AIRSHOW-UPDATE 1-Airbus nations urge WTO appeal

* Airbus nations support loans for A350 developement

* Boeing says loans must be commercial

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FARNBOROUGH, England, July 19 (BestGrowthStock) – Airbus (EAD.PA: )
nations urged the European Union to appeal against a global
trade ruling condemning loan payments to the planemaker and
pledged to continue discussing financing for the A350 jetliner.

The ruling from the World Trade Organisation failed to
establish that Europe’s system of aircraft loan financing as a
whole was at fault, European officials said.

Ministers from France, Germany, Britain and Spain — four
countries that founded Airbus 40 years ago — discussed the
issue on the sidelines of the Farnborough Airshow.
“It is an unfair situation. All four of us deplore it and
our wish is that the (European) Commission appeals as quickly as
possible,” French Transport Minister Dominique Bussereau said.

“France believes the WTO panel confirmed that the principles
of reimbursable advances do not contravene WTO rules,” he told a
news conference.

Airbus is in talks with European governments to obtain
further loans for development of its future A350 jetliner, to be
paid back from a royalty on future sales of the plane.

“I can say we are encouraged by progress to date,” Mark
Prisk, junior British minister for business, said of the talks.

“Clearly it’s a complex set of negotiations and obviously
all of us are committed to acting consistently with our
international obligations, as you would expect.”

Ministers said France was in discussions to supply 1.4
billion euros, Germany 1.12 billion euros, Spain 332 million
euros and Britain 340 million pounds in A350 development loans.

Boeing says such loans are unfair and should be withdrawn.
It reiterated calls for future loans to be on a commercial

“The WTO has set a clear legal principle that government
loans to Airbus must be on commercial terms, otherwise they are
an illegal subsidy and inconsistent with WTO rules,” Boeing
spokesman Charlie Miller said.

The WTO said last month three European countries had given
prohibited export subsidies as loans for the A380 superjumbo.

Prisk said the four countries were unhappy about a WTO
decision to delay ruling on an EU counter-case which alleges
that Boeing received illegal aid in research grants.

The EU has until July 21 to appeal in the original case
brought by the United States and is expected to do so — a move
that legal experts say would trigger a U.S. counter-appeal.

Stock Market News

(Reporting by Golnar Motevalli, Matthias Blamont)

AIRSHOW-UPDATE 1-Airbus nations urge WTO appeal