The global market segment for large capacity aircraft (over 400 seats and 12,500 km of range) is undergoing a substantial transformation on the occasion of the launch on 19 December 2000 of the Airbus A 380 family of aircraft. This initiative of the European builder Airbus breaks the monopoly that, for more than two decades, had in this market segment the American builder Boeing.

The importance of this launch, which covers the development and manufacture of five aircraft models, lies in the high transport capacities (500 to 800 passengers), cargo and range (10,410 to 16,950 kilometres) of these aircraft. equipment, to which a high degree of technical, operational and maintenance communality is attached, which allows an optimization of the costs, not only those of development and manufacture, but also of the operation of the plane. All of these features make this A 380 programme considered globally as the most important bet of the recently restructured European aviation sector.

This importance has prompted the General Administration of the State, represented by the Minister of Science and Technology (MCYT), to have signed, on 27 December 2001, a collaboration agreement with the company " Eads Airbus, Limited partnership ", approved by the Council of Ministers of 27 December 2001, which provides for the implementation by this undertaking of the work of the programme of the Airbus A380 family of aircraft, corresponding to its participation in the the programme and the support with which the Spanish State contributes to the financing of these works.

This participation in the A 380 programme of the Spanish company, as well as that of the Airbus itself, S.A.S., is limited to the definition of general aspects of the aircraft, to the definition, development, manufacture and marketing of the Platform and equipment, while other developments, manufacturing and even marketing are expressly excluded from it, even though they are closely related to this program.

Among the excluded developments, for which Airbus only fixes its general characteristics and its integration into the whole, is the motorization. These peculiarities of motorisation mean that it was excluded from the bilateral agreement concluded in 1992 between the European Union and the United States of America on large aircraft, under which the Convention between the MCYT and 'Eads Airbus' was concluded. "Limited Company" of 27 December 2001 cited.

These general considerations clarify that Airbus S.A.S., acting only as a selector, on the basis of certain characteristics, of the offers which the world's leading aviation engine manufacturers made of new engines that could be used to equip the family of planes A 380. This selection fixed the two types of engines that equate the A 380, the GP 7200 and the TRENT 900 engines.

Once the selection of the types has been made, the motorization of each aircraft unit A 380, between the two types selected by Airbus, makes it independent of the company cited, the airlines that acquire and operate the devices. Taking into account these characteristics of the choice, the engine manufacturers have made forecasts of the demand, based on the data of the orders and the choices already made, which point to a balanced distribution, that is to say close to 50% 100, between the two types of engines. This distribution leads to the estimation of a demand, for each of the manufacturers of about 2000 engines in the life span of the family of aircraft.

This is in the case of the motorisation of a completely independent development of the ones included in the MCYT Convention-"Eads Airbus, Limited Company" of 27 December 2001, and therefore does not fall within the financing with which the Spanish State supports the participation of our country in the developments of Airbus, S.A.S., whose detail is included in the Annex to the said Convention and which forms part of it, called " Airbus A380 Program, Report to the Ministry of Ciencia y Tecnología, Madrid 24.04.2001 ".

The aforementioned trend foresees a significant demand for engine units, which offers opportunities for participation to our specialty industry in this segment. This participation would also contribute to the balanced development of the aviation sector of our country, since it would not only develop and manufacture components of the aircraft's platform, but also assemblies of its motorization and equipment.

Contribute to support this participation, the aid that this Department has already committed, in the framework of the bilateral Agreement of 1992 between the European Union and the USA relative to the great planes, for the developments, global and of the platform of the said program A 380. Such aid would be incomplete, if the aid was not included in the total package of the programme A 380, such as that represented by motorisation.

In order for the participation in the program of our companies to be feasible, it is necessary that these companies have sufficient technological, economic, and financial capacity to be able to carry out the developments and investments that are required. On the other hand, consideration must be given to the high risk, high costs and the long period of maturation of the business investments required for this programme, which affect both the actual stage of development determined by their non-recurring costs, such as the production stage where their costs are recurrent. For the first of these phases, it is common in the European environment for the relevant institutional support to exist, which is applicable to the motor vehicle programmes, since the economic capacity required in these cases, as well as In general, in this European environment, it is far more than the one that our companies have.

The institutional support should be directed towards those enterprises which are committed, on the one hand, to the development phases of the programmes and, on the other, to taking the risks of the part corresponding to their participation in the programmes leading the manufacturers of the types of engines chosen by Airbus. On the contrary, such support should not be granted to those other undertakings which act only as partners or subcontractors, and which are therefore outside the scope of those undertakings.

This system of aid for the participation of business in the motor vehicle programmes of Airbus A 380 is regulated and called by this Order and the Commission of the European Communities will be notified of the effects of the compatibility with the common market and the State aid rules, in compliance with the provisions of Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application of Article 88 of the Treaty establishing the European Community. However, the decision granting the aid will not be made until, if necessary, the European Commission takes the decision to declare them compatible with the Treaty.

The aid, in the form of repayable advances, as referred to in this Order, shall be governed in addition to that provided for in Article 81 of the General Budget Law; Law No 30/1992 of 26 November 1992. Legal System of Public Administrations

and the Common Administrative Procedure, and by Royal Decree 2225/1993 of 17 December 1993, which adopted the Rules of Procedure for the Concession of Public Grants, and the other provisions of application.

This Order is dictated by the State competence in the field of the promotion and coordination of scientific and technical research, as provided for in Article 149.1.15.a of the Constitution.

In its virtue, I have:

First. Object and temporal scope.

1. This Order lays down the regulatory basis for granting aid, in the form of repayable advances, to those undertakings which, having industrial establishments in Spain, participate, on the one hand, in the period 2002-2006. in the case of projects for the development of major engine assemblies, of one of the types chosen by Airbus S.A.S., for the propulsion of aircraft A 380 and, on the other hand, bear the relevant risks in relation to their participation. The application of the aid must be before the development of the development projects. The aid provided for in this Order will be granted on a competitive basis.

2. The development projects covered by the aid must coincide with one of the R & D phases defined in Annex I to the Community framework for State aid for research and development (96/C-45/06), as follows: technical feasibility prior to the activities of industrial research or pre-competitive development, industrial research, and activities of precompetitive developments.

3. The multiannual implementation may be carried out within the framework of the Partnership Agreements covering the activities of this financial year and future financial years, provided that the budgetary allocations so permit.

The authorization, if any, of the Government approving the conclusion of these Conventions will tend to have the activities of the corresponding programs during the next exercises of the period considered to have a stable framework of funding.

Second. Beneficiaries and types of participation.-The effects of this Order may be beneficiaries of the aid those companies belonging to the aeronautical sector, who participate in some project of the ones mentioned in the previous section. This participation requires, in order to be considered, for the purposes of granting the aid, that the applicant companies demonstrate in a reliable manner a contract, with one of the groups or with one of the companies that form it, that (a) provide for the development and manufacture of significant or major elements of one of the types of engines chosen by Airbus, S.A.S. for the purpose of propelling the A 380. It is understood as significant or major elements of the engine that, because of their importance, whether functional or economic, they form a segregable subset of the overall engine set.

Third. Modality, financing, characteristics and maximum amount of aid.

1. The aid provided for in this Order shall consist of repayable advances in the form of zero-interest loans. The reimbursement will be made based on the deliveries of engines to the customers. The forecasts for deliveries shall be made in the relevant statements accompanying the application and shall be included in the resolution or conventions terminating the aid package.

2. These advances shall be granted to undertakings which submit development projects of the types described in the preceding paragraphs.

Applications to be estimated in the call for this financial year 2002 will be financed by budget implementation 20.11. 542 E. 833 of the current General Budget of the State.

3. The amount of the advances shall be established on the basis of: the R & D phase, the type of enterprise, the cross-border collaboration with the business of another Member State, and the region where the project activities are located. The limits of the gross aid intensities identified by the European Commission in the Community framework for State aid for research and development (96/C 45/06) shall be taken into account in the fixing of this amount. The limits of the gross intensities to be used for the aid referred to in this Order are those set out in the table below:

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Maximum gross aid intensity in grant equivalent to beneficiary for various R & D phases

Technical Feasibility Studies prior to activitiesType of beneficiary company and region where the industrial research project is located -Percentage

precompetitive development-Percentage

Industrial Research -Percentage

Pre-competitive development activities-Percentage

Large companies............. 75 50 50 25 SMEs...................... 75 50 60 35 Large enterprises in region Article 87 (3) (a).................. 75 50 60 35 Large enterprises in region Article 87 (3) (c).................. 75 50 55 30 SMEs in region 87 (3) a).... 75 50 70 45 SMEs in region 87 (3) c).... 75 50 65 40

The gross intensities of the aid referred to in the preceding table may be increased by up to 10 percentage points when the research project involves a cross-border collaboration between the beneficiary of the aid and, at the very least, an independent partner of another Member State of the European Union, especially if it is carried out in the context of the coordination of national policies for research and technological development.

However, in the event of cumulation of any of the aid intensity increases set out above, a maximum gross aid intensity of 70% and five per cent in the investigation cannot be exceeded. In the case of pre-competitive development activities, it is 50% of the total. These limits must be respected in all cases.

It will be understood by SMEs, the company, which at the time of the aid application, will meet all the requirements of the definition of small and medium-sized enterprises set out in Commission Recommendation 96 /280/EC of 3 April 1996 (OJ L 107, 30-4-1996).

4. Such advances shall, in any event, have as their maximum the following percentages of the eligible costs for each R & D phase:

70% and 5% (75 per 100) of the eligible costs corresponding to the feasibility studies phase prior to industrial research activities.

Sixty-five per cent (65 per 100) of the eligible costs of the feasibility studies phase prior to pre-competitive development activities.

Sixty-five per cent (65 per 100) of the eligible costs of the industrial research phase.

40 per cent (40 per 100) of eligible costs for pre-competitive development activities.

5. For the purposes of calculating the intensity of aid for R & D activities, the following costs may be taken into account as suffragable. Where they are also attributable to other activities, in particular to other R & D actions, they shall be distinguished in a proportional manner between the subsidised R & D activity and the others:

Personnel expenses (researchers, technicians and other auxiliary staff dedicated exclusively to the research activity).

Costs of instruments, material, land and premises used exclusively and permanently (except in case of transfer for consideration) for the research activity.

Costs of advisory and similar services used exclusively for research and development activities-including research, technical knowledge, patents, etc.-and acquired from external sources.

Additional general expenses directly arising from the research activity.

Other operating expenses (e.g.: Costs of materials, supplies and similar products) directly derived from the research activity.

6. Projects which may be eligible for aid covered by this Order may be supported by other support granted by the Autonomous Communities, other national or international public authorities or the Union. European, provided that

total public funding does not exceed the limits set out in heading 3 of this paragraph.

7. The amount of aid granted shall, in any event, be subject to budgetary resources.

Fourth. Formalisation and submission of applications.

1. The interested companies will submit the corresponding application in original signed on paper, addressed to the Director General of Technology Policy, according to the model shown as Annex I to this Order.

The original request will be accompanied by a copy of the original application on magnetic support (diskette or CD-R in its corresponding protective cover). The original as well as the copy cited may be presented in the General Register of the Ministry of Science and Technology (MCYT), located on the Paseo de la Castellana 160, 28071 Madrid, or in any other of the places set out in article 38.4 of the Law 30/1992, of 26 November, of the Legal Regime of Public Administrations and of the Common Administrative Procedure and Royal Decree 772/1999 of 7 May 1999.

2. Each application shall be accompanied by the following documentation, in duplicate on paper. Alternatively, a copy on magnetic support (diskette or CD-R) may be accompanied for the documentation referred to in paragraphs (b), (c) and (f):

(a) Copy of contracts with the groups or their companies that develop and manufacture any of the types of engines chosen by Airbus, S.A.S. for the purpose of propelling the aircraft of the A380 family, in which it is justified (i) the provisions of the first and second paragraphs of this Order are fulfilled.

b) Questionnaire, duly completed, containing the general data of the company and the project specific, respectively, according to the models in Annexes II and III of this Order.

c) Project memory, according to the instructions that are proposed for processing in Annex V.

d) A certified photocopy of the legal person card and entities in general, as set out in Decree 2423/1975 of 25 September.

e) Valid accreditation of the signatory of the application to act as the representative of the company in accordance with the provisions of Article 32 of Law 30/1992.

(f) the applicant's declaration stating the aid obtained, the requested aid and those provided for by any national or international administration for the project which is the subject of the application for support, Annex IV to this Order.

g) Audit reports for the last three financial years, except for newly created companies, which credit the company's financial financial soundness, in those cases that it wants to be exonerated from the provision of guarantees. These reports shall be drawn up by external auditors entered in the Official Register of Auditors (ROAC).

(h) The justification for the need and the incentive effect of the aid, using quantifiable criteria, such as the ratio of R & D expenditure to the volume of sales, the development of staff engaged in R & D activities, or any other criteria that are considered relevant. This memory must be provided by only those undertakings which at the time of the request for aid do not meet the requirements of the definition of small and medium-sized enterprises as set out in Recommendation 96 /280/EC of 3 April 1996.

3. The models of the Annexes referred to in the headings 1 and 2 of this paragraph, in particular those referred to in point 2 referred to in points (b) and (f) and the instructions for drawing up the report referred to in point (c), shall be provide in the Directorate General of Technology Policy or in the areas and dependencies of Science and Technology of Government Delegations in the Autonomous Communities.

All these models can also be downloaded from the website of the Ministry of Science and Technology www.mcyt.es.

4. Prior to the study and evaluation of the applications, the submitted documentation will be examined, and the interested party may be required to subsane or accompany new documentation within ten days. If it does not do so, it shall be withdrawn from its application, in accordance with the provisions of Article 71.1 of Law No 30/1992.

Fifth. Deadline for submission of applications for the 2002 call.

1. The time limit for the submission of applications and documents annexed to the previous paragraph for the 2002 call shall begin on the day following that of its publication in the Official Gazette of the State and shall end at 30 working days. such publication.

2. The following exercises, subject to the availability of budgetary availability, shall be held annually by the Secretary of State for Scientific and Technological Policy.

Sixth. Criteria and procedure for the assessment of applications.

1. The analysis and ex-ante evaluation of the applications will be carried out by the Directorate-General for Technological Policy, taking into account the type of set or subset contained in the project and its expectations or possibilities of incorporation into the engines to be placed on the market.

The valuation criteria will be the following expressed in order of importance:

a) Technological relevance of the developments contained in the project.

b) Quality and technical, economic and financial feasibility of the project.

(c) Cross-border collaboration between the beneficiary of the aid and at least one independent partner of another Member State of the European Union, especially if it is carried out in the context of policy coordination national research and technological development.

d) Cooperation with other companies, with technological centres or with those other subcontractors or suppliers of equipment, especially in the case of smaller ones.

e) Fomento and, where appropriate, support for the participation of other companies in the project.

f) Capacity to consolidate and strengthen the industrial fabric of the aeronautical industry.

g) Ability to disseminate technological knowledge and practical ways of carrying out work to other companies.

As long as the aid applicant is a large undertaking, the supporting memory referred to in paragraph 4 (h) of this Order must be analysed in order to verify the incentive effect of the aid.

During the procedure for the analysis of applications, the Directorate-General for Technology Policy may collect from the applicant the additional information and documentation required.

2. The result of the analysis and ex-ante evaluation of the applications will be submitted to a Monitoring and Control Committee within the Directorate-General for Technology Policy, which will be chaired by the Director-General and will be part of the Deputy Directors-General of the Centre, acting as Vice-President, the Deputy Director whose Unit is directly responsible for the management of the aid scheme corresponding to this Order. In addition, a representative of the Technical Cabinet of the Secretariat of the Department and another of the Center for Technological and Industrial Development will be members of the Commission with the rank of Deputy Directors General or assimilated. The Secretary of the Commission shall be an official of the Subdirectorate-General directly responsible for this programme. The legal status of that Commission shall be that laid down for the bodies governed by Chapter II of Title II of Law No 30/1992.

3. The Monitoring and Control Committee shall analyse the applications, and may propose the estimation or dismissal of the applications, including the acceptance or otherwise of the provision of guarantees, in the light of the audit reports referred to in the Point 2.g) of the fourth paragraph of this Order. The estimate of the application shall give rise to the proposal by the Commission to the body responsible for resolving the conclusion of a collaboration agreement.

4. Each proposal for a collaboration agreement will determine the commitments made by the Ministry of Science and Technology and the recipient undertaking, both in the development of the project and in the aid granted to it, in the reimbursement of the aid. of such aid, under the conditions and obligations in the event of non-compliance by the undertaking and, where appropriate, in the provision of guarantees. In the case of the establishment of such guarantees, they shall take any of the procedures laid down by the General Deposit Box and shall comply with the requirements laid down in the relevant legislation.

Seventh. Granting of the aid.

1. The proposals for collaboration agreements after the granting of the aid will be communicated to the beneficiaries, who will have to express their acceptance to the Directorate-General for Technological Policy within 15 working days. (a) from its communication, it being understood that it waives the aid granted if it did not express its acceptance within that period.

2. The Partnership Agreements will be signed by the Secretary of State for Science and Technology Policy and the beneficiary. Those who fulfil the characteristics laid down in Article 74 of the recast text of the General Budget Law or those who require it shall require prior authorization from the Council of Ministers.

3. The maximum period for the subscription of the Partnership Agreements shall be six months from the date of submission of each application, on the understanding that the application has been rejected as not having been signed within that period.

Eighth. Aid to be paid and monitored.

1. The repayable advances granted under the Partnership Agreements may be carried out by the competent authority of the Ministry of Science and Technology on a proposal from the Monitoring and Control Commission.

2. The advance payments shall, as far as possible, be accompanied by the actual implementation of the projects covered by the Conventions. However, for certain phases or parts thereof, they may be materialized prior to their completion.

3. In the event that a security is required, in accordance with the provisions of heading 4 of the sixth paragraph of this Order, and if advance payments are to be made, the collateral shall be provided by the beneficiary. for the amount of this book, which shall be added to any interest on late payment which may arise from the time of the release to the date on which the maximum period of justification for the implementation of the stage or part of the project is completed object of support. Article 36 of the General Budget Law shall be deemed to be of interest for late payment.

4. The security corresponding to the amount of the aid shall be released in instalments as the advances are reimbursed, while the interest for late payment shall be the case where the accreditation is taking place. performed the source activity of the help.

5. The Monitoring and Control Committee set up in the sixth paragraph, headings 2 and 3, shall be responsible for monitoring the cooperation agreements concluded between the Ministry of Science and Technology and the beneficiaries, verifying the compliance and effectiveness of all the conditions laid down therein and, where appropriate, may propose to the competent body of the Ministry of Science and Technology, either on its own initiative, in the event of non-compliance justified by the beneficiary, or at the request of the beneficiary, duly motivated, Convention by addendum to it.

The subscription of these addendas will follow the same procedure as the Convention that they modify, so they must be authorized by the Council of Ministers.

6. The imprest account company is obliged to make available to the Directorate-General for Technological Policy all the supporting documents of eligible expenditure and other supporting documents of the activities carried out, as well as to give it free access to the documentation and to the work which constitutes the development of the phase or parts thereof carried out and to the implementation of the project object of support.

7. The company must submit a report annually on the situation and development of the project, specifying the milestones achieved and the actions taken. In the case of large companies in the relevant report the incentive effect of the aid will be justified.

Completion of the project will proceed to the final reception of the project, which will be accompanied by a final assessment of the degree of compliance of the objectives.

Ninth. Default.

1. The collaboration agreements shall regulate the particular conditions in the event of non-compliance. However, in general, where the Monitoring and Control Commission considers that the requirements laid down in the Conventions are not met, on the basis of the checks it deems appropriate, it may propose to the body (a) the competent authority of the Ministry of Science and Technology, the revocation of the aid, and the reimbursement of the amounts collected together with interest on late payment of the aid, as provided for in Article 81.9 of the recast text of the General Budget Law.

2. The conduct referred to in Article 82 of the current consolidated text of the General Budget Law shall be considered to be an infringement and shall be punishable under the terms established therein.

10th. Conditions for the repayment of advances.-The general conditions under which refunds are to be made, in addition to those referred to in the third subparagraph "Mode, financing, characteristics and maximum amount of aid", heading 1, shall be the following:

(a) Refunds will start in 2007, unless a period of absence of amortisation of the principal is admitted.

(b) The duration of the period in which the repayments are to be made shall be no more than 20 years from 2007, with the inclusion of up to three years ' lack of amortisation of the principal at that time.

c) For the determination of reimbursements, which shall be calculated as payment entitlements for each engine delivered, one of the following two modes may be used: A fixed duty per delivered engine or a variable duty proportional to the number of engines delivered.

The amounts and other specific conditions in which the repayments will be made shall be laid down in each Partnership Agreement which is concluded on the basis of the granting of the aid, as laid down in the sixth and second paragraphs. seventh of this Order.

11th. Rules applicable. -As not provided for in this Order, Section 4.a of Chapter I of Title II of the recast text of the General Budget Law, approved by Royal Decree No 1091/1988 of 23 September 1988, will apply. the Rules of Procedure for the granting of public subsidies, approved by Royal Decree 2225/1993 of 17 December 1993.

12th. Effectiveness. This Order shall have effect from the day following that of its publication in the "Official Gazette of the State". However, the decision to grant aid covered by this Order shall not be issued until the European Commission has taken the decision not to raise objections to it, in accordance with the provisions of Regulation (EC) No 3154/2000. 659/1999 of the Council of 22 March laying down detailed rules for the application of Article 88 of the Treaty establishing the European Community.

Madrid, 8 July 2002.

BIRT I BERTRAN

Excmo. Mr. Secretary of State for Scientific and Technological Policy.

ANNEXES I TO IV

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ANNEX V

Instructions for drawing up the Program Memory

The index on the content of the programme's Memory below has been developed with the idea of making it easier for the applicant to present it, trying to complement the information already contained in the model questionnaire in those aspects which are judged strictly necessary to assess such a programme or action in accordance with the objectives and criteria set out in the Order.

The index that is provided is a standard index for all programs, and as such it cannot contemplate or respond fully to the specific characteristics of each of the programs. In order to correctly assess the scope and the true dimension of the programme, the applicant must provide all data and information strictly necessary for this purpose.

MEMORY CONTENT

Index

A) Descriptive and technical memory

Objective or purpose of the programme: Definition of the main scientific and/or technological objective, as well as other objectives: Environmental, industrial, socio-economic, strategic character for its sector, its impact on development of the society, its impact on the improvement of the local, regional, national and other collective use infrastructures that are of interest for the evaluation of the program.

Program description to include:

Technical description and functional specifications.

Appliances and equipment used describing their functions, concrete application and justification, if any.

External collaborations. Explanation of the tasks entrusted to companies and/or public or private bodies in the development of the project or action. Agreements or contracts shall be provided (where appropriate).

Development methodology and work plan.

Progress report obtained in the programme or action for previous years, for multi-annual actions already initiated.

Technological and/or functional novelty in product, process, or service:

Indicate the most identifiable new and technical improvements in the program or performance.

If this is a product or component novelty, describe the technical and functional characteristics that the product or component will present.

Redesign the ergonomic and design aspects, if any.

If this is a new process, describe the most significant technical and methodological characteristics of the process:

Indicate the intended scope, (specific/prototype/pilot/exploitation).

Relate the expected patents and, where applicable, planned publications.

Describe the state of the art in Spain and abroad, indicating the state of the technology affected by the program among the companies of the national and international competition.

Identify the most significant technologies incorporated in the program, commenting on their general characteristics and origin.

B) Economic Memory

Cost of the program for cost chapters, according to section 2.9 of the questionnaire, detailing and explaining all the costs incurred as a result of the implementation of the program.

Potential market, indicating in particular the expectations of existing demand, study of competition (companies, price levels, markets, products, etc.) and the commercial capacity of the applicant.

Promotion and Marketing Activities envisaged Account of the results of the planned programme.

Brief description of cost analysis.

Plan of industrialization and planned investments.

C) Information of the requesting company and the participants in the Program

In this section, the data and information about the applicant company or entity, and the other participants in the program, which may be relevant to assess the adequacy and capacity of the applicant, will be entered in this section. realization.

In any case, information should be included about:

Facilities, equipment, laboratories, experience, specific R & D units, profiles of the technical scientific staff involved both the already belonging to the template and the one that is intended to contract.

R & D plan of the applicant company in the last three years and the planned one for the duration of the program.

Relationship of ongoing international cooperation programs and conducted in the last three years.

A forecast will be made of the effect that the aid can have on the increase of the research and development activity that the applicant will be carrying out. The impact on future employment of research and development staff and new investment in R & D (excluding the project from the application submitted) will be quantified at least.