Germany to offer Airbus guarantee for A350 -magazine

 @ibtimes
on September 12 2009 1:03 PM

The German government plans to support the planned construction of the Airbus A350 wide body plane with a state guarantee worth 1.1 billion euros ($1.61 billion), a magazine reported on Saturday. Focus magazine said the government would secure a loan from state-owned bank KfW, citing a confidential memorandum from Germany's finance and economy ministries to the parliamentary budget committee.

European governments are planning to provide billions of euros to help Airbus finance the A350 jet despite a ruling earlier this month from the World Trade Organisation that European launch aid loans for the A380 and other top-selling planes violated the rules.

Last month, Britain pledged 340 million pounds ($567.6 million) in loans to help Airbus develop the A350, which is intended to compete with Boeing's much-delayed 787 Dreamliner.

Officials have also said France would provide financing.

Airbus has nearly 500 firm orders from 30 customers for the A350, which it will launch next decade. Company officials estimate the potential market for the aircraft at 2,500.

Focus also reported that Airbus had given assurances to the government that some 3,000 jobs would be created in Germany due to the development of the A350, possibly rising to 7,500.

(Reporting by Madeline Chambers; Editing by Andy Bruce)

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