March 13, 2019 / 12:44 PM / 4 months ago

UPDATE 1-Germany sees 750 mln euros at risk from A380 production halt

(Adds details, background)

BERLIN, March 13 (Reuters) - The decision by Airbus to scrap its A380 jet risks costing Germany as much as 750 million euros ($848 million), an economy ministry report seen by Reuters showed on Wednesday.

Last week, Germany said it was in talks with Airbus about 600 million euros in outstanding loans advanced for the development of the A380 superjumbo, which the company has decided to scrap from 2021 after 14 years in service.

The ministry paper, first reported by Bild daily, said there were around 630 million euros in outstanding loans to Airbus, 50 million euros in loans to suppliers and interest repayment claims.

The paper said it had hired outside counsel to work on the complex legal issues involved and that Berlin expected the production halt to affect a U.S. World Trade Organization claim against the European Union over alleged subsidies.

The loans, part of development support granted to Airbus by France, Germany, Britain and Spain, are part of a long-standing trade dispute about mutual claims of illegal aircraft subsidies between the EU and United States.

A deal to restructure A380 loans signed by Germany and Airbus in 2018 ruled out the cancellation of the programme through 2028, said the report.

$1 = 0.8850 euros Reporting by Andreas Rinke and Andrea Shalal; Writing by Madeline Chambers; Editing Thomas Seythal and Mark Potter

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