|Quoting N328KF (Reply 75):|
Have you not been reading the news the past year or so about subsidies to Airbus?
A strange comment to make, particularly in the context of investigations into dumping. I think it's abundantly clear to anyone who is interested that both Boeing and Airbus have their subsidies (and they both get them) under intense scrutiny. I don't believe for one moment that this is anything to do with allegations of dumping.
|Quoting N328KF (Reply 67):|
I was not saying that Airbus makes a practice of dumping (though some, above, did.) I was stating that Airbus in particular (though it applies to neither) would be allowed to go below a certain price point.
Anyhow, it is natural that the U.S. DoJ and the WTO would investigate any substantiated claims that Airbus (or any manufacturer) was selling their products below cost. I was not insinuating that it was occurring...merely making the point that there is only so far you can go in reducing your price.
Again, care is required. For a start, there are numerous definitions of "cost" depending, for example, on whether you include non-recurring overheads or not. Do you know what cost means, or indeed is, in these circumstances?
It is common practice in the industry for key orders to be placed at massive discounts by both Airbus and Boeing, and many examples have been cited in innumerable threads on here.
In some cases, it would not surprise me if "loss-leader" contracts were placed "below cost". Many industries "loss-lead".
However, dumping implies continuous and routine selling below cost due to ongoing and routine subsidies. I personally would be very skeptical of claims that either manufacturer does this, or is indeed under investigation on this basis.
Many have been reading the news this year, myself included. I'm happy to be convinced that Airbus are being investigated at the WTO over "Launch aid".
Being investigated at the WTO regarding "Launch aid" is a world away from being investigated for "dumping", though.
I've never read anything which implies this for Airbus (or Boeing), but I'm open to being educated.