* France says 5 bln euros aid will not distort competition
* Airbus welcomes support to secure deliveries
* EADS shares rise 4.2 percent
(Adds French trade minister, Airbus comment, closing shares)
By Matthias Blamont and Anna Willard
PARIS, Jan 26 (Reuters) - European planemaker Airbus said a French plan to provide up to 5 billion euros ($6.5 billion) to support plane purchases would help secure aircraft deliveries as government aid for the ailing economy spreads beyond banks and cars.
France's trade minister defended the move, saying it would not distort competition and that the state was not giving money directly to Airbus, owned by Franco-German aerospace group EADS . The German government said it was unaware of the plan.
The French state plans to inject the money into banks with the aim of financing aircraft purchases to help Airbus, a French government source said on Sunday, confirming an earlier report in business newspaper Les Echos.
EADS shares rose more than 4 percent on Monday.
Although not presented as a direct bailout, the plan appeared to be the first significant government package targeted at aerospace as countries pour funds into propping up industries weakened by the credit crisis.
"The French state is not giving money to Airbus," French trade minister Anne-Marie Idrac told Reuters on Monday.
"It's not a subsidy, which would distort competition, it's a question of fluidity in the financing of Airbus clients where it is needed, and this in coordination with other countries who are stakeholders of Airbus."
EADS Chief Executive Louis Gallois said earlier this month that banks were failing to provide airlines with loans needed to finance aircraft deliveries even when backed by state export credit agencies.
"We welcome the strong initiative of the French government to try to secure our deliveries, which are at risk due to the credit crunch," an Airbus spokesman said on Monday. Customers pay for new aircraft on delivery.
PROTECTING AIRBUS DEALS?
Airbus is the world's largest producer of civil jetliners, ahead of rival Boeing They are locked in a transatlantic trade row over subsidies at the World Trade Organisation, with both accusing the other of taking illegal government handouts.
It was not immediately clear whether the French plan was designed specifically to funnel money into protecting deals with Airbus, something that may open it to scrutiny from Boeing and other planemakers, or ease credit across the aerospace sector.
Boeing declined to make any comment.
There are concerns that the aviation industry, one of France's biggest export earners and home to thousands of high-tech jobs, could be hit indirectly by the automobile crisis since the two industries share many of the same suppliers.
Analysts said similar financial support schemes could be drawn up in other Airbus host countries such as Germany.
"The German government is not familiar with details of the French plan. It therefore refrains from comment," a government spokesman said on Monday.
Shares in EADS rose 4.2 to 13.13 euros. But some analysts said it remained unclear how effective state-backed loan guarantees to boost aviation would be.
Les Echos said the state would inject the money into banks with a record of lending to the aeronautical industry. It named Calyon, Societe Generale and BNP Paribas.
"We've been expecting some increased support from the government but it sounds a slightly contrived way to do it," said Sandy Morris, an analyst at ABN Amro, adding that air traffic growth stalling may be the main issue, not financing.
The French government has already pledged help on a smaller scale to aid aeronautical suppliers and bolster research. ($1=.7719 Euro) (Additional reporting by Astrid Wendlandt and Tamora Vidaillet; Editing by Jon Boyle and Elizabeth Fullerton)