Airbus v Boeing – ref calls it a draw

On Wednesday of last week, two press releases arrived in the AERBT office, virtually simultaneously, from Airbus and Boeing, both claiming legal victories.  The only real winners were the aviation lawyers.

In two separate findings the World Trade Organisation (WTO), the referee, found firstly that the US defence budget could not be used as a vehicle to subsidise the civilian aerospace industry and Boeing must repay US$5.3bn of illegal subsidy.  Secondly, the WTO partly overturned an earlier ruling that European Governments' launch aid constituted unfair subsidy.  Part of the US$18bn in low interest loans received would have to be repaid eventually but no pressure was applied regarding a date.

Airbus Chief Executive, Tom Enders, said that Airbus could and would continue to partner with governments to build its aircraft.  "We now can and will continue this kind of partnership on future development programmes."  However, it is clear that low interest rates are from the past.  The WTO still has to rule on an appeal on a separate report earlier this year that found Boeing had benefited from at least US$5.3bn in US subsidies.

Concluding their 645-page report, WTO judges voiced some frustration that the dispute remains unresolved.  Costs are thought to be US$100m. www.airbus.com www.boeing.com/commercial

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