Demonstration of a viable business case and substantiation that the loan will be repaid is required before UK government launch aid may be granted for any Airbus project.
Quote extracted from
http://www.dti.gov.uk/aerospace/launch-investment.htm
The provision of launch investment is entirely discretionary. There is no formal scheme, promotion or budget for launch investment. Each launch investment application is considered on its merits against a range of established criteria and also, by the Treasury, against public expenditure constraints.
An applicant must demonstrate: that the project is technically and commercially viable; that Government investment is essential for the project to proceed on the scale and in the time-scale specified in the application; and that Government will recoup the investment at a real rate of return.
The Government undertakes a detailed assessment of the company’s business case and its claim that the project cannot be funded by alternative means. In addition, the Government assesses the technical viability of the project and the market for the product. Finally, an assessment is made of the wider benefits of the project to the economy beyond the company itself. These can include the spin-off of new technologies or production methods with wider applications in other sectors, or transferable improvements to the skill base. If it is decided to support an application, the Government will provide the minimum support required for the project to go ahead.
In view of the significant amounts of public expenditure involved, DTI closely monitors the progress of a supported programme. Payments are linked to actual expenditure by the company and to the achievement of specific technical milestones. Information is also required from the company on the development programme, the commercial position of the project and the financial position of the company.