Could there be a light at the end of the transatlantic tunnel? Boeing CEO Jim McNerney says things may be looking up in the ongoing dispute between the US and the EU over government subsidies to airplane manufacturers.

"I'm beginning to see signs that the two governments are increasing the pace of their dialogue, and I'm supportive of that," McNerney told reporters in Paris this week, according to the Associated Press.

This whole thing started two years ago, when Washington decided to cancel a 12-year old treaty with the European Union and filed a complaint with the World Trade Organization over government launch aid for the Airbus A350... announced shortly after Boeing started openly working on the 787 Dreamliner.

A politely contentious battle between the US and the EU has raged since then. In fact, the talks before the WTO are currently on hold ... but there may be hope yet.

"We are exploring the possibilities of relaunching negotiations," Peter Power said in an interview with Dow Jones Newswires. "But we have to agree to terms for such negotiations, and unfortunately we're not there yet."

In another possible sign of progress, German Chancellor Angela Merkel is expected to discuss the subsidies dispute with President Bush, during a visit to the United States that began Wednesday.

We'll keep you posted.

FMI: www.boeing.com, www.airbus.com, www.eu.int, www.wto.org