EADS backs Airbus loans

EADS has said that it expects European governments to continue with loans promised to support the Airbus A350XWB program.

The statement came in the wake of last week's ruling by the World Trade Organisation that some of the subsidies paid to Airbus over the years were illegal.

Speaking in Paris last week, EADS chief Louis Gallois said that the company had already altered its approach to Airbus loans following an interim ruling by the  WTO in September last year; and he expected funding for the A350 to proceed as planned.

France, Germany and the UK have agreed to provide a total of US$2.9 billion, in the form of reimbursable loans, for development of the new Airbus.

"We certainly have to take into account what the WTO is saying but so far knowing the conditions of the future probable support for the A350, I don't see any reason to change this," Gallois said.

The WTO ruling on some funding for the A380 however remains an issue and the EU is likely to appeal against this aspect at least, given that the WTO has demanded repayment of considerable monies by Airbus within 90 days.