Europe and the USA maintained an uneasy truce after the 90-day window to negotiate an end to subsidies for Airbus and Boeing closed on 11 April without agreement. Both sides indicated a willingess to extend the standstill, and talks continued last week.
The US government said it was willing to continue talks to negotiate an end to subsidies, and would not take its case back to the World Trade Organisation unless Europe approves new launch aid for Airbus. The European Union said the two sides "should pause for further reflection", but warned: "This period should not drag on too long…As long as no action is taken, there is a window of opportunity for negotiating."
The EU stopped short of guaranteeing to postpone further launch aid for Airbus while talks continue, saying it was up to the member states to decide whether to offer the manufacturer further support.
Airbus says its application for €1.3 billion ($1.7 billion) in launch aid for the A350 remains "suspended", but on 12 April the French government caused a stir when it said Airbus's application for refundable loans was "being examined in accordance with the usual procedures".
GRAHAM WARWICK/WASHINGTON DC
Source: Flight International
