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French Gvmnt Promises Loans to Airbus Subcontractors  
User currently offlineJoni From , joined Dec 1969, posts, RR:
Posted (7 years 11 months 1 week 4 days 6 hours ago) and read 3466 times:

Dominique de Villepin has promised 145MEUR in loans to Airbus' subcontractors to help them over the A380 delays.

http://edition.cnn.com/2006/BUSINESS/11/14/airbus.pm.ap/index.html

Quote:
"We are standing by Airbus and all of its subcontractors," Villepin said during a visit to Toulouse, southwestern France, where the European jetmaker is based. Villepin was visiting one of Airbus's subcontractors.

This is pretty small change to Airbus, but it can be needed to help keep the subcontracting base intact.

18 replies: All unread, jump to last
 
User currently offlineKhobar From United States of America, joined Mar 2006, 2379 posts, RR: 4
Reply 1, posted (7 years 11 months 1 week 4 days 6 hours ago) and read 3416 times:

"Villepin promised $103 million in government loans and guarantees for Airbus suppliers from 2007-2008, and a further $83 million in funding and tax breaks for aerospace and related industries -- some of which would be earmarked for research facilities in Toulouse."

http://edition.cnn.com/2006/BUSINESS/11/14/airbus.pm.ap/index.html

Tax breaks? Aren't those illegal subsidies, according to Airbus, EADS, Europe, etc.?  duck 

LOL...


User currently offlineAstuteman From United Kingdom, joined Jan 2005, 10106 posts, RR: 97
Reply 2, posted (7 years 11 months 1 week 4 days 6 hours ago) and read 3407 times:
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Two things, Joni.

Firstly, the thread title is technically misleading - the French Government is promising loans to Airbus Subcontractors.

Secondly, I'm pretty sure this one has been raised in an earlier thread.

Other than that, Thanx for the link.  Smile

Regards


User currently offlineKC135TopBoom From United States of America, joined Jan 2005, 12158 posts, RR: 51
Reply 3, posted (7 years 11 months 1 week 4 days 3 hours ago) and read 3230 times:

Looks like the French taxpayers are taking it up the a@@ again.

French Politician; "We will loan your company French tax money, so you can keep French jobs, that pay some of the highest taxes in the world, so we can loan you more money later, so you can hire more Frenchmen to pay more taxes".

 Angry


User currently offlineTimboflier215 From United Kingdom, joined May 2005, 1338 posts, RR: 1
Reply 4, posted (7 years 11 months 1 week 4 days 3 hours ago) and read 3224 times:

I don't think they're tax breaks, but government loans (in that they will be repaid) to Airbus suppliers who may be squeezed by the delays. I imagine it's to ensure the suppliers don't go out of business, thereby losing French jobs.

User currently offlineFlyLondon From United Kingdom, joined Feb 2004, 377 posts, RR: 0
Reply 5, posted (7 years 11 months 1 week 4 days 3 hours ago) and read 3224 times:

Quoting Khobar (Reply 1):
Tax breaks? Aren't those illegal subsidies, according to Airbus, EADS, Europe, etc.?

Well yes they probably are illegal under EU rules, but since when have the French ever followed the rules that they themselves lobbied to be brought in? Growth and stability pact anyone?


User currently offlineTan Flyr From United States of America, joined Aug 2000, 1915 posts, RR: 0
Reply 6, posted (7 years 11 months 1 week 4 days 3 hours ago) and read 3212 times:

Quoting Timboflier215 (Reply 5):
I don't think they're tax breaks, but government loans (in that they will be repaid) to Airbus suppliers who may be squeezed by the delays. I imagine it's to ensure the suppliers don't go out of business, thereby losing French jobs.

So, will they be "loans" that will be "repaid" or "loans" that will be "forgiven"?

I'll bet on the latter.


User currently offlineTimboflier215 From United Kingdom, joined May 2005, 1338 posts, RR: 1
Reply 7, posted (7 years 11 months 1 week 4 days 2 hours ago) and read 3173 times:

Quoting Tan Flyr (Reply 7):

Lol. That, of course, remains to be seen down the line.


User currently offlineKhobar From United States of America, joined Mar 2006, 2379 posts, RR: 4
Reply 8, posted (7 years 11 months 1 week 4 days 2 hours ago) and read 3136 times:

Quoting Timboflier215 (Reply 5):
I don't think they're tax breaks, but government loans

"Villepin promised $103 million in government loans and guarantees for Airbus suppliers from 2007-2008, and a further $83 million in funding and tax breaks for aerospace and related industries -- some of which would be earmarked for research facilities in Toulouse."

$103M in government loans and guarantees to Airbus suppliers and a further $83 million in funding and TAX BREAKS for aerospace and related industries.

Seems clear enough, assuming the story is accurate.  Wink


User currently offlineTimboflier215 From United Kingdom, joined May 2005, 1338 posts, RR: 1
Reply 9, posted (7 years 11 months 1 week 4 days 2 hours ago) and read 3094 times:

Quoting Khobar (Reply 9):

Ah right, apologies, I missed that. Too little sleep lol. The tax breaks seem to be for seperate aerospace and research companies, though, rather than the Airbus suppliers, or am I being dense again and the money is all for Airbus' suppliers?


User currently offlineKhobar From United States of America, joined Mar 2006, 2379 posts, RR: 4
Reply 10, posted (7 years 11 months 1 week 4 days 1 hour ago) and read 3056 times:

Quoting Timboflier215 (Reply 10):
Ah right, apologies, I missed that. Too little sleep lol. The tax breaks seem to be for seperate aerospace and research companies, though, rather than the Airbus suppliers, or am I being dense again and the money is all for Airbus' suppliers?

Apologies completely unnecessary.

With regards to your specific question, my guess is it depends on whether airbus suppliers are considered "aerospace and related industries." I agree, the wording in the article does make it sound like they are separate issues though.


User currently offlineTimboflier215 From United Kingdom, joined May 2005, 1338 posts, RR: 1
Reply 11, posted (7 years 11 months 1 week 4 days ago) and read 3025 times:

Quoting Khobar (Reply 11):

Many thanks! I'll guess we'll chalk that one down in the 'wait and see' column as well then! Lol.


User currently offlineLY777 From France, joined Nov 2005, 2702 posts, RR: 2
Reply 12, posted (7 years 11 months 1 week 4 days ago) and read 3005 times:

Quoting Joni (Thread starter):
Dominique de Villepin has promised 145MEUR in loans to Airbus' subcontractors to help them over the A380 delays.

http://edition.cnn.com/2006/BUSINESS/11/14/airbus.pm.ap/index.html

Quote:
"We are standing by Airbus and all of its subcontractors," Villepin said during a visit to Toulouse, southwestern France, where the European jetmaker is based. Villepin was visiting one of Airbus's subcontractors.

This is pretty small change to Airbus, but it can be needed to help keep the subcontracting base intact.

that does not surprise me!
my money will again go to Airbus!!!



אמא, אני מתגעגע לך
User currently offlineFlysherwood From United States of America, joined Jul 2006, 1115 posts, RR: 0
Reply 13, posted (7 years 11 months 1 week 4 days ago) and read 2976 times:

Do the French taxpayers ever feel like Airbus is the French Governments "Prodigal" son?

User currently offlineStitch From United States of America, joined Jul 2005, 31098 posts, RR: 85
Reply 14, posted (7 years 11 months 1 week 4 days ago) and read 2964 times:
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Honestly, I am not surprised, not shocked, and not disappointed at this latest report.

User currently offlineEbbUK From , joined Dec 1969, posts, RR:
Reply 15, posted (7 years 11 months 1 week 3 days 23 hours ago) and read 2931 times:

Got to love the way the French protect their own.

User currently offlineOzGlobal From France, joined Nov 2004, 2723 posts, RR: 4
Reply 16, posted (7 years 11 months 1 week 3 days 13 hours ago) and read 2875 times:

Quoting KC135TopBoom (Reply 4):
Looks like the French taxpayers are taking it up the a@@ again.

French Politician; "We will loan your company French tax money, so you can keep French jobs, that pay some of the highest taxes in the world, so we can loan you more money later, so you can hire more Frenchmen to pay more taxes".

There are recovery groups for your issues.



When all's said and done, there'll be more said than done.
User currently offlineStitch From United States of America, joined Jul 2005, 31098 posts, RR: 85
Reply 17, posted (7 years 11 months 1 week 3 days 8 hours ago) and read 2875 times:
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Quoting EbbUK (Reply 15):
Got to love the way the French protect their own.

But isn't that the second job* of a government? WA did it for us. AL did it for their folks. Now France does it for their people.



* - The first job, of course, being to perpetuate the bureaucracy.  Smile


User currently offlineBuyantUkhaa From Mongolia, joined May 2004, 2907 posts, RR: 3
Reply 18, posted (7 years 11 months 1 week 3 days 8 hours ago) and read 2875 times:

Quoting FlyLondon (Reply 5):
Well yes they probably are illegal under EU rules, but since when have the French ever followed the rules that they themselves lobbied to be brought in?

If I'm not mistaken, those rules apply for companies with an annual overturn of more than €250m. Subcontractors might, possibly, be smaller than that. If they're not, then it is indeed against EU rules.



I scratch my head, therefore I am.
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