed as a result of the terrorist attacks - around 10% of the workforce. Although turnover dropped 1.5% last year, operating margins were up one percentage point to 7%, reflecting the UK industry's "increasing competitiveness".
Source: Flight International
