France pledges to support Airbus exports
PARIS —
France is stepping in to support its aerospace industry with a 5 billion euro ($6.4 billion) map to increase bank lending to customers of European jet maker Airbus SA, a Finance Ministry official said Monday.
The take part with is aimed at helping airlines who are finding it difficult to line up financing for their purchases of Airbus aircraft, and is part of a 7 billion euro package of aid during French exporters that French banks agreed to with the Finance Ministry last week.
The 5 billion euro new state-backed bank financing is aimed at supporting the aeronautic persistence, the official said.
The by authority, who was confirming French press reports, gave no further details and declined to be named, citing ministry skill.
After several years of record orders, Airbus and U.S. competing Boeing Co. are facing a drastic ear-ring in orders this year as their customers struggle with slowing open atmosphere traffic and difficulties raising credit to pay for new jets.
Airbus expects new orders to fall to between 300 and 400 this year, after booking 777 trap orders last year. Boeing took in 662 orders last year.
Last week, the Finance Ministry said France’session six largest banks had agreed to a 7 billion euro bale of export financing as part of a deal under that the government is injecting the banks through 10.5 billion euros in unused capital to shore up their comparative estimate sheets and spur lending.
The French dealing daily Les Echos said four French banks that lend heavily to the aviation industry - Credit Agricole SA, BNP Paribas SA, Societe Generale SA and Natixis SA - are to good under the plan.
“We are delighted about this agreement between the state and the banks to support exports,” said Pierre Bayle, a spokesman beneficial to Airbus father company EADS NV.
“These measures will make allowance us to consolidate the delivery of planes ordered for 2009,” Bayle said.
Airbus spokesman Justin Dubon said: “We salutation the efforts by governments to assistance restore the functioning of financial markets.”
Neither Airbus nor EADS would officially confirm how much of the French government send abroad financing plan would benefit Airbus customers. The ministry official said 5 billion euros would go to the French aeronautics sector, which Airbus dominates.
Original text: http://seattletimes.nwsource.com/html/businesstechnology/2008671600_apeufranceairbus.html?syndication=rss
