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WTO Subsidy Dispute Decision In Sept 2007?  
User currently offlinePygmalion From United States of America, joined Jun 2006, 966 posts, RR: 38
Posted (7 years 9 months 3 weeks 21 hours ago) and read 1274 times:

Bloomberg News has a new story about the ongoing dispute on subsidies.

Bloomberg Story- Airbus Subsidies Have Cut Boeing Profits, Cost Jobs, U.S. Says


Fair Use Excerpt-

Quote:
"The filing triggers a September deadline for a WTO panel to make a decision about aircraft subsidies. The WTO agreed in 2005 to investigate billions of dollars of development aid to Airbus and Chicago-based Boeing after the EU and U.S. claimed that each others' aid to the world's biggest commercial airplane makers is illegal."

I wonder what this will mean for the A350 and the B787 sale competitions

3 replies: All unread, jump to last
 
User currently offlinePygmalion From United States of America, joined Jun 2006, 966 posts, RR: 38
Reply 1, posted (7 years 9 months 2 weeks 6 days 22 hours ago) and read 1206 times:

If Airbus has to change funding for the A350XWB, will that force them to either change pricing or slide out the schedule to allow it to be funded from cash flow? All the Boeing "Subsidies" are tax cuts and credits against profit at delivery and so only affect future profits not current cash flow or developement funding. I think a ruling against each would hit Airbus much harder.

User currently offlineDanny From Poland, joined Apr 2002, 3514 posts, RR: 3
Reply 2, posted (7 years 9 months 2 weeks 6 days 22 hours ago) and read 1204 times:

Quoting Pygmalion (Reply 1):
If Airbus has to change funding for the A350XWB, will that force them to either change pricing or slide out the schedule to allow it to be funded from cash flow? All the Boeing "Subsidies" are tax cuts and credits against profit at delivery and so only affect future profits not current cash flow or developement funding. I think a ruling against each would hit Airbus much harder.

WTO cannot force anyone to do anything. Americans always ignore rullings that go against them so why would other sides bother?

Basically this verdict will have only prestigious meaning.


User currently offlinePygmalion From United States of America, joined Jun 2006, 966 posts, RR: 38
Reply 3, posted (7 years 9 months 2 weeks 6 days 22 hours ago) and read 1192 times:

Applying a tariff to any Airbus aircraft delivered in the US might pinch the Airbus wallet a bit don't you think? All those A320 aircraft out there waiting to goto US Air etc. You dont think that will mean anything?

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