IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 31 Dec 2009 | Removal date: 29 Dec 2016
Still in force

State loan

On 16 June 2009, the UK authorities notified an aid measure in favor of GNK Aerospace Services Limited.
 
GKN Aerospace Services Limited supplies composite aircraft structures and is an active player in the design and manufacture of complex metal alloy structures and special products such as canopy systems, aircraft transparencies and de-icing systems. On 19 December 2007, GKN was selected by Airbus as the preferred bidder for the wing component and assembly manufacturing facilities and for the A350 XWB contract to design, develop and manufacture the rear spars and fixed trailing edge work packages (R&D project). On 14 September 2008, GKN signed the contract with Airbus for the R&D project.
 

Eligible costs related to the R&D project amount to Ł185.8 million. The notified aid will be granted by the UK to GKN in the form of a repayable advance of Ł60 million (32.29 % of the total eligible costs).
 
The commission found that the measure constitutes State aid according to Article 87(1) of the EC Treaty and gave the following assessment:
'The notified measure consists of a repayable advance granted by the UK to GKN ASL. The resources involved are State resources, as they will be provided directly by the UK Government. The measure is selective as it favours explicitly only one undertaking, GKN, to which it confers an advantage by financing part of its R&D costs. Since GKN is a large enterprise involved in trade with other Member States, a financial advantage favouring it compared to its competitors distorts or threatens to distort competition and affects trade between the Member States.' (par. 64 of the letter from the EC to the United Kingdom - Brussels, 15.09.2009 C(2009)6874 final)
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
 

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