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Europe Daily Bulletin No. 9085
Contents Publication in full By article 33 / 42
GENERAL NEWS / (eu) eu/state aid

Commission approves €140 mil French aid to Snecma for R&D

Brussels, 08/12/2005 (Agence Europe) - The European Commission has approved a €140 million R&D aid measure proposed by the French authorities for Snecma. The aim of the Franco-Russian cooperation project is to develop an engine for the Russian Regional Jet (RRJ). The Commission has concluded that the project satisfies EU state aid criteria. The project covers the period 2002 to 2008, aiming to promote the participation of Snecma in the development of a new engine for regional aircraft (less than 100 passengers). The engine will be developed jointly by Snecma and its Russian partner NPO Saturn. It will power the future Russian Regional Jet (RRJ) built by the Russian aircraft manufacturer Sukhoi. The first test flights of the aircraft are scheduled for 2006. Public aid will cover 25% of R&D costs and aims to reduce the risk involved in the project, provide an incentive to undertake an ambitious research project and bring Snecma' R&D spending up to 22% of its turnover. The project is part of the French R&D aid scheme for the aeronautics sector, approved by the Commission in 1996.

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