A new series of short videos on YouTube takes a look at the World Trade Organization dispute between the Boeing Co. and Airbus.
Forerunner Foundation says that frequent fliers could foot the bill if the WTO rulings go awry.
“Everybody who buys a plane ticket should pay close attention to what the United States and European governments have done and continue to do to support their home-grown aircraft industries,” said Jerry Cox, an aviation policy analyst who reviewed the issue for the D.C.-based Forerunner Foundation.
“The combatants focus on the amount of government subsidies, but the real issue for American consumers is how to achieve and maintain competitive balance between the world’s jet makers. Competition is essential for airlines to pay reasonable prices for planes and charge passengers reasonable fares.”
In the first video, Forerunner looks subsidies that Boeing received from the U.S. government for some of the company’s early aircraft.
Last year, the WTO said that Airbus had benefitted from subsidies in a preliminary ruling. Boeing wants the U.S. Air Force to consider that ruling in a tanker competition with Airbus’ parent company, EADS and its partner, Northrop Grumman. However, Airbus has a counter complaint pending with the WTO.
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