This ruling resulted from the European Union's attempt to counter a U.S. case that successfully challenged illegal subsidies to Airbus. Last June, the WTO upheld approximately 80% of the U.S. claim, finding Airbus had received more than $20 billion in illegal government subsidies, which harmed the U.S. aerospace industry and resulted in the loss of billions in exports and tens of thousands of U.S. jobs.   

Illegal government subsidies to Airbus included $1.5 billion in R&D subsidies, $1.7 billion in infrastructure subsidies, $2.2 billion in equity infusions, and  $15 billion in launch aid (including $4 billion for the A380) ? a subsidy that is unique to Airbus and is the most pernicious and market-distorting subsidy under the law. 

"Comparing today's decision with the decision last June reveals a market distorted by Airbus' practices, with illegal launch aid being the key discriminator," Luttig said. "The WTO ruling on launch aid goes to the heart of the Airbus business model, which now must change. In contrast, there are no comparable findings or consequences to the U.S. or Boeing from today's decision, as the WTO has now fully and finally rejected most of the EU's claims." 

Both sides may appeal Wednesdays ruling. Once any appeal concludes, Boeing will support whatever steps the U.S. government deems necessary to fulfill its WTO obligations, and expects the same commitment to compliance from Airbus and its sponsor governments.