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| Airbus A350, which the WTO ruled could not have been brought to fruition without the help of illegal EU subsidies. Photo: Airbus |
[Avionics Today 09-22-2016] A World Trade Organization (WTO) compliance panel ruled on Sept. 22 that the European Union (EU) has failed to comply with its obligation to remedy the subsidies European governments have provided to create and sustain aircraft manufacturer Airbus.
“Certain subsidies provided by the European Union and certain member state governments to Airbus … have caused serious prejudice to the interests of the United States. The principal subsidies covered by the ruling include financing arrangements (known as Launch Aid or Member State Financing [LA/MSF]) provided by France, Germany, Spain and the U.K. for the development of the A300, A310, A320, A330/A340, A330-200, A340-500/600, and A380 LCA projects,” the report reads.
The WTO launched the investigation as a result of complaints lodged by the U.S.
According to Boeing, rather than comply with their WTO obligations to remedy the $17 billion in past subsidies provided to Airbus, the WTO found that EU member states provided Airbus with new illegal launch aid, reportedly almost $5 billion, so they could launch the new A350.
“It is apparent that the A350 XWB could not have been launched and brought to market in the absence of LA/MSF,” the WTO said.
The U.S.-based airframer also believes that no model of the entire Airbus fleet would exist today — including the A300, A310, A320, A330, A340 and A380 — were it not for the illegal subsidies provided by the European governments.
A separate dispute brought by the European Union against the United States for subsidies allegedly provided to Boeing is currently before the WTO and is awaiting a ruling.