Spanish government has approved a 3.7 billion Euros aid package for the country’s aeronautical industry to steer it through the economic downturn.

In a statement, the Industry Ministry said, “The aeronautical sector is strategic for Spain because it develops products with added value and it creates high-skilled jobs.”

With a huge increment of 25 percent, the consolidated turnover in the Spanish aeronautical sector in 2008 totalled to 5.1 billion Euros.

The Ministry said that due to the global crisis, the aviation industry got hit by reduced air traffic and demand for aircrafts, which led to a reduction in orders for planes and aircraft parts.

The aid will be given as loans, as orders from the defence ministry, as well as financial support for the Spanish operation of Airbus to develop its A350 XWB model and other project.