Airbus plans for 'no-deal' Brexit as 'baseline' scenario

Europe's Airbus is planning for a "no deal" Brexit as its "baseline" scenario amid a political storm over a draft transition deal, according to a staff memo seen by Reuters.

Europe's largest aerospace group on Thursday welcomed a draft divorce agreement between London and Brussels but said there needed to be more clarity to allow businesses to plan.

With Prime Minister Theresa May facing a battle to get her draft agreement on the terms of Britain's departure from the European Union through parliament, and a potential revolt from members of her party, Airbus vowed to pursue contingency plans.

"The draft agreement is certainly encouraging but we must remember it is subject to parliamentary approvals," the head of the company's internal Brexit task force told staff.

"For the teams working on preparing for Brexit, we must stay focused and keep working at full speed from a baseline of no deal."