Spain approves loan to A350 suppliers

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The Spanish government has approved a €359 million ($535 million) loan to Spanish companies involved in the Airbus A350 programme.

Spain's workshare on the programme is 11%. Subcontractors to the A350 and Rolls-Royce Trent XWB programmes will receive up to €94 million in 2009 and a maximum of €265 million in the period 2010-2014.

The money will be provided by Spain's ministry for industry, tourism and trade. Companies will be able to apply for up to 40% of their experimental development costs and up to 60% of their industrial research costs.

Repayment terms, according to the government, will "depend on the outcome of the [A350] project".

The ministry added: "The government considers the A350 programme strategic for the aircraft industry in Spain because of its importance as a source of innovation and technology."

The Spanish aerospace industry directly employs 33,000 people in the country.

Airbus said that it would not comment on government loan announcements.