Boeing’s actions scrutinized

PARIS — European aircraft maker Airbus said it has been gathering information on public aid to the Boeing Co. to check whether Washington has breached an agreement with Brussels.

Airbus is particularly concerned about pledges of U.S. government support for its U.S. rival’s planned new fuel-efficient passenger jet, the 7E7 Dreamliner.

"We’re following very closely what’s happening with the 7E7 and forwarding the information we are gathering to the EU authorities," Airbus spokesman David Voskuhl said.

He was speaking after French daily Le Figaro on Wednesday quoted Airbus CEO Noel Forgeard voicing concern over Boeing funding. "We want European Union countries to know what’s going on," Forgeard was quoted as saying.

Under the terms of a 1992 bilateral accord on civil aviation, the United States and the European Union pledged that government loans would not be allowed to exceed 33 percent of total investment by their respective aerospace companies.

Since then, however, both sides have repeatedly accused each other of breaking the deal.

Airbus is concerned about government loans and subsidies promised to the Japanese companies lined up for about one third of the manufacturing work for the 7E7. These include Japanese engineering firms Mitsubishi, Kawasaki and Fuji.

The Dreamliner is due to take to the skies in 2008, if it gets the final go-ahead from Boeing’s board.

Boeing spokesman Todd Blecher said he found it "ironic" that Airbus was raising concerns about potential support for the 7E7, given "the billions of dollars in subsidies Airbus has received for more than 30 years."

"It’s premature for anyone anywhere to speculate on the specific funding mechanism our partners might use for the 7E7," Blecher said.

In late trading on the New York Stock Exchange, Boeing shares rose 29 cents to $38.87 on Wednesday.