The European Aeronautic Defence and Space Co. is considering forgoing development aid for its civil aircraft programs as a means of curbing German government influence in its business decisions, the Frankfurter Allgemeine Zeitung reported.
In a letter to incoming EADS Chief Executive Officer Tom Enders, Chancellor Angela Merkel’s government objected to a plan to make Toulouse, France, the company’s sole headquarters, the newspaper said without attribution in a preview of a report to be published tomorrow. At present, the headquarters role is shared with a site in Ottobrunn near Munich, FAZ said.
Enders is now examining whether his company has enough cash to forgo drawing on 500 million euros ($659 million) in aid for the A350 Airbus SAS aircraft, FAZ said. Merkel’s government approved 1 billion euros in development aid for the project and has paid out half, the newspaper said.
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