Airbus 'seeks loans' for long-range jet

BERLIN/TOULOUSE: Airbus SAS, the biggest commercial planemaker, is seeking as much as 3.6 billion euros ($5 billion) in loans from four European governments to help fund its A350 long-range aircraft, two people familiar with the plan said.

The loans from France, Germany, Spain, and possibly the UK, will account for 30 percent of the estimated 12 billion-euro development costs for the plane, said the people, who asked not to be identified because the talks are confidential. The aircraft, designed to seat as many as 350 passengers, is scheduled to enter service in 2013.

Airbus is developing the A350 to compete with Boeing Co's 787 Dreamliner and the bigger 777 model, which carries as many as 368 passengers. Loan commitments may re-ignite a trade dispute between the European Union and the US over subsidies for planemakers. The two governments filed dueling complaints with the World Trade Organization in 2004 about aid to aerospace companies. A WTO ruling is expected in the coming year.