AIRSHOW-UPDATE 1-Airbus nears A350 loan decision, Boeing objects

* Decision on funding for A350 project by end-June-ministers

* Financing deal could exclude Spain, ministers say

* Boeing says govt financing would violate WTO rules

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By Maria Sheahan and Matthias Blamont

PARIS, June 15 (Reuters) - European planemaker Airbus took a step closer to winning government loans to develop its A350 jetliner on Monday, drawing an immediate response from U.S. rival Boeing which called the move illegal.

European nations that produce Airbus jets -- France, Germany, Britain and Spain -- aim to decide by the end of June how much money they are prepared to put up to help Airbus get the 10 billion-euro ($13.9 billion) project off the ground. "We are disappointed by reports that the Airbus member states intend to provide - and Airbus to accept - billions of dollars of launch aid for the A350 just as the WTO is to rule on the WTO-consistency of such financing," Boeing said in an e-mailed statement on Monday.

Airbus and Boeing, which control the market for passenger jets over 100 seats, have accused each other of taking illegal subsidies and have taken their cases to the WTO.

"We believe that repayable loans are compatible with WTO rules," French Secretary of State for Transport Dominique Bussereau said.