Airbus: WTO says A350 funding is OK

Published 10:14 am Tuesday, March 23, 2010

The World Trade Organization has finalized its ruling on the case brought against Airbus and the European Union by the Boeing Co. and the United States over subsidies for aircraft.

According to a statement issued by Airbus, the funding provided by European governments for its new A350 XWB jet is “not affected in any way” by the WTO report.

Boeing has yet to comment on the ruling that was handed down today. Officials close to the WTO say it upholds the interim ruling and favors Boeing.

Just yesterday, Boeing denounced German funding for the A350.

“On the eve of such an important decision, it is unfortunate and disappointing to see news reports quoting a senior German official saying that Germany is prepared to provide 1.1 billion Euros for the development of the Airbus A350 – a move that flies in the face of both the expected WTO decision and the rules-based global trading system we’ve all endorsed,” Boeing said on Monday.

Airbus says the WTO rejected 70 percent of Boeing/America’s claims.

“The European reimbursable loan mechanism is confirmed to be a legal and compliant instrument of partnership between government and industry,” Airbus said.

However, the WTO found some European “loans” to contain an “element of subsidy” – which Airbus says it will study.

The WTO is expected to rule on Airbus’ counter-claims against Boeing this June. Then, Airbus anticipates the WTO will find Boeing’s 787 Dreamliner jet to be “the most highly subsidized aircraft program in the history of aviation.”

Airbus said it expects the WTO complaints to drag out for years.