The Airbus A350 programme "will not be held hostage" over the World Trade Organisation (WTO) litigation between Europe and the United States, Airbus chief executive Noel Forgeard said at the show yesterday.

Forgeard

That said, the decision to put off the industrial launch of the long-range twin programme until September was a clear signal to the US that the European Union and Airbus sought a negotiated settlement in the transatlantic row over subsidies.

Momentum

"You will note that we now have strong momentum [in orders and commitments to buy the A350] and we could have launched now because we have the commercial base," said Forgeard.

"But the launch has been put off until September because we want to give the maximum amount of time to achieve a negotiated solution."

He called the US decision to take the issue to the WTO as "stupidity."

The EU has countered the move by taking Boeing to the WTO, alleging the US firm also benefits from market-distorting tax breaks and Japanese government aid to Japanese firms working on Boeing programmes

Forgeard said Boeing "pushed the US government to sue us at the WTO precisely at the moment when we were consolidating the launch" of the A350.

He said that Airbus did not "need" launch aid from European governments but insisted that if it gave it up, Boeing should also stop benefiting from non-market-based financial assistance.

"We want to give a chance for an amicable agreement. Airbus will try, EADS will try and the team led by [EU trade commissioner] Peter Mandelson will try," said Forgeard. "But it is out of the question that we will accept anything less than a level playing field."

Without progress on any negotiations, then the industrial launch of the A350 would go ahead in September. "We shall use the time to fine tune the industrial impact on the company."

He acknowledged that Boeing had been very successful in securing orders for its 787 aircraft. "I congratulate our competitor and I hope that our competitor enjoys this period because it is over now."

Turning to the A380, which has suffered delays of two to six months, Forgeard said that the problem centred partly on the weight reduction programme - resolved - and the complexity and scale of the cabin had resulted in wiring issues.

Market

On the market in general, Forgeard acknowledged that Boeing had taken a 58:42 lead in orders secured so far this year. He was not worried as Airbus's stated ambition was for half the market and he was happy within a 40-60% band.

"What drives us is the bottom line. We made a 12% operational profit in the first quarter of this year, which is twice as much as the opposition."

Forgeard also said that more orders would be announced during the show, including A380 orders.

Source: Flight Daily News