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Wed, Nov 24, 2004

Subsidy War Heats Up Over A350

Boeing Tells Airbus It Won't Tolerate More Subsidies

The latest salvo in the transatlantic war of words between Boeing and Airbus comes from Chicago: Don't even think about it.

Boeing's warning comes after Airbus announced plans to go ahead with its answer to the 7E7, the A350.

"Boeing's concern with the A350 is whether Airbus seeks government support for the airplane," Boeing spokeswoman Amanda Landers told the French news agency AFP. "New subsidies such as 'launch aid' must end," she said.

The US and EU are locked in battle before the World Trade Organization over allegations that both have taken subsidies in violation of a 1992 agreement on the matter. The US last month unilaterally pulled out of the deal.

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

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