Both Sides Claim National Favoritism

As trade officials with the United States and European Union prepare to return negotiations before the World Trade Organization, new questions have popped up concerning subsidies for Airbus SAS.

Bloomberg News reports US trade officials reffirmed their claims last week that European governments have provided over $15 billion in subsidized loans to Airbus... a move they say means thousands of lost American jobs, as well as lost profits for rival planemaker Boeing.

The 282-page filing to the WTO commits the organization to make a decision on aircraft subsidies before the end of September... two years after the organization agreed to investigate allegations from both sides over nationalistic favoritism for their respective planemakers.

This latest volley comes as it appears increasingly likely Airbus will need to rely on significantly increased government aid to launch its A350, given its recent difficulties on other projects that have reduced available capital.

Allegations of unfair funding practices are not limited to the left side of the Atlantic. The EU has slammed Boeing on similar charges, claiming the planemaker's upcoming 787 has benefitted from a combined $5 billion in federal assistance.

Some of that funding has come indirectly, through Boeing's defense contracts, Airbus has said in the past.

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