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| US has 'strong case' against EU over Airbus |
| 2005-06-10 |
| The head of the US's largest and most powerful aerospace lobby group on Thursday warned that efforts in Congress to punish European companies as part of an acrimonious trade dispute over aircraft subsidies were gaining steam. He accused Airbus, whose commercial rivalry with Boeing is tied up in a transatlantic dispute over subsidies, of trying to launch its nascent A350 aircraft with improper government aid. Speaking in Paris, John Douglass, head of the Aerospace Industries Association of America, argued that the US had a strong case against the European Union, saying Boeing's government tax advantages were available to any aerospace company that does business in the US and therefore were not improper. "Airbus claims that it does not require state launch aid to develop the A350, that its balance sheet is strong enough given sales of both the A380 [superjumbo] and A350," said Mr Douglass. "If that is the case, then the only reason to seek European taxpayer launch aid is either to obtain an unfair comparative advantage or because Airbus's financial situation is not as favourable as they claim." Mr Douglass's remarks repeated many accusations made by other US government and industry officials in recent weeks. But the tough tone of the US chief lobbyist, just three days ahead of the Paris Air Show, contributed to an increasingly bitter mood heading into the industry's showcase event. The biennial air show, held in alternating years along with its sister event in Farnborough, England, is normally used to burnish the industry's image with the public, media and government customers. But the World Trade Organisation dispute, coupled with the fact that the world's two largest commercial aircraft companies - EADS, Airbus's parent, and Boeing - enter the air show without chief executives, has put a damper on festivities. Boeing has been without a permanent chief executive since March, when Harry Stonecipher - the hard-driving industry veteran put in charge to clean up after a series of Boeing procurement scandals - was forced out when the company discovered he was having an affair with a co-worker. EADS's board has twice been forced to postpone approving the company's co-CEOs - Frenchman Noel Forgeard, currently Airbus chief, and Thomas Enders, a German, head of EADS's defence business - because of infighting between the company's German and French shareholders over management structure. Despite assurances that board approval would come in time for the show, held in the Paris suburb of Le Bourget, no agreement is expected soon. Adding to the gloom, EADS officials said this week that the A350, which many in the industry expected to be formally launched at the show, would not get a formal unveiling until September at the earliest. Still, EADS executives said they expect to announce at least 100 commitments to purchase the A350 - Airbus's answer to Boeing's increasingly popular 787 Dreamliner - at the air show. look for this to get nasty quickly as the desperate French try every trick in the book to push Aerobus sales and slide EU subsidies by |
| Posted by:too true |
| #3 LOL! Yeah it'd be like an olde Group 7 BYOB matchup. For this distance Ima liking the Spirit of Missiouri. But a dark horse Lancer coming in low, from the north, and I mean really low, wings back, twisting and turning, with a good pilot, could he do it? HELL YES HE COULD DO IT! |
| Posted by: Shipman 2005-06-10 20:12 |
| #2 because of infighting between the company's German and French shareholders over management structure. Continueing the tradition of fighting over who gets more. And ed, I don't think we'd get the chance too destroy Toulon. Aerobus would do it for us, what with all the planes falling down after take-off. |
| Posted by: Charles 2005-06-10 12:01 |
| #1 How about an oldfashioned bomb-off? Boeing destroys Toulon and Airbus tries to attack Everett. |
| Posted by: ed 2005-06-10 11:25 |