Airbus versus Boeing: it’s war!

Discussion in 'General Discussion | Travel' started by ACMM, Sep 28, 2012.  |  Print Topic

  1. ACMM
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    ACMM Gold Member

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    Has the European Union Commission become Airbus’ greatest ally in taking on Boeing? This appears to be the case in the next chapter of the eight-year-old conflict between the World Trade Organization (WTO) and the US-based commercial aircraft manufacturer. As Boeing has failed to address subsidies condemned in the March 2012 final WTO judgment, the EU Commission today filed a request for the WTO to grant US$12 billion in annual sanctions, which is “the largest WTO penalty ever requested, and it follows the worst loss a party has seen in the history of the WTO.”

    Consequently, Airbus has issued a statement praising the EU Commission. “Airbus is grateful to the EU Commission for taking consequential action,” said Airbus spokesperson Maggie Bergsma, “However, this is nothing but the next step in a trade conflict that was launched in 2004 by Boeing. Boeing has been denying the decades of government support for years but was finally faced with a sweeping judgement in March. We regret that Boeing continues a legal battle that should have long been resolved by a mutual agreement. We made offers time and again but are ready to fight it through if the other side wishes to do so.”

    In March 2012, Boeing had been given a six-month reprieve to implement the judgment, after the WTO had condemned state, local, and federal aid Boeing received in support of every one of Boeing’s current commercial aircraft programs. To be more specific, the WTO in March had called for the withdrawal of “at least US$5.3 billion” of federal subsidies already received by Boeing; elimination of an additional US$2 billion in illegal state and local subsidies due in the future under existing illegal schemes; and the termination of all US Department of Defense (DOD) and NASA research grants to Boeing, including funding, Boeing use of government facilities, and the illegal transfer of IP rights to Boeing

    Airbus said: “In a filing with the WTO, it became clear that Boeing has failed to implement the judgment. With that failure, the case moves to its next phase: sanctions following confirmation that Boeing continues to distort the marketplace with taxpayer-funded subsidies.”

    ... more at the link above ...
     
  2. deant
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    Both sides claim that the WTO subsidies have been taken care of. BUT Boeing is claiming the Airbus subsidies have not stopped and Airbus claims the Boeing subsidies have not stopped.

    This is just an escalation of the complaints on both sides.
     
  3. LETTERBOY
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    Everyone agrees subsidies are unfair, except when they're the ones getting subsidized. :rolleyes: Both companies are being sickeningly hypocritical, and I don't see either side backing down. The respective politicians and unions in each constituency will not accept anything less than total victory for their side. The US will always subsidize Boeing, and the EU and its governments will always subsidize Airbus. Both sides should just live with it and move on. But that would make too much sense. :rolleyes:
     
  4. HaveMilesWillTravel
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    I am sure there are lawyers, consultants and lobbyists that would be to differ. They've got to make a living somehow!
     
    boondr likes this.

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