Dubai: Aircraft manufacturers Boeing and Airbus yesterday claimed victory against each other after the latest World Trade Organisation's (WTO) final ruling on airline subsidies.
Gulf airlines some of the biggest customers of their jets - might not be affected by this as it does not impact the production or supplies of aircraft to the region.
The WTO's final ruling states that billions of dollars in European launch aid subsidies used by Airbus to develop its commercial airplanes are illegal and must end. The decision, which the WTO made public yesterday, also declares that a broad array of government funding for Airbus research and infrastructure development violated international trade agreements.
"This is a landmark decision and sweeping legal victory over the launch aid subsidies that fuelled 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 US Trade Representative deserves tremendous credit for today's decision. We now join the US government in urging full compliance with the ruling," McNerney said.
Meanwhile, Airbus said, "The WTO panel report in the US case against the EU published today confirms Airbus's earlier predictions: 70 per cent of the US claims were rejected and wild allegations have been proven wrong. Neither jobs nor any profits were lost as a result of reimbursable loans to Airbus."
"These results are in line with the previous versions of the WTO panel's findings.
"Airbus, the EU and the member states are closely analysing the report in advance of a possible review by the WTO Appellate Body," said Rainer Ohler, Airbus Head of Public Affairs and Communications.
