France, Germany lend support for Airbus X6 project
The European Commission has approved under EU state aid rules €377 million of French and German support to develop the innovative Airbus X6 heavy helicopter.
The project will significantly contribute to research and innovation in the EU without unduly distorting competition in the single market.
Commissioner Margrethe Vestager, in charge of competition policy, said: “The French and German support will stimulate considerable private investment in this project. The support will help bring a new generation of innovative heavy helicopters to the market, without causing undue distortions of competition.”
Both France and Germany will provide public support for the development of Airbus’ X6 helicopter project. The support will amount to a total of €377 million in repayable advances granted over a period of eight years (€330 million by France and €47.25 million by Germany).
For the X6 helicopter project, Airbus will undertake significant research, development and innovation to develop an innovative and high-technology civil heavy duty helicopter. In particular, the twin-engine X6 helicopter will have a higher range of action, coupled with improved fuel efficiency, as compared to the current generation of helicopters. It aims to simplify access to platforms in the high seas, and also facilitate search and rescue, as well as humanitarian missions. The project is fully in line with the objectives set by the Europe 2020 flagship initiative for an Innovation Union.
The scope of the X6 helicopter project is such that the associated risks are high and the investments required exceed the self-financing capability of Airbus. The financial markets are also reluctant to finance such an ambitious research and development project for which a return on investment is only expected over a long period.
The Commission assessed the measures under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU), which allows state aid to facilitate the development of certain economic activities, where such aid does not adversely affect trading conditions to an extent that is contrary to the common interest.
The Commission found that:
• Support for this project is likely to continue to stimulate further investment in a market that is expected to grow in the next decade, and were competitors continue to invest in order to bring new products to the market.
• The significant exposure of the X6 helicopter project to systemic and atypical risks, due to its high ambition in terms of breakthrough research and innovation, as well as the magnitude of the initial investment necessary to start the project, make self-financing in the absence of public support very unlikely.
On this basis, the Commission concluded that the French and German measures are in line with EU state aid rules, as they will significantly contribute to research and innovation in the EU without unduly distorting competition in the single market.
Agents of Change: Top 20/40Finding and retaining talented employees continues to be one the…
France, Germany lend support for Airbus X6 projectThe European Commission has approved under EU state aid rules…
Veritas enters into agreement to acquire Vector AerospaceVeritas Capital Fund Management LLC has entered into an agreement…
HNZ ceases Norsk Helikopterservice AS operationsHNZ Group Inc. has announced that the operations carried out…
ALEA Expo 2017
July 24-29, 2017
2017 Safety & Quality Summit
September 27-29, 2017
Aerial Fire Fighting Europe 2017
October 17-18, 2017
2017 Canadian Aerospace Summit
November 7-8, 2017
HAC 2017 Convention & Trade Show
November 10-13, 2017