New airliners are no longer being expected to expand fleets as the global recession has harmed airline travel a lot. Boosting the bottom line is something many aircraft producers are focused on right now which may mean the companies have to take large subsidies from the government. As outlined by Reuters, the storied American airline producer, Boeing, is in trouble with the World Trade Organization (WTO) for getting government subsidies to take advantage of the situation and contest with Airbus, the European competitor. The business received $20 billion in subsidies which are being challenged by the European Union.
The WTO has pointed at Boeing and Airbus
It is said that the World Trade Organization ruling against Boeing is confidential. It will not be released to the public until sometime in 2011. It is released to some of course. United States and European officials were able to view it. Boeing and Airbus have already appealed case findings of course. Reuters indicates that if first records of the WTO ruling are accurate, a negotiated settlement between Boeing and Airbus may occur, as the current state of relations in transatlantic aerospace travel is cold at best. Airbus was previously condemned in June 2010 for taking a sizable cash advance in the form of a government subsidy from the EU.
There are some research contracts and tax breaks going on
It is like we are playing with kids. One kid seems upset that one more kid is intending to do what he got in trouble for a few days ago. NASA and the Pentagon gave Boeing $17 billion in research contracts. Also, It got a sweet tax break in Washington State of $4 billion, says European sources. The WTO said that Boeing broke international trade laws. Despite the fact that it isn’t technically prohibited to get government aid, taking the contracts and tax breaks was wrong. Airbus was glad that it could get Boeing in trouble for what it was doing. Boeing thought that what is being done to them is rude. It thinks it wasn’t doing anything wrong with the contracts.
Wanting President Obama’s advice
The feud between Boeing and Airbus might only be solved with “negotiations at the highest political level,” as outlined by EU trade spokesman John Clancy who talked to Reuters. U.S. officials have claimed they will not come to the table until the EU no longer subsidizes the production of the Airbus A350. The U.S. thinks that what the World Trade Organization ruled against is the exact same thing the EU is doing. Boeing claims it has done nothing to harmed the transatlantic aerospace market. It does say, nevertheless, that Airbus with its EU practices isn’t following the exact same ideas.
Find more info on this subject
Airbus
airbus.com/
Boeing
boeing.com
Reuters
reuters.com/article/idUSTRE68E47T20100915
WTO and Boeing have had better days
youtube.com/watch?v=50fqfmWbXiY
