Bloomberg News

EADS Mulls Forgoing Aid to Curb Merkel Demands, FAZ Reports

March 04, 2012

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.

To contact the reporter on this story: Brian Parkin in Berlin at bparkin@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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