Airbus is reported to have requested a huge cash injection of British taxpayer funds to support a new version of its A380 aircraft with more fuel efficient engines. The Sunday Times understands Airbus has approached the business department for a fresh round of repayable launch investment (RLI) to equip the huge plane with new engines. Business secretary Sajid Javid is believed to have demanded a firm business case before committing funds. The A380, which began commercial flights in 2007, was funded with about £1.9bn from France, Germany, Spain and UK. The UK’s £530m of RLI is due to be repaid through royalties, when the A380 programme makes a profit – which it has not yet done. Rolls-Royce supplies Trent 900 engines for the currenet A380, and may make a new, more fuel-efficient engines should Airbus commit to the A380neo. Rolls has received as much as £450m of RLI for its Trent engines. Now Boeing has warned Airbus that if it gets more subsidies or loans for a new it would breach World Trade Organisation (WTO) rules. Airbus said it would not comment as it had not yet decided on a revamped A380, and there has been speculation the programme could be scrapped due to low orders. Boeing and Airbus have been locked in litigation for years about state funding.
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Boeing warns Airbus over reports of state aid
The A380 passenger plane has almost 320 firm sales, but orders have been flagging recently
Boeing has warned arch rival Airbus over unconfirmed reports that it wants state aid for a new version of its A380 super-jumbo jet.
Ray Conner, head of Boeing Commercial Airplanes, said subsidies or loans for a new airliner would breach World Trade Organisation (WTO) rules.
Airbus said it would not comment as it had not yet decided on a revamped A380.
The two aerospace giants were locked in years of litigation over accusations that each received state funding.
But recent sales of the world’s largest passenger aircraft have been disappointing, while Reuters and the UK’s Sunday Times newspaper have reported that Airbus has sounded out European governments about loans for an upgrade.
The so-called A380neo could have new engines and more seats. The current A380, built at a cost of at least €15bn (£11.4bn), is certified to carry 853 passengers, but typically carries about 550.
A decade after its launch, the A380 has almost 320 firm orders and there was speculation earlier this year that the whole programme could be scrapped.
Boeing tax breaks
Mr Conner said at the Paris Air Show that an application for state loans risked reopening the dispute with Airbus.
“Whether they go forward with that, we will address as it comes along. That would clearly not be in line with what the WTO has said,” Mr Conner said.
Both companies have claimed partial victories in their long-running dispute, but are now fighting over whether their rival is complying with the WTO.
Airbus accuses Boeing of benefiting from billions of dollars in tax breaks in Washington state. Mr Conner defended the benefits, saying that the incentives were open to the whole aerospace industry.
“There are about 2,500 aerospace companies in the state of Washington that benefit. Frankly, if Airbus or Bombardier, or any of our competitors, want to come to Washington state, they would get the benefit as well,” he said.
An Airbus spokesman said he would not comment as “there is no A380neo programme”.
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Boeing says government loans for Airbus A380neo would go against WTO rulings
Boeing Commercial Airplanes Chief Executive Ray Conner said at the Paris air show on Tuesday that any government loans for a revamped version of Airbus’ (AIR.PA) A380 superjumbo would go against recent World Trade Organization rulings.
Asked about reports that Airbus would apply for European government loans for the A380neo’s development, Conner said: “Whether they go forward with that, we will address as it comes along. That would not be in line with what the WTO has said.”
European government loans for the A380 are a key element of a long-running trade dispute over mutual accusations of aircraft subsidies between the United States and European Union.
As first reported by Reuters, Airbus is expected to look at whether to seek new loans for a possible upgrade of the A380 designed to boost sales of the world’s largest passenger jet.
Airbus has said it is too early to address such loans, which cover a third of development. But European trade sources told Reuters in April there had already been informal soundings.
Britain’s Rolls-Royce (RR.L) may also apply for government loans for the engine it is expected to develop, but would need approval from the EU competition authorities, the sources said.
Airbus has accused Boeing of benefiting from about $8 billion in unfair tax breaks connected with the development of its new 777X jetliner. Conner defended the tax breaks, saying they applied to the whole aerospace industry and were not subsidies for Boeing.
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Airbus seeks taxpayer loan
AIRBUS has asked for a multimillion-pound injection of British taxpayer funds to support a new version of its A380 double-decker aircraft.
14.6.2015 (Sunday Times)
AIRBUS has asked for a multimillion-pound injection of British taxpayer funds to support a new version of its A380 double-decker aircraft.
The Toulouse-based aerospace giant is understood to have approached the business department for a fresh round of repayable launch investment (RLI) to equip the huge plane with new engines. However, the business secretary Sajid Javid is believed to have demanded a firm business case before committing funds.
The A380, which began commercial flights in 2007, was funded with about €3bn (£1.9bn) of support from France, Germany, Spain and Britain. The UK’s £530m of RLI is due to be repaid through royalties when the programme makes a profit.
However, poor orders mean that this has yet to happen. Airbus relies heavily on just a handful of customers, notably the Gulf airline Emirates.
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Full Sunday Times article at
Airbus Considering New Engines for A380 Superjumbo Jet
Emirates Airline said it would order as many as 200 A380s if Airbus made a double-digit improvement in fuel efficiency
March 9, 2015
SCOTTSDALE, Ariz.— Airbus Group NV’s chief jetliner salesman on Monday said the company is considering new engines for its double-deck A380 superjumbo jet, but won’t make the change solely based on the demands of a single buyer.
Dubai-based Emirates Airline is the largest customer for the A380 superjumbo jet, and has been clamoring for a “double digit” improvement in fuel efficiency. Emirates has said it would order as many as 200 A380s if Airbus were to add engines that achieved that goal.
John Leahy, Airbus’s chief operating officer for customers, said the European plane maker is currently evaluating the business case for a major upgrade for the world’s largest jetliner.
“We aren’t going to obviously build it for just one airline,” said Mr. Leahy, implying that the promised order wouldn’t create a sufficient business case.
“We’re in the process of trying to decide if you invest money to do a [new engine option] airplane,” said Mr. Leahy.
Mr. Leahy said the market for the 525-seat A380 is “slowly developing in the future.”
via Airportwatch http://ift.tt/1CeWH94
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