Airbus to call for truce with Boeing
Sunday 19 September 2010
The European aircraft manufacturer Airbus is preparing a private approach to US rival Boeing to end their long-running trade feud, in an attempt to avoid emerging nations eating into their market.
The olive branch is being offered in the wake of a World Trade Organization (WTO) report last week that, despite being confidential, is understood to have decided that US subsidies paid to Boeing worth between $3bn and $5bn were illegal. Airbus, which is owned by pan-European aerospace group EADS, which queried $23.7bn of aid, took the case to the WTO through the EU.
The move was a counter to Boeing's own WTO case against Airbus, which concluded earlier this year that the group had also been given illegal EU subsidies.
Through various appeal processes, the cases could go on for years. The Boeing case has already been going on for nearly eight years.
Airbus wants to negotiate a peace agreement, believing the spat is counterproductive for both parties. However, Boeing sees the process as a matter of principle.
Airbus is concerned that emerging companies in Canada, China, Brazil and Russia are poised to take advantage of the fight and enter their markets with their own state-subsidised aircraft. Although the WTO decisions mean that sanctions can be used by governments against other states that subsidise aircraft manufacturers, these are rarely used in practice so as to avoid escalating tensions in diplomatic relations.
A source close to Airbus said: "We're willing to talk any time, any place. We can both discipline ourselves to have no state aid, but other countries, backed by state funds, can be non-compliant.
'There are many ways that we will contact Boeing about an offer to negotiate, through government officials or the companies themselves."
- 1 PlayStation and Xbox hacked by Lizard Squad
- 2 The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
- 4 Vagina canoe artist defends herself over ‘obscenity’ charges
- 5 The Queen’s speech 2014: Recap and Twitter reaction to Game of Thrones reference
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall set to push even more bargain-hunters online for sales
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...