US And EU Subsidies

Wed Mar 15, 2000 3:03 pm

Just recently KQ purchased 2 737-700s and 3 767-400s. The cost of the 737-700 is approx. US$47.5 million and the cost of the 767-400 is approx US$126 million, giving you a total of US$475 million.

I didn't realise that KQ was such a profitable airline that they can afford to splurge US$½ billion on new equipment?

Which US government department is funding this sale/purchase? Ex-Im Bank?

Is this not a subsidy?

The US government goes on how wrong Europe is to support the Airbus consortium. I say to them, fix you own backyard first before throwing mud. Just ask the part of my family who are wheat farmers in Western Australia who have to try and survive with traditional markets, when the US is providing subsidies of 100% to American wheat farmers, but very much under the guise of aid.

Lately, there have been a lot of reports on the development of the A3XX. From the ones I have seen, I would say that some 85% are positive in feeling. Of the 15% that are negative, most of that is from the media in the Seattle area, and is full of the usual diatribe of the A3XX not needed (damn! why didn't we think of it), and also EU sanctions (at least our government doesn't advertise the fact they are subsidising our operations). Is Boeing this scared of Airbus that they now have the Seattle press in their pocket (what would one expect anyway when Seattle is a company town, somewhat).

I wait for the day that Tupolev, Ilyushin or Antonov make an aircraft which breaks through in the international market (not that there aren't any at the moment which would suit operations in the West).

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