pygmalion
Posts: 817
Joined: Thu Jun 29, 2006 12:47 am

WTO Subsidy Dispute Decision In Sept 2007?

Mon Jan 15, 2007 4:04 am

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
 
pygmalion
Posts: 817
Joined: Thu Jun 29, 2006 12:47 am

RE: WTO Subsidy Dispute Decision In Sept 2007?

Tue Jan 16, 2007 2:23 am

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.
 
Danny
Posts: 3714
Joined: Thu Apr 25, 2002 3:44 am

RE: WTO Subsidy Dispute Decision In Sept 2007?

Tue Jan 16, 2007 2:27 am

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.
 
pygmalion
Posts: 817
Joined: Thu Jun 29, 2006 12:47 am

RE: WTO Subsidy Dispute Decision In Sept 2007?

Tue Jan 16, 2007 2:40 am

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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