Airbus still expects state aid

Airbus still expects to receive government launch aid for its new A350 jet, the company said today less than 24 hours after the EU and US agreed to reopen negotiations on eliminating aircraft subsidies.

Noel Forgeard, chief executive of the European aircraft maker, said in Paris: “The basis of the agreement is not that there will be no support.”

EU Trade Commissioner Peter Mandelson said yesterday he had agreed with his US counterpart Robert Zoellick to suspend imminent World Trade Organisation litigation and instead negotiate a deal “ending subsidies to development and production of large civil aircraft.”

But Forgeard said the negotiations should aim to establish a level playing field between Airbus and Boeing without removing all forms of government aid. “It’s never been agreed that it should be zero,” he said.

Airbus announced it had delivered 320 planes in 2004, outstripping Boeing - which delivered 285 – for the second straight year with a 5 % global market share.

Executive Vice President Gerard Blanc said Airbus is likely to do the same again in 2005 if it meets its target of 350-360 deliveries.