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Airbus to Get EU3 Bln From Governments, AFP Reports (Update1)

By Andrea Rothman

June 5 (Bloomberg) -- Airbus SAS will get 3 billion euros ($4.2 billion) from governments in France, Germany and Spain toward development of its A350 aircraft, Agence France-Presse said, citing an article to appear in tomorrow’s La Tribune.

“I am not aware of any such plans” said Clay McConnell, Airbus spokesman in Herndon, Virginia, in a telephone interview. “We’re considering all options for how to finance the A350. We have not made any announcements on how we plan to finance the development of the airplane.”

Airbus is developing the A350, a widebody, long-range plane, as a competitor to both Boeing Co.’s 787 and its bigger 777 model. Airbus has said the plane, set for initial deliveries in 2013, will cost about 11.6 billion euros to develp, Airbus has said.

Traditionally, the company has gotten a third of development costs from European governments in the form of loans. Dueling lawsuits by both the U.S. and the European Union challenging aircraft subsidies in the World Trade Organization have complicated the situation.

France, Germany and Spain at various points have indicated they would be willing to consider loans again though no firm promises have been made. Government ministers representing the main countries where Airbus has factories -- France, Germany, Spain and the U.K. -- are to meet on June 15 at the Paris Air show to discuss Airbus.

To contact the reporter on this story: Andrea Rothman in Toulouse, France at aerothman@bloomberg.net.

Last Updated: June 5, 2009 19:12 EDT

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