Authorization

Boeing claims victory in long-running battle with Airbus over state subsidies

The long-running battle between Airbus and Boeing over state subsidies has taken another twist with the US aircraft manufacturer claiming what it described as a “sweeping” victory.
The World Trade Organisation has ruled that tax breaks offered to Boeing to build its 777X airliner in Washington State were not a banned subsidy, reversing an earlier decision.
Boeing is in line for billions of dollars in incentives through a 40pc tax cut to develop the wide-bodied aircraft in the state, but the WTO said the tax break was not a “prohibited subsidy” and did not mean the company US-made components over foreign-built ones for the aircraft.
Boeing claims victory in long-running battle with Airbus over state subsidies

Boeing used the incentive to help develop its 777X airliner
The case is just one of a series being fought between the EU and US on behalf of the plane-makers over tens of billions in subsidies that each have received to help develop new aircraft.
"The WTO has rejected yet another of the baseless claims the EU has made as it attempts to divert attention from the $22bn of subsidies European governments have provided to Airbus and that the WTO has found to be illegal," said J. Michael Luttig, general counsel for Boeing.
“This was a sweeping and clean win for the US," he added, saying the EU and Airbus are in “flagrant breach” of earlier WTO rulings.
Boeing claims victory in long-running battle with Airbus over state subsidies

Boeing's operations are based around its giant plant in Washington State

Credit:
Bloomberg
Boeing argues that cheap loans from EU governments to fund development of new airliners - known as “repayable launch aid” and which Airbus says are repaid as the jets go into production and are sold to airlines - are illegal.
"Airbus has a long history of putting European taxpayer money at risk through the unsecured loans that created and continue to sustain the company,” Mr Lutting said, adding that Airbus and European governments risk a trade war with the US unless the EU “complies with the WTO findings against it and ends launch aid”.
Boeing claims victory in long-running battle with Airbus over state subsidies

Toulouse-headquartered Airbus argues the tax break is illegal, despite the WTO ruling

Credit:
AFP
However, Airbus argued that a separate review of the tax break found they are illegal and causing “massive harm” to the European plane-maker, claiming it and other state subsidies have cost it “$100bn in lost sales”.
“Boeing illegal subsidies are still illegal and need to be removed,” said Rainer Ohler, Airbus executive vice-president Communications. ?“The ‘game’ is far from over.”
Airbus - which has edged ahead in sales of airliners but is behind on deliveries - is also calling for the creation global “level playing field” for the industry through a negotiated global settlement to end what it calls a “transatlantic spat” which is bogging down the WTO down.
How to connect with us | Telegraph Business on social media
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Ноябрь 2017    »
ПнВтСрЧтПтСбВс
 12345
6789101112
13141516171819
20212223242526
27282930