EU approves French, German aid for Airbus helicopter

The European Union has approved 377 million euros ($420 million) in state aid from France and Germany for the development of a new Airbus helicopter.

EU Competition Commissioner Margrethe Vestager said Monday that the subsidies will boost private investment in the project and "help bring a new generation of innovative heavy helicopters to the market" without distorting competition in the 28-nation bloc.

Vestager said the X6 helicopter project exceeds the self-financing capacity of Airbus, allowing for state aid to go ahead.

Airbus is a multinational aerospace company in which several European states, including France, Germany and Spain, own a stake.