Press Release: State aid: Commission endorses €33.8 million public R&D funding for Diehl Aircabin

The European Commission authorised in December 2009 Germany under EU state aid rules to give €33.8 million of R&D support to Diehl Aircabin, for the experimental development of aircraft-cabin linings and air ducts. Each of the two projects would receive one repayable advance of €14.7 and €10.9 million respectively and one regular loan of €4.7 million and €3.5 million respectively at market-interest rates. The Commission found the repayable advances compatible with the EU Framework for state aid for research and development and innovation. In particular, the aid addresses a specific market failure of the private capital market, is appropriate, and is limited to the minimum necessary. The loans are granted on market terms and do not constitute state aid.