The British government has told Airbus that it is ready to provide repayable aid to support the launch of the A350, the long-range aircraft at the forefront of an Euopean Union-United States civil aviation subsidy row, the Financial Times said on Thursday.
The business daily said that Airbus had applied for £380-million ($673-million) from the British government — surpassing demands made to its other partner governments France, Germany and Spain.
London declined to confirm or deny the report early on Thursday.
The newspaper report came as the European Aeronautic Defence and Space Company, parent company of European plane manufacturer Airbus, was expected Thursday to approve the launch of the A350.
Britain’s trade and industry secretary Alan Johnson wrote a letter to Airbus in recent days to underline his government’s willingness to back the project and provide the same commitments offered by France, Spain and Germany, the newspaper added.
Airbus has sought reimbursable loans from its four partner governments that would cover about a third of the estimated total cost of the A350 project, €435-billion ($535-billion).
French Transport Minister Dominique Perben told Thursday’s edition of the French newpaper La Tribune that the four countries have made clear “their position in principle to support Airbus in its A350 programme”.
The A350 jet is intended to compete with Boeing’s new 787 Dreamliner and would enter into service in 2010, two years after its US rival.
However the launch of the A350 threatens to escalate a row between the United States and the European Union over their respective aircraft manufacturers.
The US has complained that Airbus receives unfair state aid in the form of interest-free loans to cover development costs from the governments of Britain, France, Germany and Spain.
The EU has accused the US of subsidising Boeing both directly and through military sales. – AFP