Airbus seeks government funds for A350 XWB
Published 11:29 am Tuesday, May 27, 2008
Despite an ongoing trade dispute with Boeing Co. over government handouts, Airbus is seeking financial help from European governments for its latest commercial jet, the A350 XWB.
Boeing and Airbus have clashed over unfair subsidies for commercial jet program development. The United States on behalf of Chicago-based Boeing filed a complaint in 2005 against the European Union and Airbus saying that government funding gave the Toulouse, France-based jet maker an unfair advantage. Airbus has countered that Boeing benefited from tax breaks provided by the states of Washington and Kansas for the 787 program. Their battle now rests with the World Trade Organization.
But Bloomberg reports today that Airbus isn’t waiting on the WTO outcome. The company approached the governments of France and Germany for help raising the $18.4 billion in development costs it needs to get its A350 XWB off the ground.
“It’s not going to do trade diplomacy any favors, but it’s not like they have a choice,” analyst Richard Aboulafia, vice president at Teal Group, told the publication. “Delaying the most important product for the company in the name of diplomacy doesn’t sound like a smart move.”
On Monday, Airbus chief Tom Enders called for a level playing field with Boeing in this Reuters report.
