Boeing vs. Airbus-the war over subsidies

www.hotchicken.com ^ | june, 1 2005 | www.hotchicken.com

[thebiggestdog]

In the battle for commercial air supremacy, Airbus recently debuted their new A380, a gigantic plane designed specifically to kick the Boeing 747 off the jumbo jet throne where it has sat for four decades. Funding for the design and manufacture of the A380, like all the planes from Airbus comes from the EU member nations, and thus the issue.

There had been ongoing talks between the US and Airbus to resolve the issue, but the Bush administration decided to file a complaint with the World Trade Organization and send the matter into a legal snafu that is likely to take years to unravel.

At the heart of the matter is the question of whether or not Boeing and Airbus are on a level playing field. Boeing will say that Airbus was only able to develop the A380 with the help of bilions of taxpayer dollars. Airbus contends that Boeing gets plenty of government tax breask and handouts, especially from the military and that the two are pretty much on even ground. So far, Boeing has been content to sit back and let their monopoly on the jumbo jet market be carved up as billions of dollars of orders for A380's keep rolling in. Boeing has no plans at the present time to build a new plane to challenge the 380.

[thebiggestdog]

After months of talks, the Bush administration gave up trying to reach a settlement with the EU over the cash handouts Airbus is scheduled to receive to start development of a new plane to challenge Boeing's 787. Now, the WTO will have to decide if Airbus and Boeing are on a level playing field, of if Airbus's publicly funded subsidies are an unfair advantage.

[Zeppelin]

The very next thread after this one reports that Airbus is delaying orders up to 6 months, and pissing off clients.

http://www.freerepublic.com/focus/f-news/1414396/posts

I say let them throw as much money as they want at a failing enterprise. Socialism doesn't work. (double-meaning)

[CasearianDaoist]

One, military orders are not Subsidies, and tow, Airbus' parents get plenty of military contracts.

BAE get American military contracts. Does that mean that we are subsidising AIrbus? Well, if that is the case,in the interest ofree trade, we better cancel those contract right now.