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Shareholders in European aircraft maker Airbus on Thursday approved the launch of the A350, a mid-sized carrier to compete with Boeing's planned 787 Dreamliner, and said Airbus would temporarily forgo controversial government assistance to finance the development costs.
EADS, the European Aeronautic Defence and Space Company, which owns 80 percent of Airbus, said it had backed development of the A350, a decision also taken by minority British shareholder, BAE Systems.
In a significant development in the on-going trade dispute between the European Union and United States, EADS said Airbus would not take immediate advantage of offers of government loans from Britain, France, Spain and Germany.
The EU and US are at loggerheads over state aid and assistance given to their respective civil aircraft manufacturers. Each accuses the other of breaching international trade rules and the dispute is currently before the World Trade Organisation.

Copyright Agence France-Presse, 2005

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