Sets Guidelines For Gov't Help With Financing
Could all the sniping between Airbus and Boeing -- and
Bombardier, Embraer, and a slew of other manufacturers -- regarding
government subsidies soon be a thing of the past? The Organization
for Economic Co-operation and Development (OECD) says
representatives with the world's major civil aircraft exporting
countries have agreed to limit government support for the sale of
aircraft... a possible first step towards regulating other
subsidies related to manufacturing.
Agence-France Presse reports US representatives hailed the
international agreement, which sets guidelines on government
financing of aircraft exports, saying it will "level the playing
field for the US airline industry."
The accord follows more than two years of negotiations.
"By requiring government financing to closely track the market,
the understanding will allow civil aircraft sales campaigns to
concentrate purchase decisions on price and quality, where US
producers excel, rather than on the terms and conditions of
official financial packages where subsidies can sway purchase
decisions," the US Treasury said.
For all the warm-fuzzies, however, one significant issue remains
-- for the moment -- unchecked. The accord does nothing to ease
tensions between the US and European Union regarding government
subsidies towards the manufacturing of commercial airliners -- only
to regulate the sale of such planes across borders.
That means Boeing and Airbus will continue to bicker over which
planemaker receives more 'illicit' support from their respective
governments, when it comes to aid in helping develop news
The agreement applies to all new civil aircraft contracts signed
after April 30 of this year.
In addition to the US and EU, other countries that have signed
the agreement include Australia, Brazil, Canada, Norway,
Switzerland, Japan, and New Zealand.