1. The document summarizes government subsidies received by Airbus from France, UK, and Germany between 1988-1998 totaling $9.6 billion. 2. It also outlines how state-owned airlines from Airbus member countries accounted for over $36.5 billion in orders, with major carriers like Air France and Iberia placing large orders. 3. An appendix provides a breakdown of public launch aid for Airbus by country and aircraft model through 1988, including commitments, disbursements, and valuations using government and corporate borrowing rates.

1. 1Bombardier Aerospace Group - Strategic Planning
3- Subsidies
Gov’t subsidies* received by Airbus as of Jan. 1998
**Refer to subsidies section in Appendix (p. 51) for breakdown of subsidies by program
-Subsidies for A3XX not included
*All figures in US dollars
-A321 & A319 development costs were financed entirely through credit lines backed by the guarantees of each Airbus member up to the amount equal to their portion of the work
‡Refer to subsidies section in Appendix (p. 50) for further context regarding $9.6 bil in total subsidies
Notes:
Program Totals by Country
France: $2.7b
UK: $1.2b
Germany: $5.6b
$1.0 $2.0 $3.0 $4.0 $5.0 $6.0
$ billions
A300/A
310
A320
A330/A
340
$4.3 bil
total
$2.1 bil
total
$3.2 bil
total
$9.6 bil
total
‡

2. 2Bombardier Aerospace Group - Strategic Planning
3- Organizational structure -
Effective use of European customer base
CASA
Consortium
partners
State-owned
airlines
Launch
orders
Cumulative
orders
Catalogue
value ($1999)
of cumulative
orders
A321: 20 a/c @ $1.1 bil
A340-200: 19 a/c @ $2.5 bil
175 aircraft on order
(largest Airbus operator)
~$12 billion
Gov’t held 38% until 1998
In 1998, British Airways
ordered 188 A319s, 320s &
321s. In 1999, an additional
12 A320s were ordered.
$9.5 billion
N/a
A300: 8 a/c @ $600 mil
A320: 26 a/c @ $1.2 bil
A340-300: 9 a/c @ $1.2 bil
Gov’t holds 63% stake Gov’t stake sold in 1997
~$7 billion
To date, Air France has
ordered 110 Airbus a/c
To date, Iberia has
ordered 125 Airbus a/c
$8 billion
N/a
State-owned Airlines from Airbus member countries alone
have accounted for more than $36.5 billion in orders
Gov’t holds 94% stake
Government /
interstate level

3. 3Bombardier Aerospace Group - Strategic Planning
Appendix -
Airbus Subsidy submitted by the US before GATT tribunal
Public launch aid for Airbus Industrie, by country and aircraft model, through 1988
Commitments
Disbursements
Value at
government
borrowing rate
Value at
corporate
borrowing rate
A300 & A310 A320 A330 & A340 Totals by country
Fr. UK Ger. Tot.
1.2 0.1 3.0 4.3
1.1 0.1 1.5 2.7
3.3 0.3 3.1 6.7
7.5 0.3 5.7 13.3
Fr. UK Ger. Tot.
0.7 0.4 1.0 2.1
0.7 0.4 1.0 2.1
1.2 0.6 1.1 2.6
1.8 0.7 1.2 3.7
(billions of dollars, US$)
Fr. UK Ger. Tot.
0.8 0.7 1.7 3.2
0.3 0.3 0.3 0.8
0.3 0.4 0.3 1.1
0.4 0.4 0.3 1.0
Fr. UK Ger.
2.7 1.2 5.6
2.1 0.8 2.8
4.8 1.3 4.7
9.6 1.3 7.1
Total
Airbus
9.6
5.6
10.4
18.0
a
b
c
d
a. While these figures represent all launch aid including funds allotted to non-Airbus aircraft projects such as the French ATR-42 & 72, disbursements of subsidies over what
was initially earmarked by the respective governments was not uncommon. Officials in France, Germany and Great Britain have stated that the numbers are accurate. Neither
firms nor governments in Europe discuss public support at a level more detailed than those used above, so it is impossible to assess how much the table overestimates Airbus
aid. Since Airbus is by far the largest aircraft venture currently receiving public financing in Europe, it is likely that these figures only slightly overestimate Airbus launch aid.
b. Value of disbursed funds as of 31 December 1988, including interest accrued assuming government rates (10-year treasury bills). The effects of staggered disbursements
and loan repayments during the course of the programs have been factored in and end-of-1988 exchange rates used.
c. Value of disbursed funds as of 31 December 1988, including interest assuming corporate prime rates. The effects of staggered disbursements and loan repayments during
the course of the programs have been factored in, and end-of-1988 exchange rates used.
d. The development costs of Airbus’ launch of the stretched version of the A320 designated the A321 were financed without government assistance with a line a credit from the
Euro Investment Bank. The financing was not project based but rather based on Airbus’ credit standing as backed by the liability of the members.
Source: Office of Technology Assessment, Competing Economies: America, Europe and the Pacific Rim (October 1991, US Dept. of Commerce)
e. The Gellman Research Associates Report (GRA) of 1990 commissioned by the U.S. to study the extent of European government subsidies to Airbus concluded that the
opportunity costs of the funds provided to Airbus at the prime private sector borrowing rate in each country (by 1989) exceeded $26 billion. The Europeans counter that the
appropriate cost of capital to be used in the measurement of its subsidies to Airbus is the cost of government funds instead of the commercial rate which would render the total
subsidies received much lower.
e