The World Trade Organization today ruled that billions of dollars of European launch aid subsidies provided to Airbus to develop its commercial aeroplanes are illegal.
The US first complained to the WTO six years ago that low or no interest loans provided to Airbus by governments including Spain’s, Germany’s and the UK’s since the 1970s for developing aircraft and for research flouted competition rules.
The WTO has upheld the complaint and has deemed that financing for Airbus’ current A380 development must now be restructured.
The European Commission has 60 days to appeal today’s decision but has not announced whether it will do so.
The EU has lodged a similar complaint with the WTO over US government subsidies provided to Boeing. A decision on that case is expected next month but Boeing CEO Jim McNerney declared today’s verdict “a landmark decision and sweeping legal victory”.
“The Office of the U.S. Trade Representative deserves tremendous credit for today’s decision. We now join the U.S. government in urging full compliance with the ruling and a permanent restoration of fair competition within our industry,” McNerney said.
“This is a landmark decision and sweeping legal victory over the launch aid subsidies that fueled the rise of Airbus and that continue to provide its products a major cost advantage,” said Boeing Chairman, President and Chief Executive Officer Jim McNerney. “The Office of the U.S. Trade Representative deserves tremendous credit for today’s decision. We now join the U.S. government in urging full compliance with the ruling and a permanent restoration of fair competition within our industry.”
