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WTO Ruling Exposes
Airbus Subsidies Gave Company Unfair Advantage By Steve Hall |
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April 1, 2011 - The World Trade Organization (WTO) final case ruling published on Thursday confirms the massive market advantage Airbus has enjoyed from billions in illegal government subsidies provided to fund the company's commercial airplane product line since its inception more than 40 years ago.
"This WTO ruling shatters the convenient myth that
European governments must illegally subsidize Airbus to
counter
"The ruling rejects 80 percent of the EU's claims
against the |
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This
ruling resulted from the European Union's attempt to counter a
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
Both sides
may appeal Wednesdays ruling. Once any appeal concludes, Boeing
will support whatever steps the |