Boeing: WTO issues ‘landmark’ ruling against Airbus

Published 1:32 pm Tuesday, March 23, 2010

The Boeing Co. has responded to reports out today about the World Trade Organization ruling over aircraft subsidies.

Airbus downplayed the WTO ruling early this morning.

But Boeing had a different take on it.

“This is a powerful, landmark judgment and good news for aerospace workers across America who for decades have had to compete against a heavily subsidized Airbus. U.S. officials have estimated the commercial value to Airbus of all the government launch aid subsidies it has received at more than $178 billion (in 2006 dollars),” the company said in a statement.

“Government subsidies have been used to support the creation of every Airbus product, including the A330/A340, which received more than $5 billion in development aid, and the A380, which received $4 billion in subsidies. Those and other European government subsidies to Airbus have significantly distorted the global market for large commercial airplanes, causing adverse effect to Boeing and costing America tens of thousands of high-tech jobs,” the company continued.

While Airbus said the WTO doesn’t mind the funding the European company is getting for the A350, Boeing urged its rival to “change course and fully comply with the WTO’s clear ruling.”