Boeing pushed back hard against claims by French officials and others that the World Trade Organization's interim ruling on alleged subsidies received by Boeing, released confidentially to US and EU officials Wednesday, is comparable to an earlier WTO finding that A380 launch aid provided to Airbus constituted "prohibited export subsidies."
In a lengthy statement, the US manufacturer said the interim ruling (ATW Daily News, Sept. 16) "amounts to a massive rejection of the EU case and confirms that European launch aid to Airbus stands as the single largest and most flagrant illegal subsidy in the aerospace industry…Nothing in [public reports on the confidential ruling] even begins to compare to the $20 billion in illegal subsidies that the WTO found last June that Airbus/EADS has received (comprised of $15 billion in launch aid, $2.2 billion in equity infusions, $1.7 billion in infrastructure and roughly $1.5 billion in targeted research support)."
It stated that Airbus must "remedy the $4 billion in still outstanding illegal launch aid subsidies that Airbus/EADS received for the development of its A380. Billions must be repaid or restructured on proven commercial terms."
Boeing said the "two principal matters" reportedly cited in the WTO interim ruling are "general US export tax policy" issues that were "litigated at the WTO and remedied last decade" and grants/loans/contracts associated with NASA research. Boeing said that "three-quarters of the [NASA-related] subsidies at issue were found to be wholly compliant with WTO rules."
US Aerospace Industries Assn. President and CEO Marion Blakey told ATW Thursday that the subsidies WTO found improper were "essentially R&D contracts that Boeing has received, largely from NASA." She said those subsidies are "very different from launch aid, which is a unique form of subsidy." She added that there is "a significant difference" between the WTO's findings on Airbus and Boeing.
Blakey said the US industry will wait until the interim ruling is made public before suggesting a course of action for the US government, but said the ultimate aim is for "there to be a strong, rules-based system [governing aerospace manufacturing] that everyone would adhere to."
Discuss this news 19
Airbus is in denial over the
By AnonymousAirbus is in denial over the WTO reports. They need to convince the locals that they are right and everyone else is wrong.
good luck with that! they
By Anonymousgood luck with that! they know they are cheating, they know thats the only way they will beat Boeing because its not going to happen with there product!
Same old, same old from the
By MountainSame old, same old from the French and others. I do not know how the European public can put up with the tax implications of the huge Airbus subsidies.
No matter what Boeing calls
By ericNo matter what Boeing calls its government subsidies (launch aid), nothing will change the fact that it has to pull up it socks if it wants to stay competitive with Airbus. Both of them had and have problems, Airbus with its silly and unnecessay 380 mistake and Boeing with selling an aeroplane(787)that was only on a drawing board to take the wind out of 380 sales.
So, Airbus received subsidies
By krungbinSo, Airbus received subsidies for the development of its A380. And Boeing, and Loockeed, received subsidies for the development of the airplane that was going to be the B747 and the C5A....Interesting reading on the subject:
MILITARY AIRLIFT AND AIRCRAFT PROCUREMENT:
THE CASE OF THE C–5A, by Marcelle Size Knaack,
Air Force History & Museums Program,
WASHINGTON, D.C. 1998
http://www.fas.org/man//dod-101/sys/ac/docs/
KNAACK.PDF
Enjoy the reading and you will see that none of the two large manufacturers is totally innocent!
Boeing are correct in saying
By AnonymousBoeing are correct in saying Nasa "research contracts" are different to the repayable launch aid received by Airbus, Boeing don't have to repay it!
Yes they are right it is
By AnonymousYes they are right it is different, repayable launch aid says it all: Aribus is repaying! For every dollar they received they paid back 1,40 dollars. The NASA thing on the other hand is free transfer of research that has been paid by the taxpayer. If Boeing had had to pay for it it would have amounted in a couple billion dollars... Those same billions the American taxpayer will never get back, just so that a Company can stay competitive. Talk about capitalism here !
Everybody know Airbus and
By 169westEverybody know Airbus and Boeing are making money out of the 320 and 737!
The first several posts above
By IguanaDC3The first several posts above are correct. Furthermore, although Airbus engineers & produces fine products, they're largely Boeing knock-offs & little more. Euro's have engaged in industrial sabotage for yrs. They can't beat Boeing fair & square on a level field, so they do what the Russkies did for yrs. They steal US designs, amongst other things, & tweak 'em slightly & call 'em theirs --- & "better", which they are certainly not. Viva la Boeing.
It amazes me on this constant
By AnonymousIt amazes me on this constant battle and the name calling and such by the US Government and others about Airbus. Airbus, by program edict maintains 60% or more of thier aircraft to be North American content to insure market acceptance. Look at the new Boeing programs, looks like the US auto offerings, more parts made by other countries than you care to mention. Yet, they get US bailouts and push for military contracts to keep American jobs. Who is the real foreign supplier here?
Many legitimate investment
By Robert LopezMany legitimate investment firms consider the A-380 alone, a 25 billion euro write-off.
Claiming that Boeing has cheated too, is like comparing a coffee stain to a train-wreck.
Boeing must keep up the
By 2707Boeing must keep up the rhetoric, no matter what. They know they'll lose the KC-X but will try to overturn it politically. The more Boeing and it's idiosyncratic supporters talk about how "subsidized" Airbus is, while Boeing is not; they hope that more and more of the top decision makers inside the beltway might come around and start believing that Airbus should be punished thereby putting enough pressure on the Pentagon to overturn the source selection.
TCS Statement on Inspector
By AnonymousTCS Statement on Inspector General Tanker Report
Taxpayers for Common Sense commends the Inspector General for this comprehensive study of the K-767 Tanker deal, the billion dollar Boeing bailout that has become the biggest military procurement scandal in decades. The 256-page report chronicles how senior Pentagon officials let Boeing play by a different set of procurement rules in attempting to award them this unprecedented sweetheart deal. The report also implicates numerous other military officials and throws cold water on the lone gunman theory that Darleen Druyun is entirely to blame for this mess. If that were true, we could close this case once and for all, but the report suggests that the deal had far deeper roots, and we are now left with more questions than answers.
We now know that at the highest levels of the Pentagon and the White House, the wheels were greased to direct billions in corporate welfare to the Boeing despite there being virtually no evidence that there was an immediate need to replace the current tanker fleet. However, because the names of military officials, Boeing officials and lawmakers were redacted from the report, we still don’t know everyone that was involved. This overzealous use of the Sharpie marker to redact key portions of the report does a disservice to the nation by leaving federal taxpayers in the dark.
It is also disappointing that the Inspector General did not take more time to interview Edward Aldridge. Mr. Aldridge is the most senior official implicated in the tanker hubbub. A few phone calls and certified letters are not enough; Aldridge was in a position to know more than anyone else that has been implicated, and he alone can fill-in some of the remaining information gaps. Taxpayers have lost faith in how the military purchases weapons systems. The concern is that defense contractors run the show and there is no one that is ready to hold them accountable for their actions. This report could have changed that belief. The aggressive redaction of significant portions of the report and the softball interview process spoiled this golden opportunity to eliminate the cloud of controversy surrounding the military's acquisition process.
TCS Statement on Inspector
By AnonymousTCS Statement on Inspector General Tanker Report
Taxpayers for Common Sense commends the Inspector General for this comprehensive study of the K-767 Tanker deal, the billion dollar Boeing bailout that has become the biggest military procurement scandal in decades. The 256-page report chronicles how senior Pentagon officials let Boeing play by a different set of procurement rules in attempting to award them this unprecedented sweetheart deal. The report also implicates numerous other military officials and throws cold water on the lone gunman theory that Darleen Druyun is entirely to blame for this mess. If that were true, we could close this case once and for all, but the report suggests that the deal had far deeper roots, and we are now left with more questions than answers.
We now know that at the highest levels of the Pentagon and the White House, the wheels were greased to direct billions in corporate welfare to the Boeing despite there being virtually no evidence that there was an immediate need to replace the current tanker fleet. However, because the names of military officials, Boeing officials and lawmakers were redacted from the report, we still don’t know everyone that was involved. This overzealous use of the Sharpie marker to redact key portions of the report does a disservice to the nation by leaving federal taxpayers in the dark.
It is also disappointing that the Inspector General did not take more time to interview Edward Aldridge. Mr. Aldridge is the most senior official implicated in the tanker hubbub. A few phone calls and certified letters are not enough; Aldridge was in a position to know more than anyone else that has been implicated, and he alone can fill-in some of the remaining information gaps. Taxpayers have lost faith in how the military purchases weapons systems. The concern is that defense contractors run the show and there is no one that is ready to hold them accountable for their actions. This report could have changed that belief. The aggressive redaction of significant portions of the report and the softball interview process spoiled this golden opportunity to eliminate the cloud of controversy surrounding the military's acquisition process.
Boeing, Boeing,
By AnonymousBoeing, Boeing, Boeing........blah, blah, blah, the sour grape saga continues.
The mere THOUGHT of American
By IguanaDC3The mere THOUGHT of American taxpayer monies being spent on a Franco-German airtanker in lieu of a Boeing product is revolting, let alone needless.
By IguanaDC3 The mere THOUGHT
By AnonymousBy IguanaDC3
The mere THOUGHT of American taxpayer monies being spent on a Franco-German airtanker in lieu of a Boeing product is revolting, let alone needless.
But you have no problem with your country spending billions of taxpayers dollars on an illegal and totally unnecessary war in Iraq. You and most likewise thinking Americans should see a shrink.
Yes...more: If you all want
By AnonymousYes...more:
If you all want to see how the USA works, read this book:
http://www.amazon.com/American-Aerospace-Industry-Enterprise-Evolution/d...
"The American Aerospace Industry" spells it out pretty clearly and does not require a massive WTO bureaucratic investigation. (not affiliated in any way with this book, it just says it correctly)
What about China? How much
By AnonymousWhat about China? How much aide was received for their new aircraft?
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