WTO to hear Boeing-Airbus trade dispute Tuesday
Published 9:00 pm Sunday, March 18, 2007
The United States and European Union will head to the World Trade Organization on Tuesday to air grievances on behalf of the Boeing Co. and Airbus.
The two plane makers have been trading allegations about whether government subsidies are creating unfair market conditions. The United States, on Boeing’s behalf, will assert that Airbus has benefited from illegal contributions from European countries.
On Monday, Boeing’s head of Commercial Airplanes, Scott Carson, gave his thoughts on the ongoing quarrel, during a 787-update session with reporters.
Boeing has leaped out to a huge lead in the mid-size jet market, with its 787 grabbing nearly 500 orders before its first flight. But Carson doesn’t see that as an excuse for the French and German governments to pump more money into Airbus’s coffers to fund the A350 XWB, the European company’s answer to the 787.
“The absence of taking the full commercial risk creates an unfair playing field,” Carson said.
In recent months, Airbus has been haunted by government involvement. Company executives have tried to implement a cost cutting program to offset the $6 billion delay to its A380 jet program. The move, which includes cutting 10,000 jobs, sparked strikes at its plants and threats from government officials.
Airbus, via the European Union, will return Boeing’s accusations with its allegations of Boeing taking similar government subsidies, such as the tax incentives offered by Washington state to secure final assembly of the 787 in Everett.
