Tuesday, March 23, 2010

WTO condemns Airbus "launch aid"

Today, officials from the World Trade Organization (WTO) have ruled that "launch aid" is unfair and illegal.  Launch aid is a controversial program in which European governments have provided Airbus with subsidies for launching their aircraft lines through risk-free loans that do not have to paid back until aircraft are sold.  While Boeing has had to use its own capital to develop and manufacture its aircraft, Airbus has been using these government loans instead.  The program was designed to help Airbus catch up with rival Boeing in the trillion dollar commercial aircraft business.  And it certainly has worked, with Airbus having seized the title of top aircraft manufacturer from Boeing for the last decade.  Already, launch aid has helped pay for Airbus' massive A380 superjumbo and is currently being used to help fund their 787 competitor, the A350.

News Link

News Link 2

Boeing Statement on WTO Ruling

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