Airbus may forgo government loans from France, Germany, the United Kingdom and Spain when developing the A350 airliner, the chief financial...
Airbus may forgo government loans from France, Germany, the United Kingdom and Spain when developing the A350 airliner, the chief financial officer of Airbus’ parent company said.
“The problem isn’t the financing,” said Hans Peter Ring, European Aeronautic, Defense & Space chief financial officer. “If we need it, we can get it.”
EADS, which owns 80 percent of Toulouse, France-based Airbus, and BAE Systems, which owns 20 percent, expects to make a final decision by September on whether to develop the aircraft, which will cost about 4.3 billion euros ($5.13 billion) to develop, Ring said. Airbus expects about 150 commitments to the A350 by the end of this year, he said.
The A350 will be a 250- to 300-seat long-range plane to counter Boeing’s planned 787, which is scheduled to enter service by 2008.
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Airbus already has sought loans from the U.K., France, Germany and Spain for 33 percent of the expense of the A350. Chicago-based Boeing and U.S. authorities are challenging Airbus’ right to the loans in a complaint filed to the World Trade Organization (WTO).
Meanwhile, the WTO will begin arbitration on U.S. and European Union countercomplaints against development aid to Airbus and Boeing on July 20, after each renewed calls for mediation.
The U.S. government resubmitted its challenge of subsidies for Airbus on June 30. The European Commission filed a similar request yesterday, said Claude Veron-Reville, the commission’s spokeswoman for trade.