European Planemaker Says It Has Complied With All WTO Rulings

In the back-and-forth quarrel between Boeing and Airbus, the European planemaker says the threat of possible U.S. trade sanctions are "empty claims," and that Airbus has "fully addressed WTO demands in a comprehensive manner."

Reuters reports that the remarks came in the form of an e-mail from Airbus Public Affairs Chief Rainer Ohler, who also held that the U.S. had made many unfounded claims and requests in the years-long dispute between Airbus and Boeing. Each claims the other has received illegal government subsidies for construction of new airplanes.

In a statement posted on its website, Boeing said that it supported "all the efforts by the U.S. Trade Representative to seek full compliance with the removal of all the illegal government subsidies to Airbus -- particularly market-distorting launch aid, the most pernicious form of subsidy Airbus was found to have received. There can be no compliance with the WTO's ruling that ignores any non-commercial launch aid that Airbus is currently receiving for the A350. Despite the very clear WTO ruling, EADS/Airbus and European governments have failed to remove outstanding subsidies. This illegal subsidization of Airbus products - plane after plane – is unsustainable and must stop now."

Airbus holds that the ruling does not cover the A350, and that funds received for the new plane's development and construction will comply with WTO standards. Boeing takes a different view, saying that the current ruling sets a distinct precedent for the new airliner.

The The Aerospace Industries Association of America has also weighed in on the debate, saying it supports the Office of the U.S. Trade Representative request for consultations on the December 1 European Union compliance report on eliminating aircraft subsidies contrary to World Trade Organization rules. "This process should result in the ending of non-compliant launch aid for aircraft production—loans provided by European governments that substantially reduce the business risk of introducing new-model airplanes," AIA said in a statement.

"AIA is a long-standing defender of global, rules-based trade and supports the WTO as an arbiter of international trade disputes.  The United States, Europe and many other countries have an unquestioned reliance on trade to sustain growth and extend the promise of innovation across borders and among industrial and developing economies.

"At the end of the day, it is critical for WTO member countries developing, or considering developing, civil aviation products to operate according to free and fair trade principles for the health, stability and growth of our industry."

FMI: www.airbus.com, www.boeing.com, www.aia-aerospace.org