Airbus loan pays double

The Government is being repaid twice the amount borrowed to support the launch of the Airbus A320 short-haul airliner. The last installment marking completion of the £250m loan repayment will be made this month. The Government will continue to benefit from royalties paid on each aircraft delivered. The repayable loan was provided through the Department […]

The Government is being repaid twice the amount borrowed to support the launch of the Airbus A320 short-haul airliner.

The last installment marking completion of the £250m loan repayment will be made this month. The Government will continue to benefit from royalties paid on each aircraft delivered.

The repayable loan was provided through the Department of Trade and Industry during the 1980s. It covered part of the investment BAE Systems had to make in establishing manufacturing facilities for A320 wings at Chester.

BAESystems is seeking Government launch aid of up to £700m for the A3XX super-jumbo being planned by Airbus.