PARIS : European aircraft maker Airbus aims to apply for loans
worth up to one billion euros (1.24 billion dollars) from European
states for its new A350 airplane program, chief executive Noel
Forgeard was quoted as saying in the Financial Times.
Forgeard's comments were confirmed by a spokeswoman for the
company.
"The development costs (for the A350) will reach two to three
billion euros. We have the right to 33 percent in refundable loans,
that is 700 to one billion euros. If we have the right to these
loans, we will ask for them," the spokeswoman said Friday, citing
Forgeard's comments.
The British, French, German, and Spanish governments would be asked
to make the loans, even though such aid is currently a point of
contention between the United States and the European Union at the
World Trade Organisation.
"We shall obviously apply for refundable launch funds," Forgeard
was reported as saying by the Financial Times.
He added that the programme was "absolutely financeable" by Airbus
if the loans did not come through.
The declaration that Airbus will definitely seek launch aid for the
plane will likely further strain trade ties between the US and the
EU, the newspaper noted. Both sides accuse the other's aircraft
industries of tapping illicit sources of funding.
Forgeard said Airbus deliveries were expected to rise this year to
315-320 -- approaching the peak of 325 achieved in 2001 -- and to
350 next year and possibly 400 in 2006.
- AFP
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