Airbus ruling
September 5, 2009
According to US lawmakers, the over 1,000-page ruling says that the funds given to Airbus by the European Union were in breach of anti-competition laws.
"I applaud the WTO's decision that government subsidies of Airbus are illegal," said Senator Maria Cantwell of Washington State, where much of Boeing's production takes place. "When finalized, this long-awaited ruling will help restore true competition in the commercial aviation market."
However, European officials say the WTO ruling is much more complex than that. The document is not expected to be made public for several months.
The American aviation giant, Boeing, made an initial complaint in 2004. It said that the "launch aid" given to Airbus by several European governments, including France, Germany, Spain, and Britain, was anti-competitive and illegal.
The complaint referred to $205 billion (143 billion euros) of aid received by Airbus over two decades while it was building its A380 and other top-selling models.
The three-member WTO panel was widely believed to rule in favor of Washington.
Ruling only "half the story"
Brussels, meanwhile, has stressed the findings must be looked at in a larger context. It contends the WTO must also take into account its complaint made against Boeing for subsidies it received from the US government.
"It is important to recall that this report is only half the case against the US over aid to Boeing," said Luiz Guellner, spokesman for the EU Trade Commissioner Catherine Ashton.
It could take years for the WTO to reach a final decision on the transatlantic subsidies battle between the two aviation giants, but many industry analysts expect Boeing and Airbus to negotiate a settlement in the long-running dispute before the matter ever reaches the WTO top court.
"We look forward to a negotiated settlement in which both sides recognize the way this industry is supposed to work," said Airbus spokeswoman Maggie Bergsma.
If the WTO panel strikes down future Airbus aid, the company could find difficulties in financing its new airliners, such as the wide-body A350 due in the next decade.
Such a decision would also affect how rivals in Brazil, Canada, China, Russia, and Japan fuel their expansion.
glb/vj/Reuters/dpa/AFP/AP
Editor: Chuck Penfold