The European Investment Bank (EIB) will provide €300m in funding to support sustainable aviation efforts of the European Aeronautic Defence and Space Company (EADS).
EADS, the parent company of aviation major Airbus, will employ the funds towards innovation and R&D programs aimed at reducing the impact of aviation on the environment in terms of energy efficiency.
Reduction of pollutant emissions such as carbon dioxide and nitrogen; and noise levels is also part of the innovation efforts.
EIB vice president Philippe de Fontaine Vive said that the loan showcases the Bank’s commitment towards innovation and R&D in Europe and will enable the development of leading-edge technologies, which will play a key role in the sustainable economic development.
EADS & Airbus chief financial officer Harald Wilhelm added, "The EIB is one of our privileged finance partners, which has been supporting EADS for several years in developing ever innovative technologies.
"We very much appreciate this new agreement which demonstrates the solidity of our relationship and our joint will to accompany the sustainable development of air transport."
The funding is the second tranche of an agreement signed by the two parties in August 2011 and brings the total amount of EIB support to €800m, under the agreement.