Germany pledges £988m aid for new Airbus jet development

Germany is ready to provide e1.1bn (£988m) of funding to European planemaker Airbus for the development of its A350 jetliner, a government official said, adding that only details remained to be ironed out.
By The Newsroom
Published 23rd Mar 2010, 11:19 BST
Updated 23rd Mar 2010, 11:19 BST

The World Trade Organisation is due to make a ruling today on state support for Airbus planes to clarify rules on industrial subsidies, which are at the heart of a trans-Atlantic battle for industry dominance.

German government aerospace co-ordinator Peter Hintze reiterated that Germany had agreed in principle to make e1.1bn available as its share of development funds for the future rival to Boeing's

787 Dreamliner.

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He added that funding was available, and that all conditions for a positive financing decision had been met. Mr Hintze's office confirmed that statement. "On our side all the pre-conditions are fulfilled. The conditions of the loan are in conformity with WTO rules and the funds are available," it said.

The United States has attacked loan payments by European governments for Airbus aircraft development as unfair subsidies, while the European Union, in a separate suit, accuses Boeing of receiving illegal support in the form of research spending.

The United States argues that Airbus got a total of $205bn in unfairly priced loans and other benefits from France, Germany, Spain and Britain over two decades – making the case by far the biggest international trade dispute.

A confidential interim report in September found against the European loans, US lawmakers said. European sources denied there had been a clear-cut result.

Related topics:AirbusGermanyUnited States