If the Europeans thought that committing to launch aid for the Airbus A350 but not releasing the funds before 2007 would defuse the trade war with the USA over aircraft subsidies, then they were mistaken. “Launch aid for the A350 or any other Airbus aircraft is completely unacceptable,” says the US Trade Representative, vowing to push ahead with its World Trade Organisation case.
Approving the launch of the A350, Airbus shareholders EADS and BAE Systems said the French, German, Spanish and UK governments have provided binding letters of support for the A350, but would delay committing launch aid in 2006 as long as there is a “credible prospect” of negotiations and the USA shows “similar restraint” on support for Boeing. EADS said the decision provides a “new window of opportunity” for a negotiated settlement.
But the US Trade Representative says “the commitment of launch aid by any of the European Union member states is yet another step in the wrong direction. We take no comfort from any offer to postpone the actual payment of launch aid these countries have already promised to provide. The announcement of their commitment to back the A350 will affect Airbus’s financing regardless of when they formally write the cheque.”
The European Commission has expressed surprise at the US reaction to the decision by the European governments to delay committing launch aid to allow for possible negotiations. “If the USA and EU reached a negotiated settlement on the issue of support for large civil aircraft, European government funding would be adapted to comply with the terms of the agreement,” the EC says.
Arguing that Airbus is “absolutely flexible” on the support it would receive, the EC describes the US Trade Representative’s statement as surprising “given the continuing subsidies available to Boeing for the launch of the 787”. Boeing has expressed its support for the US position, saying the European actions “are nothing less than the Airbus partner governments committing launch aid to yet another subsidised aircraft, even though senior Airbus executives have repeatedly said their company has the funds to develop the A350 without launch aid.”
GRAHAM WARWICK/WASHINGTON DC
Source: Flight International
