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PARIS - Airbus parent European Aeronautic Defence and Space Co. approved plans Thursday to build the new Airbus A350 plane, designed to rival Boeing Co.'s 787 Dreamliner.
The decision to proceed with the plane comes as the United States and the European Union try to work out a settlement of a dispute over government support for their respective airline manufacturers. Airbus is based in France and Boeing is in Chicago.
Under pressure from Washington, Airbus and its supporting governments — France, Germany, Britain and Spain — have so far stopped short of committing government funds to the A350 program.