Brussels, 07/03/2012 (Agence Europe) - On Wednesday 7 March, the European Commission authorised France and Italy to provide state aid for R&D to Eurocopter and Agusta Westland to help them develop innovative medium-sized helicopters.
The projects are aimed at developing new helicopter models in the medium-weight (4-7 tonnes) segment, the Eurocopter X4 in France and the Agusta Westland AW 169 in Italy. With a view to sustainable development, they will include major technological innovations to enhance their operating performance, reduce their running costs, limit their environmental impact and boost flight safety.
In both cases, the scale of the projects is such that the investments and associated risks exceed the funding capacities of the undertakings, in a context in which the markets are wary of financing risky projects where there will only be a return on investment in the very long term. The French and Italian aid therefore makes up for a genuine market failure. In addition, the aid granted to the two undertakings is proportionate, being limited to the amounts strictly necessary to conduct the R&D projects. Moreover, it is unlikely to limit competitors' willingness to invest in a sector characterised by significant scope for technological innovation and high growth prospects, says the Commission, arguing that it is therefore unlikely to distort competition.
France will provide Eurocopter with a €143 million repayable advance, covering around 30% of total costs eligible for aid (€470 million). The activities funded will consist of industrial research (14.5% of the total) and experimental development (85.5%). The advances will be repaid in full when a pre-defined sales target is attained. Each additional delivery beyond this target will trigger the payment of a royalty fee to France.
Italy will provide state aid to Agusta Westland in the form of a €272 million zero-interest subsidised loan with a maturity of 19 years. The aid element of the loan is €94 million, less than 30% of the costs eligible for aid (€340 million). The activities funded will consist of industrial research (40% of the total) and experimental development (60%). In the case of Italy, the Commission took account of the fact that part of the AW 169 project will be carried out in backward regions (compared with the EU average), namely Campania, Lazio and Puglia. (OL/transl.fl)