Airbus Wants Suppliers to Help Fund A350

The European planemaker said no decision had been made on the rest of the funding or where to build the new plane, planned to enter service in 2013.

French President Jacques Chirac and German Chancellor Angela Merkel are expected to discuss EADS funding when they meet on Tuesday.

The Franco-German company says the A350 program also depends on the achievement of cost-cutting targets announced in the wake of a second setback to production of the 555-seater A380, revealed earlier this year.

The superjumbo's overall two-year delay wiped 4.8 billion euros ($6.4 billion) off profit forecasts over four years and has forced Airbus to consider basing assembly work on new models at a single site, rather than splitting it among several countries.

Gallois, who has warned workers to expect job cuts, said a decision on the A350 final assembly would be announced early in 2007 along with other restructuring measures.

Also on Monday, Rolls-Royce PLC, the world's second-largest aircraft engine maker, said it has finalized an order with Airbus to supply its Trent engine for the A350 XWB. Financial details were not disclosed. The contract follows a preliminary agreement announced the Farnborough air show in July.

Shares of European Aeronautic Defence & Space Co. rose 1.2 percent to close at 23.15 euros ($30.89) in Paris.

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