Just When You Thought There'd Be A Settlement | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date



Airborne-Wednesday Airborne-Thursday


Airborne On YouTube






Mon, Apr 11, 2005

Just When You Thought There'd Be A Settlement

US, EU Officials Continue To Bicker Over Subsidies

The feud between Airbus and Boeing, now playing out under threats from both sides that this whole matter will end up in a world trade court, grew even more rancorous on Monday, as the EU demanded Washington end tax breaks and research help to Boeing.

Reductions in aid to commercial aircraft manufacturers on both sides of the Atlantic "have got to be done in an equal and balanced way," said EU Trade Commissioner Peter Mandelson in an interview published in Brussels. As ANN reported over the weekend, the EU and US failed to reach a settlement in the thorny dispute, blowing right past the April 11th deadline for achieving such an accord. But both sides have agreed to continue talks in hopes of averting what would be the biggest suit ever brought before the World Trade Organization.

In the meantime, however, both sides are free to pull the trigger on their legal guns, waiting in the wings. Yet, Mandelson told the Belgian newspaper "It should be possible still at this stage to reach an amicable settlement to this dispute. Airbus and Boeing could do with less public subvention."

The dispute was triggered by Boeing's announcement that it would go ahead with development of what is now called the 787 Dreamliner, while Airbus said it would build the A350 to compete. Airbus is now awaiting word on $1.7 billion in launch aid for the A350 project, while Boeing openly shopped for the most favorable tax breaks in locating its 787 manufacturing components. Final 787 assembly was eventually awarded to the company's plant in Everett, WA.

If the current rhetoric is any indication, efforts to settle the dispute are going nowhere fast. "A very strong demand was being made on the European side to abandon immediately the entire sort of basic principles and character of all government investment in Airbus without commensurate, offsetting and balancing moves by the American side as regards Boeing," Mandelson said, quoted by Bloomberg News. "That doesn't exactly make for a good negotiation" or a "very fair settlement."

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


More News

Kickstarting Your Aviation Journey at Oshkosh 2024

A Guide to Making the Most out of the World’s Biggest Airshow EAA’s Oshkosh Airventure generates fun for all aviation lovers. You get a chance to see, touch, and maybe >[...]

Aero-News: Quote of the Day (07.22.24)

"We're excited to offer our advanced avionics to a broader range of aircraft while maintaining our commitment to value. Twin-engine aircraft usually pay a significant premium to eq>[...]

Electric Power Systems Seeks TSO for Rechargeable Battery System

Modular, Scalable Lithium Battery System for Select Aircraft Electric Power Systems, Inc., announced that it has submitted its application to the FAA for a Technical Standard Order>[...]

Advanced Micro Turbines Find Footing in USA

350 Pound-feet of Thrust Now Available in a Small, Lightweight Package UAV Propulsion Tech signed an agreement with AMT-Advanced Micro Turbines to begin marketing their tiny little>[...]

Klyde Morris (07.22.23)

Klyde Provokes The Ultimate Oshkosh Invite... Sorta... FMI: www.klydemorris.com>[...]

blog comments powered by Disqus





© 2007 - 2024 Web Development & Design by Pauli Systems, LC