Dassault says it is talking to Safran over Silvercrest engine

LE BOURGET, France (Reuters) - Dassault Aviation (AVMD.PA) said on Wednesday that it was in talks with French engine maker Safran (SAF.PA) over delays in the development of the Silvercrest engine, which it has blamed for a decision to cancel its Falcon 5X business jet programme.

Asked whether Dassault had received penalties from Safran or whether it was suing it for compensation, Dassault head Eric Trappier said: "We are at the level of the claim."

"We are claiming we need compensation...so right now we are discussing this sensitive subject with Safran," he added.

Trappier was speaking at a news conference after unveiling the launch of a replacement project, the Falcon 6X.

Dassault hopes to produce the aircraft at a rate of two per month.

(Reporting by Tim Hepher; Editing by Sudip Kar-Gupta)