KPLU Local News
(2010-09-14)
Listen Now:
null
AP Image
This past June, after 6 years of deliberation, the WTO issued a final ruling against Airbus. It deemed the launch aid and other government funding that is routinely granted to Airbus programs "massive" and "illegal" - and said billions of dollars should be withdrawn right away. Airbus appealed the decision - and filed a counter claim, alleging US subsidies to Boeing in the form of tax breaks and research aid are comparable. Analysts are skeptical. Loren Thompson with the Lexington Institute says he's poured through the hundreds of pages of claims and there's no comparison.
"You know I think that Boeing could probably drop all the subsidies it gets from all sources and not be materially hurt, because they're so minor, compared with its overall business model. In the case of Airbus, if it has to give up launch aid, it may very well not be able to field the next generation of commercial transports."
Airbus executives say they're hoping for a balanced discussion to end the dispute - but that that can only happen with two reports on the table.
Thompson says Airbus probably would not exist without the subsidies it has received since its inception in 1970. If enforced, he thinks the WTO findings could be translated into more aerospace jobs for Americans - but that will take a lot of political will. The market for large commercial aircraft is estimated to be worth more than $3 trillion over the next two decades.
© Copyright 2012, KPLU
