(Clarifies that Forgeard co-CEO of EADS, not Airbus in third paragraph)
PARIS (AFX) - The governments of the UK, Germany, Spain and France will make a decision by mid-July on how much aid could be given to Airbus for the launch of its new A350 jet, French Transport Minister Dominique Perben said.
'We are going to make a collective decision before the opening of the Farnborough airshow' in the UK on July 17, he said during a press conference here.
'Airbus will first have to inform us of its choices on this project,' Perben said, adding that EADS co-CEO Noel Forgeard has agreed to provide transport ministers with details of the A350 programme before the Farnborough show.
The A350 twin-engine long-haul jet, intended to rival Boeing's new 787 Dreamliner, is being redesigned by the company after client criticism, which could double development costs to nearly 8 bln eur.
Perben's comments come ahead of the first round of settlement hearings at the World Trade Organisation, over an ongoing trade dispute between the EU and the US over billions of dollars worth of alleged government aid to aircraft manufacturers, scheduled to begin in June.
The US is challenging European government launch aid for new Airbus products, in the form of loans covering up to 33 pct of the development costs, while the EU's complaint hinges on US state and local subsidies or other indirect assistance for Boeing.
The dispute is seen as one of the most complicated that the Geneva-based trade body has ever been asked to handle and could last for years, although both sides have sought to keep open the possibility of a resolution by direct negotiation.
Airbus is owned 80 pct by the European Aeronautic Defence and Space Co (EADS) and 20 pct by BAE Systems PLC. paris@afxnews.com rg/js/joy COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
© 2006 AFX News
