West German Subsidy for Airbus Approved

The European Community gave the go-ahead Wednesday for a major West German subsidy package for the European Airbus that could exacerbate U.S. frustration over government aid for the airliner project.

Bonn is to pay about $2.11 billion in subsidies to a yet-to-be-created subsidiary of aerospace firm Messerschmitt-Boelkow-Blohm that will oversee West Germany’s 37.9% stake in the four-nation Airbus Industrie consortium. Airbus builds planes that compete with those of U.S. manufacturers.