Joni
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 12:17 am

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.
 
khobar
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 12:46 am

"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...
 
astuteman
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 12:48 am

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
 
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kc135topboom
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 4:01 am

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
 
timboflier215
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 4:03 am

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.
 
flylondon
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 4:05 am

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?
 
Tan Flyr
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 4:08 am

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.
 
timboflier215
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 4:16 am

Quoting Tan Flyr (Reply 7):

Lol. That, of course, remains to be seen down the line.
 
khobar
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 4:37 am

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
 
timboflier215
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 5:08 am

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?
 
khobar
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 5:45 am

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.
 
timboflier215
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 6:19 am

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.
 
LY777
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 6:34 am

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!!!
Flown:717,727,732,734,735,738,73W,742/744/748,752,762/2ER/763/3ER,772/77E/773/77W, 788, D8,D10,L1011, A3B2,A320,A321,A332,A343,A388
 
flysherwood
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 6:48 am

Do the French taxpayers ever feel like Airbus is the French Governments "Prodigal" son?
 
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Stitch
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 6:57 am

Honestly, I am not surprised, not shocked, and not disappointed at this latest report.
 
ebbuk
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 7:21 am

Got to love the way the French protect their own.
 
ozglobal
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French Gvmnt Promises Loans to Airbus Subcontractors

Thu Nov 16, 2006 5:23 pm

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.
 
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Stitch
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RE: French Gvmnt Promises Loans To Airbus Subcontractors

Thu Nov 16, 2006 11:07 pm

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
 
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Buyantukhaa
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RE: French Gvmnt Promises Loans To Airbus Subcontractors

Thu Nov 16, 2006 11:15 pm

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.